|
* Adopted abbreviations : SC
- Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
88183-K
|
|
COMPANY NAME
|
:
|
TIOXIDE (MALAYSIA)
SDN BHD
|
|
FORMER NAME
|
:
|
TAPL (MALAYSIA)
SDN BHD (18/07/1989)
|
|
INCORPORATION DATE
|
:
|
04/08/1982
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
THE GARDENS NORTH TOWER, MID VALLEY CITY, LINGKARAN SYED PUTRA,
LEVEL 18, 59200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
KAWASAN PERINDUSTRIAN TELUK KALUNG, P O BOX 29, 24007 KEMAMAN, TERENGGANU, MALAYSIA.
|
|
TEL.NO.
|
:
|
09-8628688
|
|
FAX.NO.
|
:
|
09-8631988
|
|
WEB SITE
|
:
|
www.huntsman.com
|
|
CONTACT PERSON
|
:
|
MIZANUR RAHMAN GHANI ( CHAIRMAN )
|
|
INDUSTRY CODE
|
:
|
24290
|
|
PRINCIPAL
ACTIVITY
|
:
|
MANUFACTURING OF TITANIUM DIOXIDE
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
55,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 45,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
12,625,000.00 DIVIDED INTO
ORDINARY SHARES 5,125,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 7,500,000 CASH OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR 683,126,000 [2009]
|
|
NET WORTH
|
:
|
MYR 346,305,000 [2009]
|
|
M1000 OVERALL
RANKING
|
:
|
407[2008]
|
|
M1000 INDUSTRY
RANKING
|
:
|
24[2008]
|
|
STAFF STRENGTH
|
:
|
330 [2011]
|
|
BANKER (S)
|
|
MALAYAN BANKING BHD
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD2,109,284
|
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) manufacturing of titanium
dioxide.
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
|
2008
|
2005
|
2004
|
|
|
OVERALL RANKING
|
407
|
293
|
276
|
|
|
INDUSTRY RANKING
|
24
|
12
|
5
|
|
The immediate holding company of the SC is
HUNTSMAN ICI INVESTMENT (NETHERLANDS) BV, a company incorporated in NETHERLANDS.
The ultimate holding company of the SC is HUNTSMAN INTERNATIONAL, LLC, a
company incorporated in UNITED STATES.
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
HUNTSMAN ICI INVESTMENT (NETHERLANDS) BV
|
|
|
12,625,000.00
|
|
|
|
|
---------------
|
|
|
|
|
12,625,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. PETER RILEY HUNTSMAN
|
|
Address
|
:
|
1399, DEVONSHIRE DR
SALT LAKE CITY, UTAH
84108, UNITED
STATES.
|
|
IC / PP No
|
:
|
P701739401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
AMERICAN
|
|
Date of Appointment
|
:
|
28/06/1999
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. LAWRENCE RUSSELL HEALY
|
|
Address
|
:
|
167, WEST 1475 NORTH CENTERVILLE, UTAH 64014, UNITED
STATES.
|
|
IC / PP No
|
:
|
P055145582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
AMERICAN
|
|
Date of Appointment
|
:
|
28/06/1999
|
DIRECTOR 3
|
Name Of Subject
|
:
|
DATO' HJ MIZANUR RAHMAN BIN S M ABDUL GHANI
|
|
Address
|
:
|
8, JALAN BEKA, BUKIT DAMANSARA, 50490 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
IC / PP No
|
:
|
0663753
|
|
New IC No
|
:
|
451201-10-5291
|
|
Date of Birth
|
:
|
01/12/1945
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
28/07/1989
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. V. VISAGARAN A/L E. VISVALINGAM
|
|
Address
|
:
|
A6250, LORONG TOK SIRA 46, 25050 KUANTAN, PAHANG, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
640718-04-5001
|
|
Date of Birth
|
:
|
18/07/1964
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN INDIAN
|
|
Date of Appointment
|
:
|
30/03/2010
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MR. AZIZ ZABIDI BIN ABDUL KADIR
|
|
Address
|
:
|
12, LORONG SELAMAT 27, JALAN PANTAI SELAMAT, 25050 KUANTAN, PAHANG, MALAYSIA.
|
|
IC / PP No
|
:
|
5738641
|
|
New IC No
|
:
|
600102-11-5079
|
|
Date of Birth
|
:
|
02/01/1960
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
05/03/2009
|
DIRECTOR 6
|
Name Of Subject
|
:
|
MR. DARYL KENNETH WOOD
|
|
Address
|
:
|
APARTMENT 43-3-2, VILLA MUTIARA, 43, JALAN MEDANG TANDUK, BUKIT
BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
E3083083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nationality
|
:
|
AMERICAN
|
|
Date of Appointment
|
:
|
15/02/2006
|
|
Remark
|
:
|
OLD PP: E1027324
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
MIZANUR RAHMAN GHANI
|
|
|
Position
|
:
|
CHAIRMAN
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
UBAIDILLAH HASSAN
|
|
|
Position
|
:
|
FINANCIAL CONTROLLER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
ALEX LEE
|
|
|
Position
|
:
|
MARKETING MANAGER
|
|
|
|
|
|
|
4)
|
Name of Subject
|
:
|
AZHAR AZIZ
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
|
5)
|
Name of Subject
|
:
|
ZIFALIAH BTE ABAS
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
|
6)
|
Name of Subject
|
:
|
ZAMANI AHMAD
|
|
|
Position
|
:
|
PRODUCTION MANAGER
|
|
|
|
|
|
|
7)
|
Name of Subject
|
:
|
VISAGARAN VISVALINGAM
|
|
|
Position
|
:
|
SITE DIRECTOR
|
|
|
|
|
|
|
8)
|
Name of Subject
|
:
|
LINDA FOO
|
|
|
Position
|
:
|
IT MANAGER
|
|
|
|
|
|
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. THAM WAI YING
|
|
|
IC / PP No
|
:
|
A1008639
|
|
|
New IC No
|
:
|
680810-10-6360
|
|
|
Address
|
:
|
46, JALAN MIDAH 19A, TAMAN MIDAH, 56000 KUALA
LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MR. KUMAR A/L RAMU
|
|
|
IC / PP No
|
:
|
A0413045
|
|
|
New IC No
|
:
|
660413-08-5289
|
|
|
Address
|
:
|
8, LORONG BUKIT PELINDUNG 77, TAMAN BUKIT PELINDUNG AMAN, 25050
KUANTAN, PAHANG, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3)
|
Company Secretary
|
:
|
MS. KUAN HUI FANG
|
|
|
IC / PP No
|
:
|
A1845678
|
|
|
New IC No
|
:
|
710224-10-5204
|
|
|
Address
|
:
|
23, JALAN BU 3/2, BANDAR UTAMA, 47800 PETALING JAYA, SELANGOR, MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
|
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank against the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT RECORD
SOURCES OF RAW
MATERIALS:
Local : YES
Overseas : YES
Import Countries : UNITED STATES,CHINA,TAIWAN,INDIA
The SC refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data
we conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
X
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA PACIFIC
|
|
Credit Term
|
:
|
30 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
CHEMICAL INDUSTRY
|
|
|
|
|
|
|
|
|
CUSTOMER(S)
|
:
|
|
1) LUXCHEM TRADING SDN BHD
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Award
|
:
|
1 ) QUALITY MANAGEMENT EXCELLENCE AWARD BY MINISTRY OF INTERNATIONAL
TRADE AND INDUSTRY (MITI) Year :2003
2 ) MS ISO 14001 Year :2000
|
|
|
|
|
|
Competitor(s)
|
:
|
BP CHEMICALS (MALAYSIA) SDN BHD
EMERY OLEOCHEMICALS (M) SDN BHD
KL-KEPONG OLEOMAS SDN BHD
NATURAL OLEOCHEMICALS SDN BHD
NYLEX (MALAYSIA)
BHD
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)SMI ASSOCIATION OF
MALAYSIASMALL & MEDIUM ENTERPRISECHEMICAL INDUSTRIES COUNCIL OF MALAYSIA
(CICM)
|
|
|
|
|
|
Ownership of premises
|
:
|
OWNED
|
|
Total Number of Employees:
|
|
|
YEAR
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
COMPANY
|
330
|
325
|
265
|
253
|
254
|
223
|
|
|
|
|
Branch
|
:
|
YES
|
|
No of Branches
|
:
|
1
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of titanium
dioxide.
The SC's product provides whiteness and opacity to a vast range of everyday
products from coatings and plastics, to inks and even cosmetics and food.
To produce the pigment the SC processes a raw material rich in titanium from
minerals found in beach sands and rock.
This feedstock is treated to extract the titanium and then reform it as
titanium dioxide to a very closely defined particle size.
Finally the product is coated and milled to produce a range of versatile
pigments for key end uses.
We were informed that the SC acts as the manufacturing plant and its Sales
and Technical Office is based in Petaling Jaya.
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
|
:
|
09-8628688
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
5TH FLOOR, WISMA AVON, 13A JALAN
219, 46100, PETALING JAYA, SELANGOR
|
|
Current Address
|
:
|
KAWASAN PERINDUSTRIAN TELUK KALUNG, P O BOX 29, 24007 KEMAMAN, TERENGGANU, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the staff from the SC and she provided some information
on the SC.
The SC refused to verify the address provided.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
2007 - 2009
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2007 - 2009
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
1.78%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
3.59%
|
]
|
The SC's turnover increased steadily as the demand for its products /
services increased due to the goodwill built up over the years. The higher
profit could be attributed to the increase in turnover. 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
|
[
|
38 Days
|
]
|
|
Debtors Ratio
|
:
|
Acceptable
|
[
|
65 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
23 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The SC's management was quite
efficient in handling its debtors. The SC's debtors days were at an
acceptable range, thus the risk of `days. The SC could be taking advantage of
the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity:
|
Liquid Ratio
|
:
|
Favourable
|
[
|
1.60 Times
|
]
|
|
Current Ratio
|
:
|
Favourable
|
[
|
2.29 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
|
[
|
209.30 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:
Generally, the
SC's performance has improved with higher turnover and profit. 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 : FAIR
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
27.17
|
27.73
|
28.31
|
28.88
|
29.13
|
|
Gross Domestic Products ( % )
|
6.3
|
4.6
|
<0.5>
|
6.9
|
5.8
|
|
Domestic Demand ( % )
|
9.0
|
6.9
|
2.9
|
4.6
|
4.8
|
|
Private Expenditure ( % )
|
8.6
|
7.1
|
<2.7>
|
8.1
|
7.0
|
|
Consumption ( % )
|
9.0
|
8.4
|
0.7
|
6.7
|
6.3
|
|
Investment ( % )
|
7.1
|
1.5
|
<17.2>
|
15.2
|
10.2
|
|
Public Expenditure ( % )
|
10.1
|
6.5
|
5.2
|
3.8
|
2.8
|
|
Consumption ( % )
|
10.8
|
11.6
|
3.1
|
0.2
|
4.6
|
|
Investment ( % )
|
9.3
|
0.7
|
8.0
|
8.3
|
0.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
100,340
|
129,563
|
89,650
|
118,356
|
116,058
|
|
Government Finance ( MYR Million )
|
<19,948>
|
<34,462>
|
<28,450>
|
<40,482>
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.2>
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
|
Inflation ( % Change in Composite CPI)
|
2.0
|
<3.3>
|
<5.2>
|
5.1
|
-
|
|
Unemployment Rate
|
3.2
|
3.7
|
4.5
|
3.9
|
-
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
336
|
388
|
331
|
394
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.04
|
1.91
|
2.87
|
2.20
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.30
|
13.24
|
11.08
|
15.30
|
-
|
|
Average Base Lending Rate ( % )
|
6.72
|
6.72
|
5.53
|
5.70
|
-
|
|
Business Loans Disbursed( % )
|
9.1
|
11.6
|
10.5
|
14.7
|
-
|
|
Foreign Investment ( MYR Million )
|
33,426.0
|
23,261.4
|
22,156.8
|
22,517.9
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
43,337
|
41,599
|
41,578
|
-
|
-
|
|
Registration of New Companies ( % )
|
13.2
|
<4.0>
|
<0.1>
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
22,629
|
27,992
|
39,075
|
-
|
-
|
|
Liquidation of Companies ( % )
|
161.5
|
23.7
|
39.6
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
227,410
|
269,866
|
312,581
|
-
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,431
|
18,885
|
19,345
|
-
|
-
|
|
Business Dissolved ( % )
|
<61.4>
|
<7.6>
|
2.4
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
442.9
|
497.5
|
319.4
|
369.7
|
-
|
|
Cellular Phone Subscribers ( Million )
|
23.3
|
25.1
|
30.1
|
32.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
20.9
|
21.5
|
23.6
|
24.0
|
25.0
|
|
Hotel Occupancy Rate ( % )
|
70
|
68
|
58
|
63
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
20.1
|
17.1
|
12.8
|
15.1
|
-
|
|
Bad Cheque Offenders (No.)
|
30,004
|
34,834
|
-
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
13,238
|
13,907
|
-
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.6>
|
5.1
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.1
|
3.6
|
0.4
|
3.4
|
4.5
|
|
Palm Oil
|
<0.6>
|
7.0
|
<1.1>
|
1.3
|
-
|
|
Rubber
|
1.0
|
<1.1>
|
<19.8>
|
9.9
|
-
|
|
Forestry & Logging
|
2.8
|
<1.5>
|
<5.9>
|
<1.3>
|
-
|
|
Fishing
|
5.2
|
4.0
|
5.5
|
4.1
|
-
|
|
Other Agriculture
|
7.0
|
5.9
|
9.0
|
6.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
487.3
|
393.0
|
413.7
|
508.4
|
-
|
|
% of Industry Non-Performing Loans
|
1.1
|
<2.0>
|
1.3
|
2.1
|
-
|
|
|
|
|
|
|
|
|
Mining
|
3.3
|
<0.8>
|
<3.8>
|
1.0
|
2.9
|
|
Oil & Gas
|
2.2
|
12.7
|
2.1
|
4.9
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
42.2
|
36.0
|
44.2
|
49.7
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
3.1
|
1.3
|
<9.4>
|
10.8
|
6.7
|
|
Exported-oriented Industries
|
<1.9>
|
2.7
|
<19.0>
|
12.1
|
-
|
|
Electrical & Electronics
|
3.0
|
2.4
|
<30.3>
|
27.4
|
-
|
|
Rubber Products
|
8.0
|
4.2
|
<10.1>
|
25.3
|
-
|
|
Wood Products
|
3.3
|
<6.0>
|
<24.1>
|
19.7
|
-
|
|
Textiles & Apparel
|
<10.1>
|
1.9
|
<19.5>
|
<1.3>
|
-
|
|
Domestic-oriented Industries
|
5.3
|
9.9
|
<9.8>
|
16.3
|
-
|
|
Food, Beverages & Tobacco
|
5.6
|
9.5
|
0.2
|
3.0
|
-
|
|
Chemical & Chemical Products
|
9.2
|
1.4
|
<7.7>
|
20.4
|
-
|
|
Plastic Products
|
<3.6>
|
6.5
|
<9.1>
|
2.4
|
-
|
|
Iron & Steel
|
17.5
|
16.8
|
<32.7>
|
30.0
|
-
|
|
Fabricated Metal Products
|
26.2
|
14.7
|
<2.5>
|
14.9
|
-
|
|
Non-metallic Mineral
|
6.6
|
8.3
|
<15.5>
|
20.2
|
-
|
|
Transport Equipment
|
<19.0>
|
27.1
|
<13.5>
|
36.5
|
-
|
|
Paper & Paper Products
|
14.9
|
8.6
|
<5.0>
|
20.5
|
-
|
|
Crude Oil Refineries
|
8.6
|
7.8
|
0.2
|
<11.4>
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,366.2
|
5,729.4
|
6,007.3
|
6,217.5
|
-
|
|
% of Industry Non-Performing Loans
|
14.1
|
16.8
|
18.3
|
23.8
|
-
|
|
|
|
|
|
|
|
|
Construction
|
4.6
|
2.1
|
5.8
|
4.9
|
4.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,116.7
|
4,149.8
|
3,241.8
|
4,038.5
|
-
|
|
% of Industry Non-Performing Loans
|
11.3
|
12.2
|
9.9
|
10.7
|
-
|
|
|
|
|
|
|
|
|
Services
|
9.7
|
7.3
|
2.6
|
6.5
|
5.3
|
|
Electric, Gas & Water
|
4.6
|
5.0
|
0.4
|
8.5
|
5.6
|
|
Transport, Storage & Communication
|
7.60
|
7.80
|
1.60
|
7.15
|
7.55
|
|
Wholesale, Retail, Hotel & Restaurant
|
11.6
|
10.0
|
2.8
|
4.7
|
5.2
|
|
Finance, Insurance & Real Estate
|
10.7
|
9.2
|
3.8
|
6.0
|
5.2
|
|
Government Services
|
4.6
|
8.6
|
2.0
|
6.7
|
1.9
|
|
Other Services
|
5.0
|
5.9
|
4.4
|
4.2
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
10,207.8
|
8,281.4
|
6,631.3
|
7,384.6
|
-
|
|
% of Industry Non-Performing Loans
|
22.6
|
24.3
|
20.2
|
25.7
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate /
Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
24290 : Manufacture of other chemical products n.e.c
|
|
|
|
|
INDUSTRY :
|
CHEMICAL
|
|
|
|
|
|
|
The chemicals industry is one of Malaysia's key industries,
catering not only for its own national requirements but also exporting to a
number of countries worldwide. The Malaysian chemicals and chemical
products industry has become the second largest contributor to the
manufactured exports sector, after the electrical and electronics industry.
|
|
The chemicals industry is important in Malaysia on account of the
nation's substantial oil and gas feedstock. The Chemicals Industries
Council of Malaysia (CICM) was established in 1978 as an industry group
under the aegis of the Federation of Malaysian Manufacturers, to focus on
the development of the chemicals industry. The primary objective of the
CICM was to organise the chemicals industry in Malaysia
into a cohesive group to represent Malaysia's interest at the
ASEAN Chemicals Industries Club (ACIC).
|
|
The Malaysian chemicals industry witnessed 37% growth in domestic sales
value in 2004 and sustained solid growth up until mid-2008. It expanded
rapidly and had been forecast to reach sales figures of MYR60,816mn by
2009.
|
|
Malaysia's
balance of trade for the year January to December 2008 was MYR114,883mn. In
the first five months of 2008, total trade was 11.2% up on the same period
last year. These impressive figures were short-lived however, with
significant decreases observed in the latter half of 2008 and early 2009,
due to the impact of global economic crisis. The Industrial Production
Index (IPI) in January 2009 was 20.2 % lower than it was in January 2008,
following a sharp decline of 15.9% in December 2008.
|
|
The biggest drop was witnessed by chemicals and chemical products, which
saw output contract by 29.9%. This is partly because the chemicals industry
tends to be more sensitive to the economic cycle and so fares
disproportionately badly in recessions.
|
|
Total exports are down from MYR100,115mn (US$27,858.48mn) in
January-February 2008 to MYR77,856mn (US$21,662mn) in the same period of
2009. Similarly, there has been a fall in imports, with total incoming
sales falling from MYR81,289mn (US$22,617mn) in January-February 2008 to
MYR57,778mn (US$16,705mn) in January-February 2009.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Strong Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 1982 as a private limited company, the SC is
principally engaged in the manufacturing of titanium dioxide. Its long
establishment in the market has allowed the SC to build up a good
reputation and gain higher market share against its rivals. Being well
backed by its multinational corporation and with large paid up capital
exceeding RM12 million, allows the SC to enjoy the benefit of timely
assistance if the needs arise. With 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
Asia Pacific countries. With the contribution of both local and overseas
customers, the SC's commercial risk is likely to be diversified. Moreover,
due to capable management team, the SC has received several external awards
and this has provided greater momentum to its business operation. Hence, we
believe that the SC has better business expansion opportunities in the
future. Operating in a large scale, the SC has total workforce of 330 in
its operation. The SC has a good management capability. Its capable
management team has enabled the SC to keep its business on going. The
future prospect of the SC is bright.
|
|
Financially, the SC registered a higher turnover of RM683.12 million in
2009 compared to RM664.60 million previously. Correspondingly, its pre-tax
profit rose to RM15.41 million. This was achieved on the back of stronger
performance of higher turnover. However, return on shareholders' funds of
the SC is relatively low, indicating that the SC did not generate an
acceptable amount of profits based on its existing shareholders' funds.
Fortunately, 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. Besides,
given a positive net worth exceeding RM346 million, the SC should be able
to maintain its business in the near terms.
|
|
The SC might be exposed to the forex risk as some of its raw materials are
sourced from overseas suppliers. With its long presence in the market, it
should have developed a strong supplier. Thus, it eliminates the risk of
dependency on deliveries from a number of key suppliers and insufficient
quantities of its raw materials.
|
|
Based on our historical financial data, we concluded that the SC's pattern
of payment habit is good. This implies good credit control and the SC could
be taking advantage of the cash discounts while maintaining a good
reputation with its creditors.
|
|
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 strong capital background and long operating history, it has
competitive edge against other players in the same field.
|
|
Based on the above condition, we recommend that credit be granted to the SC
promptly.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
TIOXIDE (MALAYSIA)
SDN BHD
|
|
For The Year
Ended 31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
683,126,000
|
664,607,000
|
657,957,000
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
15,414,000
|
6,816,000
|
15,133,000
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
15,414,000
|
6,816,000
|
15,133,000
|
|
Taxation
|
<9,259,000>
|
<92,000>
|
<317,000>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
6,155,000
|
------------
6,724,000
|
------------
14,816,000
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
6,155,000
|
------------
6,724,000
|
------------
14,816,000
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
6,155,000
|
------------
6,724,000
|
------------
14,816,000
|
|
As previous reported
|
243,008,000
|
237,610,000
|
229,422,000
|
|
|
|
|
|
|
As restated
|
------------
243,008,000
|
------------
237,610,000
|
------------
229,422,000
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
249,163,000
|
244,334,000
|
244,238,000
|
|
|
|
|
|
|
TRANSFER TO RESERVES - General
|
<2,253,000>
|
<1,326,000>
|
<6,628,000>
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
246,910,000
==========
|
------------
243,008,000
==========
|
------------
237,610,000
==========
|
|
RETAINED BY: The Company
|
246,910,000
|
243,008,000
|
237,610,000
|
|
|
|
|
|
|
|
|
|
|
|
|
------------
246,910,000
==========
|
------------
243,008,000
==========
|
------------
237,610,000
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Term loan
|
74,000
|
346,000
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
------------
74,000
==========
|
------------
346,000
==========
|
------------
-
==========
|
BALANCE SHEET
|
TIOXIDE (MALAYSIA)
SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
295,899,000
|
333,158,000
|
373,198,000
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Associated companies
|
1,250,000
|
1,250,000
|
1,250,000
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
1,250,000
|
------------
1,250,000
|
------------
1,250,000
|
|
TOTAL LONG TERM ASSETS
|
------------
297,149,000
|
------------
334,408,000
|
------------
374,448,000
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Stocks
|
71,400,000
|
146,499,000
|
67,130,000
|
|
|
|
|
|
|
|
|
Trade debtors
|
121,128,000
|
74,644,000
|
129,295,000
|
|
|
Other debtors, deposits & prepayments
|
1,554,000
|
663,000
|
846,000
|
|
|
Short term deposits
|
23,236,000
|
20,233,000
|
13,921,000
|
|
|
Amount due from related companies
|
1,109,000
|
468,000
|
2,984,000
|
|
|
Amount due from associated company
|
1,378,000
|
690,000
|
518,000
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
19,117,000
|
20,683,000
|
22,611,000
|
|
|
|
|
|
|
|
|
tax recoverable
|
207,000
|
-
|
-
|
|
TOTAL CURRENT ASSETS
|
------------
239,129,000
|
------------
263,880,000
|
------------
237,305,000
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
42,853,000
|
29,014,000
|
26,855,000
|
|
|
Other creditors & accruals
|
34,130,000
|
33,694,000
|
32,281,000
|
|
|
Short term borrowings/Term loans
|
-
|
-
|
1,175,000
|
|
|
Amounts owing to related companies
|
27,631,000
|
91,079,000
|
97,982,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
-
|
121,000
|
225,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
104,614,000
|
------------
153,908,000
|
------------
158,518,000
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
134,515,000
|
------------
109,972,000
|
------------
78,787,000
|
|
TOTAL NET ASSETS
|
------------
431,664,000
==========
|
------------
444,380,000
==========
|
------------
453,235,000
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
5,125,000
|
5,125,000
|
5,125,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
5,125,000
|
------------
5,125,000
|
------------
5,125,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
Share premium
|
45,900,000
|
45,900,000
|
45,900,000
|
|
|
Capital reserve
|
48,370,000
|
46,117,000
|
44,791,000
|
|
|
Retain profit/(Accumulated loss) carried forward
|
246,910,000
|
243,008,000
|
237,610,000
|
|
TOTAL RESERVES
|
------------
341,180,000
|
------------
335,025,000
|
------------
328,301,000
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
346,305,000
|
------------
340,150,000
|
------------
333,426,000
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
Deferred taxation
|
9,500,000
|
-
|
-
|
|
|
Cumulative redeemable preference shares
|
75,859,000
|
104,230,000
|
119,809,000
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
85,359,000
|
------------
104,230,000
|
------------
119,809,000
|
|
|
------------
|
------------
|
------------
|
|
|
431,664,000
|
444,380,000
|
453,235,000
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
TIOXIDE (MALAYSIA)
SDN BHD
|
|
As At
31-December-2009
|
|
|
|
|
|
|
|
2009
|
2008
|
2007
|
|
|
MYR
|
MYR
|
MYR
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
42,353,000
|
40,916,000
|
36,532,000
|
|
|
Net Liquid Funds
|
42,353,000
|
40,916,000
|
35,357,000
|
|
|
Net Liquid Assets
|
63,115,000
|
<36,527,000>
|
11,657,000
|
|
|
Net Current Assets/(Liabilities)
|
134,515,000
|
109,972,000
|
78,787,000
|
|
|
Net Tangible Assets
|
431,664,000
|
444,380,000
|
453,235,000
|
|
|
Net Monetary Assets
|
<22,244,000>
|
<140,757,000>
|
<108,152,000>
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
1,175,000
|
|
|
Total Liabilities
|
189,973,000
|
258,138,000
|
278,327,000
|
|
|
Total Assets
|
536,278,000
|
598,288,000
|
611,753,000
|
|
|
Net Assets
|
431,664,000
|
444,380,000
|
453,235,000
|
|
|
Net Assets Backing
|
346,305,000
|
340,150,000
|
333,426,000
|
|
|
Shareholders" Funds
|
346,305,000
|
340,150,000
|
333,426,000
|
|
|
Total Share Capital
|
5,125,000
|
5,125,000
|
5,125,000
|
|
|
Total Reserves
|
341,180,000
|
335,025,000
|
328,301,000
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.40
|
0.27
|
0.23
|
|
|
Liquid Ratio
|
1.60
|
0.76
|
1.07
|
|
|
Current Ratio
|
2.29
|
1.71
|
1.50
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
38
|
80
|
37
|
|
|
Debtors Ratio
|
65
|
41
|
72
|
|
|
Creditors Ratio
|
23
|
16
|
15
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
0
|
|
|
Liabilities Ratio
|
0.55
|
0.76
|
0.83
|
|
|
Times Interest Earned Ratio
|
209.30
|
20.70
|
0
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
2.26
|
1.03
|
2.30
|
|
|
Net Profit Margin
|
0.90
|
1.01
|
2.25
|
|
|
Return On Net Assets
|
3.59
|
1.61
|
3.34
|
|
|
Return On Capital Employed
|
3.59
|
1.61
|
3.33
|
|
|
Return On Shareholders' Funds/Equity
|
1.78
|
1.98
|
4.44
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
|
|
|