MIRA INFORM REPORT

 

 

Report Date :

06.07.2013

 

IDENTIFICATION DETAILS

 

Name :

PRESS METAL SARAWAK SDN. BHD.

 

 

Registered Office :

Kemena Land District, Tanjung Kidurong, Block 20, 15&37, 47800 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

30.03.2007

 

 

Com. Reg. No.:

767704-M

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing and Trading of Aluminium Products

 

 

No. of Employees :

800

 

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 :

Regular

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Source : CIA

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

767704-M

COMPANY NAME

:

PRESS METAL SARAWAK SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

30/03/2007

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

KEMENA LAND DISTRICT, TANJUNG KIDURONG, BLOCK 20, 15&37, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

LOT 211 & 212, BLOCK 293, MUKAH LAND DISTRICT, KM 38, JALAN MUKAH - BALINGAN, 96400 MUKAH, SARAWAK, MALAYSIA.

TEL.NO.

:

086-855038

FAX.NO.

:

086-855050

CONTACT PERSON

:

KOON POH TAT ( DIRECTOR )

INDUSTRY CODE

:

24202

PRINCIPAL ACTIVITY

:

MANUFACTURING AND TRADING OF ALUMINIUM PRODUCTS

AUTHORISED CAPITAL

:

MYR 1,000,000,000.00 DIVIDED INTO
ORDINARY SHARE 1,000,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 352,000,000.00 DIVIDED INTO
ORDINARY SHARES 352,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 691,022,621 [2011]

NET WORTH

:

MYR 475,349,156 [2011]

STAFF STRENGTH

:

800 [2013]

BANKER (S)

:

RHB ISLAMIC BANK BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

GOOD

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 53,555,000 (USD 17,001,000)

 

 

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 and trading of aluminium products.

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

 

The immediate holding company of the SC is PRESS METAL BERHAD, a company incorporated in MALAYSIA.

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

PRESS METAL BERHAD

LOT 6464, BATU 5 3/4, JALAN KAPAR, SEMENTA, 42100 KLANG, SELANGOR, MALAYSIA.

153208

281,600,000.00

80.00

SUMMIT GLOBAL MANAGEMENT IX B.V

STRAWINSKYLAAN 917, 1077 XX ARMSTERDAM, THE NETHERLANDS, FOREIGN

XLZ00217181

70,400,000.00

20.00

 

 

 

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

------

 

 

 

352,000,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

DATO' KOON POH TAT

Address

:

20, JALAN 29, TAMAN OVERSEAS UNION, OFF JALAN KELANG LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

5586613

New IC No

:

591227-10-6617

Date of Birth

:

27/12/1959

Nationality

:

MALAYSIAN

Date of Appointment

:

24/07/2009

Working Experience

:

HE HAS MORE THAN 18 YEARS OF EXPERIENCE IN THE ALUMINIUM INDUSTRY.

 

DIRECTOR 2

 

Name Of Subject

:

MR. KOON POH WENG

Address

:

3, JALAN SRI PETALING 4, BANDAR BARU SERI PETALING, 57000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

4825342

New IC No

:

550522-10-5827

Date of Birth

:

22/05/1955

Nationality

:

MALAYSIAN

Date of Appointment

:

24/07/2009

Qualification

:

DIPLOMA IN ENGINEERING

Working Experience

:

HE HAS AT LEAST 20 YEARS OF SPECIALIZED EXPERIENCE IN THE FABRICATION, INSTALLATION AND MARKETING OF ALUMINIUM PRODUCTS.

 

DIRECTOR 3

 

Name Of Subject

:

DATO' KOON POH KEONG

Address

:

17, JALAN SS3/41, TAMAN SUBANG, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6189518

New IC No

:

610425-10-6539

Date of Birth

:

25/04/1961

Nationality

:

MALAYSIAN

Date of Appointment

:

11/07/2007

Qualification

:

BACHELOR OF SCIENCE IN ELECTRICAL ENGINEERING FROM THE UNIVERSITY OF OKLAHOMA, UNITED STATES OF AMERICA, IN 1986.

Working Experience

:

HE WAS THE CHAIRMAN OF ALUMINIUM MANUFACTURING GROUP MALAYSIA FROM 1998 TO 2000.

 

DIRECTOR 4

 

Name Of Subject

:

MR. KOON POH MING

Address

:

19, JALAN SS3/41, TAMAN SUBANG, 47300 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

5028557

New IC No

:

561117-10-5931

Date of Birth

:

17/11/1956

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

11/07/2007

Qualification

:

DEGREE IN CIVIL AND STRUCTURAL ENGINEERING FROM THE UNIVERSITY OF WALES, UNITED KINGDOM IN 1981.

Working Experience

:

HE HAS ACTIVELY BEEN INVOLVED IN THE FAMILY OWNED ALUMINIUM TRADING BUSINESS FOR MORE THAN 30 YEARS.

 

DIRECTOR 5

 

Name Of Subject

:

MASATOSHI ADACHI

Address

:

23-171, KAKINOKIDAI, AOBA-KU, YOKOHAMA, KANAGAWA, 227-0048, JAPAN.

IC / PP No

:

TZ0231141

Nationality

:

JAPANESE

Date of Appointment

:

17/12/2010

Remark

:

CORPORATE OFFICER

 

DIRECTOR 6

 

Name Of Subject

:

OSAMU ISHIMURA

Address

:

1-31-5, AMANUMA, SUGINAMI-KU, TOKYO-TO, JAPAN.

IC / PP No

:

TH5133147

Nationality

:

JAPANESE

Date of Appointment

:

01/04/2013

Remark

:

EXECUTIVE OFFICER



MANAGEMENT

 

 

 

1)

Name of Subject

:

KOON POH TAT

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

KPMG TOWER, 8 FIRST AVENUE, BANDAR UTAMA, LEVEL 10, 47800 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MRS. TAI YIT CHAN

 

IC / PP No

:

A1167797

 

New IC No

:

690118-10-6160

 

Address

:

56, JALAN SS 22/29, DAMANSARA JAYA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MS. TAN AI NING

 

IC / PP No

:

A1846076

 

New IC No

:

710325-10-5406

 

Address

:

7-8-1, MENARA HARTAMAS, JALAN SRI HARTAMAS 3, 50480 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

RHB ISLAMIC BANK BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

MALAYAN BANKING BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

25/11/2008

N/A

RHB ISLAMIC BANK BERHAD

MYR 355,000,000.00

Unsatisfied

2

25/11/2008

N/A

RHB ISLAMIC BANK BERHAD

MYR 50,000,000.00

Unsatisfied

3

25/11/2008

N/A

RHB ISLAMIC BANK BERHAD

MYR 380,000,000.00

Unsatisfied

4

25/11/2008

N/A

RHB ISLAMIC BANK BERHAD

MYR 355,000,000.00

Unsatisfied

5

25/11/2008

N/A

RHB ISLAMIC BANK BERHAD

MYR 355,000,000.00

Unsatisfied

6

25/11/2008

N/A

RHB ISLAMIC BANK BERHAD

MYR 355,000,000.00

Unsatisfied

7

07/07/2009

N/A

MALAYAN BANKING BHD

MYR 75,000,000.00

Unsatisfied

8

07/07/2009

N/A

MALAYAN BANKING BHD

MYR 75,000,000.00

Unsatisfied

9

07/07/2009

N/A

MALAYAN BANKING BHD

MYR 75,000,000.00

Unsatisfied

10

28/07/2009

N/A

RHB ISLAMIC BANK BERHAD

MYR 430,000,000.00

Unsatisfied

11

28/07/2009

N/A

RHB ISLAMIC BANK BERHAD

MYR 75,000,000.00

Unsatisfied

12

10/11/2010

FACILITY AGREEMENT

MAYBANK ISLAMIC BERHAD

MYR 150,000,000.00

Unsatisfied

13

10/11/2010

FACILITY AGREEMENT

MAYBANK ISLAMIC BERHAD

MYR 150,000,000.00

Unsatisfied

14

10/11/2010

FACILITY AGREEMENT

MAYBANK ISLAMIC BERHAD

MYR 150,000,000.00

Unsatisfied

 

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


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

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Products manufactured

:

ALUMINIUM PRODUCTS

 

 

 

Competitor(s)

:

SHOWA DENKO HD (MALAYSIA) SDN BHD

 

 

 

 

 

Total Number of Employees:

YEAR

2013

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

800

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing and trading of aluminium products.


The SC is related company of Press Metal Berhad.


The SC is aluminium smelting company.


Built upon approximately 366 hectares or 905 acres of land, its primary focus will be on major heavy industrial manufacturing development in Sarawak, Malaysia.

 

PROJECTS


No projects found in our databank



RECENT DEVELOPMENT


March 31, 2012


PRESS Metal Bhd's new 240,000-tonne-a-year aluminium smelter in Samalaju Industrial Park, Bintulu is expected to start operations in June. Sarawak Energy Berhad (SEB) chief executive officer Torstein Dale Sjotveit confirmed this in a report by The Star recently. SEB would supply 480MW to the new smelting plant.


Press Metal already owns and operates Malaysia's first aluminium smelter in Balingian, Mukah Division, which is currently operating at a full capacity of 120,000 tonnes per annum. The plant uses technology provided by Aluminium Corporation of China Limited (CHALCO), the top aluminium company in China and the fourth largest aluminium player in the world. CHALCO's parent company Aluminium Corp of China (CHINALCO) is actually in a joint venture with Gulf International Investment Group Holdings Sdn Bhd (GIIGH) called Smelter Asia, to jointly develop a US$1.6 billion (RM4.95 billion) aluminium smelting plant with an annual capacity of 370,000 tonnes in Samalaju.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

086-855038

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 6464, BATU 5 3/4, JALAN KAPAR, SEMENTA, 42100 KLANG, SELANGOR DARUL EHSAN

Current Address

:

LOT 211 & 212, BLOCK 293, MUKAH LAND DISTRICT, KM 38, JALAN MUKAH - BALINGAN, 96400 MUKAH, SARAWAK, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 2nd July 2013 we contacted one of the staff from the SC and she provided some information on the SC.


The address provided belongs to the SC's related company Press Metal Berhad.



FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2007 - 2011

]

 

Profit/(Loss) Before Tax

:

Increased

[

2007 - 2011

]

 

Return on Shareholder Funds

:

Acceptable

[

15.87%

]

 

Return on Net Assets

:

Acceptable

[

11.67%

]

 

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

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

50 Days

]

 

Debtor Ratio

:

Favourable

[

0 Days

]

 

Creditors Ratio

:

Favourable

[

3 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 where the SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.72 Times

]

 

Current Ratio

:

Unfavourable

[

1.01 Times

]

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

5.04 Times

]

 

Gearing Ratio

:

Acceptable

[

0.94 Times

]

 

The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. The SC's gearing was slightly high. The SC is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the SC. It will be more vulnerable in times of economy downturn.

Overall Assessment :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. The SC's gearing was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the SC's performance may deteriorate in the coming year.

Overall financial condition of the SC : FAIR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

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

24202 : Production of aluminium from alumina

 

 

INDUSTRY :

MANUFACTURING

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domesticoriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand.

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first sevenmonths of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domesticoriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.

According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion.

Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China.

Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country's rising income level and the implementation of zero import duty on Malaysian made-furniture. Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.

The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.

Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such assolar and medial services can 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 2007, the SC is a Private Limited company, focusing on manufacturing and trading of aluminium products. Having been in the industry for only 6 years, the SC is growing fast with a paid up capital of MYR 352,000,000. With a huge paid up capital, the SC is allowed to expand its business comfortably. The SC is well backed by a listed company shareholders which would stimulate further growth for the SC. Hence, the potential growth of the SC is positive. 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. Being a large entity, the SC has a steady workforce of 800 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. The SC has a good management capability. Its capable management team has enabled the SC to keep its business on going. Hence, the future prospect of the SC is bright.


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. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. The gearing level of the SC is slightly high, therefore it faces moderate financial risk. Nevertheless, given a positive net worth standing at MYR 475,349,156, 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.


Overall, the SC's payment habit is good as the SC has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.


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)

PRESS METAL SARAWAK SDN. BHD.

 

Financial Year End

31/12/2011

31/12/2010

31/12/2009

31/12/2008

31/12/2007

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

691,022,621

450,292,659

70,639,990

-

-

Other Income

5,374,370

7,229,862

-

-

-

 

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

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

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

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

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

Total Turnover

696,396,991

457,522,521

70,639,990

-

-

Costs of Goods Sold

<548,540,964>

<367,012,385>

-

-

-

 

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

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

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

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

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

Gross Profit

147,856,027

90,510,136

-

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

92,451,649

47,810,573

18,266,401

<832,996>

<4,041>

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

92,451,649

47,810,573

18,266,401

<832,996>

<4,041>

Taxation

<17,022,496>

<12,075,122>

<5,244,812>

-

-

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

75,429,153

35,735,451

13,021,589

<832,996>

<4,041>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

47,920,003

12,184,552

<837,037>

<4,041>

-

 

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

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

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

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

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

As restated

47,920,003

12,184,552

<837,037>

<4,041>

-

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

123,349,156

47,920,003

12,184,552

<837,037>

<4,041>

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

123,349,156

47,920,003

12,184,552

<837,037>

<4,041>

 

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

22,869,008

13,904,293

4,640,003

2,818

-

 

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

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

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

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

 

 

22,869,008

13,904,293

4,640,003

2,818

 

 

 

 

BALANCE SHEET

 

 

PRESS METAL SARAWAK SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

984,757,125

625,466,841

402,173,717

234,245,352

-

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Development properties/expenditure

-

-

18,299,089

7,639,099

-

Others

-

1,665,628

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

1,665,628

18,299,089

7,639,099

-

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

984,757,125

627,132,469

420,472,806

241,884,451

-

CURRENT ASSETS

 

 

 

 

 

Stocks

94,446,673

72,900,788

37,143,337

-

-

Trade debtors

10,775

-

70,642,576

-

-

Other debtors, deposits & prepayments

14,449,373

328,643,045

413,108,484

143,485,323

-

Deposits with financial institutions

5,100,000

3,524,197

-

-

-

Amount due from related companies

216,194,202

-

-

-

-

Cash & bank balances

2,359,650

672,650

2,067,017

3,043,053

-

Others

45,000

-

-

-

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

332,605,673

405,740,680

522,961,414

146,528,376

36,581

 

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

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

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

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

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

TOTAL ASSET

1,317,362,798

1,032,873,149

943,434,220

388,412,827

36,581

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

3,835,733

1,907,926

-

-

-

Other creditors & accruals

57,405,223

19,647,156

12,254,408

1,648,422

-

Hire purchase & lease creditors

4,474,114

2,438,658

-

-

-

Short term borrowings/Term loans

86,000,000

86,000,000

131,029,487

49,400

-

Other borrowings

20,000,000

15,000,000

-

-

-

Bill & acceptances payable

118,094,860

109,889,773

-

-

-

Other liabilities & accruals

-

-

9,379,067

29,200

-

Amounts owing to holding company

39,228,709

56,037,591

-

-

-

Amounts owing to related companies

487,535

1,810,516

22,305,578

2,422,850

-

Provision for taxation

-

15,427

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

329,526,174

292,747,047

174,968,540

4,149,872

40,612

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,079,499

112,993,633

347,992,874

142,378,504

<4,031>

 

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

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

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

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

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

TOTAL NET ASSETS

987,836,624

740,126,102

768,465,680

384,262,955

<4,031>

 

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

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

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

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

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

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

352,000,000

352,000,000

50,000,000

50,000,000

10

 

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

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

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

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

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

TOTAL SHARE CAPITAL

352,000,000

352,000,000

50,000,000

50,000,000

10

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

123,349,156

47,920,003

12,184,552

<837,037>

<4,041>

 

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

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

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

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

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

TOTAL RESERVES

123,349,156

47,920,003

12,184,552

<837,037>

<4,041>

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

475,349,156

399,920,003

62,184,552

49,162,963

<4,031>

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

215,000,000

301,000,000

390,286,907

200,175,567

-

Lease obligations

5,350,562

3,966,513

-

-

-

Deferred taxation

34,263,676

17,246,951

5,244,812

-

-

Others

257,873,230

17,992,635

310,749,409

134,924,425

-

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

512,487,468

340,206,099

706,281,128

335,099,992

-

 

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

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

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

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

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

 

987,836,624

740,126,102

768,465,680

384,262,955

<4,031>

 

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

 

PRESS METAL SARAWAK SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

2,359,650

672,650

2,067,017

3,043,053

-

Net Liquid Funds

<115,735,210>

<109,217,123>

2,067,017

3,043,053

-

Net Liquid Assets

<91,367,174>

40,092,845

310,849,537

142,378,504

<4,031>

Net Current Assets/(Liabilities)

3,079,499

112,993,633

347,992,874

142,378,504

<4,031>

Net Tangible Assets

987,836,624

740,126,102

768,465,680

384,262,955

<4,031>

Net Monetary Assets

<603,854,642>

<300,113,254>

<395,431,591>

<192,721,488>

<4,031>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

448,919,536

518,294,944

521,316,394

200,224,967

-

Total Liabilities

842,013,642

632,953,146

881,249,668

339,249,864

40,612

Total Assets

1,317,362,798

1,032,873,149

943,434,220

388,412,827

36,581

Net Assets

987,836,624

740,126,102

768,465,680

384,262,955

<4,031>

Net Assets Backing

475,349,156

399,920,003

62,184,552

49,162,963

<4,031>

Shareholders' Funds

475,349,156

399,920,003

62,184,552

49,162,963

<4,031>

Total Share Capital

352,000,000

352,000,000

50,000,000

50,000,000

10

Total Reserves

123,349,156

47,920,003

12,184,552

<837,037>

<4,041>

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.01

0.00

0.01

0.73

-

Liquid Ratio

0.72

1.14

2.78

35.31

-

Current Ratio

1.01

1.39

2.99

35.31

0.90

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

50

59

286

0

-

Debtors Ratio

0

0

365

0

-

Creditors Ratio

3

2

0

0

-

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.94

1.30

8.38

4.07

-

Liabilities Ratio

1.77

1.58

14.17

6.90

<10.07>

Times Interest Earned Ratio

5.04

4.44

4.94

<294.60>

-

Assets Backing Ratio

2.81

2.10

15.37

7.69

<403.10>

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

13.38

10.62

25.86

0.00

-

Net Profit Margin

10.92

7.94

18.43

0.00

-

Return On Net Assets

11.67

8.34

2.98

<0.22>

100.25

Return On Capital Employed

11.62

8.31

2.98

<0.22>

100.25

Return On Shareholders' Funds/Equity

15.87

8.94

20.94

<1.69>

100.25

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.60.34

UK Pound

1

Rs.90.78

Euro

1

Rs.77.81

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.