MIRA INFORM REPORT

 

Report Date :

22.03.2012

 

IDENTIFICATION DETAILS

 

Name :

SAMLING PLYWOOD (BINTULU) SDN. BHD.

 

 

Registered Office :

C/o SAMLING GLOBAL LIMITED

Wisma Samling Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau Miri Sarawak 98000

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

19.03.1986

 

 

Com. Reg. No.:

151952-A

 

 

Legal Form :

Private Company Limited By Shares

 

 

Line of Business :

Manufacturing and sales of plywood and veneer as well as the extraction and sale of timber logs.

 

 

No. of Employees :

1,400 employees (Subject); 13,000 employees (Samling Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 9,000,000

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


IDENTIFICATION DETAILS

 

Verified Address

 

Subject name :              SAMLING PLYWOOD (BINTULU) SDN. BHD.

Business address :        Lot 367, Block 38

Kemena Industrial Estate

Town :                           Bintulu

Province :                      Sarawak

Zip/postal code :            97088

Country :                       Malaysia

Tel :                              +60 86 336686

Fax :                             +60 86 317185

Email :                          enquiry@samling.com

Website :                      www.samling.com

 

Registered address :      C/o SAMLING GLOBAL LIMITED

Wisma Samling

Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Town :                           Miri

Province :                      Sarawak

Zip/postal code :            98000

Country :                       Malaysia

Postal address :            P.O. Box 91

Town :                           Bintulu

Province :                      Sarawak

Zip/postal code :            97007

Country :                       Malaysia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        19/03/1986

Legal form :                               Private Company Limited By Shares

Chief executive :                        Vincent Chieng Ai Ung

Issued & paid up capital :           MYR 25,000,000

Sales turnover :              MYR 441,186,501 (Non-Consolidated 12 months, 30/06/2010)

Net income :                              MYR -510,366 (Non-Consolidated 12 months, 30/06/2010)

Total fixed assets :                     MYR 574,430,324 (Non-Consolidated 12 months, 30/06/2010)

Line of business :                       Manufacturing and sales of plywood and veneer as well as the extraction and sale of timber logs.

Staff employed :                         1,400 employees (Subject); 13,000 employees (Samling Group)

 

 


CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is adequately experienced

Financial performance : Financial performance is good

Organization structure : Organizational structure is stable

Detrimental :                               No detrimental records found

Payment history :                      No payment delays noted

Credit amount suggestion :         USD 9,000,000

Credit amount asked :                Not described.

Comments :                              Larger credit can still be considered. The Subject is well positioned in the market and the financial stability of the group is positive.

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                      19/03/1986

Legal form :                               Private Company Limited By Shares

Registration no                          151952-A

Registered authority :                 Companies Commission of Malaysia

Registry status :                        Live/Active

Previous name :                         The Subject was established under the name REMIRANG SDN. BHD. And changed to the current style on 27-09-1990.

Change of legal form :                 None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name :                          Yaw Chee Chik

Designation :                 Managing Director

 

Name : Vincent              Chieng Ai Ung

Designation :                 Assistant General Manager

 

Name :                          Lin Lan Hui

Biography :                    Assistant General Manager for Marketing

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Chan Hua Eng

Designation :                 Director

Identification no :            281019-07-5269

Appointment date :         15/05/96

Address :                      No. 2, Jalan Changkat Kia Peng

50450 Kuala Lumpur

Wilayah Persekutuan

Malaysia

Biography :                    Mr. Chan Hua Eng, OBE, is Non-Executive Chairman of the Board of

Samling Global Limited. He was classified by a direction of the Listing

Committee of the Hong Kong Stock Exchange as a Non-Independent

Director on 26 January 2007. He was appointed an Independent

Non-Executive Director of Lingui on 28 March 1990 and Chairman of

the Board of Directors of Lingui on 8 November 1990. He was also

appointed the Chairman of the Board of Directors and an

Independent Non-Executive Director of Glenealy on 28 September

1995. Mr. Chan is also currently a Director of other companies whose

shares are listed on Bursa Malaysia Securities Berhad, namely

Lafarge Malayan Cement Berhad and Pacifi c & Orient Berhad. He

graduated from the University of Bristol with a Bachelor of Law

(Honours) degree. He is an associate member of the Chartered

Institute of Taxation in the United Kingdom. Mr. Chan is also a

barrister of the Middle Temple and has been called to the Bar in

England & Wales. He was admitted as an Advocate & Solicitor of the

High Court in Malaya, became a partner of Shearn Delamore & Co,

Advocates & Solicitors in Malaysia in 1960 and retired as its Senior

Partner in 1987.

 

Name :                          Yaw Chee Chik

Designation :                 Director

Identification no :            600629-13-5631

Appointment date :         31/10/89

Address :                      Lot 1895, Piasau 6

Jalan Pujut-Lutong

98000 Miri

Sarawak

Malaysia

 

Name :                          Yong Nyan Siong

Designation :                 Company Secretary

Identification no :            540304-13-5551

Appointment date :         31/10/89

Address :                      Lot 373, Jalan Tai Foo 5A

98000 Miri

Sarawak

Malaysia

Staff employed :             1,400 employees (Subject); 13,000 employees (Samling Group)

 

Key Advisors

 

Auditors :                      KPMG

KPMG Tower

8 First Avenue

Bandar Utama

47800 Petaling Jaya

Selangor Darul Ehsan

Malaysia

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :        MYR 50,000,000

No of shares :                50,000,000 Ordinary Shares

Share par value :            MYR 1

Issued capital :              MYR 25,000,000

Paid up capital :             MYR 25,000,000

Changed in capital :       The Subject increased its share capital from MYR 25,000 to 50,000,000 on

25-10-1990.

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed : Full List

 

Composition

Shareholder name :        LINGUI DEVELOPMENTS BERHAD

Address :                      Level 42, Menara Maxis

Kuala Lumpur City Centre

50088 Kuala Lumpur

Wilayah Persekutuan

Malaysia

No. of shares :               25,000,000 Ordinary Shares

% of shares :                 100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          YAW HOLDING SDN. BHD.

Affiliation type :              Ultimate Holding Company

Address :                      Wisma Samling

Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

Comments :                  Yaw Holding Sdn Bhd operates through its subsidiary Samling Strategic

Corporation that manufactures, markets, and distributes wood products. The

company provides timber management and harvesting services including natural

forest concessions and tree plantations management. Yaw Holding is based in

Malaysia.

 

Name :                          SAMLING STRATEGIC CORPORATION SDN. BHD.

Affiliation type :              Superior Holding Company

Address :                      Wisma Samling

Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

Comments :                  Samling Strategic Corporation Sdn. Bhd. operates as a holding company. The

company, through its subsidiaries, engages in forest resource management,

wood products, plantations, and properties. The company owns forest area in the

state of Sarawak, Malaysia. The company was incorporated in 1979 and is based

in Miri, Malaysia. Samling Strategic Corporation Sdn. Bhd. operates as a

subsidiary of Yaw Holding Sdn Bhd.

 

Name :                          SAMLING GLOBAL LIMITED

Affiliation type :              Holding Company

Address :                      Wisma Samling

Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

Comments :                  Registered in Bermuda.

Samling Global Limited, an investment holding company, operates as an

integrated forest resource and wood products company. The company engages in the extraction and sale of timber logs; sale and distribution of building materials; and manufacture and sale of flooring products, veneer, plywood, sawn timber, rubber retread compounds, door and door facings, furniture, and particle boards, as well as kitchen and wardrobe solutions. It is also involved in the rental, repair, and re-conditioning of equipment; provision of management and logistic services; operation of power generating facilities; licensing and operation of quarry; and the investment and letting of industrial properties. In addition, the company trades in spare parts, petrol, oil, and lubricants, as well as operates as an insurance agent. Further, it is involved in the forest plantation and market research activities; and the ownership of trademarks. Samling Global Limited operates primarily in Malaysia, Guyana, New Zealand, Australia, the People’s Republic of China, Japan, and North America. The company was founded in 1963 and is headquartered in Miri, Malaysia. Samling Global Limited is a subsidiary of Samling Strategic Corporation Sdn. Bhd.

 

Name :                          SAMLING MALAYSIA INC.

Affiliation type :              Intermediate Holding Company

Address :                      Wisma Samling

Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

Comments :                  Investment holding company registered in British Virgin Islands.

 

Name :                          LINGUI DEVELOPMENTS BERHAD

Affiliation type :              Parent Company

Address :                      Level 42, Menara Maxis

Kuala Lumpur City Centre

50088 Kuala Lumpur

Wilayah Persekutuan

Malaysia

Comments :                  Lingui Developments Berhad, an investment holding company, operates in the

timber industry. It manufactures and sells timber logs from concession and forest

plantation area; plywood and veneer; timber related products, including doorskin

and housing products; granite aggregates, rubber compounds, and glue products; and rubber rethread compounds. The company also provides supporting services, such as tree-falling and barging; and timber extraction, logistics, riverine transportation, repair, and insurance agency services. In addition, it involves in the operation of power generation facilities; provision of management services; trade of spare parts, petrol oil, and lubricants; retail of kitchen products,cookware, and dining ware; tendering of kitchen products in housing development projects; and forest plantation activities. Further, the company operates and licenses quarries; and engages in the letting of industrial properties, and property investment activities. It operates primarily in Malaysia, New Zealand, China, Japan, and India. The company is based in Kuala Lumpur, Malaysia. Lingui Developments Berhad is a subsidiary of Samling Malaysia Inc.

 

Name :                          SAMLING PLYWOOD (LAWAS) SDN. BHD.

Affiliation type :              Sister Company

Address :                      Wisma Samling

Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

Comments :                  Extraction and sale of logs.

 

Name :                          SAMLING PLYWOOD (MIRI) SDN. BHD.

Affiliation type :              Sister Company

Address :                      Wisma Samling

Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

Comments :                  Manufacture and sale of plywood,

extraction and sale of logs.

 

Name :                          LINGUI CORPORATION SDN. BHD.

Affiliation type :              Sister Company

Address :                      Wisma Samling

Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

Comments :                  Provision of management services.

 

Name :                          STIGANG RESOURCES SDN. BHD.

Affiliation type :              Sister Company

Address :                      Wisma Samling

Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

Comments :                  Quarry licensee and operator.

 

Name :                          HOCK LEE ENTERPRISES (M) SDN. BHD.

Affiliation type :              Sister Company

Address :                      Wisma Samling

Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

Miri 98000

Sarawak

Malaysia

Comments :                  Property investment and letting of industrial properties.

 

Related companies and corporate

affiliations comments      : Other companies of the Samling Group should be considered affiliates of the

Subject.

 

 

BANK & MORTGAGES

Bank Details

 

Name of bank :              Malayan Banking Berhad

Address :                      Malaysia

Account details :            Current Account

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

 

Mortgages :                   Total of Charge: 33,000,000.00

Date of Creation: 17-08-1991

Name of Chargee: MALAYAN BANKING BHD

Charge Status: FULLY SATISFIED

Total of Charge: 15,000,000.00

Date of Creation: 20-06-1992

Name of Chargee: MALAYAN BANKING BHD

Charge Status: FULLY SATISFIED

Total of Charge: 125,000,000.00

Date of Creation: 15-11-1995

Name of Chargee: MALAYAN BANKING BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 40,000,000.00

Date of Creation: 28-07-2000

Name of Chargee: MALAYAN BANKING BERHAD

Charge Status: FULLY SATISFIED

Total of Charge: 40,000,000.00

Date of Creation: 28-07-2000

Name of Chargee: MALAYAN BANKING BERHAD

Charge Status: FULLY SATISFIED

 

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                        None reported.

 

 

FINANCIAL DATA

 

Description

 

Source of financial statement :    Commercial Registry Filings

Financial statement date :          30/06/10

Type of accounts :                     Full audited

Currency :                                 Malaysia, Ringgit (MYR)

Exchange rate :                         1 USD = MYR 3.07 as of 21-03-2012

 

Summarized Financial Information

 

Consolidation type :                   Non Consolidated           Non Consolidated           Group Consolidated

Currency :                                 Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR) US Dollar (USD)

Denomination :                          (x1) One                        (x1) One                        (x1) One

Date of financial year end :          30/06/10                        30/06/09                        30/06/11

Length of accounts :                   12 months                     12 months                     12 months

Sale turnover / Income : 441,186,501                  396,818,916                  729,047,000

Gross profit :                             9,467,717                      4,127,329                      83,210,000

Operating profit :                                                                                                21,729,000

Profit before tax :                       -1,096,878                     -2,582,690                     57,777,000

Net income :                              -510,366                        1,334,392                      45,617,000

Non current assets :                   427,974,753                  442,642,931                  936,109,000

Current assets :                         146,455,571                  137,299,095                  452,520,000

Inventories :                               54,261,655                    64,406,958                    161,802,000

Total assets :                            574,430,324                  579,942,026                  1,388,629,000

Current liabilities :                      73,996,347                    68,259,741                    316,448,000

Non current liabilities :                6,985,913                     13,973,855                    237,438,000

Total liabilities :              80,982,260                    82,233,596                    553,886,000

Share equity :                            493,448,064                  497,708,430                  834,743,000

Retained earning :                      468,448,064                  472,708,430

Comments :                              The non-consolidated financial information above relates to the Subject only. The group’s consolidated financial information above relates to the Subject’s Holding Company Samling Global Limited and all its subsidiaries which include the Subject.

 

 


OPERATION DETAILS

 

Main activities :              The Subject is engaged in manufacturing and sales of plywood and veneer

as well as the extraction and sale of timber logs.

The Subject is part of Samling Global Limited, which is an integrated forest

resource and wood products company. It operates within six segments:

Logs - Hardwood and Logs Softwood, both engaged in the sale of timber

logs; Plywood and veneer; Flooring products; Upstream support, providing

supporting services, such as tree-falling, barging, repairs and

re-conditioning of equipment and machineries primarily to group

companies, and Other operations segment, engaged in the sale of timber

related products, such as chipboard, door facings, doors, housing products

and sawn timber, and the provision of logistics and electrical services.

Samling Global Limited has forest resources, processing facilities and

distribution networks situated in Malaysia, Guyana, People’s Republic of

China, New Zealand and Australia

 

Purchases

Local :                          Yes

International :                 None reported.

 

Sales

Local :                          Yes

International :                 Worldwide

 

Key events :                  20 January 2012

Samling Global proposes to take Lingui and Glenealy private

KUALA LUMPUR: Hong Kong-listed Samling Global Ltd (SGL) is proposing

to take Lingui Developments Bhd and and its associate company, Glenealy

Plantations (Malaya) Bhd, private.

 

Both companies are controlled by the diversified Miri-based Samling

Group, which is headed by Tan Sri Yaw Teck Seng.

 

Announcing SGL's privatisation proposa   ls to Bursa Malaysia on Friday,

both Lingui and Glenealy, in separate statements, said they received the

proposals from Samling Strategic Corp Sdn Bhd (SSC) on January 20.

 

SSC has proposed to privatise SGL, which will then privatise Lingui and

Glenealy. SSC is proposing an offer price of RM1.63 per share for Lingui

and RM7.50 per share for Glenealy.

 

The companies said if proposed and implemented, the SGL privatisation

would be conditional upon the approval of SGL's independent

shareholders.

 

Lingui and Glenealy said a formal proposal in respect of the SGL

privatisation would only be made upon the finalisation of SSC's funding

arrangements.

 

They said both boards would decide on the matters and make further

announcement when required.

 

The companies advised their shareholders and potential investors to

exercise caution when dealing in the companies' shares, as there was no

certainty that the proposals might proceed or result in a binding agreement.

 

The stocks of Lingui and Glenealy, upon their requests, have been

suspended from trading on Bursa Malaysia since January 20. Their last

trading prices were RM1.36 for Lingui and RM6.55 for Glenealy.

 

Property & Assets

 

Premises :                    The Subject operates from premises located at the verified heading

address consisting of production facilities, administrative office and

warehouse.

 

Branches :                    In addition, the Subject operates from group headquarters located at:

Lot 296, Jalan Temenggong Datuk Oyong Lawai Jau

98000 Miri

Sarawak

Malaysia

Tel: +60 85 413099

 

Other property :             Total NBV of property, plant and equipment as of 30-06-2010 was MYR

184,454,154.

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank :                                        Central Bank of Malaysia

Reserve of foreign exchange & gold :       US$ 134.08 billion as of 31 January 2012

Gross domestic product - GDP :             US$ 247.781 billion

GPP (Purchasing power parity) :             US$ 442.01 billion of International dollars

GDP per capita - current prices :             US$ 8,624

 

GDP - composition by sector :                agriculture: 10.2%

industry: 42.1%

services: 47.8%

 

Inflation :                                               2008: 5.4%

2009: 0.6%

2010: 1.7%

2011: 2.8%

 

Unemployment rate :                              2008: 3.3%

2009: 3.6%

2010: 3.3%

2011: 3.2%

 

Public debt

(General Government gross debt as

a % GDP):                                            2008: 42.8%

2009: 55.4%

2010: 54.2%

2011: 55.1%

 

Government bond ratings :                      Standard & Poor's: A-/Stable/A-2

Moody's rating: A3

Moody's outlook: STA

 

Market value of publicly traded

Shares                                                  : US$420 billion

 

Largest companies in the country :          CIMB Group Holdings (Banking), Sime Darby (Conglomerates), Public

Bank Berhad (Banking), Maybank (Banking), Tenaga Nasional

Berhad(Utilities), Petronas Chemicals, Maxis Berhad

 

Trade & Competitiveness Overview

 

Total exports :                                       US$210.3 billion

 

Exports commodities :                           electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals

 

Total imports :                                       US$156.2 billion

 

Imports commodities :                            electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals

 

Export - major partners :                         US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, Hong Kong 4.6%

 

Import - major partners :                         Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan 5.7%, Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%

 

FDI Inflows :                                          2007: US$8,538 million

2008: US$7,318 million

2009: US$1,381 million

 

FDI Outflows :                                        2007: US$11,280 million

2008: US$14,988 million

2009: US$8,038 million

 

Best countries for doing business :          21 out of 183 countries

Global competitiveness ranking :             21 (ranking by country on a basis of 142, the first is the best)

 


Country and Population Overview

 

Total population :           28.23 million

Total area :                    329,847 km2

Capital :                        Kuala Lumpur

Currency :                     Malaysia Ringgits (MYR)

Internet users as % of total

Population                     : 55.3%

 

 

PAYMENT HISTORY

 

Purchase Term

Local : Prepayment, Document against payment, Credit up to 120 days

 

Sales Term

Local : Prepayment, Document against payment, Credit up to 120 days

International : L/C, Telegraphic transfer, Document against payment, Credit up to 120 days

 

Trade Reference/ Payment

Behaviour

Comments : As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

 

Investigation Note

Sources            : Interviews and material provided by the Subject

: Other official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.59

UK Pound

1

Rs.80.34

Euro

1

Rs.67.14

 

 

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.