MIRA INFORM REPORT

 

 

Report Date :

05.05.2012

 

IDENTIFICATION DETAILS

 

Name :

MIECO MANUFACTURING SDN. BHD.

 

 

Registered Office :

C/o BANDAR RAYA DEVELOPMENTS BERHAD

Level 10, Menara BRDB 285 Jalan Maarof Bukit Bandaraya Kuala Lumpur Wilayah Persekutuan 59000

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

04.07.2003

 

 

Com. Reg. No.:

620690-T

 

 

Legal Form :

Private Limited Company Limited By Shares

 

 

Line of Business :

Manufacturing and marketing of chipboards and other related products.

 

 

No. of Employees :

1,000 (Mieco Group)

 

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 :

Satisfactory

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

 


IDENTIFICATION DETAILS

 

Verified Address

Subject name :              MIECO MANUFACTURING SDN. BHD.

Business address :                    Lot 74, Kawasan Perindustrian Gebeng

Town :                                       Kuantan

Province :                                  Pahang Darul Makmur

Zip/postal code :                        26080

Country :                                   Malaysia

Tel :                                          +60 9 5835120

Fax :                                         +60 9 5833408

Website :                                  www.mieco.com.my

 

Registered address :                  C/o BANDAR RAYA DEVELOPMENTS BERHAD

Level 10, Menara BRDB

285 Jalan Maarof

Bukit Bandaraya

Town :                                       Kuala Lumpur

Province :                                  Wilayah Persekutuan

Zip/postal code :                        59000

Country :                                   Malaysia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        04/07/2003

Legal form :                               Private Limited Company Limited By Shares

Chief executive :                        Dato’ Yong Seng Yeow

Issued & paid up capital :           MYR 50,000,000

Sales turnover :                          MYR 172,037,051 (Non-consolidated 12 months, 31/12/2010)

Net income :                              MYR 1,749,375 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets :                     MYR 562,779,952 (Non-consolidated 12 months, 31/12/2010)

Line of business :                       Manufacturing and marketing of chipboards and other related products.

Staff employed :                         1,000 (Mieco Group)

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is progressing

Management experience :           Management is reasonably experienced

Financial performance :              Financial performance is recovering

Organization structure :              Organizational structure is stable

Detrimental :                  No detrimental records found

Payment history :                      No payment delays noted

Credit amount asked :                Not described.

 

STATUTORY DETAILS

 

Registry Data

Registration date :                      04/07/2003

Legal form :                               Private Limited Company Limited By Shares

Registration no                          620690-T

Registered authority :                 Companies Commission of Malaysia

Registry status :                        Live/Active

Previous name :                         None reported.

Change of legal form :                 None reported.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                          Dato’ Yong Seng Yeow

Designation :                 Managing Director

Name :                          Low Kim Seng

Designation :                 Director

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Dato’ Yong Seng Yeow

Designation :                 Director

Identification no :            530409-04-5123

Appointment date :         04/07/03

Address :                      No. 21, Jalan Pengaturcara U1/5C

Saujana O-Lot

40150 Shah Alam

Selangor Darul Ehsan

Malaysia

Biography :                    Dato Yong Seng Yeow, a Malaysian, aged 58. Dato’ Yong has over

25 years of experience in sales and marketing in building materials

and furniture industries. Currently, Dato Yong also sits on the boards

of Century Logistics Holdings Berhad and several subsidiaries in the

Mieco Chipboard Berhad Group. He is a member of the Executive

Committee of the Company.

 

Name :                          Low Kim Seng

Designation :                 Director

Identification no :            550423-10-5231

Appointment date :         15/03/05

Address :                      No.32, Jalan BU 2/4

Bandar Utama

47800 Petaling Jaya

Selangor Darul Ehsan

Malaysia

Biography :                    Mr Low Kim Seng, a Malaysian, aged 56. He is a member of the

Malaysian Institute of Accountants. Mr Low qualified as a

Management Accountant in 1978 and has working experience in

accounting, corporate finance and general management. He worked

with two Malaysian public listed companies prior to joining Bandar

Raya Developments Berhad in 1989 and is currently the Chief

Financial Officer of Bandar Raya Developments Berhad.

 

Name :                          Dato’ Jaganath Derek Steven Sabapathy

Designation :                 Director

Identification no :            570415-10-6419

Appointment date :         15/03/05

Address :                      No.98 Lorong Setiabistari Satu

Bukit Damansara

50490 Kuala Lumpur

Wilayah Persekutuan

Malaysia

Biography :                    Dato Jagan Sabapathy, a Malaysian, aged 54. He attended

Edinburgh University in the United Kingdom and holds a Master of

Arts majoring in Corporate Finance and International Trade. Upon

graduation in 1981, he joined a leading London firm of Chartered

Accountants, Price Waterhouse, where he articled and qualified as a

Chartered Accountant. Dato Jagan returned to Malaysia in 1984 and

joined KPMG Peat Marwick. He was admitted a Partner of KPMG

Malaysia and a Director of Peat Marwick Consultants in 1990. Whilst

at KPMG Peat Marwick, he was involved in a wide range of

assignments covering audit, investigations, management consultancy

and corporate finance, in Malaysia, the ASEAn countries, north

America and Europe. He sat on a variety of KPMG International

Committees including committees for Mergers and Acquisitions,

Privatisation and Management Consultancy. He was also an

examiner for the professional examinations of the Malaysian

Association of Certified Public Accountants. He left the partnership in

late 1994 and took up a senior appointment with a Malaysian public

listed plantation company. At the end of 1995, he left and led a group

of Australian and British investors to successfully privatise the

overseas operations of Tasmania’s Hydro Electric Commission. He

joined the boards of Prime Utilities Berhad and Indah Water

Konsortium Sdn Bhd, Malaysia’s privatised national wastewater

utility in September 1997 as Managing Director, a position he held to

August 1999. Currently, Dato’ Jagan also sits on the boards of

Bandar Raya Developments Berhad (Chief Executive Officer) and

several subsidiaries in the Bandar Raya Developments Berhad

Group.

 

Name :                          Dato’ Mohamed Moiz Bin J M Ali Moiz

Designation :                 Director

Identification no :            600808-71-5383

Appointment date :         04/07/03

Address :                      38-1 The Capsquare Residences

2 Persiaran Capsquare

50100 Kuala Lumpur

Wilayah Persekutuan

Malaysia

Biography :                    Dato’ Mohamed Moiz Bin J M Ali Moiz, a Malaysian, aged 50. He

graduated with a Bachelor of Science Degree in Business

Administration and International Finance in 1985. He joined Timbco

Sdn Bhd, a company involved in timber trading, processing and

forestry management, as Project Manager from 1985 to 1986. In

1987, he was appointed as Chief Executive Officer of the Tradium

group of companies, which has interests in property development,

fashion retailing, manufacturing, F & B and equity investments. In

1999, he was appointed as Chief Executive Officer of Effective

Capital Sdn Bhd, a company which successfully undertook the

migration of the CLOB securities from the Central Depository (Pte)

Limited in June 2000. Currently, Dato’ Mohamed Moiz also sits on

the boards of Bandar Raya Developments Berhad (Chairman) and

several other private limited companies.

 

Name :                          Ho Swee Ling

Designation :                 Company Secretary

Identification no :            590808-10-5992

Appointment date :         04/07/03

Address :                      60 Jalan Bunga Kemboja 1

Taman Muda

Cheras 56100

Kuala Lumpur

Wilayah Persekutuan

Malaysia

Staff employed :             1,000 (Mieco Group)

 

Key Advisors

Auditors :                      PRICEWATERHOUSECOOPERS

Level 15, 1 Sentral

Jalan Travers

Kuala Lumpur Sentral

50470 Kuala Lumpur

Malaysia

 

SHARE CAPITAL

 

Composition

Authorized Capital :        MYR 100,000,000

No of shares :                100,000,000 Ordinary Shares

Share par value :            MYR 1

Issued capital :              MYR 50,000,000

Paid up capital :             MYR 50,000,000

Changed in capital :       The Subject increased its share capital from MYR 100,000 to MYR 100,000,000

on 30-04-2005.

 

OWNERSHIP / SHAREHOLDERS

 

How listed : Full List

 

Composition

Shareholder name :        MIECO CHIPBOARD BERHAD

Address :                      Level 9, Menara BRDB

285 Jalan Maaroof

Bukit Bandaraya

59000 Kuala Lumpur

Wilayah Persekutuan

Malaysia

No. of shares :               50,000,000 Ordinary Shares

% of shares : 100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          BANDAR RAYA DEVELOPMENTS BERHAD

Affiliation type :              Ultimate Holding Company

Address :                      Level 10, Menara BRDB

285 Jalan Maaroof

Bukit Bandaraya

59000 Kuala Lumpur

Wilayah Persekutuan

Malaysia

Comments :                  Bandar Raya Developments Berhad engages in the property development and

investment, as well as in the manufacturing arena, through its subsidiary, Mieco

Chipboard Berhad (MIECO) in Malaysia. The company is organized into two main

business segments that include property and manufacturing. Segments Property

segment includes property development, property investment and property

management, which includes management and operation of bowling centers, a

golf course and sports complex. It develops residential suburbs and townships.

Manufacturing segment includes manufacturing and sales of wood based

products. Other operations of the company comprise investment holding and

investment trading. Bandar Raya Developments Berhad is listed on the Main

Board of the Kuala Lumpur Stock Exchange and owns 56.76% of Mieco

Chipboard Berhad.

 

 

Name :                          MIECO CHIPBOARD BERHAD

Affiliation type :              Parent Company

Address :                      Level 9, Menara BRDB

285 Jalan Maaroof

Bukit Bandaraya

59000 Kuala Lumpur

Wilayah Persekutuan

Malaysia

Comments :                  Mieco Chipboard Berhad ('MIECO'), the manufacturing division of the Bandar

Raya Developments Berhad Group of Companies, was incorporated in 1972. The

Company was listed on the Main Board of Bursa Malaysia Securities Berhad in

1998.

 

Name :                          MIECO MARKETING SDN. BHD.

Affiliation type :              Sister Company

Address :                      Malaysia

Comments :                  Selling and marketing of chipboards and related products.

 

Name :                          MIECO WOOD PRODUCTS SDN. BHD.

Affiliation type :              Sister Company

Address :                      Malaysia

Comments :                  Reforestation.

 

Name :                          TUDOR CAPITAL SDN. BHD.

Affiliation type :              Sister Company

Address :                      Malaysia

Comments :                  Investment trading.

 

Name :                          MIECO REFORESTATION SDN. BHD.

Affiliation type :              Sister Company

Address :                      Malaysia

Comments :                  Reforestation, harvesting, extraction and supply of rubber wood.

 

Name :                          MIECO WOOD RESOURCES SDN. BHD.

Affiliation type :              Sister Company

Address :                      Malaysia

Comments :                  Investment holding and

procurement of rubber wood.

 

Name :                          ASPIRE BENCHMARK SDN. BHD.

Affiliation type :              Sister Company

Address :                      Malaysia

Comments :                  Property investment.

 

Name :                          MIECO MARKETING (S) PTE. LTD.

Affiliation type :              Sister Company

Address :                      Singapore

Comments :                  Dormant.

 

Name :                          MIECO INTERNATIONAL (HK) LIMITED

Affiliation type :              Sister Company

Address :                      Hong Kong

Comments :                  Dormant.

Related companies and corporate

affiliations comments: T  he above mentioned companies are directly owned by the Mieco Chipboard

Berhad. Other companies of the Bandar Raya Developments Berhad Group should be

considered affiliates of the Subject.

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              AmBank (M) Berhad

Address :                      Malaysia

Account details :            Current Account

 

Name of bank :              Alliance Bank Malaysia Berhad

Address :                      Malaysia

Account details :            Current Account

 

Name of bank :              OCBC Bank (Malaysia) Berhad

Address :                      Malaysia

Account details :            Current Account

 

Name of bank :              HSBC Bank Malaysia Berhad

Address :                      Malaysia

Account details :            Current Account

 

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 :                   None reported.

 

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 :          31/12/10

Type of accounts :                     Full audited

Currency :                                 Malaysia, Ringgit (MYR)

Exchange rate :                         1 USD = MYR 3.04 as of 04-05-2012

 

Summarized Financial Information

Consolidation type :                   Non Consolidated           Non Consolidated           Group Consolidated

Currency :                                 Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR) Malaysia, Ringgit (MYR)

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

Date of financial year end :          31/12/10                        31/12/09                        31/12/11

Length of accounts :                   12 months                     12 months                     12 months

Sale turnover / Income : 172,037,051                  184,806,534                  670,078,000

Operating profit :                                                                                                130,007,000

Profit before tax :                       1,751,625                      -13,617,139                  85,599,000

Net income :                              1,749,375                      -11,781,799                   90,225,000

Non current assets :                   488,823,664                  502,389,448                  1,857,546,000

Current assets :                         73,956,288                    68,841,318                    1,506,212,000

Inventories :                               44,770,243                    40,578,295                    182,269,000

Total assets :                            562,779,952                  571,230,766                 3,363,978,000

Current liabilities :                      72,493,775                    68,066,637                    592,537,000

Non current liabilities :                478,197,841                  492,800,798                  809,065,000

Total liabilities :                          550,691,616                  560,867,435                 1,401,602,000

Share equity :                            12,088,336                    10,363,331                    1,962,376,000

Retained earning :                      -37,911,664                   -39,636,669                  1,073,024,000

 

Comments :                  The non-consolidated financial information above relates to the Subject only.

The group’s consolidated financial information above relates to the Subject’s

Ultimate Holding Company Bandar Raya Developments Berhad and all its

subsidiaries which include the Subject.

The Subject's estimated revenue for financial year end 2011 is MYR 300 million

mainly driven by increased domestic market in both particleboard and

value-added products.

The Subject’s estimated pre-tax profit is MYR 6.5 million for financial year end

2011. The better results for 2011 was mainly due to increased sales, which made

up for its first-quarter loss of RM1.4 million arising from Plant 3 startup costs and

higher raw wood cost caused by a delayed and prolonged monsoon season.

 

OPERATION DETAILS

 

Main activities :              The Subject is engaged in manufacturing and marketing of chipboards and

other related products.

The Subject is 100% owned by Mieco Chipboard Berhad (MIECO) which is

a Malaysia-based company engaged in investment holding and provision of

management services. Through its subsidiaries, MIECO is engaged in the

manufacturing and sales of wood-based products. Its other operations

include investment trading, investment holding and property investment. Its

products include plain boards, decorative melamine faced chipboards

(MFCs), high pressure laminates (HPLs), decorative electron bean foil

chipboards (EBFC), decorative polymer faced chipboards (PFCs),

worktops, direct post formed (DPF) boards and other products designed for

urban living.

Mieco Chipboard Berhad is 56.76% owned by Bandar Raya Developments

Berhad (BRDB) which is engaged in investment holding, property

development, property investment and provision of management services.

The Company, through its subsidiaries, operates in three segments:

property, which includes property development, property investment and

property management, such as management and operation of shopping

complexes, a golf course and sports complex; manufacturing, which

includes manufacturing and sales of wood based products, and

construction, which includes the construction of residential and commercial

properties.

 

Product & services :       Plain Board

Decorative Melamine Faced Chipboard

High Pressure Laminates

High Pressure Laminates Chipboards

Worktop

Direct Post Formed Board

Livin Style

Decorative Polymer Faced Chipboard

Decorative Electron Beam Foil Chipboard

 

Brand :                          MIECO

 

Purchases

Local                : Yes

International       : Mainly from South East Asia

 

Sales

Local                : Yes

International       : China, Taiwan, Japan, Korea, Hong Kong, South East Asia, the Indian

subcontinents, the Middle East, Africa, and the Australasian countries

Key events        : 10 August 2011

BRDB (BANDAR RAYA DEVELOPMENTS BERHAD) refers to the article

entitled "Chinese party in talks with BRDB for MIECO" which appeared in

The Edge Malaysia on 9 August 2010 and wishes to inform that :

(i) BRDB had recently met a Chinese party to discuss potential

collaboration between Mieco Chipboard Berhad ("MIECO") and the

Chinese party in production and marketing of chipboard and related

products including the possibility of the Chinese party participating in the

equity of MIECO in the future.

(ii) BRDB is of the opinion that the discussion is preliminary and exploratory

in nature at this stage. BRDB will make the appropriate announcement in

accordance with the Main Market Listing Requirements should there be

any definitive developments concerning its shareholding in MIECO.

This announcement is dated 10 August 2010.

Source: Bursa Malaysia Stock Exchange

 

Property & Assets

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

address consisting of production facilities, warehouse and administrative

office.

Branches :        In addition, the Subject operates from other production facilities and group

headquarters located at:

Production facilities:

Lot No. 77-83, Kawasan Perindustrian Semambu

Kuantan 25350

Pahang

Malaysia

 

Production facilities:

Lot 3, Kawasan Perindustrian Kechau Tui

27100 Padang Tengku

Pahang

Malaysia

 

Group Headquarters: Level 9, Menara BRDB

285 Jalan Maaroof

Bukit Bandaraya

59000 Kuala Lumpur

Malaysia

Tel: +60 3 22823223

Fax: +60 3 22873229

Other property : Total NBV of property, plant and equipment as of 31-12-2010 was MYR

488,823,664.

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Central Bank of Malaysia

Reserve of foreign exchange & gold :       US$ 135.8 billion as of 13 April 2012

Gross domestic product - GDP :             US$ 247.781 billion

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

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

 

GDP - composition by sector :                agriculture: 9.4%

industry: 40.9%

services: 49.7%

 

Inflation :                                               2008: 5.4%

2009: 0.6%

2010: 1.7%

 

Unemployment rate :                              2008: 3.3%

2009: 3.6%

2010: 3.3%

Public debt

(General Government gross debt as

a % GDP):                                            2008: 42.8%

2009: 55.4%

2010: 54.2%

 

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 (Banking), Maybank (Banking), Tenaga Nasional(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%,

HongKong 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 :             26 (ranking by country on a basis of 133, 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:                                57.61%

 


PAYMENT HISTORY

 

Purchase Term

Local :              Prepayment, Credit up to 90 days

International :     L/C, Credit up to 90 days

 

Sales Term

Local :              Cash against document, Credit up to 90 days

International :     L/C, Prepayment, Credit up to 90 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.53.72

UK Pound

1

Rs.86.98

Euro

1

Rs.70.64

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

 

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.