|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
353807-M
|
|
COMPANY NAME
|
:
|
FELDA MARKETING SERVICES SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
03/08/1995
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
BALAI FELDA, JALAN GURNEY 1, 5TH FLOOR, 54000 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
BALAI FELDA, 5TH FLOOR, JALAN GURNEY SATU, 54000 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
TEL.NO.
|
:
|
03-26935888
|
|
FAX.NO.
|
:
|
03-26935888
|
|
WEB SITE
|
:
|
www.felda.net.my
|
|
CONTACT PERSON
|
:
|
ZUBIR HJ ABDUL AZIZ ( CEO )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51212
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF PALM OIL PRODUCTS
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR 17,000,000.00
DIVIDED INTO
ORDINARY SHARES 3 CASH AND 16,999,997 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 54,451,833 [2006]
|
|
NET WORTH
|
:
|
MYR 120,543,561 [2006]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
58 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STABLE
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
HISTORY
/ BACKGROUND
The SC is a private limited company and is allowed to have a minimum of one
and a maximum of forty-nine shareholders. As a private limited company, the SC
must have at least two directors. A private limited company is a separate
legal entity from its shareholders. As a separate legal entity, the SC is
capable of owning assets, entering into contracts, sue or be sued by other
companies. The liabilities of the shareholders are to the extent of the
equity they have taken up and the creditors cannot claim on shareholders'
personal assets even if the SC is insolvent. The SC is governed by the
Companies Act, 1965 and the company must file its annual returns, together
with its financial statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) trading of palm oil
products.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
The SC is not qualified to be one of the Top Corporate Performers in the Malaysia 1000
(M1000) publication, a directory jointly published by Companies Commission of
Malaysia (The Registrar Office), Minister of Domestic Trade and Consumer
Affairs and our publication arm, BASIS Publications House Sdn Bhd.
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
FELDA PALM
INDUSTRIES SDN BHD
|
BALAI FELDA, JALAN GURNEY 1, 4TH & 5TH FLOOR, 54000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
359584
|
8,670,000.00
|
|
KOPERASI
PERMODALAN FELDA BHD
|
|
|
8,330,000.00
|
|
|
|
|
---------------
|
|
|
|
|
17,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. SUHAIMI BIN ZAINUDDIN
|
|
Address
|
:
|
21, JALAN 15, TAMAN GOMBAK, 68100 BATU
CAVES, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
4725234
|
|
New IC No
|
:
|
540621-08-5041
|
|
Date of Birth
|
:
|
21/06/1954
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
03/01/2007
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. SARCHU BIN SAWAL
|
|
Address
|
:
|
26, JALAN G2,
TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
1895377
|
|
New IC No
|
:
|
490129-01-5495
|
|
Date of Birth
|
:
|
29/01/1949
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
03/01/2007
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. MEGAT DZIAUDDIN BIN MEGAT MAHMUD
|
|
Address
|
:
|
64, LENGKOK ZAABA, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
IC / PP No
|
:
|
1697459
|
|
New IC No
|
:
|
460203-08-5057
|
|
Date of Birth
|
:
|
03/02/1946
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
01/02/2006
|
|
Qualification
|
:
|
HE IS AN ECONOMICS GRADUATE OF THE QUEENS UNIVERSITY OF BELFAST
|
|
Working Experience
|
:
|
HE IS ALSO A BOARD MEMBER OF SEVERAL OF THE GROUP SUBSIDIARIES HE
HAD PREVIOUSLY SERVED AS A TREASURY ACCOUNTANT IN THE ACCOUNTANT GENERAL'S
DEPARTMENT, FINANCE MANAGER WITH THE BANK SIMPANAN NASIONAL & GENERAL
MANAGER INVESTMENT WITH ARAB-MALAYSIAN MERCHANT BANK BHD
|
|
Other Info
|
:
|
HE FELLOW OF
THE INSTITUTE OF CHARTERED ACCOUNTANTS IN IRELAND & A REGISTERED
ACCOUNTANT WITH THE MALAYSIAN INSTITUTE OF ACCOUNTANTS
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. PHILIP S/O K O KUNJAPPY
|
|
Address
|
:
|
UNIT 56-1, SERI DUTA, CONDOMINIUM 1, JALAN GALLAGHER, TAMAN DUTA,
50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
8292174
|
|
New IC No
|
:
|
570510-05-5613
|
|
Date of Birth
|
:
|
10/05/1957
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN INDIAN
|
|
Date of Appointment
|
:
|
01/02/2006
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MR. RAMLI BIN PUTIH
|
|
Address
|
:
|
A43 KAMPUNG TUNKU PUTRA, KELANG LAMA, 09000 KULIM, KEDAH, MALAYSIA.
|
|
IC / PP No
|
:
|
4569212
|
|
New IC No
|
:
|
530916-02-5231
|
|
Date of Birth
|
:
|
16/09/1953
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
01/02/2006
|
DIRECTOR 6
|
Name Of Subject
|
:
|
DATO' KHAMIS BIN MOHAMED SOM
|
|
Address
|
:
|
7262 TAMAN SERI SETIA, 53100 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
2239715
|
|
New IC No
|
:
|
490524-01-5313
|
|
Date of Birth
|
:
|
24/05/1949
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
14/12/1995
|
DIRECTOR 7
|
Name Of Subject
|
:
|
MR. MOHD BAKKE BIN SALLEH
|
|
Address
|
:
|
33 CHANGKAT DATUK SULAIMAN, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
4630804
|
|
New IC No
|
:
|
540713-10-5919
|
|
Date of Birth
|
:
|
13/07/1954
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
05/12/2005
|
DIRECTOR 8
|
Name Of Subject
|
:
|
MR. R SHARIFUDDIN HIZAN BIN R ZAINAL ABIDIN
|
|
Address
|
:
|
7 LORONG 7A, TAMAN SRI UKAY, 68000 AMPANG, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
1697749
|
|
New IC No
|
:
|
460121-08-5395
|
|
Date of Birth
|
:
|
21/01/1946
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
02/01/2008
|
|
Working Experience
|
:
|
PENGARAH URUSAN KHIDMAT PERBADANAN KHIDMAT KORPORAT
|
|
Other Info
|
:
|
JOHAN SETIA MAHKOTA (J.S.M.)
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
ZUBIR HJ ABDUL AZIZ
|
|
|
Position
|
:
|
CEO
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
SITI AISHAH ABD RAHMAN
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
MOHD IDRIS ISMAIL
|
|
|
Position
|
:
|
GENERAL MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
PRICEWATERHOUSECOOPERS
|
|
Auditor' Address
|
:
|
1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, P O BOX 10192, LEVEL
15, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
1)
|
Company Secretary
|
:
|
MS. ABDUL AZIZ @ MAZATUL AISHAH BTE AZIZ
|
|
|
IC / PP No
|
:
|
A1757901
|
|
|
New IC No
|
:
|
701207-05-5108
|
|
|
Address
|
:
|
14, LORONG AU3/12C, TAMAN KERAMAT, 53200 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. CHONG SWEE YOON
|
|
|
IC / PP No
|
:
|
6822933
|
|
|
New IC No
|
:
|
620902-01-5488
|
|
|
Address
|
:
|
UNIT 06-01, PRIMA RIA APRTMENT, 14 JALAN 1/38B, SEGAMBUT TENGAH, 51200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
|
No encumbrance was found in our databank at the time of investigation.
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia
back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our databank.
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Overseas
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Export Market
|
:
|
EGYPT, JORDAN, KUWAIT, SAUDI ARABIA,
PAKISTAN, INDIA, UNITED STATES, EUROPE, JAPAN, KOREA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
FOOD MANUFACTURERS,COSMETIC INDUSTRY,AGENTS
|
|
Goods Traded
|
:
|
|
|
|
|
|
|
Award
|
:
|
|
1 ) MS ISO 9001 : 2000 Year :2003
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
AMBROSIA SDN BHD
|
|
CARGILL SPECIALTY OILS & FATS SDN BHD
|
|
FELDA VEGETABLE OIL PRODUCTS SDN BHD
|
|
MITSHUBISHI CORPORATION
|
|
SHARIKAT KERATONG SDN BHD
|
|
|
|
|
|
|
Ownership of
premises
|
:
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
2007
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY
|
58
|
60
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of palm oil
products.
The SC acts as the marketing arm of the Felda Group for the sales of palm
products and trades in physicals and paper futures.
The SC offers a wide range of products includes as follows:
* Crude Palm Oil
* Crude Palm Olein
* RBD Palm Oil
* RBD Palm Olein
* RBD Palm Stearin
* Palm Fatty Acid Distillate
* Crude Palm Kernel Oil
* RBD Palm Kernel Oil
* Palm Kernels
* Palm Kernels Expeller
We were informed that the SC has a Regional Sales Office based in London, United
Kingdom.
PROJECTS
No projects found in our databank
RECENT
DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)database, but
no latest development was noted in our investigation.
CURRENT
INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-26935888
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
BALAI FELDA, 5TH FLOOR, JLN GURNEY 1, 54000 KUALA LUMPUR, WILAYAH PERSEKUTUAN.
|
|
Current Address
|
:
|
BALAI FELDA, 5TH FLOOR, JALAN GURNEY SATU, 54000 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with Mr Ghazali from the SC's Human Resource
Department. She revealed some information pertaining to the
FINANCIAL
COMMENTS
The financial
summary of the SC in Year 2006 showed that it was financially STABLE. The SC
has striven to achieve a favourable turnover and profitability.The SC has
generated an acceptable return on its shareholders' funds, indicating that the
SC was efficient in utilising its shareholders' funds to generate adequate
returns. The SC was in good liquidity position with its current liabilities
well covered by its current assets. With its current net assets, the SC
should be able to repay its short term obligations. A low liabilities ratio
has minimised the SC's financial risk.
Overall financial condition of the SC : STABLE
ECONOMIC
/ INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2004
|
2005
|
2006
|
2007*
|
2008**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
25.58
|
26.13
|
26.64
|
27.17
|
27.73
|
|
Gross Domestic Products ( % )
|
7.1
|
5.3
|
5.8
|
6.3
|
5.7
|
|
Domestic Demand ( % )
|
7.5
|
7.3
|
7.0
|
9.0
|
6.1
|
|
Private Expenditure ( % )
|
13.1
|
9.5
|
7.0
|
8.6
|
6.6
|
|
Consumption ( % )
|
10.5
|
9.2
|
7.1
|
9.0
|
6.8
|
|
Investment ( % )
|
25.8
|
8.5
|
7.0
|
7.1
|
6.2
|
|
Public Expenditure ( % )
|
<2.1>
|
3.6
|
6.8
|
10.1
|
4.7
|
|
Consumption ( % )
|
6.0
|
5.4
|
5.0
|
10.8
|
5.7
|
|
Investment ( % )
|
<8.7>
|
1.9
|
8.9
|
9.3
|
3.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
80,663
|
99,760
|
108,192
|
100,340
|
115,563
|
|
Government Finance ( MYR Million )
|
<19,419>
|
<18,684>
|
<19,109>
|
<19,948>
|
<34,462>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<4.3>
|
<3.8>
|
<3.3>
|
<3.2>
|
<4.8>
|
|
Inflation ( % Change in Composite CPI)
|
1.4
|
3.1
|
3.9
|
2.0
|
4.4
|
|
Unemployment Rate
|
3.5
|
3.5
|
3.4
|
3.2
|
3.3
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
254
|
266
|
290
|
336
|
388
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
13.84
|
5.13
|
4.21
|
3.04
|
1.91
|
|
Average 3 Months of Non-performing Loans ( % )
|
8.46
|
13.63
|
12.91
|
13.30
|
13.24
|
|
Average Base Lending Rate ( % )
|
5.99
|
6.00
|
6.61
|
6.72
|
6.72
|
|
Business Loans Disbursed( % )
|
10.5
|
8.7
|
<2.5>
|
9.1
|
-
|
|
Foreign Investment ( MYR Million )
|
13,143.9
|
17,882.9
|
20,228.0
|
33,426.0
|
23,261.4
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
38,580
|
37,474
|
38,293
|
43,337
|
-
|
|
Registration of New Companies ( % )
|
6.8
|
<2.9>
|
2.2
|
13.2
|
-
|
|
Liquidation of Companies ( No. )
|
3,334
|
3,069
|
8,647
|
22,629
|
-
|
|
Liquidation of Companies ( % )
|
<15.8>
|
<7.9>
|
181.8
|
161.5
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
189,206
|
193,095
|
216,147
|
227,410
|
-
|
|
Registration of New Business ( % )
|
4.6
|
2.1
|
11.9
|
5.2
|
-
|
|
Business Dissolved ( No. )
|
51,301
|
73,355
|
52,879
|
20,431
|
-
|
|
Business Dissolved ( % )
|
7.0
|
43.0
|
<27.9>
|
<61.4>
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
380.6
|
400.8
|
446.2
|
442.9
|
-
|
|
Cellular Phone Subscribers ( Million )
|
14.6
|
18.5
|
19.5
|
23.3
|
25.1
|
|
Tourist Arrival ( Million Persons )
|
15.7
|
16.7
|
17.5
|
20.9
|
21.5
|
|
Hotel Occupancy Rate ( % )
|
60.8
|
63.6
|
64.8
|
70.0
|
68.0
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
19.3
|
13.9
|
15.4
|
20.1
|
-
|
|
Bad Cheque Offenders (No.)
|
70,465
|
57,316
|
36,555
|
30,004
|
-
|
|
Individual Bankruptcy ( No.)
|
16,251
|
15,868
|
13,596
|
13,238
|
-
|
|
Individual Bankruptcy ( % )
|
31.6
|
<2.4>
|
<14.3>
|
<2.6>
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2004
|
2005
|
2006
|
2007*
|
2008**
|
|
|
|
|
|
|
|
|
Agriculture
|
5.0
|
2.5
|
5.3
|
3.1
|
3.6
|
|
Palm Oil
|
3.9
|
7.1
|
5.8
|
<0.6>
|
7.0
|
|
Rubber
|
16.5
|
<2.9>
|
12.6
|
1.0
|
<1.1>
|
|
Forestry & Logging
|
4.3
|
2.0
|
<0.4>
|
2.8
|
<1.5>
|
|
Fishing
|
5.5
|
<0.4>
|
9.3
|
5.2
|
4.0
|
|
Other Agriculture
|
2.4
|
3.2
|
5.3
|
7.0
|
5.9
|
|
Industry Non-Performing Loans ( MYR Million )
|
620.3
|
563.7
|
516.5
|
487.3
|
393
|
|
% of Industry Non-Performing Loans
|
1.38
|
1.19
|
1.06
|
1.08
|
0
|
|
|
|
|
|
|
|
|
Mining
|
3.9
|
0.8
|
<0.4>
|
3.3
|
2.8
|
|
Oil & Gas
|
4.5
|
1.6
|
4.6
|
2.2
|
12.7
|
|
Other Mining
|
<8.0>
|
<1.0>
|
5.1
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
62.6
|
68.8
|
55.4
|
42.2
|
36.0
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
9.8
|
5.1
|
7.3
|
3.1
|
4.7
|
|
Exported-oriented Industries
|
15.5
|
3.0
|
11.1
|
<1.9>
|
2.7
|
|
Electrical & Electronics
|
17.8
|
3.6
|
13.4
|
3.0
|
2.4
|
|
Rubber Products
|
14.8
|
2.4
|
0.4
|
8.0
|
4.2
|
|
Wood Products
|
12.7
|
0.9
|
0.7
|
3.3
|
<6.0>
|
|
Textiles & Apparel
|
<11.7>
|
<4.4>
|
12.6
|
<10.1>
|
1.9
|
|
Domestic-oriented Industries
|
9.7
|
6.9
|
5.0
|
5.3
|
9.9
|
|
Food, Beverages & Tobacco
|
3.8
|
7.7
|
4.8
|
5.6
|
9.5
|
|
Chemical & Chemical Products
|
14.6
|
6.9
|
1.7
|
9.2
|
1.4
|
|
Plastic Products
|
13.5
|
18.6
|
21.3
|
<3.6>
|
6.5
|
|
Iron & Steel
|
2.7
|
<6.7>
|
<6.9>
|
17.5
|
16.8
|
|
Fabricated Metal Products
|
29.2
|
<7.5>
|
20.0
|
26.2
|
14.7
|
|
Non-metallic Mineral
|
<4.8>
|
<6.0>
|
<1.9>
|
6.6
|
8.3
|
|
Transport Equipment
|
8.6
|
10.4
|
5.3
|
<19.0>
|
27.1
|
|
Paper & Paper Products
|
2.3
|
4.6
|
4.1
|
14.9
|
8.6
|
|
Crude Oil Refineries
|
<2.4>
|
8.2
|
12.1
|
8.6
|
7.8
|
|
Industry Non-Performing Loans ( MYR Million )
|
7,765.4
|
6,035.6
|
6,181.3
|
6,366.2
|
5,729.4
|
|
% of Industry Non-Performing Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
<1.5>
|
<1.6>
|
<0.5>
|
4.6
|
4.0
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,547.7
|
5,172.7
|
5,527.3
|
5,116.7
|
4,149.8
|
|
% of Industry Non-Performing Loans
|
12.4
|
10.9
|
11.4
|
11.3
|
-
|
|
|
|
|
|
|
|
|
Services
|
6.8
|
6.6
|
7.2
|
9.7
|
7.7
|
|
Electric, Gas & Water
|
8.1
|
5.5
|
5.2
|
4.6
|
5.0
|
|
Transport, Storage & Communication
|
8.5
|
6.3
|
5.2
|
7.6
|
7.8
|
|
Wholesale, Retail, Hotel & Restaurant
|
7.1
|
8.0
|
7.1
|
11.6
|
10.0
|
|
Finance, Insurance & Real Estate
|
6.3
|
7.0
|
7.7
|
10.7
|
9.2
|
|
Government Services
|
6.5
|
7.6
|
9.8
|
4.6
|
8.6
|
|
Other Services
|
4.9
|
5.0
|
4.7
|
5.0
|
5.9
|
|
Industry Non-Performing Loans ( MYR Million )
|
8,913.7
|
8,716.8
|
11,593.2
|
10,207.8
|
8,281.4
|
|
% of Industry Non-Performing Loans
|
19.9
|
18.4
|
23.9
|
22.6
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
51212 : Wholesale of palm oil
|
|
|
|
|
INDUSTRY :
|
PALM OIL
|
|
|
|
|
In July 2008, Malaysia's
Crude Palm Oil (CPO) production rose by 6.2% month-on-month (mom) to
1.56million tonnes, while exports rose by 25.2% mom to 1.4million tonnes.
Despite the rise in the production, stock levels fell from 2.03million
tonnes to 1.97million tonnes in July, as a result of the increase in
exports. The main mom rise in exports came from Bangladesh,
China, India, Jordan,
|
|
Europe, Singapore,
Turkey and United Arab Emirates.
However, this was offset by a drop in exports to Iran,
Pakistan and United States.
|
|
On a year-on-year (yoy) basis, CPO production for the year-to-date (YTD)
rose by 21.5%, due to a rise in matured hectarage, while exports rose
16.4%. The main rise in exports was to China,
Bangladesh, India, Japan,
Pakistan, Turkey, United
States, United Arab
Emirates and Ukraine. On the other hand, this
was slightly offset by a decline to Europe, Vietnam,
Iran and Egypt.
|
|
Going forward, the production is expected to pick up speed in the coming
peak production months, while exports would also rise, heading towards the
festive seasons. Besides, the stock levels are expected to remain at close
to the 2million tonne mark in the medium term.
|
|
Nonetheless, the industry is facing inherent risks which include a
convincing reversal in crude oil price trend resulting in reversal of CPO and
other vegetable oil price trend, weather abnormalities resulting in excess
or shortage of vegetable oil. Aside by that, other risks such as increased
emphasis on implementation global biofuel mandates and trans-fat policies,
a quick global economic recovery, resulting in higher than expected demand
for vegetable oils have to be taken into consideration.
|
|
In support of the falling CPO prices, the Plantation Industry Minister has
recently discussed about the issue of using palm oil surpluses to produce
biodiesel. At present, the production of biodiesel is feasible at the
current levels, which would obviously attract renewed demand for vegetable
oils from biodiesel producers. Hence, it helps to support prices at above
RM2,000/tonne in the longer term. However, due to the volatility of both
crude oil and CPO prices, Malaysian government may not officially implement
a mandated biodiesel policy until the direction of the prices is clearer.
|
|
Despite the significant drop in all vegetable oil prices over the last few
weeks, which has seen soya oil prices coming off from highs recorded in
beg-July by 14.5% to current level, rapeseed oil prices by 13.9% and CPO
prices by a larger 20.4%, CPO continues to trade at a relatively wide
discount to soya oil and rapeseed oil. Hence, this could potentially result
in large declines in soya oil and rapeseed oil prices against CPO in the
near term.
|
|
CPO prices assumed to be RM3,300/tonne for 2008, RM2,900/tonne for 2009 and
RM2,700/tonne for 2010. Crude oil prices are expected to remain a volatile
trigger, while demand uncertainties could also persist for the rest of 2008
and 2009. Post-2009 and into 2010, CPO prices are expected to trade lower
due to the more fundamental reason of a rise in CPO supply coming from Indonesia,
additional plantation land starts coming into maturity.
|
|
However, CPO prices would be limited to RM2,500/tonne in the medium term
and RM2,000/tonne in the long term due to the downside risk. These downside
limits would be held up until and unless global biofuel policies are
completely scrapped, resulting in a reversal in the structural change in
the industry in the past five years. If CPO and other vegetable oil prices
continue on a downward trend, it would become more attractive to the
biofuel sector, which would shore up demand, keeping prices above the
RM2,000/tonne mark in the long term.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS
|
Established in 1995, the SC is principally engaged in the trading of palm
oil products such as crude palm olein, palm kernel fatty acid, crude palm
kernel oil and etc. With its long presence in the industry coupled with its
vast experiences in the business, the SC should have built up a certain
goodwill with its client over times. With RM17 million in issued and paid
up capital and strong backing from its shareholders, the SC has the
potential of capturing a higher market shares as it is competing aggressively
in the market. These favourable conditions has minimised its risk in the
industry compared to other players.
|
|
Our investigation revealed that the SC serves both local and overseas
clients. Penetrating into the overseas countries such as Egypt, Jordan,
Kuwait, Saudi Arabia
and etc has well diversified its business risk and at the same time added
strength to its capabilities in capturing higher market shares. At present,
the workforce of the SC is 58 and the SC's business activities are headed
by its CEO, Zubir Hj Abdul Aziz. Overall management capability of the SC is
good. We also noted that the SC has been accredited MS ISO 9001. This award
has enabled the SC to compete better than other rivals in the same field.
|
|
Based on the latest financial year, the SC posted pre-tax profit of RM26.95
million on the backed of RM54.45 million in its turnover. Return on
shareholders' funds of the SC was at an acceptable range which indicated
that the management was efficient in utilising its funds to generate income.
Good cash flow management has enabled the SC to meet its short term
obligations as and when they fall due. Beside this, the SC posted a low
liability ratio indicating that the SC faces low financial risk. Given a
healthy net worth standing at RM120.54 million the SC should be able to
maintain its business in the near terms. The SC had a stable financial
standing in year 2006.
|
|
All of the SC's supplies are sourced from local suppliers. Its long
presence in the market has enabled the SC to bargain with its suppliers for
lower prices and higher quality products.
|
|
The SC is clear of litigation.
|
|
The prospect of palm oil industry is getting brighter due to the
encouraging local and global demands. This steady growth in the industry will
further enhance the industry activities and we believe there will be more
business opportunities available for the SC.
|
|
In view of the above favourable condition, we recommend a large amount
credit be proceeded to the SC with favourable term.
|
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA
ACCOUNTING STANDARD.
|
|
|
|
PROFIT AND LOSS ACCOUNT
|
|
FELDA MARKETING SERVICES SDN BHD
|
|
31-December-2006
|
|
Consolidated Accounts
|
:
|
NO
|
|
UnQualified Reports
|
:
|
YES
|
|
|
|
|
RM
|
|
Turnover
|
54,451,833.00
|
|
Operating Revenue
|
0.00
|
|
|
---------------------
|
|
Profit/(Loss) Before Tax
|
26,950,882.00
|
|
|
---------------------
|
|
|
|
Profit/(Loss) After Tax
|
25,852,873.00
|
|
Extraordinary Item
|
0.00
|
|
Minority Interest
|
0.00
|
|
|
---------------------
|
|
Profit/(Loss) Attributable to Shareholders
|
25,852,873.00
|
|
|
---------------------
|
|
|
|
Prior Period Adjustment
|
0.00
|
|
Net Dividend
|
2,448,000.00
|
|
Transferred To/From Reserved
|
0.00
|
|
Others
|
0.00
|
|
|
---------------------
|
|
Unappropriated Profit/(Loss) Brought Forward
|
54,659,100.00
|
|
|
---------------------
|
|
Unappropriated Profit/(Loss) Carried Forward
|
78,063,973.00
|
|
|
================
|
|
|
|
BALANCE SHEET
|
|
FELDA MARKETING SERVICES SDN BHD
|
|
31-December-2006
|
|
Consolidated Accounts
|
:
|
NO
|
|
UnQualified Reports
|
:
|
YES
|
|
|
|
|
RM
|
|
Fixed Assets
|
1,128,413.00
|
|
Total Investment
|
15,042,228.00
|
|
Amount Owing By
|
0.00
|
|
Current Assets
|
111,728,448.00
|
|
Intangible Assets
|
0.00
|
|
Other Assets
|
1,341,884.00
|
|
|
---------------------
|
|
Total Assets
|
129,240,973.00
|
|
|
================
|
|
|
|
|
Working Capital
|
103,031,036.00
|
|
|
|
|
Issued Capital
|
17,000,000.00
|
|
Paid Up Capital
|
17,000,000.00
|
|
Share Premium & Reserved
|
25,479,588.00
|
|
Unappropriated Profit/(Loss)
|
78,063,973.00
|
|
|
---------------------
|
|
Shareholder's Fund/Equity
|
120,543,561.00
|
|
|
---------------------
|
|
|
|
Current Liabilities
|
8,697,412.00
|
|
Amount Owing To
|
0.00
|
|
Long-term and Deferred Liabilities
|
0.00
|
|
Share Application Account
|
0.00
|
|
Minority Interest
|
0.00
|
|
|
---------------------
|
|
Total Equity Liability
|
129,240,973.00
|
|
|
================
|
|
|
|
|
Contingent Liabilities
|
0.00
|
|
