MIRA INFORM REPORT

 

 

Report Date :

20.06.2012

 

IDENTIFICATION DETAILS

 

Name :

DONGWHA MDF (M) SDN BHD

 

 

Formerly Known As :

GUTHRIE MDF SDN BHD

 

 

Registered Office :

Symphony House, Block D13, Pusat Dagangan Dana 1, Jalan Pju 1a/46, Level 8, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

21.09.1990

 

 

Com. Reg. No.:

204561-X

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture and sale of medium density fibreboards

 

 

No. of Employees :

200

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


* Adopted abbreviations :            SC - Subject Company (the company enquired by you),  N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

204561-X

COMPANY NAME

:

DONGWHA MDF (M) SDN BHD

FORMER NAME

:

GUTHRIE MDF SDN BHD (28/05/2007)
GUTHRIE COMMODITIES SDN BHD (25/04/1994)

INCORPORATION DATE

:

21/09/1990

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

SYMPHONY HOUSE, BLOCK D13, PUSAT DAGANGAN DANA 1, JALAN PJU 1A/46, LEVEL 8, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 833, MUKIM PADANG MEHA, PADANG SERAI, 09400 KULIM, KEDAH, MALAYSIA.

TEL.NO.

:

04-4573070

FAX.NO.

:

04-4022243

WEB SITE

:

www.donghwamdf.com

CONTACT PERSON

:

KIM JONGSU ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

3699

PRINCIPAL ACTIVITY

:

MANUFACTURE AND SALE OF MEDIUM DENSITY FIBREBOARDS

AUTHORISED CAPITAL

:

MYR 100,000,000.00 DIVIDED INTO 
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 60,000,000.00 OF MYR 0.50 EACH.
OTHER SHARE 200,000,000.00 OF MYR 0.10 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 50,000,000.00 DIVIDED INTO 
ORDINARY SHARES 20,000,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 60,000,000 CASH OF MYR 0.50 EACH.

 

 

 

SALES

:

MYR 141,031,923 [2010]

NET WORTH

:

MYR 108,716,623 [2010]

 

 

 

STAFF STRENGTH

:

200 [2012]

BANKER (S)

 

MALAYAN BANKING BHD
HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

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 and sale of medium density fibreboards.

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).

The intermediate holding company of the SC is DONGWHA HONG KONG INTERNATIONAL CO LTD, a company incorporated in HONG KONG.

The immediate holding company of the SC is DONGWHA MALAYSIA HOLDINGS SDN BHD, a company incorporated in MALAYSIA.

The ultimate holding company of the SC is MH HOLDING CO LTD, a company incorporated in HONG KONG.

 

The major shareholder(s) of the SC are shown as follows :

Name

Address

IC/PP/Loc No

Shareholding

(%)

DONGWHA MALAYSIA HOLDINGS SDN BHD
[ORD 20,000,000 & PREF 60,000,000]

SYMPHONY HOUSE, BLOCK D13, PUSAT DAGANGAN DANA 1, JALAN PJU 1A/46, LEVEL 8, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

617880

80,000,000.00

100.00

 

 

 

---------------

------

 

 

 

80,000,000.00

100.00

 

 

 

============

=====

 

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

KIM HYUN SEOG

Address

:

A-22-2, KIARAVILLE CONDOMINIUM, CHANGKAT DUTA KIARA, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

M83246070

 

 

 

Date of Birth

:

30/11/1967

 

 

 

Nationality

:

KOREAN

Date of Appointment

:

01/10/2009

Remark

:

OLD PP: GS0028112

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

KIM WON BAE

Address

:

167-22-8, GURNEY PARK, MAPLE TOWER, PERSIARAN GURNEY, 10250 GEORGETOWN, PULAU PINANG, MALAYSIA.

IC / PP No

:

M87197998

 

 

 

Date of Birth

:

25/10/1969

 

 

 

Nationality

:

KOREAN

Date of Appointment

:

21/11/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. ABDUL HALIM BIN ABDUL RAHMAN

Address

:

28, JALAN SULTAN SALAHUDDIN ABDUL AZIZ SHAH 1, 9/6A, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

A0793177

New IC No

:

670920-14-5089

Date of Birth

:

20/09/1967

 

 

 

Nationality

:

MALAYSIAN MALAY

Date of Appointment

:

21/11/2011

 

 

 

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

KIM JONGSU

 

Position

:

DIRECTOR

 

 

 

 

 

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE

Auditor' Address

:

UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 19, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHEN BEE LING

 

IC / PP No

:

A2824767

 

New IC No

:

740719-06-5256

 

Address

:

B-3-3A, PANGSAPURI IMPIAN, OFF JALAN PIPIT, BANDAR PUCHONG JAYA, 47100 PUCHONG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

2)

Company Secretary

:

MS. WENDY CHIN NGEOK MUI

 

IC / PP No

:

7311328

 

New IC No

:

640423-10-7826

 

Address

:

3, JALAN IBU KOTA 4, TAMAN IBU KOTA, GOMBAK, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

2)

Name

:

HSBC 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

:

26/06/2007

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL THAT PIECE OF LAND KNOWN AS PT 434 MK PDG MEHA, KULIM, KEDAH HEKD UNDER HAKMILIK SEMENTARA HSD 4098 TOGETHER WITH PREMISES BEARING ADD LOT 833 & 833-A MK PDG MEHA, PDG SERAI, KULIM, KEDAH

 

Name & Address Of Chargee

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 1 In The Register of Charges



ENCUMBRANCE 2

Date of Creation

:

12/09/2007

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL THAT PIECE OF LAND KNOWN AS PT 434 MK PDG MEHA, KULIM, KEDAH HEKD UNDER HAKMILIK SEMENTARA HSD 4098 TOGETHER WITH PREMISES BEARING ADD LOT 833 & 833-A MK PDG MEHA, PDG SERAI, KULIM, KEDAH

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 2 In The Register of Charges



ENCUMBRANCE 3

Date of Creation

:

24/11/2009

Description Of Charge

:

1ST PARTY 1ST LEGAL CHARGE

 

Amount Secured

:

RM35,280,000.00

Description Of Property Affected

:

ALL THAT PIECE OF LAND KNOWN AS PT 434 MK PDG MEHA, KULIM, KEDAH HEKD UNDER HAKMILIK SEMENTARA HSD 4098 TOGETHER WITH PREMISES BEARING ADD LOT 833 & 833-A MK PDG MEHA, PDG SERAI, KULIM, KEDAH

 

Name & Address Of Chargee

:

HSBC AMANAH MALAYSIA BHD
1, LEBUH DOWNING, LEVEL 3, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 08/12/2009

Registered and Numbered 3 In The Register of Charges



ENCUMBRANCE 4

Date of Creation

:

06/05/2010

Description Of Charge

:

1ST PARTY 2ND LEGAL CHARGE

 

Amount Secured

:

N/A

Description Of Property Affected

:

ALL THAT PIECE OF LAND KNOWN AS PT 434 MK PDG MEHA, KULIM, KEDAH HEKD UNDER HAKMILIK SEMENTARA HSD 4098 TOGETHER WITH PREMISES BEARING ADD LOT 833 & 833-A MK PDG MEHA, PDG SERAI, KULIM, KEDAH

 

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD
1, DOWNING STREET, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

 

 

 

 

 

 

 

Form 40 Dated 10/05/2010

Registered and Numbered 5 In The Register of Charges



ENCUMBRANCE 5

Date of Creation

:

24/11/2009

Description Of Charge

:

OPEN CHARGE

 

Amount Secured

:

RM35,280,000.00

Description Of Property Affected

:

ALL THAT PIECE OF LAND KNOWN AS PT 434 MK PDG MEHA, KULIM, KEDAH HEKD UNDER HAKMILIK SEMENTARA HSD 4098 TOGETHER WITH PREMISES BEARING ADD LOT 833 & 833-A MK PDG MEHA, PDG SERAI, KULIM, KEDAH

 

Name & Address Of Chargee

:

HSBC AMANAH MALAYSIA BHD

 

 

 

 

 

 

 

 

Form 40 Dated

Registered and Numbered 4 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

:

THAILAND,INDONESIA



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

:

MIDDLE EAST, INDIA, ASIA

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CHEQUES,LETTER OF CREDIT (LC),TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

MEDIUM DENSITY FIBREBOARDS (MDF)

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :1999

 

 

 

 

Competitor(s)

:

ALLIED FLOURISH SDN BHD
DIGITAL DATA TECHNOLOGIES SDN BHD
KINA BIOPOWER SDN BHD
PGF INSULATION SDN BHD
Q-CELLS MALAYSIA SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

MALAYSIA FURNITURE INDUSTRY

 

 

 

Ownership of premises

:

OWNED

 

Production Capacity

:

130,000 CUBIC METRES ( PER YEAR)

 

Shifts

:

3

 

 

 

 

 

Total Number of Employees:

 

YEAR

2012

2011

2010

2009

2008

2007

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

200

200

200

190

200

209

 

 

 

 

Branch

:

NO

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacture and sale of medium density fibreboards.

The SC's produces Plain MDF, High Density Flooring MDF, High Moisture Resistant MDF and Direct Printed Boards.

We were informed that the SC's boards are highly versatile with thickness ranging from 2.5mm to 32mm.

Besides that the SC also produces products according to the customers requirements.

The SC's factory is equipped with both automated and semi-automated machinery. 

 

 

PROJECTS


No projects found in our databank 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

04-4573070

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 833 MUKIM PADANG MEHA, 09400 PADANG SERAL, KULIM KEDAH DARUL

Current Address

:

LOT 833, MUKIM PADANG MEHA, PADANG SERAI, 09400 KULIM, KEDAH, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the Senior staff from the Admin Department. She provided some information on the SC.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2007 - 2010

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2010

]

 

Return on Shareholder Funds

:

Acceptable

[

12.25%

]

 

Return on Net Assets

:

Acceptable

[

11.20%

]

 

 

 

 

 

 

 

 

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. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

22 Days

]

 

Debtor Ratio

:

Favourable

[

54 Days

]

 

Creditors Ratio

:

Favourable

[

22 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

:

Favourable

[

2.55 Times

]

 

Current Ratio

:

Favourable

[

2.96 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

[

11.64 Times

]

 

Gearing Ratio

:

Favourable

[

0.26 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 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 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 : STRONG

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index 
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

INDUSTRY ANALYSIS

 

MSIC CODE

3699 : Other manufacturing n.e.c.

 

 

INDUSTRY :

MANUFACTURING

 

 

 


The manufacturing sector expanded by 5.1% in the third quarter ended September 30,2011 on a year-on-year basis as supply-chain disruptions were reduced and following higher output of domestic-related industries as well as a weaker external environment. Investments in Malaysia's manufacturing sector reached RM40.7 billion in the first 10 months of 2011 and the full-year figure is expected to surpass year 2010's numbers.


The E&E sub-sector is expected to moderate in the second half of 2011, due to the increasingly uncertain external environment. Output of E&E contracted 4.9% during the first seven months of 2011 largely due to the global supply chain disruptions and lower global chip sales. Lower orders for notebooks and personal computers arising from increased preference for smartphones and media tables coupled with uncertainties over the US and European economies, adversely affected the sub-sector.


The wood and wood products sub-sector, on the other hand, is expected to rebound when Japan's reconstruction efforts gain momentum and new housing projects start in the Middle East after the month of Ramadhan in the year 2011. Production of wood and wood products contracted 7% during the first half of the year 2011, largely due to slower output of wooden and cane furniture as well as veneer sheets and plywood. 


The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Output of rubber products increased 15.4% during the first seven months of 2011, supported by continuos demand for rubber gloves as well as rubber tyres and tubes. 


For the textiles, apparel and footwear sub-sector, the local industry players's ability to produce quality designs and diversification of product lines to cater to different market segments as well as market under their own labels are expected to sustain the growth of this sub-sector. Furthermore, the upcoming 2012 Olympic Games is anticipated to boost demand for sports attire and strengthen the sub-sector's growth further. Production of textiles, apparel and foorwear grew 14.8% during the first half of the year 2011 led by higher output of wearing apparel and footwear.


During the first seven months of 2011, production of chemicals and chemical products rose 5.6%. While output of basic chemicals contracted 8.2%, other chemical and plastic products recorded a positive growth of 30% and 20.7% respectively. On the domestic front, output of construction related materials as a group grew strongly by 20% following robust housing construction activities and aided by ongoing implementation of civil engineering projects. The manufacture of transport equipment shrank 9.4% as a result of supply chain disruptions caused by the earthquake and tsunami in Japan. In addition, production of food rose 2.4% driven by the manufacture of refined palm oil processed and preserved fish products and other food products. Specifically, production of beverages increased 12.6% while tobacco declined 2.3%


Going forward, the manufacturing sector is expected to be driven by higher value-added activities. In this regard, further tax and non-tax incentives will be provided to encourage manufacturers to move up the value chain. The new growth initiatives in the manufacturing sector such as solar and medial services would be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth




CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1990, the SC is a Private Limited company, focusing on manufacture and sale of medium density fibreboards. The SC has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the SC to further enhance its business in the near term. The SC is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the SC to remain competitive despite the challenging business environment. The SC is a large entity with strong capital position. We are confident with the SC's business and its future growth prospect.


Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. The SC is a fairly large and rapidly growing company with over 200 staff in its operations Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC. 


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the SC was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. 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 MYR 108,716,623, the SC should be able to maintain its business 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. Overall the SC has a good control over its resources.


We regard that the SC's overall payment habit is prompt. The SC had a favourable creditors' ratio as evidenced by its favourable collection days.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry.


Based on the above condition, we recommend credit be granted to the SC promptly.



PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

DONGWHA MDF (M) SDN BHD

 

Financial Year End

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

 

 

 

 

 

TURNOVER

141,031,923

104,598,446

111,647,745

100,172,391

 

----------------

----------------

----------------

----------------

Total Turnover

141,031,923

104,598,446

111,647,745

100,172,391

 

----------------

----------------

----------------

----------------

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

13,343,942

10,031,473

5,650,105

1,439,806

 

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

13,343,942

10,031,473

5,650,105

1,439,806

Taxation

<31,505>

6,763

<35,583>

<107,000>

 

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

13,312,437

10,038,236

5,614,522

1,332,806

 

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

As previously reported

12,404,186

2,365,950

<3,248,572>

<1,581,378>

 

----------------

----------------

----------------

----------------

As restated

12,404,186

2,365,950

<3,248,572>

<1,581,378>

 

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

25,716,623

12,404,186

2,365,950

<248,572>

- General

-

-

-

<3,000,000>

 

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

25,716,623

12,404,186

2,365,950

<3,248,572>

 

=============

=============

=============

=============

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

Term loan / Borrowing

1,165,414

127,247

-

-

Others

88,963

1,799,276

1,621,964

-

 

----------------

----------------

----------------

 

 

1,254,377

1,926,523

1,621,964

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

DONGWHA MDF (M) SDN BHD

 

ASSETS EMPLOYED:

 

 

 

 

FIXED ASSETS

89,820,189

94,596,499

98,613,336

98,373,328

 

 

 

 

 

 

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

89,820,189

94,596,499

98,613,336

98,373,328

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Stocks

8,541,818

8,426,580

11,508,619

8,060,695

Trade debtors

20,750,255

12,928,938

9,540,436

7,340,648

Other debtors, deposits & prepayments

5,175,459

684,643

779,073

1,344,152

Short term deposits

-

-

-

551,250

Amount due from holding company

6,600,000

5,431,876

5,029,118

7,000,000

Amount due from related companies

13,601,789

9,170,250

503,160

6,098,849

Cash & bank balances

6,484,362

8,548,281

6,266,291

2,029,850

Others

-

312,711

80,151

-

 

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

61,153,683

45,503,279

33,706,848

32,425,444

 

----------------

----------------

----------------

----------------

TOTAL ASSET

150,973,872

140,099,778

132,320,184

130,798,772

 

=============

=============

=============

=============

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade creditors

8,333,214

5,747,018

2,812,996

1,377,704

Other creditors & accruals

1,754,739

1,752,341

5,734,301

11,911,038

Bank overdraft

1,878,929

-

-

-

Short term borrowings/Term loans

4,816,396

4,894,230

-

-

Bill & acceptances payable

3,487,328

2,761,000

4,161,000

-

Amounts owing to holding company

-

-

-

405,218

Amounts owing to related companies

97,988

-

33,944,200

37,246,384

Provision for taxation

23,617

-

-

107,000

Other liabilities

251,178

175,633

301,737

-

 

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

20,643,389

15,330,222

46,954,234

51,047,344

 

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

40,510,294

30,173,057

<13,247,386>

<18,621,900>

 

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

130,330,483

124,769,556

85,365,950

79,751,428

 

=============

=============

=============

=============

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

Ordinary share capital

50,000,000

50,000,000

50,000,000

50,000,000

 

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

50,000,000

50,000,000

50,000,000

50,000,000

 

 

 

 

 

RESERVES

 

 

 

 

Share premium

30,000,000

30,000,000

30,000,000

30,000,000

Capital reserve

3,000,000

3,000,000

3,000,000

3,000,000

Retained profit/(loss) carried forward

25,716,623

12,404,186

2,365,950

<3,248,572>

 

----------------

----------------

----------------

----------------

TOTAL RESERVES

58,716,623

45,404,186

35,365,950

29,751,428

 

 

 

 

 

 

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

108,716,623

95,404,186

85,365,950

79,751,428

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

Long term loans

21,613,860

29,365,370

-

-

 

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

21,613,860

29,365,370

-

-

 

----------------

----------------

----------------

----------------

 

130,330,483

124,769,556

85,365,950

79,751,428

 

=============

=============

=============

=============

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

DONGWHA MDF (M) SDN BHD

 

TYPES OF FUNDS

 

 

 

 

Cash

6,484,362

8,548,281

6,266,291

2,581,100

Net Liquid Funds

<210,963>

3,654,051

6,266,291

2,581,100

Net Liquid Assets

31,968,476

21,746,477

<24,756,005>

<26,682,595>

Net Current Assets/(Liabilities)

40,510,294

30,173,057

<13,247,386>

<18,621,900>

Net Tangible Assets

130,330,483

124,769,556

85,365,950

79,751,428

Net Monetary Assets

10,354,616

<7,618,893>

<24,756,005>

<26,682,595>

BALANCE SHEET ITEMS

 

 

 

 

Total Borrowings

28,309,185

34,259,600

0

0

Total Liabilities

42,257,249

44,695,592

46,954,234

51,047,344

Total Assets

150,973,872

140,099,778

132,320,184

130,798,772

Net Assets

130,330,483

124,769,556

85,365,950

79,751,428

Net Assets Backing

108,716,623

95,404,186

85,365,950

79,751,428

Shareholders' Funds

108,716,623

95,404,186

85,365,950

79,751,428

Total Share Capital

50,000,000

50,000,000

50,000,000

50,000,000

Total Reserves

58,716,623

45,404,186

35,365,950

29,751,428

LIQUIDITY (Times)

 

 

 

 

Cash Ratio

0.31

0.56

0.13

0.05

Liquid Ratio

2.55

2.42

0.47

0.48

Current Ratio

2.96

2.97

0.72

0.64

WORKING CAPITAL CONTROL (Days)

 

 

 

 

Stock Ratio

22

29

38

29

Debtors Ratio

54

45

31

27

Creditors Ratio

22

20

9

5

SOLVENCY RATIOS (Times)

 

 

 

 

Gearing Ratio

0.26

0.36

0.00

0.00

Liabilities Ratio

0.39

0.47

0.55

0.64

Times Interest Earned Ratio

11.64

6.21

4.48

0.00

Assets Backing Ratio

1.63

1.56

1.07

1.00

PERFORMANCE RATIO (%)

 

 

 

 

Operating Profit Margin

9.46

9.59

5.06

1.44

Net Profit Margin

9.44

9.60

5.03

1.33

Return On Net Assets

11.20

9.58

8.52

1.81

Return On Capital Employed

10.65

9.22

8.52

1.81

Return On Shareholders' Funds/Equity

12.25

10.52

6.58

1.67

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

Contingent Liabilities

0

0

0

0

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.56.01

UK Pound

1

Rs.87.85

Euro

1

Rs.70.54

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.