* Adopted abbreviations : SC
- Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
88183-K
|
|
COMPANY NAME
|
:
|
TIOXIDE (MALAYSIA)
SDN BHD
|
|
FORMER NAME
|
:
|
TAPL (MALAYSIA)
SDN BHD (18/07/1989)
|
|
INCORPORATION DATE
|
:
|
04/08/1982
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA,
LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
KAWASAN PERINDUSTRIAN
TELUK KALUNG, P O BOX
29, 24007 KEMAMAN, TERENGGANU,
MALAYSIA.
|
|
TEL.NO.
|
:
|
09-8628688
|
|
FAX.NO.
|
:
|
09-8631988
|
|
WEB SITE
|
:
|
www.huntsman.com
|
|
CONTACT PERSON
|
:
|
MIZANUR RAHMAN GHANI ( CHAIRMAN )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
24290
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING OF TITANIUM DIOXIDE
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
55,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 45,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID
UP CAPITAL
|
:
|
MYR
13,125,000.00 DIVIDED INTO
ORDINARY SHARES 5,125,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 8,000,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 664,607,000 [2008]
|
|
NET WORTH
|
:
|
MYR 340,150,000 [2008]
|
|
M1000 OVERALL RANKING
|
:
|
407[2008]
|
|
M1000 INDUSTRY RANKING
|
:
|
24[2008]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
325 [2010]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD886,080
|
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) manufacturing of titanium
dioxide.
The SC is not listed on Bursa Malaysia
(Malaysia Stock Exchange).
|
According to the Malaysia
1000 publication, the SC's ranking are as follows:
|
|
|
|
|
|
|
YEAR
|
2008
|
2005
|
2004
|
|
|
OVERALL RANKING
|
407
|
293
|
276
|
|
|
INDUSTRY RANKING
|
24
|
12
|
5
|
|
The immediate holding company of the SC is
HUNTSMAN INVESTMENTS (NETHERLANDS) B.V., a company incorporated in NETHERLANDS.
The ultimate holding company of the SC is HUNTSMAN INTERNATIONAL,LLC, a
company incorporated in UNITED STATES.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
HUNTSMAN INVESTMENTS (NETHERLANDS) BV
|
MERSEYWEG 10,
3179 KG BOTLEK ROTTERDAM,
NETHERLANDS.
|
|
13,125,000.00
|
|
|
|
|
---------------
|
|
|
|
|
13,125,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. PETER RILEY HUNTSMAN
|
|
Address
|
:
|
1399, DEVONSHIRE DR
SALT LAKE CITY, UTAH
84108, UNITED
STATES.
|
|
IC / PP No
|
:
|
P701739401
|
|
|
|
|
|
Nationality
|
:
|
AMERICAN
|
|
Date of Appointment
|
:
|
28/06/1999
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. LAWRENCE RUSSELL HEALY
|
|
Address
|
:
|
167, WEST 1475 NORTH CENTERVILLE, UTAH 64014, UNITED
STATES.
|
|
IC / PP No
|
:
|
P055145582
|
|
|
|
|
|
Nationality
|
:
|
AMERICAN
|
|
Date of Appointment
|
:
|
28/06/1999
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
DATO' HJ MIZANUR RAHMAN BIN S M ABDUL GHANI
|
|
Address
|
:
|
8, JALAN BEKA, BUKIT DAMANSARA, 50490 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
IC / PP No
|
:
|
0663753
|
|
New IC No
|
:
|
451201-10-5291
|
|
Date of Birth
|
:
|
01/12/1945
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
28/07/1989
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. V. VISAGARAN A/L E. VISVALINGAM
|
|
Address
|
:
|
A6250, LORONG TOK SIRA 46, 25050 KUANTAN, PAHANG, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
640718-04-5001
|
|
Date of Birth
|
:
|
18/07/1964
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN INDIAN
|
|
Date of Appointment
|
:
|
30/03/2010
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MR. AZIZ ZABIDI BIN ABDUL KADIR
|
|
Address
|
:
|
12, LORONG SELAMAT 27, JALAN PANTAI SELAMAT, 25050 KUANTAN, PAHANG, MALAYSIA.
|
|
IC / PP No
|
:
|
5738641
|
|
New IC No
|
:
|
600102-11-5079
|
|
Date of Birth
|
:
|
02/01/1960
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
05/03/2009
|
|
|
|
|
DIRECTOR 6
|
Name Of Subject
|
:
|
MR. DARYL KENNETH WOOD
|
|
Address
|
:
|
APARTMENT 43-3-2, VILLA MUTIARA, 43, JALAN MEDANG TANDUK, BUKIT BANDARAYA,
59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
E1027324
|
|
|
|
|
|
Nationality
|
:
|
AMERICAN
|
|
Date of Appointment
|
:
|
15/02/2006
|
|
Remark
|
:
|
OLD PP: E3083083
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
MIZANUR RAHMAN GHANI
|
|
|
Position
|
:
|
CHAIRMAN
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
UBAIDILLAH HASSAN
|
|
|
Position
|
:
|
FINANCIAL CONTROLLER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
ALEX LEE
|
|
|
Position
|
:
|
MARKETING MANAGER
|
|
|
|
|
|
|
4)
|
Name of Subject
|
:
|
AZHAR AZIZ
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
|
5)
|
Name of Subject
|
:
|
ZAMANI AHMAD
|
|
|
Position
|
:
|
PRODUCTION MANAGER
|
|
|
|
|
|
|
6)
|
Name of Subject
|
:
|
VISAGARAN VISVALINGAM
|
|
|
Position
|
:
|
SITE DIRECTOR
|
|
|
|
|
|
|
7)
|
Name of Subject
|
:
|
LINDA FOO
|
|
|
Position
|
:
|
IT MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
DELOITTE & TOUCHE
|
|
Auditor' Address
|
:
|
UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 19, 47400
PETALING JAYA, SELANGOR,
MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. THAM WAI YING
|
|
|
IC / PP No
|
:
|
A1008639
|
|
|
New IC No
|
:
|
680810-10-6360
|
|
|
Address
|
:
|
46 JALAN MIDAH 19A, TAMAN MIDAH, 56000 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MR. KUMAR A/L RAMU
|
|
|
IC / PP No
|
:
|
A0413045
|
|
|
New IC No
|
:
|
660413-08-5289
|
|
|
Address
|
:
|
8, LORONG BUKIT PELINDUNG 77, TAMAN BUKIT PELINDUNG AMAN, 25050
KUANTAN, PAHANG, MALAYSIA.
|
|
|
|
|
|
|
3)
|
Company Secretary
|
:
|
MS. KUAN HUI FANG
|
|
|
IC / PP No
|
:
|
A1845678
|
|
|
New IC No
|
:
|
710224-10-5204
|
|
|
Address
|
:
|
23, JALAN BU 3/2, BANDAR
UTAMA, 47800 PETALING JAYA, SELANGOR, 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.
|
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
LEGAL CHECK AGAINST SC
* 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.
No legal action was found in our databank.
No winding up petition was found in our databank.
PAYMENT RECORD
|
SOURCES OF RAW MATERIALS:
|
|
Local
|
:
|
YES
|
|
Overseas
|
:
|
YES
|
|
Import Countries
|
:
|
UNITED STATES,CHINA,TAIWAN,INDIA
|
The SC refused to provide any name of trade/service supplier and we are unable
to conduct any trade enquiry. However, from financial historical data we
conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
X
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA PACIFIC
|
|
Credit Term
|
:
|
30 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
CHEMICAL INDUSTRY
|
|
|
|
|
|
|
|
|
CUSTOMER(S)
|
:
|
|
1) JOTUN (MALAYSIA)
SDN BHD
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Award
|
:
|
|
1 ) QUALITY MANAGEMENT EXCELLENCE AWARD BY MINISTRY OF
INTERNATIONAL TRADE AND INDUSTRY (MITI) Year :2003
|
|
2 ) MS ISO 14001 Year :2000
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
BP CHEMICALS (MALAYSIA)
SDN BHD
|
|
EMERY OLEOCHEMICALS (M) SDN BHD
|
|
KL-KEPONG OLEOMAS SDN BHD
|
|
NATURAL OLEOCHEMICALS SDN BHD
|
|
NYLEX (MALAYSIA)
BHD
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
|
FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
|
|
SMI ASSOCIATION OF MALAYSIA
|
|
SMALL & MEDIUM ENTERPRISE
|
|
CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2010
|
2009
|
2008
|
2007
|
2006
|
2005
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
COMPANY
|
325
|
265
|
253
|
254
|
223
|
400
|
|
|
|
|
Branch
|
:
|
|
|
No of Branches
|
:
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of titanium
dioxide.
The SC's product provides whiteness and opacity to a vast range of everyday
products from coatings and plastics, to inks and even cosmetics and food.
To produce the pigment the SC processes a raw material rich in titanium from
minerals found in beach sands and rock.
This feedstock is treated to extract the titanium and then reform it as
titanium dioxide to a very closely defined particle size.
Finally the product is coated and milled to produce a range of versatile
pigments for key end uses.
We were informed that the SC acts as the manufacturing plant and its Sales
and Technical Office is based in Petaling Jaya.
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
|
:
|
09-8628688
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
5TH FLOOR, WISMA AVON, 13 A JALAN
219 46100 PETALINS JAYA
|
|
Current Address
|
:
|
KAWASAN PERINDUSTRIAN TELUK KALUNG, P O BOX 29, 24007 KEMAMAN, TERENGGANU, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with Mr Hanis from
the SC's Admin Department. She revealed some information pertaining to the
SC.
We have asked the SC, did the current economic crisis has effected its
business operation. However the SC has refused to provide any comments on its
operation.
We have verified and confirmed that the address provided is belongs to the
SC's Old Sales Office.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Erratic
|
[
|
2006 - 2008
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2006 - 2008
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
1.98%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
1.61%
|
]
|
The fluctuating turnover reflects the fierce competition among the existing and
new market players. The SC's profit fell sharply because of the high
operating costs incurred. The unfavourable return on shareholders' funds and
net assets could indicate that the SC's management was inefficient in
utilising its assets to generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Unfavourable
|
[
|
80 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
41 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
16 Days
|
]
|
The SC could be incurring higher holding cost. As its capital was tied up in
stocks, it could face liquidity problems. The favourable debtors' days could
be due to the good credit control measures implemented by the SC. The SC had
a favourable creditors' ratio as evidenced by its favourable collection days.
The SC could be taking advantage of the cash discounts and also wanting to
maintain goodwill with its creditors.
Liquidity:
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.76 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.71 Times
|
]
|
A low liquid ratio means that the SC may be facing working capital
deficiency. If the SC cannot obtain additional financing or injection of
fresh capital, it may face difficulties in meeting its short term
obligations.
Solvency
|
Interest Cover
|
:
|
Favourable
|
[
|
20.70 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
The interest cover showed that the SC was able to service the interest. The favourable
interest cover could indicate that the SC was making enough profit to pay for
the interest accrued. The SC had no gearing and hence it had virtually no
financial risk. The SC was financed by its shareholders' funds and internally
generated fund. During the economic downturn, the SC, having a zero gearing,
will be able to compete better than those which are highly geared in the same
industry.
Overall
Assessment:
The SC recorded lower
profits as its turnover showed a erratic trend. The SC's management was
unable to control its costs efficiently as its profit showed a downward
trend. Due to its weak liquidity position, the SC will be faced with problems
in meeting all its short term obligations if no short term loan is obtained
or additional capital injected into the SC. With the favourable interest
cover, the SC could be able to service all the accrued interest without
facing any difficulties. The SC was a zero gearing company, it was solely
dependant on its shareholders to provide funds to finance its business. The
SC has good chance of getting loans, if the needs arises.
Overall financial condition of the SC : LIMITED
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2006
|
2007
|
2008
|
2009*
|
2010**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
26.64
|
27.17
|
27.73
|
28.31
|
28.88
|
|
Gross Domestic Products ( % )
|
5.8
|
6.3
|
4.6
|
<3.5>
|
4.5
|
|
Domestic Demand ( % )
|
7.0
|
9.0
|
6.9
|
2.9
|
4.6
|
|
Private Expenditure ( % )
|
7.0
|
8.6
|
7.1
|
<0.3>
|
-
|
|
Consumption ( % )
|
7.1
|
9.0
|
8.4
|
3.5
|
-
|
|
Investment ( % )
|
7.0
|
7.1
|
1.5
|
<17.7>
|
-
|
|
Public Expenditure ( % )
|
6.8
|
10.1
|
6.5
|
11.4
|
-
|
|
Consumption ( % )
|
5.0
|
10.8
|
11.6
|
7.3
|
-
|
|
Investment ( % )
|
8.9
|
9.3
|
0.7
|
16.6
|
-
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
108,192
|
100,340
|
129,563
|
89,650
|
90,960
|
|
Government Finance ( MYR Million )
|
<19,109>
|
<19,948>
|
<34,462>
|
<28,450>
|
<40,482>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.3>
|
<3.2>
|
<4.8>
|
<4.8>
|
<5.6>
|
|
Inflation ( % Change in Composite CPI)
|
3.9
|
2.0
|
<3.3>
|
<5.2>
|
5.1
|
|
Unemployment Rate
|
3.4
|
3.2
|
3.7
|
4.5
|
3.9
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
290
|
336
|
388
|
331
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
4.21
|
3.04
|
1.91
|
2.87
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
12.91
|
13.30
|
13.24
|
11.08
|
-
|
|
Average Base Lending Rate ( % )
|
6.61
|
6.72
|
6.72
|
5.53
|
-
|
|
Business Loans Disbursed( % )
|
<2.5>
|
9.1
|
11.6
|
13.7
|
-
|
|
Foreign Investment ( MYR Million )
|
20,228.0
|
33,426.0
|
23,261.4
|
22,156.8
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
38,293
|
43,337
|
41,599
|
41,578
|
-
|
|
Registration of New Companies ( % )
|
2.2
|
13.2
|
<4.0>
|
<0.1>
|
-
|
|
Liquidation of Companies ( No. )
|
8,647
|
22,629
|
27,992
|
-
|
-
|
|
Liquidation of Companies ( % )
|
181.8
|
161.5
|
23.7
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
216,147
|
227,410
|
269,866
|
312,581
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
52,879
|
20,431
|
18,885
|
-
|
-
|
|
Business Dissolved ( % )
|
<27.9>
|
<61.4>
|
<7.6>
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
446.2
|
442.9
|
497.5
|
319.4
|
-
|
|
Cellular Phone Subscribers ( Million )
|
19.5
|
23.3
|
25.1
|
-
|
-
|
|
Tourist Arrival ( Million Persons )
|
17.5
|
20.9
|
21.5
|
-
|
-
|
|
Hotel Occupancy Rate ( % )
|
64.8
|
70.0
|
68.0
|
-
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
15.4
|
20.1
|
17.1
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
36,555
|
30,004
|
34,834
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
13,596
|
13,238
|
13,907
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<14.3>
|
<2.6>
|
5.1
|
-
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2006
|
2007
|
2008
|
2009*
|
2010**
|
|
|
|
|
|
|
|
|
Agriculture
|
5.3
|
3.1
|
3.6
|
<2.0>
|
2.5
|
|
Palm Oil
|
5.8
|
<0.6>
|
7.0
|
<3.5>
|
-
|
|
Rubber
|
12.6
|
1.0
|
<1.1>
|
<23.0>
|
-
|
|
Forestry & Logging
|
<0.4>
|
2.8
|
<1.5>
|
<14.3>
|
-
|
|
Fishing
|
9.3
|
5.2
|
4.0
|
7.9
|
-
|
|
Other Agriculture
|
5.3
|
7.0
|
5.9
|
5.3
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
516.5
|
487.3
|
393.0
|
413.7
|
-
|
|
% of Industry Non-Performing Loans
|
1.1
|
1.1
|
<2.0>
|
1.3
|
-
|
|
|
|
|
|
|
|
|
Mining
|
<0.4>
|
3.3
|
<0.8>
|
<0.4>
|
1.1
|
|
Oil & Gas
|
4.6
|
2.2
|
12.7
|
2.1
|
-
|
|
Other Mining
|
5.1
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
55.4
|
42.2
|
36.0
|
44.2
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
7.3
|
3.1
|
1.3
|
<8.0>
|
1.7
|
|
Exported-oriented Industries
|
11.1
|
<1.9>
|
2.7
|
<19.0>
|
-
|
|
Electrical & Electronics
|
13.4
|
3.0
|
2.4
|
<30.3>
|
-
|
|
Rubber Products
|
0.4
|
8.0
|
4.2
|
<10.1>
|
-
|
|
Wood Products
|
0.7
|
3.3
|
<6.0>
|
-
|
-
|
|
Textiles & Apparel
|
12.6
|
<10.1>
|
1.9
|
<19.5>
|
-
|
|
Domestic-oriented Industries
|
5.0
|
5.3
|
9.9
|
<9.8>
|
-
|
|
Food, Beverages & Tobacco
|
4.8
|
5.6
|
9.5
|
0.2
|
-
|
|
Chemical & Chemical Products
|
1.7
|
9.2
|
1.4
|
<7.7>
|
-
|
|
Plastic Products
|
21.3
|
<3.6>
|
6.5
|
<9.1>
|
-
|
|
Iron & Steel
|
<6.9>
|
17.5
|
16.8
|
<32.7>
|
-
|
|
Fabricated Metal Products
|
20.0
|
26.2
|
14.7
|
<2.5>
|
-
|
|
Non-metallic Mineral
|
<1.9>
|
6.6
|
8.3
|
<15.5>
|
-
|
|
Transport Equipment
|
5.3
|
<19.0>
|
27.1
|
<13.5>
|
-
|
|
Paper & Paper Products
|
4.1
|
14.9
|
8.6
|
<5.0>
|
-
|
|
Crude Oil Refineries
|
12.1
|
8.6
|
7.8
|
0.2
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,181.3
|
6,366.2
|
5,729.4
|
6,007.3
|
-
|
|
% of Industry Non-Performing Loans
|
12.7
|
14.1
|
16.8
|
18.3
|
-
|
|
|
|
|
|
|
|
|
Construction
|
<0.5>
|
4.6
|
2.1
|
3.0
|
3.2
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,527.3
|
5,116.7
|
4,149.8
|
3,241.8
|
-
|
|
% of Industry Non-Performing Loans
|
11.4
|
11.3
|
12.2
|
9.9
|
-
|
|
|
|
|
|
|
|
|
Services
|
7.2
|
9.7
|
7.3
|
4.5
|
3.6
|
|
Electric, Gas & Water
|
5.2
|
4.6
|
5.0
|
<1.4>
|
1.8
|
|
Transport, Storage & Communication
|
5.2
|
7.6
|
7.8
|
7.3
|
8.7
|
|
Wholesale, Retail, Hotel & Restaurant
|
7.1
|
11.6
|
10.0
|
7.4
|
3.5
|
|
Finance, Insurance & Real Estate
|
7.7
|
10.7
|
9.2
|
8.1
|
7.1
|
|
Government Services
|
9.8
|
4.6
|
8.6
|
4.0
|
2.8
|
|
Other Services
|
4.7
|
5.0
|
5.9
|
5.4
|
5.0
|
|
Industry Non-Performing Loans ( MYR Million )
|
11,593.2
|
10,207.8
|
8,281.4
|
6,631.3
|
-
|
|
% of Industry Non-Performing Loans
|
23.9
|
22.6
|
24.3
|
20.2
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
|
24290 : Manufacture of other chemical products n.e.c
|
|
|
|
|
INDUSTRY :
|
CHEMICAL
|
|
The chemicals industry is one of Malaysia's key industries,
catering not only for its own national requirements but also exporting to a
number of countries worldwide. The Malaysian chemicals and chemical
products industry has become the second largest contributor to the
manufactured exports sector, after the electrical and electronics industry.
|
|
The chemicals industry is important in Malaysia on account of the
nation's substantial oil and gas feedstock. The Chemicals Industries
Council of Malaysia (CICM) was established in 1978 as an industry group
under the aegis of the Federation of Malaysian Manufacturers, to focus on
the development of the chemicals industry. The primary objective of the
CICM was to organise the chemicals industry in Malaysia
into a cohesive group to represent Malaysia's interest at the
ASEAN Chemicals Industries Club (ACIC).
|
|
The Malaysian chemicals industry witnessed 37% growth in domestic sales
value in 2004 and sustained solid growth up until mid-2008. It expanded
rapidly and had been forecast to reach sales figures of MYR60,816mn by
2009.
|
|
Malaysia's
balance of trade for the year January to December 2008 was MYR114,883mn. In
the first five months of 2008, total trade was 11.2% up on the same period
last year. These impressive figures were short-lived however, with
significant decreases observed in the latter half of 2008 and early 2009,
due to the impact of global economic crisis. The Industrial Production
Index (IPI) in January 2009 was 20.2 % lower than it was in January 2008,
following a sharp decline of 15.9% in December 2008.
|
|
The biggest drop was witnessed by chemicals and chemical products, which
saw output contract by 29.9%. This is partly because the chemicals industry
tends to be more sensitive to the economic cycle and so fares
disproportionately badly in recessions.
|
|
Total exports are down from MYR100,115mn (US$27,858.48mn) in
January-February 2008 to MYR77,856mn (US$21,662mn) in the same period of
2009. Similarly, there has been a fall in imports, with total incoming
sales falling from MYR81,289mn (US$22,617mn) in January-February 2008 to
MYR57,778mn (US$16,705mn) in January-February 2009.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Strong Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 1982 as a private limited company, the SC is principally engaged
in the manufacturing of titanium dioxide. Its long establishment in the
market has allowed the SC to build up a good reputation and gain higher
market share against its rivals. Being backed by a strong established
company with large paid up capital exceeding RM13 million, allows the SC to
enjoy the benefit of timely assistance if the needs arise. With these
favourable conditions, the SC has minimised its risk in the industry
compared to other players.
|
|
Over the years, the SC has established an extensive clientele base in the
market. Besides catering to the local market, the SC has penetrated into
Asia Pacific countries. With the contribution of both local and overseas
customers, the SC's commercial risk is likely to be diversified. Moreover,
due to capable management team, the SC has received several external awards
and this has provided greater momentum to its business operation. Hence, we
believe that the SC has better business expansion opportunities in the
future. Operating in a large scale, the SC has total workforce of 325 in
its operation. The SC has a good management capability. Its capable
management team has enabled the SC to keep its business on going. Hence,
the future prospect of the SC is bright.
|
|
Financially, the SC registered a higher turnover of RM664.6 million
compared to RM657.95 million previously. However, its pre-tax profit has
moderated by 54.9% to RM6.81 million. The lower profit achieved was a
result of higher operating cost and increased competition. Return on
shareholders' funds of the SC is relatively low, indicating that the SC did
not generate an acceptable amount of profits based on its existing
shareholders' funds. Due to its weak liquidity position, the SC may face
working capital deficiency in meeting its short term financial obligations
if no fresh capital is injected into the SC. Fortunately, being a zero
geared company, the SC virtually has no financial risk as it is mainly
dependent on its internal funds to finance its business needs. Besides,
given a positive net worth exceeding RM340 million, the SC should be able
to maintain its business in the near terms.
|
|
The SC might be exposed to the forex risk as some of its raw materials are
sourced from overseas suppliers. With its long presence in the market, it
should have developed a strong supplier. Thus, it eliminates the risk of
dependency on deliveries from a number of key suppliers and insufficient
quantities of its raw materials.
|
|
Based on our historical financial data, we concluded that the SC's pattern of
payment habit is good. This implies good credit control and the SC could be
taking advantage of the cash discounts while maintaining a good reputation
with its creditors.
|
|
The industry is rapidly growing and continue to be attractive in the near
terms. We believe that the SC has the potential of capturing a higher
market share in line with the tremendous growth in the industry. With the
SC's strong capital background and long operating history, it has
competitive edge against other players in the same field.
|
|
Based on the above condition, we recommend that credit be granted to the SC
promptly.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
TIOXIDE (MALAYSIA) SDN
BHD
|
|
For The Year
Ended 31-December-2008
|
|
|
|
|
|
|
|
2008
|
2007
|
2006
|
|
|
MYR
|
MYR
|
MYR
|
|
TURNOVER
|
664,607,000
|
657,957,000
|
662,726,000
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
6,816,000
|
15,133,000
|
64,712,000
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
6,816,000
|
15,133,000
|
64,712,000
|
|
Taxation
|
<92,000>
|
<317,000>
|
<628,000>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
6,724,000
|
------------
14,816,000
|
------------
64,084,000
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
6,724,000
|
------------
14,816,000
|
------------
64,084,000
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
6,724,000
|
------------
14,816,000
|
------------
64,084,000
|
|
As previous reported
|
237,610,000
|
229,422,000
|
171,966,000
|
|
|
|
|
|
|
As restated
|
------------
237,610,000
|
------------
229,422,000
|
------------
171,966,000
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
244,334,000
|
244,238,000
|
236,050,000
|
|
|
|
|
|
|
TRANSFER TO RESERVES - General
|
<1,326,000>
|
<6,628,000>
|
<6,628,000>
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
243,008,000
==========
|
------------
237,610,000
==========
|
------------
229,422,000
==========
|
|
RETAINED BY: The Company
|
243,008,000
|
237,610,000
|
229,422,000
|
|
|
------------
243,008,000
==========
|
------------
237,610,000
==========
|
------------
229,422,000
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Term loan
|
346,000
|
-
|
168,000
|
|
|
------------
346,000
==========
|
------------
-
==========
|
------------
168,000
==========
|
BALANCE SHEET
|
TIOXIDE (MALAYSIA)
SDN BHD
|
|
As At
31-December-2008
|
|
|
|
|
|
|
|
2008
|
2007
|
2006
|
|
|
MYR
|
MYR
|
MYR
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
333,158,000
|
373,198,000
|
398,853,000
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Associated companies
|
1,250,000
|
1,250,000
|
1,250,000
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
1,250,000
|
------------
1,250,000
|
------------
1,250,000
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
334,408,000
|
------------
374,448,000
|
------------
400,103,000
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Stocks
|
146,499,000
|
67,130,000
|
78,713,000
|
|
|
Trade debtors
|
74,644,000
|
129,295,000
|
136,281,000
|
|
|
Other debtors, deposits & prepayments
|
663,000
|
846,000
|
1,086,000
|
|
|
Short term deposits
|
20,233,000
|
13,921,000
|
54,001,000
|
|
|
Amount due from related companies
|
468,000
|
2,984,000
|
605,000
|
|
|
Amount due from associated company
|
690,000
|
518,000
|
533,000
|
|
|
Cash & bank balances
|
20,683,000
|
22,611,000
|
-
|
|
TOTAL CURRENT ASSETS
|
------------
263,880,000
|
------------
237,305,000
|
------------
271,219,000
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
29,014,000
|
26,855,000
|
32,902,000
|
|
|
Other creditors & accruals
|
33,694,000
|
32,281,000
|
34,735,000
|
|
|
Short term borrowings/Term loans
|
-
|
1,175,000
|
2,400,000
|
|
|
|
|
|
|
|
|
Amounts owing to related companies
|
91,079,000
|
97,982,000
|
77,951,000
|
|
|
Provision for taxation
|
121,000
|
225,000
|
506,000
|
|
TOTAL CURRENT LIABILITIES
|
------------
153,908,000
|
------------
158,518,000
|
------------
148,494,000
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
109,972,000
|
------------
78,787,000
|
------------
122,725,000
|
|
TOTAL NET ASSETS
|
------------
444,380,000
==========
|
------------
453,235,000
==========
|
------------
522,828,000
==========
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
5,125,000
|
5,125,000
|
5,125,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
5,125,000
|
------------
5,125,000
|
------------
5,125,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
Share premium
|
45,900,000
|
45,900,000
|
45,900,000
|
|
|
Capital reserve
|
46,117,000
|
44,791,000
|
38,163,000
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
243,008,000
|
237,610,000
|
229,422,000
|
|
TOTAL RESERVES
|
------------
335,025,000
|
------------
328,301,000
|
------------
313,485,000
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
340,150,000
|
------------
333,426,000
|
------------
318,610,000
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
Cumulative redeemable preference shares
|
104,230,000
|
119,809,000
|
204,218,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
104,230,000
|
------------
119,809,000
|
------------
204,218,000
|
|
|
------------
|
------------
|
------------
|
|
|
444,380,000
|
453,235,000
|
522,828,000
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
TIOXIDE (MALAYSIA)
SDN BHD
|
|
As At
31-December-2008
|
|
|
|
|
|
|
|
2008
|
2007
|
2006
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
40,916,000
|
36,532,000
|
54,001,000
|
|
|
Net Liquid Funds
|
40,916,000
|
35,357,000
|
51,601,000
|
|
|
Net Liquid Assets
|
<36,527,000>
|
11,657,000
|
44,012,000
|
|
|
Net Current Assets/(Liabilities)
|
109,972,000
|
78,787,000
|
122,725,000
|
|
|
Net Tangible Assets
|
444,380,000
|
453,235,000
|
522,828,000
|
|
|
Net Monetary Assets
|
<140,757,000>
|
<108,152,000>
|
<160,206,000>
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
0
|
1,175,000
|
2,400,000
|
|
|
Total Liabilities
|
258,138,000
|
278,327,000
|
352,712,000
|
|
|
Total Assets
|
598,288,000
|
611,753,000
|
671,322,000
|
|
|
Net Assets
|
444,380,000
|
453,235,000
|
522,828,000
|
|
|
Net Assets Backing
|
340,150,000
|
333,426,000
|
318,610,000
|
|
|
Shareholders" Funds
|
340,150,000
|
333,426,000
|
318,610,000
|
|
|
Total Share Capital
|
5,125,000
|
5,125,000
|
5,125,000
|
|
|
Total Reserves
|
335,025,000
|
328,301,000
|
313,485,000
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.27
|
0.23
|
0.36
|
|
|
Liquid Ratio
|
0.76
|
1.07
|
1.30
|
|
|
Current Ratio
|
1.71
|
1.50
|
1.83
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
80
|
37
|
43
|
|
|
Debtors Ratio
|
41
|
72
|
75
|
|
|
Creditors Ratio
|
16
|
15
|
18
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
0.01
|
|
|
Liabilities Ratio
|
0.76
|
0.83
|
1.11
|
|
|
Times Interest Earned Ratio
|
20.70
|
0
|
386.19
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
1.03
|
2.30
|
9.76
|
|
|
Net Profit Margin
|
1.01
|
2.25
|
9.67
|
|
|
Return On Net Assets
|
1.61
|
3.34
|
12.41
|
|
|
Return On Capital Employed
|
1.61
|
3.33
|
12.35
|
|
|
Return On Shareholders' Funds/Equity
|
1.98
|
4.44
|
20.11
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
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