|
* Adopted abbreviations : SC - Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
637199-K
|
|
COMPANY NAME
|
:
|
GUOCERA MARKETING (INTERNATIONAL) SDN BHD
|
|
FORMER NAME
|
:
|
CLEARNAXIS SDN BHD (07/07/2007)
|
|
INCORPORATION DATE
|
:
|
16/12/2003
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
WISMA HONG LEONG, 18 JALAN PERAK, LEVEL 9, 50450 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
WISMA KEMAJUAN, 2ND FLOOR, 2 JALAN 19/1B, 46300 SHAH ALAM, SELANGOR,
MALAYSIA.
|
|
TEL.NO.
|
:
|
03-79587611
|
|
FAX.NO.
|
:
|
03-76200971
|
|
WEB SITE
|
:
|
www.guocera.com.my
|
|
CONTACT PERSON
|
:
|
ADWARD ( MANAGING DIRECTOR )
|
|
INDUSTRY CODE
|
:
|
51432
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF CERAMIC TILES
|
|
AUTHORISED CAPITAL
|
:
|
MYR 500,000.00
DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 500,000.00
DIVIDED INTO
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR 149,804,053 [2010]
|
|
NET WORTH
|
:
|
MYR 4,782,965 [2010]
|
|
STAFF STRENGTH
|
:
|
50 [2011]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD583,914.00
|
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 ceramic tiles.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The immediate holding company of the SC is GUOCERA HOLDINGS SDN BHD, a
company incorporated in MALAYSIA.
The ultimate holding company of the SC is HONG LEONG COMPANY (MALAYSIA) BERHAD,
a company incorporated in MALAYSIA.
The penultimate holding company of the SC is HONG LEONG INDUSTRIES BERHAD, a
company incorporated in MALAYSIA.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
GUOCERA HOLDINGS SDN BHD
|
WISMA HONG LEONG, 18, JALAN PERAK, LEVEL 9, 50450 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
9946
|
500,000.00
|
|
|
|
|
---------------
|
|
|
|
|
500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. LIEW FUI PING
|
|
Address
|
:
|
29, JALAN SS 14/1C, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
K733010
|
|
New IC No
|
:
|
590409-71-5283
|
|
Date of Birth
|
:
|
09/04/1959
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
25/02/2011
|
|
Working Experience
|
:
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. KWEK LENG SAN
|
|
Address
|
:
|
APARTMENT 27-1, 3 KIA PENG, 3 JALAN KIA PENG, 50450 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
E1261834B
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of Appointment
|
:
|
28/10/2005
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
ADWARD
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
AUDITOR
|
Auditor
|
:
|
LING KAM HOONG & CO
|
|
Auditor' Address
|
:
|
6-1, JALAN 3/64A, UDARAMA COMPLEX, OFF JALAN IPOH, 50350 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. JOANNE LEONG WEI YIN
|
|
|
|
|
|
|
|
New IC No
|
:
|
610326-10-5688
|
|
|
Address
|
:
|
44, JALAN BU11/2, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. MAK MEW CHAN
|
|
|
|
|
|
|
|
New IC No
|
:
|
650816-05-5122
|
|
|
Address
|
:
|
1244, LORONG S2 A35/2, CENTRAL PARK, SEREMBAN TWO, 70300 SEREMBAN,
NEGERI SEMBILAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
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.
DEFAULTER CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT RECORD
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
70%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
30%
|
|
|
|
|
|
|
|
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
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
X
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Export Market
|
:
|
UNITED KINGDOM, AUSTRALIA, MIDDLE EAST
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
DISTRIBUTORS
|
OPERATIONS
|
Goods Traded
|
:
|
CERAMIC WALL & FLOOR TILES, PORCELIN & ETC
|
|
|
|
|
|
Competitor(s)
|
:
|
ANN JOO METAL
SDN BHD
ASTINO BHD
CHUAN HUAT RESOURCES BHD
IPMUDA BHD
PILECON ENGINEERING BHD
|
|
|
|
|
|
Ownership of
premises
|
:
|
LEASED/RENTED
|
|
Total Number
of Employees:
|
|
YEAR
|
2011
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
50
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of ceramic tiles.
The SC is under Guocera Holdings Sdn Bhd which is wholly owned subsidiary of
Hong Leong Industries Berhad (HLI).
The SC's wide range of products are including glazed wall and floor tiles,
mosaic tiles, vitrified homogeneous tiles, porcelain tiles and others.
The SC exports the ceramic tiles under the brand name "Guocera".
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
|
:
|
03-79587611
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
BERHAD 2-5TH FLOOR, WISMA KAMAJUAN NO. 2, JALAN 19/1B,
46300,PETALING JAYA, SELANGOR DARUL EHSAN
|
|
Current Address
|
:
|
WISMA KEMAJUAN, 2ND FLOOR, 2 JALAN 19/1B, 46300 SHAH ALAM, SELANGOR,
MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the SC staff Ms Zalina and she provided some information
regarding to the SC.
The address provided was incorrect.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
<0.00%>
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
<0.00%>
|
]
|
|
Return on Shareholder Funds
|
:
|
Favourable
|
[
|
89.91%
|
]
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
100.88%
|
]
|
The higher turnover could be attributed to the favourable market condition.
The management had succeeded in turning the SC into a profit making company.
The profit could be due to better control of its operating costs and
efficiency in utilising its resources. Generally the SC was profitable. The
favourable return on shareholders' funds and return on net assets indicate
that the SC's management was efficient in utilising the assets to generate
returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
4 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
106 Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
73 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The SC's debtors ratio was high. The
SC should tighten its credit control and improve its collection period. The
unfavourable creditors' ratio could be due to the SC taking advantage of the
credit granted by its suppliers. However this may affect the goodwill between
the SC and its suppliers and the SC may inadvertently have to pay more for
its future supplies.
Liquidity:
|
Liquid Ratio
|
:
|
Favourable
|
[
|
1.07 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.11 Times
|
]
|
A minimum liquid ratio of 1 should be maintained by the SC in order to assure
its creditors of its ability to meet short term obligations and the SC was in
a good liquidity position. Thus, we believe the SC is able to meet all its
short term obligations as and when they fall due.
Solvency
|
Interest Cover
|
:
|
Acceptable
|
[
|
9.14 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
The SC's interest cover was slightly low. If there is no sharp fall in its
profit or sudden increase in the interest rates, we believe the SC is able to
generate sufficient income to service its interest and repay the loans. 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 higher
turnover had helped to reduce the SC's losses. The SC was in good liquidity
position with its total current liabilities well covered by its total current
assets. With its current net assets, the SC should be able to repay its short
term obligations. The SC had an acceptable interest cover. If there is no
sudden sharp increase in interest rate or fall in the SC's profit, we do
believe the SC is able to generate sufficient cash flow to service its
interest payment. 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 : FAIR
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
27.17
|
27.73
|
28.31
|
28.88
|
29.13
|
|
Gross Domestic Products ( % )
|
6.3
|
4.6
|
<0.5>
|
6.9
|
5.8
|
|
Domestic Demand ( % )
|
9.0
|
6.9
|
2.9
|
4.6
|
4.8
|
|
Private Expenditure ( % )
|
8.6
|
7.1
|
<2.7>
|
8.1
|
7.0
|
|
Consumption ( % )
|
9.0
|
8.4
|
0.7
|
6.7
|
6.3
|
|
Investment ( % )
|
7.1
|
1.5
|
<17.2>
|
15.2
|
10.2
|
|
Public Expenditure ( % )
|
10.1
|
6.5
|
5.2
|
3.8
|
2.8
|
|
Consumption ( % )
|
10.8
|
11.6
|
3.1
|
0.2
|
4.6
|
|
Investment ( % )
|
9.3
|
0.7
|
8.0
|
8.3
|
0.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
100,340
|
129,563
|
89,650
|
118,356
|
116,058
|
|
Government Finance ( MYR Million )
|
<19,948>
|
<34,462>
|
<28,450>
|
<40,482>
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.2>
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
|
Inflation ( % Change in Composite CPI)
|
2.0
|
<3.3>
|
<5.2>
|
5.1
|
-
|
|
Unemployment Rate
|
3.2
|
3.7
|
4.5
|
3.9
|
-
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
336
|
388
|
331
|
394
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.04
|
1.91
|
2.87
|
2.20
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.30
|
13.24
|
11.08
|
15.30
|
-
|
|
Average Base Lending Rate ( % )
|
6.72
|
6.72
|
5.53
|
5.70
|
-
|
|
Business Loans Disbursed( % )
|
9.1
|
11.6
|
10.5
|
14.7
|
-
|
|
Foreign Investment ( MYR Million )
|
33,426.0
|
23,261.4
|
22,156.8
|
22,517.9
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
43,337
|
41,599
|
41,578
|
-
|
-
|
|
Registration of New Companies ( % )
|
13.2
|
<4.0>
|
<0.1>
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
22,629
|
27,992
|
39,075
|
-
|
-
|
|
Liquidation of Companies ( % )
|
161.5
|
23.7
|
39.6
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
227,410
|
269,866
|
312,581
|
-
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,431
|
18,885
|
19,345
|
-
|
-
|
|
Business Dissolved ( % )
|
<61.4>
|
<7.6>
|
2.4
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
442.9
|
497.5
|
319.4
|
369.7
|
-
|
|
Cellular Phone Subscribers ( Million )
|
23.3
|
25.1
|
30.1
|
32.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
20.9
|
21.5
|
23.6
|
24.0
|
25.0
|
|
Hotel Occupancy Rate ( % )
|
70
|
68
|
58
|
63
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
20.1
|
17.1
|
12.8
|
15.1
|
-
|
|
Bad Cheque Offenders (No.)
|
30,004
|
34,834
|
-
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
13,238
|
13,907
|
-
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.6>
|
5.1
|
-
|
-
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.1
|
3.6
|
0.4
|
3.4
|
4.5
|
|
Palm Oil
|
<0.6>
|
7.0
|
<1.1>
|
1.3
|
-
|
|
Rubber
|
1.0
|
<1.1>
|
<19.8>
|
9.9
|
-
|
|
Forestry & Logging
|
2.8
|
<1.5>
|
<5.9>
|
<1.3>
|
-
|
|
Fishing
|
5.2
|
4.0
|
5.5
|
4.1
|
-
|
|
Other Agriculture
|
7.0
|
5.9
|
9.0
|
6.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
487.3
|
393.0
|
413.7
|
508.4
|
-
|
|
% of Industry Non-Performing Loans
|
1.1
|
<2.0>
|
1.3
|
2.1
|
-
|
|
|
|
|
|
|
|
|
Mining
|
3.3
|
<0.8>
|
<3.8>
|
1.0
|
2.9
|
|
Oil & Gas
|
2.2
|
12.7
|
2.1
|
4.9
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
42.2
|
36.0
|
44.2
|
49.7
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
3.1
|
1.3
|
<9.4>
|
10.8
|
6.7
|
|
Exported-oriented Industries
|
<1.9>
|
2.7
|
<19.0>
|
12.1
|
-
|
|
Electrical & Electronics
|
3.0
|
2.4
|
<30.3>
|
27.4
|
-
|
|
Rubber Products
|
8.0
|
4.2
|
<10.1>
|
25.3
|
-
|
|
Wood Products
|
3.3
|
<6.0>
|
<24.1>
|
19.7
|
-
|
|
Textiles & Apparel
|
<10.1>
|
1.9
|
<19.5>
|
<1.3>
|
-
|
|
Domestic-oriented Industries
|
5.3
|
9.9
|
<9.8>
|
16.3
|
-
|
|
Food, Beverages & Tobacco
|
5.6
|
9.5
|
0.2
|
3.0
|
-
|
|
Chemical & Chemical Products
|
9.2
|
1.4
|
<7.7>
|
20.4
|
-
|
|
Plastic Products
|
<3.6>
|
6.5
|
<9.1>
|
2.4
|
-
|
|
Iron & Steel
|
17.5
|
16.8
|
<32.7>
|
30.0
|
-
|
|
Fabricated Metal Products
|
26.2
|
14.7
|
<2.5>
|
14.9
|
-
|
|
Non-metallic Mineral
|
6.6
|
8.3
|
<15.5>
|
20.2
|
-
|
|
Transport Equipment
|
<19.0>
|
27.1
|
<13.5>
|
36.5
|
-
|
|
Paper & Paper Products
|
14.9
|
8.6
|
<5.0>
|
20.5
|
-
|
|
Crude Oil Refineries
|
8.6
|
7.8
|
0.2
|
<11.4>
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,366.2
|
5,729.4
|
6,007.3
|
6,217.5
|
-
|
|
% of Industry Non-Performing Loans
|
14.1
|
16.8
|
18.3
|
23.8
|
-
|
|
|
|
|
|
|
|
|
Construction
|
4.6
|
2.1
|
5.8
|
4.9
|
4.4
|
|
Industry
Non-Performing Loans ( MYR Million )
|
5,116.7
|
4,149.8
|
3,241.8
|
4,038.5
|
-
|
|
% of Industry
Non-Performing Loans
|
11.3
|
12.2
|
9.9
|
10.7
|
-
|
|
|
|
|
|
|
|
|
Services
|
9.7
|
7.3
|
2.6
|
6.5
|
5.3
|
|
Electric, Gas
& Water
|
4.6
|
5.0
|
0.4
|
8.5
|
5.6
|
|
Transport,
Storage & Communication
|
7.60
|
7.80
|
1.60
|
7.15
|
7.55
|
|
Wholesale,
Retail, Hotel & Restaurant
|
11.6
|
10.0
|
2.8
|
4.7
|
5.2
|
|
Finance,
Insurance & Real Estate
|
10.7
|
9.2
|
3.8
|
6.0
|
5.2
|
|
Government
Services
|
4.6
|
8.6
|
2.0
|
6.7
|
1.9
|
|
Other Services
|
5.0
|
5.9
|
4.4
|
4.2
|
5.4
|
|
Industry
Non-Performing Loans ( MYR Million )
|
10,207.8
|
8,281.4
|
6,631.3
|
7,384.6
|
-
|
|
% of Industry
Non-Performing Loans
|
22.6
|
24.3
|
20.2
|
25.7
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate /
Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
51432 : Wholesale of construction materials, builders hardware,
plumbing and heating equipment and supplies
|
|
|
|
|
INDUSTRY :
|
BUILDING MATERIALS
|
|
|
|
|
|
|
The building materials sector is expected to stay positive in 2010 and
beyond. The growth should be sustainable given the implementation of larger
government and private sector jobs in 2010, and increased construction on
the property side.
|
|
Demand for building materials, especially construction steel and bulk
cement, depends largely on domestic construction activities. Despite the
hoopla over pump-priming, Malaysia's construction sector did not pick up as
strongly as expected in 2009. In fact, concerns over the progress of pump
priming/mega jobs rise as anticipated newsflow failed to materialise.
Nevertheless, demand for building materials was cushioned by orders from
the export markets, especially for steel where strong global prices and
demand from major construction projects across the region, especially
Vietnam and Singapore, helped to buffer the weak domestic demand.
|
|
Regional steel prices are expected to continue rising due to strong demand
and the upswing in raw material prices. Given the favourable prospects for
regional and local construction activities, the odds of a drastic drop in
steel prices are low. On top of that, the expected pick-up in construction
activities will spur domestic cement demand which shrank an estimated 7% in
2009. The lifting of cement price controls in 2008 has also given cement
players better control of prices. The cement players expect demand to pick
up by about 5% in 2010. This should lead to an uptick in cement prices from
the current levels of about RM260/tonne, leading to further upside for
margins and earnings.
|
|
Prospects for the construction sector and, by definition, the building
materials sector, are favourable, due to the rollout of larger government
and private sector jobs in 2010, and increased construction on the property
side. The tabling of the 10MP in June 2010 should provide more visibility
on infrastructure and construction spending beyond 2010.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Marginal Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 2003 as a private limited company, the SC is
principally engaged in the trading of various types of ceramic tiles which
including glazed wall and floor tiles, mosaic tiles, vitrified homogeneous
tiles, porcelain tiles and etc. Throughout its years of establishment, the
SC has slowly been building up contacts with its clients and competing in
the industry. Strongly supported by its well-established holding company,
the SC is expected to enjoy timely financial and technical support should
the needs arise.
|
|
Investigation revealed that the SC is a 100% export oriented company and
its products are exported to United Kingdom, Australia and Middle East
countries. This global approach has well diversified its business risk.
With the full concentration in the overseas market, the SC is unlikely to
be affected by the uncertainty in the local economy. However, it is still
vulnerable to the changes in the global economy. Currently, the SC has a
total work force of 50 employees in its operation. Overall, the management
capability of the SC is average.
|
|
During the financial year 2010, the SC has reported total turnover and
pre-tax profit of RM149.80 million and RM4.3 million respectively. Based on
the higher profitability, the SC has generated a favourable return based on
its existing shareholders' funds which indicated that the management was
efficient in utilising its funds to generate income. Besides this, it also
has an adequate liquidity position with its current liabilities well
covered by its current assets. With its net current assets, the SC should be
able to repay its short term obligations. Moreover, 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. Given a positive net worth
standing at RM4.78 million, the SC should be able to maintain its business
in the near terms.
|
|
Our investigation revealed that the SC sources 70% of its products locally
while the rest are obtained from overseas suppliers. As an export-oriented
company and being involved in import activities, the SC is exposed to high
foreign exchange risk.
|
|
Based on our historical financial data, the SC's payment is average. The SC
should be able to meet its small and medium commitments. Some caution
needed for big transactions. The SC is clear of any litigation action.
|
|
The industry has reached its optimum level and is generally stable. The
potential growth for the industry is marginal and it is quite competitive.
It very much depends on the SC's capacity in sustaining its performance in
the market. The rising in its sales volume and profitability implied that
the SC is able to adapt the ever-changing in the market.
|
|
Based on the above condition, we recommend a fairly large amount of credit
be granted to the SC promptly.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
GUOCERA
MARKETING (INTERNATIONAL) SDN BHD
|
|
For The Year
Ended 30-June-2010
|
|
|
2010
|
2009
|
2008
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
149,804,053
|
0
|
0
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
4,300,143
|
<5,882>
|
<3,611>
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
4,300,143
|
<5,882>
|
<3,611>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
4,300,143
|
------------
<5,882>
|
------------
<3,611>
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
4,300,143
|
------------
<5,882>
|
------------
<3,611>
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
4,300,143
|
------------
<5,882>
|
------------
<3,611>
|
|
As previous reported
|
<17,178>
|
<11,296>
|
<7,685>
|
|
|
|
|
|
|
As restated
|
------------
<17,178>
|
------------
<11,296>
|
------------
<7,685>
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
4,282,965
|
<17,178>
|
<11,296>
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
4,282,965
==========
|
------------
<17,178>
==========
|
------------
<11,296>
==========
|
|
RETAINED BY: The Company
|
4,282,965
|
<17,178>
|
<11,296>
|
|
|
------------
4,282,965
==========
|
------------
<17,178>
==========
|
------------
<11,296>
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
|
|
|
|
|
Other interest expenses
|
528,052
|
365
|
-
|
|
|
|
|
|
BALANCE SHEET
|
GUOCERA
MARKETING (INTERNATIONAL) SDN BHD
|
|
As At
30-June-2010
|
|
|
|
|
|
|
|
2010
|
2009
|
2008
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
16,783
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill on consolidation
|
25,995
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INTANGIBLE ASSETS
|
------------
25,995
|
------------
-
|
------------
-
|
|
TOTAL LONG TERM ASSETS
|
------------
42,778
|
------------
-
|
------------
-
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
1,589,150
|
-
|
-
|
|
|
|
|
|
|
|
|
Trade debtors
|
43,709,903
|
-
|
-
|
|
|
Other debtors, deposits & prepayments
|
1,956,606
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
2,186,530
|
1,232,122
|
2
|
|
|
|
|
|
|
|
|
Amount due to immediate holding company
|
998
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
49,443,187
|
------------
1,232,122
|
------------
2
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
30,111,187
|
-
|
-
|
|
|
Other creditors & accruals
|
6,493,647
|
1,000
|
500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to related companies
|
8,095,166
|
748,300
|
10,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
44,700,000
|
------------
749,300
|
------------
11,296
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
4,743,187
|
------------
482,822
|
------------
<11,294>
|
|
TOTAL NET ASSETS
|
------------
4,785,965
==========
|
------------
482,822
==========
|
------------
<11,294>
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
500,000
|
500,000
|
2
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
500,000
|
------------
500,000
|
------------
2
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
4,282,965
|
<17,178>
|
<11,296>
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
4,282,965
|
------------
<17,178>
|
------------
<11,296>
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
4,782,965
|
------------
482,822
|
------------
<11,294>
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retirement benefits provision
|
3,000
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
3,000
|
------------
-
|
------------
-
|
|
|
------------
|
------------
|
------------
|
|
|
4,785,965
|
482,822
|
<11,294>
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
GUOCERA
MARKETING (INTERNATIONAL) SDN BHD
|
|
As At
30-June-2010
|
|
|
|
|
|
|
|
2010
|
2009
|
2008
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
2,186,530
|
1,232,122
|
2
|
|
|
Net Liquid Funds
|
2,186,530
|
1,232,122
|
2
|
|
|
Net Liquid Assets
|
3,154,037
|
482,822
|
<11,294>
|
|
|
Net Current Assets/(Liabilities)
|
4,743,187
|
482,822
|
<11,294>
|
|
|
Net Tangible Assets
|
4,759,970
|
482,822
|
<11,294>
|
|
|
Net Monetary Assets
|
3,151,037
|
482,822
|
<11,294>
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
0
|
|
|
Total Liabilities
|
44,703,000
|
749,300
|
11,296
|
|
|
Total Assets
|
49,485,965
|
1,232,122
|
2
|
|
|
Net Assets
|
4,785,965
|
482,822
|
<11,294>
|
|
|
Net Assets Backing
|
4,782,965
|
482,822
|
<11,294>
|
|
|
Shareholders" Funds
|
4,782,965
|
482,822
|
<11,294>
|
|
|
Total Share Capital
|
500,000
|
500,000
|
2
|
|
|
Total Reserves
|
4,282,965
|
<17,178>
|
<11,296>
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.05
|
1.64
|
0
|
|
|
Liquid Ratio
|
1.07
|
1.64
|
0.00
|
|
|
Current Ratio
|
1.11
|
1.64
|
0.00
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
4
|
0
|
0
|
|
|
Debtors Ratio
|
106
|
0
|
0
|
|
|
Creditors Ratio
|
73
|
0
|
0
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
0
|
|
|
Liabilities Ratio
|
9.35
|
1.55
|
<1.00>
|
|
|
Times Interest Earned Ratio
|
9.14
|
<15.12>
|
0
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
2.87
|
0
|
0
|
|
|
Net Profit Margin
|
2.87
|
0
|
0
|
|
|
Return On Net Assets
|
100.88
|
<1.14>
|
31.97
|
|
|
Return On Capital Employed
|
101.43
|
<1.14>
|
31.97
|
|
|
Return On Shareholders' Funds/Equity
|
89.91
|
<1.22>
|
31.97
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
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