|
* Adopted abbreviations :
|
SC - Subject Company (the company enquired by you)
|
|
|
|
N/A - Not Applicable
|
|
|
|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
311567-D
|
|
COMPANY NAME
|
:
|
AM SGB SDN. BHD.
|
|
FORMER NAME
|
:
|
ARAB-MALAYSIAN SGB SDN BHD (18/04/2003)
|
|
INCORPORATION DATE
|
:
|
15/08/1994
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED (LIMITED BY SHARE)
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
SUITE 50-4-3A, 4TH FLOOER, WISMA UOA DAMANSARA, 50 JALAN DUNGUN,
50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
PT 16688 & 16689, JALAN PERMATA DUA, ARAB-MALAYSIAN INDUSTRIAL
PARK, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
06-7994014
|
|
FAX.NO.
|
:
|
06-7994018
|
|
EMAIL
|
:
|
AMSGBHO@PO.JARING.MY
|
|
WEB SITE
|
:
|
WWW.AMSGB.COM
|
|
CONTACT PERSON
|
:
|
HANS VOLKER HASENAUER ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
271
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING OF TRANSFORMERS
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
50,000,000.00 DIVIDED INTO
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
43,400,000.00 DIVIDED INTO
ORDINARY SHARES 43,400,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 138,501,085 [2011]
|
|
NET WORTH
|
:
|
MYR 91,774,037 [2011]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
170 [2013]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL GROWTH
|
HISTORY / BACKGROUND
The SC is a
private limited company and is allowed to have a minimum of one and a maximum
of forty-nine shareholders. As a private limited company, the SC must have at
least two directors. A private limited company is a separate legal entity
from its shareholders. As a separate legal entity, the SC is capable of
owning assets, entering into contracts, sue or be sued by other companies.
The liabilities of the shareholders are to the extent of the equity they have
taken up and the creditors cannot claim on shareholders' personal assets even
if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the
company must file its annual returns, together with its financial statements
with the Registrar of Companies.
The SC is
principally engaged in the (as a / as an) manufacturing of transformers.
The SC is not
listed on Bursa Malaysia (Malaysia Stock Exchange).
The immediate
holding company of the SC is SGB-SMIT INTERNATIONAL GMBH, a company
incorporated in GERMANY.
The ultimate
holding company of the SC is STARKSTROM-GERATEBAU GMBH, a company
incorporated in GERMANY.
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
SGB-SMIT INTERNATIONAL GMBH
|
OHMSTARBLE 10, 93055 REGENSBURG, GERMANY, GERMANY.
|
XLZ00214138
|
28,210,000.00
|
65.00
|
|
MS. ANNITA BINTI MOHD YUSSOF
|
11 JALAN KENT SATU, OFF JALAN MAKTAP, 54000 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
|
570614-03-5852
|
5,208,000.00
|
12.00
|
|
MS. SHEEN NORAISHAH BINTI MOHAMED ARIS
|
LOT 11554,BATU 13, TAMAN MESRA, 43000 KAJANG, SELANGOR, MALAYSIA.
|
701218-10-5876
|
5,208,000.00
|
12.00
|
|
DATO' HJ AHMAD KAMAL BIN ABDULLAH AL-YAFII
|
2, JALAN 7/2, 46050 PETALING JAYA, SELANGOR, MALAYSIA.
|
380512-02-5285
0756776
|
4,774,000.00
|
11.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
43,400,000.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. WONG SENG PENG
|
|
Address
|
:
|
NO. 22A, JALAN SUNWAY 2/2A, BANDAR SUNWAY SEMENYIH, 43500 SEMENYIH,
SELANGOR, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
651109-10-6749
|
|
Date of Birth
|
:
|
09/11/1965
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
16/12/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. SUBOH BIN MD YASSIN
|
|
Address
|
:
|
NO. RB 137, JALAN TERATAI, TAMAN UDA JAYA, 68000 AMPANG, SELANGOR,
MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
510111-01-5521
|
|
Date of Birth
|
:
|
11/01/1951
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
01/05/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
JOCHEN FISCHER
|
|
Address
|
:
|
AHORNSTRABE 33, D-40667, MEERBUSCH, MALAYSIA.
|
|
IC / PP No
|
:
|
5003808741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of Appointment
|
:
|
07/09/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. HANS VOLKER HASENAUER
|
|
Address
|
:
|
NO.9, LORONG BUKIT PANTAI 4, 59100 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
332604691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of Appointment
|
:
|
03/01/2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
HANS VOLKER HASENAUER
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
WONG SENG TENG
|
|
|
Position
|
:
|
ACCOUNTANT
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
ARIFF
|
|
|
Position
|
:
|
ASSISTANT ACCOUNT MANAGER
|
|
|
|
|
|
|
Auditor
|
:
|
KPMG
|
|
Auditor' Address
|
:
|
LEVEL 10, KPMG TOWER,, 8 FIRST AVENUE, BANDAR UTAMA, 47800 PETALING
JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. SHIKHA DUTT A/P DELIP KUMAR DUTT
|
|
|
|
|
|
|
|
New IC No
|
:
|
561205-05-5516
|
|
|
Address
|
:
|
4, JALAN 44/70A, DESA SRI HARTAMAS, 50480 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
BANGKOK BANK BHD
|
|
|
|
|
|
|
|
|
|
|
ENCUMBRANCE (S)
|
Charge No
|
Creation Date
|
Charge
Description
|
Chargee Name
|
Total Charge
|
Status
|
|
1
|
09/05/1996
|
N/A
|
HONG LEONG BANK BERHAD
|
MYR 21,300,000.00
|
Satisfied
|
|
2
|
14/07/1999
|
N/A
|
HONG LEONG BANK BERHAD
|
MYR 21,300,000.00
|
Satisfied
|
|
3
|
12/06/2007
|
OPEN CHARGE
|
BANGKOK BANK BHD
|
N/A
|
Unsatisfied
|
|
4
|
12/06/2007
|
OPEN CHARGE
|
BANGKOK BANK BHD
|
N/A
|
Unsatisfied
|
|
5
|
01/04/2009
|
3RD LEGAL
CHARGE & OPEN CHARGE
|
BANGKOK BANK BHD
|
N/A
|
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
|
|
|
Import Countries
|
:
|
GERMANY,JAPAN,EUROPE
|
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
|
:
|
AUSTRALIA
ASIA
GERMANY
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
TELEGRAPHIC TRANSFER (TT)
LETTER OF CREDIT (LC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
SMI ASSOCIATION OF MALAYSIA
THE ELECTRICAL AND ELECTRONICS ASSOCIATION OF MALAYSIA (TEEAM)
MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)
MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)
|
|
|
|
|
|
Ownership of premises
|
:
|
OWNED
|
|
Production Capacity
|
:
|
140 UNITS PER MONTH
|
|
Total Number of Employees:
|
|
|
YEAR
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
170
|
170
|
170
|
150
|
149
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of
transformers.
The SC manufactures oil distribution and cast resin transformers with ratings
of up to 5,000 kVA and system voltages up to 36kV under licence by its parent
company in German, as well as power transformers up to 30MVA and 72.5kV.
The SC's factory and production facilities were designed and initialed by
factory experts from its parent company. The process flow covers all major
steps, keeping the out-sourcing of components to the barest minimum.
The electrical section is responsible for cutting and stacking of the cores,
windings using copper wires, paper covered ships and foils, and assembly of
the active part of the transformer.
The mechanical section is a fully equipped steel fabrication shop, including
a line for corrugated walls, shot blasting chamber and paint shop, following
the German standards for environment protection and occupational safety and
health.
The vacuum chamber is the last stage of production, featuring electronic
sensors for monitoring, recording and process control.
We were informed that the SC's production equipment are state-of-the-art and
only the highest quality material are used in production.
PROJECTS
No projects found in our databank
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
606-799 4012 / 799 4016 / 799 5996
|
|
Current Telephone Number
|
:
|
06-7994014
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
16688 AND 16689, JALAN PARMATA 2 ARAB-MALAYSIAN INDUSTRIAL PARK
71800 NILAI,
|
|
Current Address
|
:
|
PT 16688 & 16689, JALAN PERMATA DUA, ARAB-MALAYSIAN INDUSTRIAL
PARK, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the staff from the SC and she provided some information
on the SC.
The address provided is incomplete.
FINANCIAL ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Erratic
|
[
|
2007 - 2011
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
2007 - 2011
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
22.53%
|
]
|
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
29.56%
|
]
|
|
|
|
|
|
|
|
|
|
|
The fluctuating turnover reflects the fierce competition among the
existing and new market players.The dip in profit could be due to the stiff
market competition which reduced the SC's profit margin. The SC's
management had generated acceptable return for its shareholders using its
assets.
|
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Favourable
|
[
|
49 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Unfavourable
|
[
|
185 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
70 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
The SC's stocks were moving fast thus reducing its holding cost. This
had reduced funds being tied up in stocks. The SC's debtors ratio was high.
The SC should tighten its credit control and improve its collection period.
The unfavourable creditors' ratio could be due to the SC taking advantage
of the credit granted by its suppliers. However this may affect the
goodwill between the SC and its suppliers and the SC may inadvertently have
to pay more for its future supplies.
|
|
|
|
|
|
|
|
|
|
Liquidity
|
|
|
|
|
|
|
|
Liquid Ratio
|
:
|
Favourable
|
[
|
2.74 Times
|
]
|
|
|
Current Ratio
|
:
|
Favourable
|
[
|
3.34 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
A minimum liquid ratio of 1 should be maintained by the SC in order
to assure its creditors of its ability to meet short term obligations and the
SC was in a good liquidity position. Thus, we believe the SC is able to
meet all its short term obligations as and when they fall due.
|
|
|
|
|
|
|
|
|
|
Solvency
|
|
|
|
|
|
|
|
Interest Cover
|
:
|
Favourable
|
[
|
1,578.31 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The interest cover showed that the SC was able to service the
interest. The favourable interest cover could indicate that the SC was making
enough profit to pay for the interest accrued. The SC had no gearing and
hence it had virtually no financial risk. The SC was financed by its
shareholders' funds and internally generated fund. During the economic
downturn, the SC, having a zero gearing, will be able to compete better
than those which are highly geared in the same industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall Assessment :
|
|
|
|
|
|
|
|
The SC recorded lower profits as its turnover showed a erratic trend.
The SC's management was unable to control its costs efficiently as its
profit showed a downward trend. The SC was in good liquidity position with
its total current liabilities well covered by its total current assets.
With its current net assets, the SC should be able to repay its short term
obligations. With the favourable interest cover, the SC could be able to
service all the accrued interest without facing any difficulties. The SC
was a zero gearing company, it was solely dependant on its shareholders to
provide funds to finance its business. The SC has good chance of getting
loans, if the needs arises.
|
|
|
|
|
|
|
|
|
|
Overall financial condition of the SC : STRONG
|
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
|
|
271 : Manufacture of electric motors, generators, transformers and
electricity distribution and control apparatus
|
|
|
|
|
INDUSTRY :
|
ELECTRICAL & ELECTRONIC
|
|
|
|
|
|
|
The Electrical & Electronics (E&E) industry is the leading
industry within the manufacturing sector and is the largest contributor to
manufacturing output, employment, investment, exports and imports. Malaysia
is a key player in the fast expanding Asia Pacific E&E market, its
major export destinations include Singapore, United States, Europe, Japan
and Taiwan. The E&E industry is targeted under the National Key
Economic Areas ( NKEA ) to gear the nation towards high-income economy by
focusing on high-value and high-growth manufacturing activities.
|
|
|
|
According to Ministry of Finance, in the year 2013 the electrical
and electronic (E&E) subsector is expected to grow further, driven by
higher demand for electronic equipment and parts as well as semiconductors
in line with recovery in advanced economies.
|
|
|
|
Output of E&E rebounded 1.6% during the first seven months of
2012 mainly driven by the higher production of semiconductor devices
(14.5%) as well as audio, visual and communication apparatus (6%). The improved
performance of E&E was partly due to chip vendors and storage producers
taking advantage of stable prices and supply of parts to replenish
inventories as well as the launching of new products which was delayed by
massive floods in Thailand during the fourth quarter of 2011.
|
|
|
|
Despite the slowdown in global demand, E&E manufacturers
continued to invest in new technology and product development to upscale
the value chain. Approved capital spending in the E&E subsector
amounted to RM1.72 billion in 46 projects, of which RM1.35 billion were
from foreign investors. This further reaffirms Malaysia as an attractive
and cost-efficient E&E manufacturing base in the region. The continued
strong investments will further strengthen growth in the E&E subsector
and create more skilled jobs.
|
|
|
|
Softening of world demand for solar panels impact Malaysia on it's
downturn in small scale compared to China where it facing great impact. The
decline in E&E products was also due to the weak global demand.
|
|
|
|
E&E has been instrumental in the development of the Northern
Corridor Klang Valley, Johor and Sarawak, contributing significantly to the
socio-economic development of the relevant communities.However, the E&E
sector faces significant challenges in maintaining growth with intense
competition from China, Taiwan, Singapore and other Asian countries. Over
the last 10 years, E&E's share of Malaysian exports has gradually
declined.
|
|
|
|
Malaysia's E&E sector remains focused on assembly, the lower
value-added part of the industry while Taiwan, South Korea and Singapore
have captured the higher value-added activities in research and
development, design and manufacturing.
|
|
|
|
To propel the E&E industry to a higher level, under the Economic
Transformation Programme (ETP) launched by the Government, a few
sub-sectors namely integrated circuits, solar photovoltaics, light emitting
diodes, and solid state lighting & integrated electronics have been
identified for greater promotion based on their potential to contribute
significantly towards Gross National Income (GNI) targets 2020.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Marginal Growth
|
CREDIT RISK EVALUATION &
RECOMMENDATION
|
Incorporated in 1994, the SC is a Private Limited company, focusing on
manufacturing of transformers. With its long establishment in the market,
the SC has received strong support from its stable customers base. Its
business position in the market is quite stable and it is expected to enjoy
better market shares over its rivals. Having strong support from its
holding company has enabled the SC to remain competitive despite the
challenging business environment. The SC is a large entity with strong
capital position. We are confident with the SC's business and its future
growth prospect.
Over the years, the SC has penetrated into both the local and overseas
market. The SC has positioned itself in the global market and is competing
in the industry. Its stable clientele base will enable the SC to further
enhance its business in the near term. The SC is a fairly large and rapidly
growing company with over 170 staff in its operations 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.
The SC's business performance showed a reverse trend as both its turnover
and pre-tax profit have decreased compared to the previous year. Return on
shareholders' funds of the SC was at an acceptable range which indicated
that the management was efficient in utilising its funds to generate
income. The SC is in good liquidity position with its current liabilities
well covered by it current assets. Hence, it has sufficient working capital
to meet its short term financial obligations. Being a zero geared company,
the SC virtually has no financial risk as it is mainly dependent on its
internal funds to finance its business. Given a positive net worth standing
at MYR 91,774,037, 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 has reached its maturity stage and only enjoying a marginal
growth. The steady growth of the country's economy will further enhance the
industry activities. Thus, the SC's future performance is very much depend
on its marketing strategies in order to retain its position in the market.
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)
|
|
AM SGB 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
|
SUMMARY
|
FULL
|
|
Currency
|
MYR
|
MYR
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
TURNOVER
|
138,501,085
|
146,120,653
|
127,791,293
|
125,572,044
|
121,722,914
|
|
Other Income
|
7,490,288
|
8,757,535
|
8,427,500
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
145,991,373
|
154,878,188
|
136,218,793
|
125,572,044
|
121,722,914
|
|
Costs of Goods Sold
|
<95,575,309>
|
<98,151,617>
|
<81,801,212>
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
50,416,064
|
56,726,571
|
54,417,581
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
27,683,387
|
33,750,064
|
32,187,191
|
27,392,564
|
23,570,934
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
27,683,387
|
33,750,064
|
32,187,191
|
27,392,564
|
23,570,934
|
|
Taxation
|
<7,002,312>
|
<8,611,946>
|
<7,036,862>
|
<4,435,621>
|
<2,357,000>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
20,681,075
|
25,138,118
|
25,150,329
|
22,956,943
|
21,213,934
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
21,992,962
|
16,856,374
|
3,776,180
|
<5,480,763>
|
<24,694,697>
|
|
Prior year adjustment
|
-
|
119,470
|
7,929,865
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
21,992,962
|
16,975,844
|
11,706,045
|
<5,480,763>
|
<24,694,697>
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
42,674,037
|
42,113,962
|
36,856,374
|
17,476,180
|
<3,480,763>
|
|
TRANSFER TO RESERVES - General
|
-
|
-
|
-
|
<3,700,000>
|
<2,000,000>
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
-
|
<20,121,000>
|
<20,000,000>
|
<10,000,000>
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
42,674,037
|
21,992,962
|
16,856,374
|
3,776,180
|
<5,480,763>
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE (as per notes to P&L)
|
|
|
|
|
|
|
Bank overdraft
|
17,551
|
1,887
|
-
|
-
|
7,070
|
|
Hire purchase
|
-
|
-
|
-
|
-
|
15,259
|
|
|
----------------
|
----------------
|
|
----------------
|
----------------
|
|
|
17,551
|
1,887
|
|
-
|
22,329
|
BALANCE SHEET
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
21,138,801
|
20,211,425
|
20,151,768
|
16,824,442
|
16,753,045
|
|
|
|
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
Deferred assets
|
-
|
-
|
-
|
-
|
2,960,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
-
|
-
|
-
|
-
|
2,960,000
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
21,138,801
|
20,211,425
|
20,151,768
|
16,824,442
|
19,713,045
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
Stocks
|
18,481,728
|
9,923,333
|
14,217,287
|
-
|
23,935,022
|
|
Trade debtors
|
70,069,895
|
62,231,106
|
53,375,024
|
-
|
24,619,149
|
|
Other debtors, deposits & prepayments
|
4,444,609
|
4,616,484
|
312,280
|
-
|
2,452,029
|
|
Amount due from holding company
|
172,253
|
1,932,722
|
1,102,831
|
-
|
-
|
|
Amount due from related companies
|
947,965
|
349,736
|
175,541
|
-
|
-
|
|
Cash & bank balances
|
173,880
|
6,945,413
|
3,172,171
|
-
|
5,759,872
|
|
Others
|
9,332,390
|
794,085
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
103,622,720
|
86,792,879
|
72,355,134
|
72,878,339
|
56,766,072
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
124,761,521
|
107,004,304
|
92,506,902
|
89,702,781
|
76,479,117
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Trade creditors
|
18,389,767
|
17,771,040
|
9,218,413
|
-
|
6,844,436
|
|
Other creditors & accruals
|
7,151,013
|
9,278,262
|
12,536,795
|
-
|
8,177,590
|
|
Hire purchase & lease creditors
|
110,765
|
-
|
-
|
-
|
-
|
|
Bank overdraft
|
-
|
-
|
-
|
-
|
1,056,817
|
|
Amounts owing to holding company
|
1,772,609
|
2,344,314
|
-
|
-
|
-
|
|
Amounts owing to related companies
|
2,896,824
|
1,809,938
|
903,529
|
-
|
-
|
|
Provision for taxation
|
-
|
2,048,730
|
1,451,670
|
-
|
3,872,506
|
|
Other liabilities
|
737,828
|
730,402
|
1,714,144
|
-
|
12,908,531
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
31,058,806
|
33,982,686
|
25,824,551
|
36,826,601
|
32,859,880
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
72,563,914
|
52,810,193
|
46,530,583
|
36,051,738
|
23,906,192
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
93,702,715
|
73,021,618
|
66,682,351
|
52,876,180
|
43,619,237
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
43,400,000
|
43,400,000
|
43,400,000
|
43,400,000
|
43,400,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
43,400,000
|
43,400,000
|
43,400,000
|
43,400,000
|
43,400,000
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
Capital reserve
|
-
|
-
|
-
|
-
|
2,000,000
|
|
Retained profit/(loss) carried forward
|
42,674,037
|
21,992,962
|
16,856,374
|
3,776,180
|
<5,480,763>
|
|
Capital redemption reserve
|
5,700,000
|
5,700,000
|
5,700,000
|
5,700,000
|
3,700,000
|
|
Others
|
-
|
517,249
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
48,374,037
|
28,210,211
|
22,556,374
|
9,476,180
|
219,237
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
91,774,037
|
71,610,211
|
65,956,374
|
52,876,180
|
43,619,237
|
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES
|
|
|
|
|
|
|
Hire purchase creditors
|
228,095
|
-
|
-
|
-
|
-
|
|
Deferred taxation
|
1,700,583
|
1,411,407
|
725,977
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
1,928,678
|
1,411,407
|
725,977
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
93,702,715
|
73,021,618
|
66,682,351
|
52,876,180
|
43,619,237
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
FINANCIAL RATIO
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
173,880
|
6,945,413
|
3,172,171
|
-
|
5,759,872
|
|
Net Liquid Funds
|
173,880
|
6,945,413
|
3,172,171
|
-
|
4,703,055
|
|
Net Liquid Assets
|
54,082,186
|
42,886,860
|
32,313,296
|
36,051,738
|
<28,830>
|
|
Net Current Assets/(Liabilities)
|
72,563,914
|
52,810,193
|
46,530,583
|
36,051,738
|
23,906,192
|
|
Net Tangible Assets
|
93,702,715
|
73,021,618
|
66,682,351
|
52,876,180
|
43,619,237
|
|
Net Monetary Assets
|
52,153,508
|
41,475,453
|
31,587,319
|
36,051,738
|
<28,830>
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
338,860
|
0
|
0
|
-
|
1,056,817
|
|
Total Liabilities
|
32,987,484
|
35,394,093
|
26,550,528
|
36,826,601
|
32,859,880
|
|
Total Assets
|
124,761,521
|
107,004,304
|
92,506,902
|
89,702,781
|
76,479,117
|
|
Net Assets
|
93,702,715
|
73,021,618
|
66,682,351
|
52,876,180
|
43,619,237
|
|
Net Assets Backing
|
91,774,037
|
71,610,211
|
65,956,374
|
52,876,180
|
43,619,237
|
|
Shareholders' Funds
|
91,774,037
|
71,610,211
|
65,956,374
|
52,876,180
|
43,619,237
|
|
Total Share Capital
|
43,400,000
|
43,400,000
|
43,400,000
|
43,400,000
|
43,400,000
|
|
Total Reserves
|
48,374,037
|
28,210,211
|
22,556,374
|
9,476,180
|
219,237
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
0.01
|
0.20
|
0.12
|
-
|
0.18
|
|
Liquid Ratio
|
2.74
|
2.26
|
2.25
|
-
|
1.00
|
|
Current Ratio
|
3.34
|
2.55
|
2.80
|
1.98
|
1.73
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
49
|
25
|
41
|
-
|
72
|
|
Debtors Ratio
|
185
|
155
|
152
|
-
|
74
|
|
Creditors Ratio
|
70
|
66
|
41
|
-
|
21
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
0.00
|
0.00
|
0.00
|
-
|
0.02
|
|
Liabilities Ratio
|
0.36
|
0.49
|
0.40
|
0.70
|
0.75
|
|
Times Interest Earned Ratio
|
1,578.31
|
17,886.57
|
0.00
|
-
|
1,056.62
|
|
Assets Backing Ratio
|
2.16
|
1.68
|
1.54
|
1.22
|
1.01
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
19.99
|
23.10
|
25.19
|
21.81
|
19.36
|
|
Net Profit Margin
|
14.93
|
17.20
|
19.68
|
18.28
|
17.43
|
|
Return On Net Assets
|
29.56
|
46.22
|
48.27
|
51.81
|
54.09
|
|
Return On Capital Employed
|
29.53
|
46.22
|
48.27
|
51.81
|
52.81
|
|
Return On Shareholders' Funds/Equity
|
22.53
|
35.10
|
38.13
|
43.42
|
48.63
|
|
Dividend Pay Out Ratio (Times)
|
0.00
|
0.80
|
0.80
|
0.44
|
0.00
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
0
|
-
|
0
|
|