|
* Adopted abbreviations : SC
- Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
330108-H
|
|
COMPANY NAME
|
:
|
CONTINENTAL STRENGTH SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
10/01/1995
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
LOT 720, BLOCK 7, DEMAK LAUT INDUSTRIAL PARK, 93050 KUCHING,
SARAWAK, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
LOT 6479 LORONG SUNGAI PULOH BATU 6 JALAN KAPAR, 42100 KLANG,
SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-32915189
|
|
FAX.NO.
|
:
|
03-32916193
|
|
CONTACT PERSON
|
:
|
ARTHUR HII (
MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51420
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING AND
DEALING IN STEEL AND OTHER RELATED PRODUCT
|
|
AUTHORISED CAPITAL
|
:
|
MYR
5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR
1,500,000.00 DIVIDED INTO
ORDINARY SHARES 1,500,000 CASH OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR 8,825,544 [2009]
|
|
NET WORTH
|
:
|
MYR 2,105,337 [2009]
|
|
STAFF STRENGTH
|
:
|
9 [2011]
|
|
BANKER (S)
|
:
|
|
UNITED OVERSEAS BANK (MALAYSIA) BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
LOW
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD9,017
|
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 and dealing in
steel and other related product.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
DATO' DR HII WI SING +
|
285, LORONG FOOCHOW 1H, 93300 KUCHING, SARAWAK, MALAYSIA.
|
490702-13-5255
K268546
|
225,000.00
|
|
MR. ARTHUR HII LU CHOON +
|
1, JALAN RHU 1/KS 6, BANDAR BOTANIC, 41200 KLANG, SELANGOR,
MALAYSIA.
|
720329-13-5281
K0280738
|
150,000.00
|
|
DATINTING CHUO KIEW
|
285 LORONG FOOCHOW 1, 93300 KUCHING, SARAWAK, MALAYSIA.
|
490605-13-5800
K313654
|
150,000.00
|
|
MR. ALEXANDER HII LU KWONG +
|
285, LORONG FOOCHOW 1H, 93300 KUCHING, SARAWAK, MALAYSIA.
|
770512-13-6229
K0501291
|
150,000.00
|
|
MR.HII LU THIAN
|
289, JALAN FOOCHOW 1H, 93300 KUCHING, SARAWAK, MALAYSIA.
|
750525-13-5569
K0444557
|
150,000.00
|
|
MR. CHRISTOPHER HII LU MING +
|
3, JALAN RUH 1/KS 6, BANDAR BOTANIC, 41200 KLANG, SELANGOR, MALAYSIA.
|
770512-13-6181
|
150,000.00
|
|
MR.TING KEE SHEN
|
30, JALAN SRI HARTAMAS 5, TAMAN SRI HARTAMAS, 50480 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
811009-14-6401
|
100,000.00
|
|
IRHII EE SING
|
283, LORONG FOOCHOW 1H, 93300 KUCHING, SARAWAK, MALAYSIA.
|
540424-13-5281
K268544
|
75,000.00
|
|
MR.TING KEE SIONG
|
101, JALAN KAPOR, 96000 SIBU, SARAWAK, MALAYSIA.
|
810420-13-5185
|
50,000.00
|
|
MR.LONG KHA KEONG
|
160, LORONG BATU NILAM 12, BANDAR BUKIT TINGGI, 41200 KLANG,
SELANGOR, MALAYSIA.
|
810928-10-5067
|
50,000.00
|
|
MR.HOO MUN KEET
|
33, JALAN USJ 11/4K, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.
|
760501-08-5869
A3447905
|
50,000.00
|
|
MR. CHIN KOK KHEONG +
|
37, JALAN LAGONG, 27/84, TAMAN ALAM MEGAH, 40400 SHAH ALAM,
SELANGOR, MALAYSIA.
|
620711-04-5203
6829830
|
50,000.00
|
|
MS. HENG SUH SIAK +
|
52, JALAN KOTA RAJA, TAMAN BIJAYA, 41000 KLANG, SELANGOR, MALAYSIA.
|
761218-10-5208
A3520817
|
50,000.00
|
|
MS.NGU LIEW ING
|
634, INDAH HEIGHT, LORONG HUP KEE 10, OFF JALAN HUP KEE, 93350
KUCHING, SARAWAK, MALAYSIA.
|
601126-13-5474
K651134
|
40,000.00
|
|
MS.AW CHIEW LAN
|
86, KENNY HEIGHT, JALAN KENNY HILL, 93300 KUCHING, SARAWAK,
MALAYSIA.
|
710517-13-5140
K0267722
|
40,000.00
|
|
MR.NG
|
12, EMPIRE GARDEN, LOT 4962, UPPER SUNGAI MAONG, 93150 KUCHING,
SARAWAK, MALAYSIA.
|
541212-13-5073
K600858
|
20,000.00
|
|
|
|
|
---------------
|
|
|
|
|
1,500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. CHIN KOK KHEONG
|
|
Address
|
:
|
37, JALAN LAGONG, 27/84, TAMAN ALAM MEGAH, 40400 SHAH ALAM,
SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
6829830
|
|
New IC No
|
:
|
620711-04-5203
|
|
Date of Birth
|
:
|
11/07/1962
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MS. HENG SUH SIAK
|
|
Address
|
:
|
52, JALAN KOTA RAJA, TAMAN BIJAYA, 41000 KLANG, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
A3520817
|
|
New IC No
|
:
|
761218-10-5208
|
|
Date of Birth
|
:
|
18/12/1976
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR.ARTHUR HII LU CHOON
|
|
Address
|
:
|
1, JALAN RHU 1/KS 6, BANDAR BOTANIC, 41200 KLANG, SELANGOR,
MALAYSIA.
|
|
IC / PP No
|
:
|
K0280738
|
|
New IC No
|
:
|
720329-13-5281
|
|
Date of Birth
|
:
|
29/03/1972
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR.CHRISTOPHER HII LU MING
|
|
Address
|
:
|
3, JALAN RUH 1/KS 6, BANDAR BOTANIC, 41200 KLANG, SELANGOR,
MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
770512-13-6181
|
|
Date of Birth
|
:
|
12/05/1977
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MR.ALEXANDER HII LU KWONG
|
|
Address
|
:
|
285, LORONG FOOCHOW 1H, 93300 KUCHING, SARAWAK, MALAYSIA.
|
|
IC / PP No
|
:
|
K0501291
|
|
New IC No
|
:
|
770512-13-6229
|
|
Date of Birth
|
:
|
12/05/1977
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 6
|
Name Of Subject
|
:
|
DATO' DR HII WI SING
|
|
Address
|
:
|
285, LORONG FOOCHOW 1H, 93300 KUCHING, SARAWAK, MALAYSIA.
|
|
IC / PP No
|
:
|
K268546
|
|
New IC No
|
:
|
490702-13-5255
|
|
Date of Birth
|
:
|
02/07/1949
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
|
|
|
|
|
|
|
|
Qualification
|
:
|
DIP IN BIOCHEMISTRY FROM THE SWINBURNE INSTITUTE OF TECHNOLOGY,
MELBOURNE, AUSTRALIA IN 1970. IN 1976, B.COMM UNIVERSITY OF COMMERCE, NEW
DELHI, INDIA. PH.D IN COMMERCE & BUSINESS ADMIN FROM THE INTERNATIONAL
UNIVERSITY IN JAPAN & USA IN 1982.
|
|
Working Experience
|
:
|
HE GATHERED WIDE RANGE OF EXPERIENCE DURING HIS TENURE WITH YUNG
KONG CO BHD IN THE AREAS OF TRADING, MANUFACTURING, HOTEL OPERATIONS, HIRE
PURCHASES, LOANS, CONSTRUCTIONS & PROPERTIES. UNDER HIS LEADERSHIP,
YUNG KONG GALVANISING INDUSTRIES BHD EXPANDED FROM MANUFACTURING OF
GALVANISED CORRUGATED SHEETS TO PRODUCTION OF GALVANISED PLAIN SHEETS, ROLL
FORMING OF STEEL ROOFING & COLOUR COATING OF GALVANISED STEEL SHEET
& COILS. MEMBER OF THE INSTITUTION OF INDUSTRIAL MANAGERS SINCE 1979
& A FELLOW MEMBER OF THE BRITISH INSTITUTE OF MGTE SINCE 1980. MEMBER
OF YAYASAN PENGURUSAN MALAYSIA SINCE 1987 & CIM SINCE 1989.
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
ARTHUR HII
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
AUDITOR
|
Auditor
|
:
|
CHIN, LAU & PARTNERS
|
|
Auditor' Address
|
:
|
SUBLOT 7, LOT 9033, JALAN WAN ALWI, TABUAN JAYA, 2ND FLOOR, 93350
KUCHING, SARAWAK, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
IR MICHAEL HII EE SING
|
|
|
IC / PP No
|
:
|
K268544
|
|
|
New IC No
|
:
|
540424-13-5281
|
|
|
Address
|
:
|
283, LORONG FOOCHOW 1H, 93300 KUCHING, SARAWAK, MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
UNITED OVERSEAS BANK (MALAYSIA) BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
|
ENCUMBRANCE (S)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
25/05/2007
|
|
Description Of Charge
|
:
|
LEGAL CHARGE UNDER NATIONAL LAND
|
|
Amount Secured
|
:
|
RM2,100,000.00
|
|
Description Of Property Affected
|
:
|
ALL THAT PIECE LAND HELD UNDER HSD 102303 PT 47875, MK KAPAR, KLANG,
SELANGOR
|
|
Name &
Address Of Chargee
|
:
|
UNITED
OVERSEAS BANK (MALAYSIA) BHD
2108, JALAN MERU, 41050 KLANG, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
11/06/2007
|
|
Registered and
Numbered 1 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
|
Percentage
|
:
|
90%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
10%
|
|
|
|
|
|
|
|
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
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Export Market
|
:
|
PAKISTAN, BANGLADESH
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,LETTER OF CREDIT (LC)
|
OPERATIONS
|
Goods Traded
|
:
|
STEEL AND OTHER RELATED PRODUCT
|
|
|
|
|
|
Competitor(s)
|
:
|
KEJORA TEGUH
SDN BHD
METROD (OFHC) SDN BHD
ORIENTAL SHEET PILING SDN BHD
PMS MARKETING SDN BHD
STAR SHINE MARKETING SDN BHD
|
|
|
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
2008
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
COMPANY
|
9
|
10
|
11
|
14
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading and dealing in
steel and other related product.
The SC refuse to provide detail information regarding to its operation
business.
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
|
:
|
03-32915189
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
LOT NO. 6479, LORONG SG, PULUH, BATU 6, JALAN KAPAR, 42100 KLANG
|
|
Current Address
|
:
|
LOT 6479 LORONG SUNGAI PULOH BATU 6 JALAN KAPAR, 42100 KLANG,
SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the SC staff Ms Yap Mei Chia and she provided some
information regarding to the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Decreased
|
[
|
2007 - 2009
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2007 - 2009
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
8.14%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
9.78%
|
]
|
The continuous fall in turnover could be due to the lower demand for the SC's
products / services. The SC's profit fell sharply because of the high
operating costs incurred. The unfavourable return on shareholders' funds and
net assets could indicate that the SC's management was inefficient in
utilising its assets to generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
29 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
7 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
21 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in 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
|
:
|
Unfavourable
|
[
|
0.41 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.11 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
|
:
|
Acceptable
|
[
|
3.07 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.78 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 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:
The SC's
performance deteriorated over the years with lower turnover and profit. 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. 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 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 : LIMITED
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
|
|
51420 : Wholesale of metals, metal ores and fabricated metals
|
|
|
|
|
INDUSTRY :
|
METAL
|
|
|
|
|
|
|
The metal industry is bullish in its outlook for 2011 with the
implementation of projects under the Economic Transformation Programme
(ETP). The local industry players were poised to benefit in the long term
from projects such as the MRT (Mass Rapid Transit).
|
|
Even though the metal industry was not identified as one of the National
Key Economic Areas (NKEAs), it has given huge contribution to various
sectors under the NKEAs. The development of this industry would directly
influence the performance and success of those NKEAs especially in the
construction sector.
|
|
There would be a lot of infrastructure projects under the NKEAs and 10th
Malaysia Plan which will create opportunities for the metal industry to
expand production to cater for the upcoming demand in the implementation of
projects.
|
|
By imposing an export duty on iron ore, then more will be available in the
country and the prices will be lower than global prices but the imposing an
export duty must be on special circumstances.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 1995 as a private limited company, the SC is
principally engaged in the trading and dealing of steel and other related
product. Having been in the industry for over a decade, the SC has achieved
a certain market share and has built up a satisfactory reputation in the
market. With RM1.5 million in issued and paid up capital, the SC has the
potential of capturing a higher market shares as it is competing
aggressively in the market.
|
|
Our investigation revealed that the SC serves both local and overseas
clients. Penetrating into the overseas countries such as Pakistan and
Bangladesh has well diversified its business risk and at the same time
added strength to its capabilities in capturing higher market shares. The
SC can be recognised as a small entity with a work force of 9 employees in
the operations. Its management capability is considered average.
|
|
In year 2009, the SC's business performance showed a reverse trend as both
its turnover and pre-tax profit have decreased compared to the previous
year. Its turnover has moderated from RM11.51 million to RM8.82 million
whilst its pre-tax profit dropped to RM224,692, in view of decline in
margin as a result of a challenging and competitive business environment.
The SC has generated a low return on shareholders' funds indicates that the
management was inefficient in utilising the SC's assets 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, a low gearing ratio has minimised the SC's
financial risk. Overall financial performance of the SC is limited.
|
|
We are aware that 90% of the SC's products are sourced locally and the rest
are obtained from overseas market. Being involved in small volume of import
activities, the SC is exposed to low foreign currency risk.
|
|
The SC's payment habit is average. With its adequate working capital, the
SC should be able to pay its short term debts.
|
|
The industry shows an upward trend and this trend is likely to sustain in
the near future. With the promising outlook of the industry performance,
the SC 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.
|
|
Due to its limited financial performance, we recommend credit be granted to
the SC with close monitoring.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
CONTINENTAL
STRENGTH SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
8,825,544
|
11,517,060
|
20,399,284
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
224,692
|
357,131
|
310,900
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
224,692
|
357,131
|
310,900
|
|
Taxation
|
<53,329>
|
<48,698>
|
<63,247>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
171,363
|
------------
308,433
|
------------
247,653
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
171,363
|
------------
308,433
|
------------
247,653
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
171,363
|
------------
308,433
|
------------
247,653
|
|
As previous reported
|
433,974
|
347,541
|
99,888
|
|
|
|
|
|
|
As restated
|
------------
433,974
|
------------
347,541
|
------------
99,888
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
605,337
|
655,974
|
347,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
-
|
<222,000>
|
-
|
|
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
605,337
==========
|
------------
433,974
==========
|
------------
347,541
==========
|
|
RETAINED BY: The Company
|
605,337
|
433,974
|
347,541
|
|
|
|
|
|
|
|
|
|
|
|
|
------------
605,337
==========
|
------------
433,974
==========
|
------------
347,541
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Term loan
|
97,834
|
114,172
|
75,165
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase
|
10,864
|
4,023
|
-
|
|
|
------------
108,698
==========
|
------------
118,195
==========
|
------------
75,165
==========
|
|
|
|
|
|
BALANCE SHEET
|
CONTINENTAL
STRENGTH SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
3,302,591
|
3,422,260
|
3,367,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
3,302,591
|
------------
3,422,260
|
------------
3,367,741
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
690,548
|
982,885
|
429,309
|
|
|
|
|
|
|
|
|
Trade debtors
|
165,800
|
125,437
|
1,035,934
|
|
|
Other debtors, deposits & prepayments
|
30,438
|
38,286
|
54,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
209,013
|
255,148
|
169,891
|
|
|
|
|
|
|
|
|
Trade refundable
|
-
|
104,529
|
84,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
1,095,799
|
------------
1,506,285
|
------------
1,774,262
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
519,431
|
990,585
|
900,275
|
|
|
Other creditors & accruals
|
95,655
|
72,224
|
338,781
|
|
|
Hire purchase & lease creditors
|
80,700
|
60,227
|
-
|
|
|
|
|
|
|
|
|
Short term borrowings/Term loans
|
290,643
|
273,617
|
253,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
2,896
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
989,325
|
------------
1,396,653
|
------------
1,492,887
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
106,474
|
------------
109,632
|
------------
281,375
|
|
TOTAL NET ASSETS
|
------------
3,409,065
==========
|
------------
3,531,892
==========
|
------------
3,649,116
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
1,500,000
|
1,500,000
|
1,500,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
1,500,000
|
------------
1,500,000
|
------------
1,500,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
605,337
|
433,974
|
347,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
605,337
|
------------
433,974
|
------------
347,541
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
2,105,337
|
------------
1,933,974
|
------------
1,847,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
Long term loans
|
1,161,094
|
1,449,634
|
1,755,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase creditors
|
104,634
|
103,884
|
-
|
|
|
Deferred taxation
|
38,000
|
44,400
|
46,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
1,303,728
|
------------
1,597,918
|
------------
1,801,575
|
|
|
------------
|
------------
|
------------
|
|
|
3,409,065
|
3,531,892
|
3,649,116
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
CONTINENTAL
STRENGTH SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
209,013
|
255,148
|
169,891
|
|
|
Net Liquid Funds
|
<81,630>
|
<18,469>
|
<83,940>
|
|
|
Net Liquid Assets
|
<584,074>
|
<873,253>
|
<147,934>
|
|
|
Net Current Assets/(Liabilities)
|
106,474
|
109,632
|
281,375
|
|
|
Net Tangible Assets
|
3,409,065
|
3,531,892
|
3,649,116
|
|
|
Net Monetary Assets
|
<1,887,802>
|
<2,471,171>
|
<1,949,509>
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
1,637,071
|
1,887,362
|
2,009,206
|
|
|
Total Liabilities
|
2,293,053
|
2,994,571
|
3,294,462
|
|
|
Total Assets
|
4,398,390
|
4,928,545
|
5,142,003
|
|
|
Net Assets
|
3,409,065
|
3,531,892
|
3,649,116
|
|
|
Net Assets Backing
|
2,105,337
|
1,933,974
|
1,847,541
|
|
|
Shareholders" Funds
|
2,105,337
|
1,933,974
|
1,847,541
|
|
|
Total Share Capital
|
1,500,000
|
1,500,000
|
1,500,000
|
|
|
Total Reserves
|
605,337
|
433,974
|
347,541
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.21
|
0.18
|
0.11
|
|
|
Liquid Ratio
|
0.41
|
0.37
|
0.90
|
|
|
Current Ratio
|
1.11
|
1.08
|
1.19
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
29
|
31
|
8
|
|
|
Debtors Ratio
|
7
|
4
|
19
|
|
|
Creditors Ratio
|
21
|
31
|
16
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0.78
|
0.98
|
1.09
|
|
|
Liabilities Ratio
|
1.09
|
1.55
|
1.78
|
|
|
Times Interest Earned Ratio
|
3.07
|
4.02
|
5.14
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
2.55
|
3.10
|
1.52
|
|
|
Net Profit Margin
|
1.94
|
2.68
|
1.21
|
|
|
Return On Net Assets
|
9.78
|
13.46
|
10.58
|
|
|
Return On Capital Employed
|
8.82
|
12.30
|
9.89
|
|
|
Return On Shareholders' Funds/Equity
|
8.14
|
15.95
|
13.40
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0.72
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
|
|
