EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
170232-H
|
|
COMPANY NAME
|
:
|
TITAN TRADING CORP SDN BHD
|
|
FORMER NAME
|
:
|
TITAN
POLYETHYLENE (MALAYSIA) SDN
BHD (24/11/2005)
ASIA PACIFIC POLYETHYLENE (MALAYSIA)
SDN BHD (21/03/1989)
POLIETILENA ASIA PASIFIK (MALAYSIA)
SDN BHD (24/05/1988)
|
|
INCORPORATION DATE
|
:
|
27/04/1988
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
BANGUNAN MALAYSIA
RE, 17 LORONG DUNGUN, DAMANSARA HEIGHTS, 6TH FLOOR, 50490 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
PLO 312, JALAN TEMBAGA 4, PASIR GUDANG INDUSTRIAL ESTATE, 81700
PASIR GUDANG, JOHOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
07-2538888
|
|
FAX.NO.
|
:
|
07-2510784
|
|
EMAIL
|
:
|
mtan@titangroup.com
|
|
WEB SITE
|
:
|
www.titangroup.com
|
|
CONTACT PERSON
|
:
|
CHEONG TENG KHUAN ( DIRECTOR )
|
|
INDUSTRY CODE
|
:
|
51499
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING IN CHEMICALS
|
|
AUTHORISED CAPITAL
|
:
|
MYR 310,000,000.00
DIVIDED INTO
ORDINARY SHARE 310,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR
292,500,000.00 DIVIDED INTO
ORDINARY SHARES 292,500,000 CASH OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR
2,414,517,000 [2009]
|
|
NET WORTH
|
:
|
MYR 463,264,000 [2009]
|
|
M1000 OVERALL
RANKING
|
:
|
174[2004]
|
|
M1000 INDUSTRY
RANKING
|
:
|
3[2004]
|
|
STAFF STRENGTH
|
:
|
N/A [2011]
|
|
BANKER (S)
|
|
|
RHB BANK BHD
MALAYAN BANKING BHD
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
PROMPT
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG GROWTH
|
|
PROPOSED CREDIT
LIMIT
|
:
|
USD24,372,733.00
|
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 in chemicals.
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
|
2004
|
|
|
|
OVERALL RANKING
|
174
|
|
|
|
INDUSTRY RANKING
|
3
|
|
|
The immediate holding company of the SC is
TITAN CHEMICALS CORP. BHD, a company incorporated in MALAYSIA.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
TITAN CHEMICALS CORP BHD
|
BANGUNAN MALAYSIAN RE, 17, LORONG DUNGUN, DAMANSARA HEIGHTS, 6TH
FLOOR, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
222357
|
292,500,000.00
|
|
|
|
|
---------------
|
|
|
|
|
292,500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
WESLEY RAY VAUGHAN
|
|
Address
|
:
|
10 JALAN AUSTIN PERDANA 2/16, TAMAN
AUSTIN PERDANA, 81100 JOHOR BAHRU, JOHOR,
MALAYSIA.
|
|
IC / PP No
|
:
|
P422023935
|
|
|
|
|
|
Date of Birth
|
:
|
08/09/1952
|
|
|
|
|
|
Nationality
|
:
|
AMERICAN
|
|
Date of Appointment
|
:
|
26/08/2008
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. CHEONG PENG KHUAN
|
|
Address
|
:
|
3, LORONG HIJAU 3, GREEN
LANE, 11600 PULAU PINANG, PULAU PINANG, MALAYSIA.
|
|
New IC No
|
:
|
580222-07-5125
|
|
Date of Birth
|
:
|
22/02/1958
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
23/02/2010
|
DIRECTOR 3
|
Name Of Subject
|
:
|
LEE HUNKI
|
|
Address
|
:
|
92, JALAN DATUK SULAIMAN 6, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
M77788778
|
|
Nationality
|
:
|
KOREAN
|
|
Date of Appointment
|
:
|
09/11/2010
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
CHEONG TENG KHUAN
|
|
|
Position
|
:
|
DIRECTOR
|
AUDITOR
|
Auditor
|
:
|
ERNST & YOUNG
|
|
Auditor' Address
|
:
|
SUITE 11.2, MENARA
PELANGI, 2 JALAN KUNING, TAMAN PELANGI, LEVEL 11, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. KONG CHOCK HOON
|
|
|
|
|
|
|
|
New IC No
|
:
|
600101-01-6001
|
|
|
Address
|
:
|
92, JALAN DATUK SULAIMAN 6, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BANKING
|
Banking relations are maintained principally with :
|
2)
|
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)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
27/03/2009
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
USD332,500,000.00
|
|
Description Of Property Affected
|
:
|
|
ALL ASSETS AND THE INSURANCES
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated 17/04/2009
|
|
Registered and Numbered 7 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
27/03/2009
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
USD332,500,000.00
|
|
Description Of Property Affected
|
:
|
|
ALL ASSETS OF THE COMPANY
|
|
|
Name & Address Of Chargee
|
:
|
|
|
|
|
|
|
|
|
|
|
Form 40 Dated 17/04/2009
|
|
Registered and Numbered 8 In The Register of Charges
|
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
Overseas : YES
Import Countries : ASIA
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
|
[
|
X
|
]
|
|
Good 31-60 Days
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
AUSTRALIA, SINGAPORE, INDONESIA,
THAILAND
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,LETTER OF CREDIT (LC),TELEGRAPHIC TRANSFER (TT)
|
|
Type of Customer
|
:
|
MANUFACTURING INDUSTRIES
|
|
|
|
|
|
|
|
|
CUSTOMER(S)
|
:
|
|
1) GN PACKAGING INDUSTRIES (M) SDN BHD
|
|
OPERATIONS
|
Goods Traded
|
:
|
|
HIGH DENSITY POLYETHLENE , LENEAR LOW DENSITY ,HIGH DENSITY
POLYETHYLENE , ETHYLENE , PROPYLENE OLEFIN CO-PRODUCTS
|
|
|
|
|
|
|
Brand Name
|
:
|
|
TITANEX , TITANLENE , TITANZEX
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
CHEMQUEST SDN BHD
|
|
IDEMITSU CHEMICALS (M) SDN BHD
|
|
KZH RESOURCES SDN BHD
|
|
MARUBENI KABUSHIKI KAISHA_(MARUBENI CORPORATION)
|
|
TEXCHEM RESOURCES BHD
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
|
FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)CHEMICAL INDUSTRIES COUNCIL
OF MALAYSIA
(CICM)
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
2008
|
2007
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
60
|
66
|
40
|
40
|
20
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading in chemicals.
Besides that the SC also acts as the International Procurement Centre (IPC).
We were informed that the SC is under the Titan Chemicals Group of Companies
and it also acts as the marketing arm for its group.
The SC's products are includes Ethylene, Propylene, Olefin co-products, Low
Density Polythylene Film and others.
The SC's products are mainly used in a variety of consumer and industrial
applications, including packaging film, trash bags, automotive parts, plastic
bottles and caps, and compounds for wire and cable insulation.
The SC's IPC's status allow the Group to specialize in and centralize all
procurement and international sales of raw materials, components and finished
products for its operations in Malaysia and Indonesia.
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
|
:
|
072538888
|
|
Current Telephone Number
|
:
|
07-2538888
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
P/O 3/2, JALAN TEMBAGA 5 PASIR GUDANG INDUSTRIAL ESTATE 81700 PASIR
|
|
Current Address
|
:
|
PLO 312, JALAN TEMBAGA 4, PASIR GUDANG INDUSTRIAL ESTATE, 81700
PASIR GUDANG, JOHOR, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest
Financial Accounts
|
:
|
YES
|
Other
Investigations
We conducted an interview
with one of staff from the SC's Admin Department. She revealed some
information pertaining to the SC.
We have verified and confirmed that the address provided was incomplete.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Erratic
|
[
|
2007 - 2009
|
]
|
|
Profit/(Loss)
Before Tax
|
:
|
Increased
|
[
|
2007 - 2009
|
]
|
|
Return on
Shareholder Funds
|
:
|
Favourable
|
[
|
30.09%
|
]
|
|
Return on Net
Assets
|
:
|
Favourable
|
[
|
30.46%
|
]
|
The fluctuating turnover reflects the fierce competition among the existing
and new market players. The higher profit could be attributed to the increase
in turnover. 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
|
:
|
Nil
|
[
|
0 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
39 Days
|
]
|
|
Creditors
Ratio
|
:
|
Favourable
|
[
|
0 Days
|
]
|
As the SC is a service oriented company, the SC does not need to keep stocks.
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
|
:
|
Favourable
|
[
|
4.46 Times
|
]
|
|
Current Ratio
|
:
|
Favourable
|
[
|
4.46 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
|
:
|
Favourable
|
[
|
42.74 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:
Although the
turnover was erratic, the SC had maintained a steady growth in its profit.
This indicate the management's efficiency in controlling its costs and
profitability. 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. 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 : STRONG
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
|
|
51499 : Wholesale of other intermediate products, waste and scrap
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 1988, the SC is a private limited company with core business
in the trading in chemicals. With over 2 decades of experience in the
business, the SC has fairly rich experiences in the business and has
achieved a certain market share. With a large issued and paid up capital of
RM292.5 million and strong backing from its well-established holding
company, the SC enjoys timely financial assistance when the needs arise.
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
other countries such as Australia,
Singapore, Indonesia and Thailand. With the contribution
of both local and overseas customers, the SC is likely to be exposed to
lower commercial risk. Moreover, the SC's products are widely used in
various industries including packaging film, trash bags and etc. With a
wide range of customer base coupled with a wider market segment, the SC's
business risk is low. The SC is operating on a medium scale and it has
approximately 60 employees in its business operations. 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.
|
|
For the financial year ended 2009, the SC's turnover decreased from RM2.88
billion to RM2.41 billion . Despite the lower turnover, the SC's pre-tax
profit grew to RM137.82 million. The SC has generated a favourable return
on its shareholders' funds indicating that the SC's management was
efficient in utilising its shareholders' funds to generate favourable
returns. Besides, the SC was in good liquidity position with its current
liabilities well covered by its current assets. Hence, it has sufficient
working capital to meet its short term financial obligations. 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. With the
comfortable networth standing at RM463.26 million, the SC is able to
sustain its business performance in the near terms.
|
|
The SC's supplier are from both the local and overseas countries. This will
eliminates the risk of dependency on deliveries from a number of key
suppliers and insufficient quantities of its raw materials.
|
|
Based on the historical financial data, we concluded that the SC's payment
habit is prompt. The SC is capable to meet small and medium commitments.
|
|
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 favourable conditions, it should have acquired competitive edge from
its competitors.
|
|
In view of the above favourable condition, we recommend a large amount
credit be proceeded to the SC with favourable term.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
TITAN TRADING
CORP SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
2,414,517,000
|
2,881,921,000
|
2,325,442,000
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
137,822,000
|
47,909,000
|
122,739,000
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
137,822,000
|
47,909,000
|
122,739,000
|
|
Taxation
|
1,565,000
|
<2,416,000>
|
3,434,000
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
139,387,000
|
------------
45,493,000
|
------------
126,173,000
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
139,387,000
|
------------
45,493,000
|
------------
126,173,000
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
139,387,000
|
------------
45,493,000
|
------------
126,173,000
|
|
As previous reported
|
<108,441,000>
|
<153,934,000>
|
<280,107,000>
|
|
|
|
|
|
|
As restated
|
------------
<108,441,000>
|
------------
<153,934,000>
|
------------
<280,107,000>
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
30,946,000
|
<108,441,000>
|
<153,934,000>
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
30,946,000
==========
|
------------
<108,441,000>
==========
|
------------
<153,934,000>
==========
|
|
RETAINED BY: The Company
|
30,946,000
|
<108,441,000>
|
<153,934,000>
|
|
|
------------
30,946,000
==========
|
------------
<108,441,000>
==========
|
------------
<153,934,000>
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Other interest expenses
|
3,290,000
|
5,199,000
|
3,089,000
|
|
bills discounting
|
12,000
|
-
|
-
|
|
|
------------
3,302,000
==========
|
------------
5,199,000
==========
|
------------
3,089,000
==========
|
BALANCE SHEET
|
TITAN TRADING
CORP SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
Subsidiary companies
|
3,000
|
3,000
|
3,000
|
|
Deffered assets
|
2,000
|
19,000
|
845,000
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
5,000
|
------------
22,000
|
------------
848,000
|
|
TOTAL LONG TERM ASSETS
|
------------
5,000
|
------------
22,000
|
------------
848,000
|
|
CURRENT ASSETS
|
|
|
|
|
|
Trade debtors
|
261,112,000
|
272,120,000
|
301,505,000
|
|
|
Other debtors, deposits & prepayments
|
333,508,000
|
353,000
|
516,000
|
|
|
Short term deposits
|
-
|
26,555,000
|
29,000,000
|
|
|
Amount due from holding company
|
-
|
1,318,000
|
1,309,000
|
|
|
Amount due from subsidiary companies
|
-
|
799,000
|
885,000
|
|
|
Amount due from related companies
|
-
|
150,792,000
|
85,022,000
|
|
|
Cash & bank balances
|
2,014,000
|
28,400,000
|
11,631,000
|
|
|
tax recoverable
|
428,000
|
-
|
474,000
|
|
TOTAL CURRENT ASSETS
|
------------
597,062,000
|
------------
480,337,000
|
------------
430,342,000
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Other creditors & accruals
|
133,803,000
|
7,290,000
|
19,533,000
|
|
|
Amounts owing to related companies
|
-
|
139,630,000
|
148,004,000
|
|
|
Provision for taxation
|
-
|
1,289,000
|
-
|
|
TOTAL CURRENT LIABILITIES
|
------------
133,803,000
|
------------
148,209,000
|
------------
167,537,000
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
463,259,000
|
------------
332,128,000
|
------------
262,805,000
|
|
TOTAL NET ASSETS
|
------------
463,264,000
==========
|
------------
332,150,000
==========
|
------------
263,653,000
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
292,500,000
|
292,500,000
|
292,500,000
|
|
TOTAL SHARE CAPITAL
|
------------
292,500,000
|
------------
292,500,000
|
------------
292,500,000
|
|
RESERVES
|
|
|
|
|
|
Exchange equalisation/fluctuation reserve
|
139,818,000
|
148,091,000
|
125,087,000
|
|
|
Retain profit/(Accumulated loss) carried forward
|
30,946,000
|
<108,441,000>
|
<153,934,000>
|
|
TOTAL RESERVES
|
------------
170,764,000
|
------------
39,650,000
|
------------
<28,847,000>
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
463,264,000
|
------------
332,150,000
|
------------
263,653,000
|
|
|
463,264,000
|
332,150,000
|
263,653,000
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
TITAN TRADING
CORP SDN BHD
|
|
As At 31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
2,014,000
|
54,955,000
|
40,631,000
|
|
|
Net Liquid Funds
|
2,014,000
|
54,955,000
|
40,631,000
|
|
|
Net Liquid Assets
|
463,259,000
|
332,128,000
|
262,805,000
|
|
|
Net Current Assets/(Liabilities)
|
463,259,000
|
332,128,000
|
262,805,000
|
|
|
Net Tangible Assets
|
463,264,000
|
332,150,000
|
263,653,000
|
|
|
Net Monetary Assets
|
463,259,000
|
332,128,000
|
262,805,000
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
0
|
|
|
Total Liabilities
|
133,803,000
|
148,209,000
|
167,537,000
|
|
|
Total Assets
|
597,067,000
|
480,359,000
|
431,190,000
|
|
|
Net Assets
|
463,264,000
|
332,150,000
|
263,653,000
|
|
|
Net Assets Backing
|
463,264,000
|
332,150,000
|
263,653,000
|
|
|
Shareholders" Funds
|
463,264,000
|
332,150,000
|
263,653,000
|
|
|
Total Share Capital
|
292,500,000
|
292,500,000
|
292,500,000
|
|
|
Total Reserves
|
170,764,000
|
39,650,000
|
<28,847,000>
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.02
|
0.37
|
0.24
|
|
|
Liquid Ratio
|
4.46
|
3.24
|
2.57
|
|
|
Current Ratio
|
4.46
|
3.24
|
2.57
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
0
|
0
|
0
|
|
|
Debtors Ratio
|
39
|
34
|
47
|
|
|
Creditors Ratio
|
0
|
0
|
0
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
0
|
|
|
Liabilities Ratio
|
0.29
|
0.45
|
0.64
|
|
|
Times Interest Earned Ratio
|
42.74
|
10.22
|
40.73
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
5.71
|
1.66
|
5.28
|
|
|
Net Profit Margin
|
5.77
|
1.58
|
5.43
|
|
|
Return On Net Assets
|
30.46
|
15.99
|
47.72
|
|
|
Return On Capital Employed
|
30.46
|
15.99
|
47.72
|
|
|
Return On Shareholders' Funds/Equity
|
30.09
|
13.70
|
47.86
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
