|
* Adopted abbreviations : SC -
Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
587027-T
|
|
COMPANY NAME
|
:
|
KL-KEPONG OLEOMAS SDN BHD
|
|
FORMER NAME
|
:
|
ELVISSA CORPORATION SDN BHD (15/10/2002)
|
|
INCORPORATION DATE
|
:
|
22/07/2002
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
WISMA TAIKO, 1 JALAN S P SEENIVASAGAM, 30000 IPOH, PERAK, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
NO 25, JALAN SUNGAI PINANG 5/18, FASA 2D, TAMAN PERINDUSTRIAN PULAU
INDAH, 42920 PELABUHAN KELANG, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-31012633
|
|
FAX.NO.
|
:
|
03-31013299
|
|
WEB SITE
|
:
|
www.klkoleo.com.my
|
|
CONTACT PERSON
|
:
|
YEOW AH KOW ( CEO )
|
|
INDUSTRY CODE
|
:
|
24290
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURE OF
OLEOCHEMICALS
|
|
AUTHORISED CAPITAL
|
:
|
MYR
150,000,000.00 DIVIDED INTO
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 500,000,000.00 OF MYR 0.10 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR
137,650,000.00 DIVIDED INTO
ORDINARY SHARES 100,000,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 376,500,000 CASH OF MYR 0.10 EACH.
|
|
SALES
|
:
|
MYR 697,036,000 [2010]
|
|
NET WORTH
|
:
|
MYR 575,055,000 [2010]
|
|
STAFF STRENGTH
|
:
|
250 [2011]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD5,309,850
|
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) manufacture of
oleochemicals.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The immediate holding company of the SC is KL-KEPONG INDUSTRIAL
HOLDINGS SDN BHD, a company incorporated in MALAYSIA.
The ultimate holding company of the SC is KUALA LUMPUR KEPONG BERHAD,
a company incorporated in MALAYSIA.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
KUALA LUMPUR KEPONG BHD
|
WISMA TAIKO, 1 JALAN S P SEENIVASAGAM, 30000 IPOH, PERAK, MALAYSIA.
|
15043
|
190,600,000.00
|
|
KL-KEPONG INDUSTRIAL HOLDINGS SDN BHD
|
WISMA TAIKO, 1 JALAN S P SEENIVASAGAM, 30000 IPOH, PERAK, MALAYSIA.
|
300525
|
190,600,000.00
|
|
PALM-OLEO SDN BHD
|
WISMA TAIKO, 1 JALAN S P SEENIVASAGAM, 30000 IPOH, PERAK, MALAYSIA.
|
185886
|
95,300,000.00
|
|
|
|
|
---------------
|
|
|
|
|
476,500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. YEOW AH KOW
|
|
Address
|
:
|
3, JALAN SS 19/3C, SUBANG JAYA, 47610 SUBANG JAYA, SELANGOR,
MALAYSIA.
|
|
IC / PP No
|
:
|
8391290
|
|
New IC No
|
:
|
540203-05-5085
|
|
Date of Birth
|
:
|
03/02/1954
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Working Experience
|
:
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. KHOO PING KHEAN
|
|
Address
|
:
|
22, JALAN USJ 3/3N, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
4403571
|
|
New IC No
|
:
|
530121-08-5943
|
|
Date of Birth
|
:
|
21/01/1953
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. MADHEV S/O BALA SUBRAMANIAM
|
|
Address
|
:
|
4SS 24/9, TAMAN MEGAH, 47301 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
8294889
|
|
New IC No
|
:
|
600913-71-5115
|
|
Date of Birth
|
:
|
13/09/1960
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN INDIAN
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. PUNG KOK HOOI
|
|
Address
|
:
|
42, JALAN WANGSA 2/2, TAMAN WANGSA PERMAI, 52200 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
660414-07-5357
|
|
Date of Birth
|
:
|
14/04/1966
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
26/12/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MR. SAW LEE CHYAN
|
|
Address
|
:
|
30 JALAN SHB5, SUBANG HEIGHTS, 47500 SUBANG JAYA, SELANGOR,
MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
741108-07-5521
|
|
Date of Birth
|
:
|
08/11/1974
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
18/04/2011
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
YEOW AH KOW
|
|
|
Position
|
:
|
CEO
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
GABRIAL CHUAH
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
BRIAN LEE
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
|
4)
|
Name of Subject
|
:
|
SAMSUDIN TUKIMAN
|
|
|
Position
|
:
|
PLANT MANAGER
|
|
|
|
|
|
|
5)
|
Name of Subject
|
:
|
ER KWEE YEOH
|
|
|
Position
|
:
|
LOGISTIC MANAGER
|
AUDITOR
|
Auditor
|
:
|
KPMG
|
|
Auditor' Address
|
:
|
KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING
JAYA, SELANGOR, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. PUNG KOK HOOI
|
|
|
|
|
|
|
|
New IC No
|
:
|
660414-07-5357
|
|
|
Address
|
:
|
42, JALAN WANGSA 2/2, TAMAN WANGSA PERMAI, 52200 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. YAP MIOW KIEN
|
|
|
IC / PP No
|
:
|
A1171235
|
|
|
New IC No
|
:
|
681220-05-5334
|
|
|
Address
|
:
|
12, LINGKARAN MERU VALLEY 1A, LAKEVIEW VILLA, MERU VALLEY GOLF
RESORT, JALAN BUKIT MERU, 30020 IPOH, PERAK, 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 against 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
|
|
Overseas
|
:
|
YES
|
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
|
Percentage
|
:
|
20%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
80%
|
|
Export Market
|
:
|
EUROPE, UNITED STATES, BRAZIL, UNITED
KINGDOM, ASIA
|
|
Credit Term
|
:
|
N/A
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
OPERATIONS
|
Products manufactured
|
:
|
|
FATTY ALCOHOL METHYL ESTER
|
|
|
|
|
|
|
Brand Name
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
BP CHEMICALS (MALAYSIA) SDN BHD
|
|
EMERY OLEOCHEMICALS (M) SDN BHD
|
|
NATURAL OLEOCHEMICALS SDN BHD
|
|
NYLEX (MALAYSIA) BHD
|
|
POLYMERLATEX SDN BHD
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
COMPANY
|
250
|
250
|
250
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacture of
oleochemicals.
The SC is under the Kuala Lumpur Kepong Bhd, a Malaysian multinational
company involved in plantation, manufacturing, retailing and property
development. Whilst plantation remains KLK's core business, the Group has
expanded downstream into resource-based manufacturing, in particular
oleochemicals, cocoa processing and rubber processing.
The SC is one of the world's largest manufacturers of palm-based oleochemical
products and their derivatives, with a product portfolio covering fatty acids
& glycerine, fatty amides, soap noodles & soap bars, esters, and
fatty alcohols. Recent investments and acquisition activities have allowed
the Group to venture further downstream into products like methyl ester
sulfonate, amines, biodiesel, fine chemicals and surfactants.
The SC's products range includes fatty acids, fatty alchohol, glycerine,
fatty estere, fatty animes, derivatives and surfactants.
The SC utilises advanced automated and semi-automated machineries to ensure
production of high quality products.
Besides that the SC has a warehouse located at the same premises to keep
stocks and materials.
PROJECTS
No projects found in our databank
RECENT DEVELOPMENT
10 Feb 2009
Kuala Lumpur Kepong Berhad announced that its subsidiary, KL-Kepong Oleomas
Sdn Bhd (Oleomas) had on February 6, 2009, entered into a conditional sale
and purchase agreement with Chhoa Kwang Hua, Dera Otsubo (Chhoa), Chhoa Kuang
Yaw and Ailida Binti Baharum (the Vendors) to acquire the entire issued
capital of Zoop Sdn Bhd free from all encumbrances for a total cash
consideration of MYR1,155,510.00.
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-31012633
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
NO 25, JALAN SUNGAI PINANG 5/18, FASA 2D, TAMAN PERINDUSTRIAN PULAU
INDAH, 42920, PELABUHAN KELANG, SELANGOR.
|
|
Current Address
|
:
|
NO 25, JALAN SUNGAI PINANG 5/18, FASA 2D, TAMAN PERINDUSTRIAN PULAU
INDAH, 42920 PELABUHAN KELANG, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one
of the staff from the SC and she provided some information on the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
2008 - 2010
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2008 - 2010
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
7.10%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
7.57%
|
]
|
The SC's turnover increased steadily as the demand for its products /
services increased due to the goodwill built up over the years. The dip in
profit could be due to the stiff market competition which reduced the SC's
profit margin. 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
|
[
|
111 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
49 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
14 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
|
[
|
0.57 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.41 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
|
[
|
16.13 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.24 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 was lowly geared thus it had a low
financial risk. The SC was mainly financed by its shareholders' funds and
internally generated funds. In times of economic slowdown / downturn, the SC
being a lowly geared company, will be able to compete better than those
companies which are highly geared in the same industry.
Overall
Assessment:
Although the
SC's turnover had increased, its profits had declined over the same
corresponding period. This could be due to the stiffer market competition and
/ or higher operating costs which lowered the SC's profit margin. 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 as a lowly geared company, will be more secured compared to those
highly geared companies. It has the ability to meet all its long term
obligations.
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
|
|
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
|
Established in 2002, the SC is a private limited company with core
business in the manufacture of oleochemicals. Nowadays the SC is one of the
world's largest manufacturers of palm-based oleochemical products includes
fatty acids, glycerine, fatty estere, fatty animes, derivatives and
surfactants. Having been in the industry for only 9 years, the SC is
growing fast with a paid up capital of RM137.65 million. With a huge paid
up capital and strong supported by its holding company KL-Kepong Industrial
Holdings Sdn Bhd, the SC is allowed to expand its business comfortably.
|
|
Although the SC has been in the business for less than a decade, it has
established an extensive marketing network to support its business
operation. Being an export-oriented player where 80% products are exported
to worldwide. the business risk of the SC is well-mitigated and better
growth prospect can be expected. We believe that the SC is able to maintain
its business in the near future as its products received encouraging demand
from United States, Europe, Asia, Brazil and United Kingdom. The SC growing
steadily with staff strength of 250 and its operation is overseen by its
CEO,Yeow Ah Kow. Overall, the management capability of the SC is average.
|
|
In year 2010, the SC has reported total turnover and pre-tax profit of
RM697.03 million and RM40.84 million respectively. Due to the lower
profits, the SC has generated unfavourable return on shareholders' funds.
This indicated that the management was inefficient in utilising its funds
to generate income. Besides, the SC possesses a weak liquidity position and
we believe that the SC may face some difficulties in meeting its short term
financial obligations. Fortunately, being a lowly geared company, the SC is
exposed to low financial risk as it is mainly dependent on its internal
funds to finance its business needs. Given a positive net worth standing at
RM575.05 million, the SC should be able to maintain its business in the
near terms.
|
|
We are aware that the SC's products are sourced locally and the rest are
obtained from overseas market. Being involved in high export activities,
the SC is exposed to high foreign currency risk.
|
|
Overall, the SC's payment habit is good as the SC has a good credit control
and it could be taking advantage of the cash discounts while maintaining a
good reputation with its creditors. Based on our databank, the SC is clear
of any litigation action.
|
|
The chemical industry remains an important sector and a growth engine for
manufacturing output. With the promising outlook of the industry
performance, the SC's business potential should be favourable. Nonetheless,
the SC should adopt better competitive strategies in order to sustain its
business position and to compete with other well established players in the
same industry.
|
|
With strong backed by its holding company, we recommend above amount of
credit be granted to the SC promptly.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
KL-KEPONG
OLEOMAS SDN BHD
|
|
For The Year
Ended 30-09-2010
|
|
|
2010
|
2009
|
2008
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
697,036,000
|
548,342,000
|
513,411,000
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
40,845,000
|
45,913,000
|
26,803,000
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
40,845,000
|
45,913,000
|
26,803,000
|
|
Taxation
|
-
|
144,000
|
<80,000>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
40,845,000
|
------------
46,057,000
|
------------
26,723,000
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
40,845,000
|
------------
46,057,000
|
------------
26,723,000
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
40,845,000
|
------------
46,057,000
|
------------
26,723,000
|
|
As previous reported
|
57,710,000
|
11,653,000
|
<15,070,000>
|
|
As restated
|
------------
57,710,000
|
------------
11,653,000
|
------------
<15,070,000>
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
98,555,000
|
57,710,000
|
11,653,000
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
98,555,000
==========
|
------------
57,710,000
==========
|
------------
11,653,000
==========
|
|
RETAINED BY: The Company
|
98,555,000
|
57,710,000
|
11,653,000
|
|
|
------------
98,555,000
==========
|
------------
57,710,000
==========
|
------------
11,653,000
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Other interest expenses
|
2,699,000
|
1,192,000
|
4,307,000
|
|
|
------------
2,699,000
==========
|
------------
1,192,000
==========
|
------------
4,307,000
==========
|
|
|
|
|
|
BALANCE SHEET
|
KL-KEPONG
OLEOMAS SDN BHD
|
|
As At 30-09-2010
|
|
|
|
|
|
|
|
2010
|
2009
|
2008
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
447,610,000
|
442,303,000
|
331,514,000
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
Subsidiary companies
|
2,848,000
|
2,748,000
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepaid lease payments
|
21,426,000
|
-
|
21,888,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
24,274,000
|
------------
2,748,000
|
------------
21,888,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
471,884,000
|
------------
445,051,000
|
------------
353,402,000
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
212,222,000
|
109,909,000
|
157,342,000
|
|
|
|
|
|
|
|
|
Trade debtors
|
92,795,000
|
74,226,000
|
61,426,000
|
|
|
Other debtors, deposits & prepayments
|
-
|
4,074,000
|
2,539,000
|
|
|
Short term deposits
|
6,327,000
|
4,300,000
|
15,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount due from holding company
|
210,000
|
-
|
-
|
|
|
Amount due from subsidiary companies
|
-
|
15,347,000
|
-
|
|
|
Amount due from related companies
|
34,261,000
|
26,339,000
|
37,962,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
10,395,000
|
3,129,000
|
507,000
|
|
|
|
|
|
|
|
|
Tax recoverable
|
135,000
|
90,000
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
356,345,000
|
------------
237,414,000
|
------------
274,776,000
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
26,362,000
|
31,925,000
|
11,194,000
|
|
|
Other creditors & accruals
|
1,849,000
|
11,615,000
|
11,847,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short term borrowings/Term loans
|
138,385,000
|
-
|
-
|
|
|
Other borrowings
|
-
|
-
|
1,868,000
|
|
|
|
|
|
|
|
|
Bill & acceptances payable
|
-
|
61,876,000
|
106,510,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities & accruals
|
9,803,000
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to holding companies
|
16,000
|
13,000
|
720,000
|
|
|
Amounts owing to subsidiary companies
|
14,870,000
|
8,765,000
|
-
|
|
|
Amounts owing to related companies
|
61,889,000
|
67,058,000
|
54,171,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
-
|
-
|
150,000
|
|
|
|
|
|
|
|
|
Others (please specify)
|
-
|
132,003,000
|
118,565,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
253,174,000
|
------------
313,255,000
|
------------
305,025,000
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
103,171,000
|
------------
<75,841,000>
|
------------
<30,249,000>
|
|
TOTAL NET ASSETS
|
------------
575,055,000
==========
|
------------
369,210,000
==========
|
------------
323,153,000
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
137,650,000
|
121,150,000
|
121,150,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
137,650,000
|
------------
121,150,000
|
------------
121,150,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
Share premium
|
338,850,000
|
190,350,000
|
190,350,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
98,555,000
|
57,710,000
|
11,653,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
437,405,000
|
------------
248,060,000
|
------------
202,003,000
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
575,055,000
|
------------
369,210,000
|
------------
323,153,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
|
575,055,000
|
369,210,000
|
323,153,000
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
KL-KEPONG
OLEOMAS SDN BHD
|
|
As At 30-09-2010
|
|
|
|
|
|
|
|
2010
|
2009
|
2008
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
16,722,000
|
7,429,000
|
15,507,000
|
|
|
Net Liquid Funds
|
<121,663,000>
|
7,429,000
|
15,507,000
|
|
|
Net Liquid Assets
|
<109,051,000>
|
<185,750,000>
|
<187,591,000>
|
|
|
Net Current Assets/(Liabilities)
|
103,171,000
|
<75,841,000>
|
<30,249,000>
|
|
|
Net Tangible Assets
|
575,055,000
|
369,210,000
|
323,153,000
|
|
|
Net Monetary Assets
|
<109,051,000>
|
<185,750,000>
|
<187,591,000>
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
138,385,000
|
0
|
1,868,000
|
|
|
Total Liabilities
|
253,174,000
|
313,255,000
|
305,025,000
|
|
|
Total Assets
|
828,229,000
|
682,465,000
|
628,178,000
|
|
|
Net Assets
|
575,055,000
|
369,210,000
|
323,153,000
|
|
|
Net Assets Backing
|
575,055,000
|
369,210,000
|
323,153,000
|
|
|
Shareholders" Funds
|
575,055,000
|
369,210,000
|
323,153,000
|
|
|
Total Share Capital
|
137,650,000
|
121,150,000
|
121,150,000
|
|
|
Total Reserves
|
437,405,000
|
248,060,000
|
202,003,000
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.07
|
0.02
|
0.05
|
|
|
Liquid Ratio
|
0.57
|
0.41
|
0.38
|
|
|
Current Ratio
|
1.41
|
0.76
|
0.90
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
111
|
73
|
112
|
|
|
Debtors Ratio
|
49
|
49
|
44
|
|
|
Creditors Ratio
|
14
|
21
|
8
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0.24
|
0
|
0.01
|
|
|
Liabilities Ratio
|
0.44
|
0.85
|
0.94
|
|
|
Times Interest Earned Ratio
|
16.13
|
39.52
|
7.22
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
5.86
|
8.37
|
5.22
|
|
|
Net Profit Margin
|
5.86
|
8.40
|
5.20
|
|
|
Return On Net Assets
|
7.57
|
12.76
|
9.63
|
|
|
Return On Capital Employed
|
6.10
|
12.76
|
9.63
|
|
|
Return On Shareholders' Funds/Equity
|
7.10
|
12.47
|
8.27
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
|
|
