MIRA INFORM REPORT

 

 

Report Date :

22.08.2014              

 

IDENTIFICATION DETAILS

 

Name :

SAN MIGUEL YAMAMURA PACKAGING & PRINTING SDN. BHD.

 

 

Formerly Known As :

SAN MIGUEL PACKAGING & PRINTING SDN BHD

 

 

Registered Office :

50-8-1, Wisma Uoa Damansara, 50, Jalan Dungun, Damansara Heights, 8th Floor, 50490 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

20.12.1973

 

 

Com. Reg. No.:

16859-M

 

 

Legal Form :

Private Limited (Limited by Share)

 

 

Line of Business :

Manufacturing of Flexible Packaging Materials

 

 

No. of Employees :

250

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Malaysia

A2

A2

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara 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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Source : CIA


EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

16859-M

COMPANY NAME

:

SAN MIGUEL YAMAMURA PACKAGING & PRINTING SDN. BHD.

FORMER NAME

:

SAN MIGUEL PACKAGING & PRINTING SDN BHD (12/09/2008)
GUOLENE PACKAGING & PRINTING SDN BHD (31/05/2005)
FEDERAL PACKAGING & PRINTING SDN BHD (07/07/1992)
NAM HIN PAPER PRODUCTS SDN BHD (20/11/1985)

INCORPORATION DATE

:

20/12/1973

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

50-8-1, WISMA UOA DAMANSARA, 50, JALAN DUNGUN, DAMANSARA HEIGHTS, 8TH FLOOR, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 5078 & 5079, JALAN JENJAROM 28/39, SEKSYEN 28, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

TEL.NO.

:

03-51916588

FAX.NO.

:

03-51916614

WEB SITE

:

WWW.SANMIGUEL.COM

CONTACT PERSON

:

CHUA BOON POCK ( MANAGING DIRECTOR )

 

 

 

INDUSTRY CODE

:

17020

PRINCIPAL ACTIVITY

:

MANUFACTURING OF FLEXIBLE PACKAGING MATERIALS

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 33,300,000.00 DIVIDED INTO
ORDINARY SHARES 27,700,002 CASH AND 5,599,998 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 73,198,000 [2012]

NET WORTH

:

MYR 49,371,000 [2012]

 

 

 

STAFF STRENGTH

:

250 [2014]

BANKER (S)

:

HONG LEONG BANK BHD
MALAYAN BANKING BHD
STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) manufacturing of flexible packaging materials.

 

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

 

The immediate holding company of the Subject is SAN MIGUEL YAMAMURA PACKAGING INTERNATIONAL LIMITED, a company incorporated in HONG KONG.

 

The ultimate holding company of the Subject is SAN MIGUEL CORPORATION, a company incorporated in PHILIPPINES.

 

Share Capital History

Date

Authorised Shared Capital

 

Issue & Paid Up Capital

26/06/2013

MYR 50,000,000.00

MYR 33,300,000.00

13/02/1992

MYR 10,000,000.00

MYR 3,700,000.00

 

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

 

Name

 

Address

IC/PP/Loc No

Shareholding

(%)

SAN MIGUEL YAMAMURA PACKAGING INTERNATIONAL LIMITED

C/O NEPTUNIA CORPORATION LIMITED, 9/F, CITIMARK BUILDING, 28, YUEN SHUN CIRCUIT, SIU LEK YUEN, SHATIN, N.T, HONG KONG.

XLZ00213792

33,300,000.00

100.00

 

 

 

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

------

 

 

 

33,300,000.00

100.00

 

 

 

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. CHUA BOON POCK

Address

:

JALAN U13/19 - 48, SETIA ALAM, KOTA ANGGERIK, 41140 SHAH ALAM, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

631108-10-5279

Date of Birth

:

08/11/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

20/12/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MS. FONG LEE SIANG

Address

:

39, JALAN WAWASAN 2/2, PUSAT BANDAR PUCHONG, 47100 PUCHONG, SELANGOR, MALAYSIA.

IC / PP No

:

6974359

New IC No

:

630228-05-5304

Date of Birth

:

28/02/1963

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

14/03/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

FERDINAND ACOBA TUMPALAN

Address

:

1, CAMELLA DRIVE, CAMELLA2, ALABANG, MUNTINLUPA, PHILIPPINES.

IC / PP No

:

XX1953922

 

 

 

 

 

 

 

 

 

Nationality

:

FILIPINO

Date of Appointment

:

28/01/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

RAMON SEE ANG

Address

:

40, SA MIGUEL AVENUE, MANDALUYONG CITY, PHILIPPINES.

IC / PP No

:

XX4227006

 

 

 

 

 

 

 

 

 

Nationality

:

FILIPINO

Date of Appointment

:

28/01/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 5

 

Name Of Subject

:

YUKI UETAKA

Address

:

43C, PACIFIC PLAZA TOWER CONDOMINIUM, THE FORT BONIFACIO GLOBAL CITY, TAGUIG, 1360, PHILIPPINES.

IC / PP No

:

TH2635037

 

 

 

 

 

 

 

 

 

Nationality

:

JAPANESE

Date of Appointment

:

24/02/2014

 

 

 

 

 

 

 

 

 

 

 

 

 


 

MANAGEMENT

 

 

 

 

1)

Name of Subject

:

CHUA BOON POCK

 

Position

:

MANAGING DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

WILSON

 

Position

:

GENERAL MANAGER

 

 

 

 

 

3)

Name of Subject

:

FONG LEE SIANG

 

Position

:

FINANCE MANAGER

 

 

 

 

 

4)

Name of Subject

:

DAVID GAN

 

Position

:

SALES MANAGER

 

 

 

 

 

5)

Name of Subject

:

PUSHPA

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

6)

Name of Subject

:

MURALI

 

Position

:

PRODUCTION MANAGER

 

 

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

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

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEW OY FOONG

 

IC / PP No

:

A1772630

 

New IC No

:

701230-10-6436

 

Address

:

17, JALAN SL 7/12, BANDAR SUNGAI LONG, BATU 11 1/4, JALAN CHERAS, 43000 KAJANG, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with:

 

1)

Name

:

HONG LEONG BANK BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

3)

Name

:

STANDARD CHARTERED BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

 

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

04/02/1976

N/A

THE HONGKONG SHANGHAI BANKING CORP

MYR 150,000.00

Satisfied

2

04/02/1976

N/A

THE HONGKONG SHANGHAI BANKING CORP

MYR 50,000.00

Satisfied

8

04/02/1976

N/A

HONGKONG SHANGHAI BANKING CORP

-

Satisfied

10

04/02/1976

N/A

HONGKONG SHANGHAI BANKING CORP

MYR 840,000.00

Satisfied

12

04/02/1976

N/A

THE HONGKONG SHANGHAI BANGKING CORP

MYR 477,000.00

Satisfied

4

04/10/1976

N/A

THE HONGKONG SHANGHAI BANKING CORP

MYR 100,000.00

Satisfied

3

18/10/1976

N/A

THE HONGKONG SHANGHAI BANKING CORP

MYR 300,000.00

Satisfied

7

18/10/1976

N/A

THE HONGKONG SHANGHAI BANKING CORP

MYR 140,000.00

Satisfied

9

18/10/1976

N/A

HONGKONG SHANGHAI BANKING CORP

MYR 840,000.00

Satisfied

11

18/10/1976

N/A

HONGKONG SHANGHAI BANKING CORP

MYR 1,000,000.00

Satisfied

5

14/07/1977

N/A

THE HONGKONG SHANGHAI BANKING CORP

MYR 200,000.00

Satisfied

6

05/08/1977

N/A

THE HONGKONG SHANGHAI BANKING CORP

MYR 200,000.00

Satisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject 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 SUBJECT


* We have checked through the Subject 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

:

EUROPE,ASIA



The Subject 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

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

80%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

20%

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

FOOD MANUFACTURERS,ELECTRICAL & ELECTRONIC INDUSTRIES,PHARMACEUTICAL INDUSTRIES,PLASTIC MANUFACTURER

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Products manufactured

:

FLEXIBLE PACKAGING MATERIALS

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

SMALL & MEDIUM ENTERPRISE

 

 

 

Ownership of premises

:

OWNED

 

Factory Size

:

LOT 5078 (90,912 SQ FT) & LOT 5079(142,112 SQ FT)

 

 

Total Number of Employees:

 

 

YEAR

2014

2013

2012

2011

2010

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

250

250

250

220

200

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of flexible packaging materials.


The Subject's Converting Division is involved in the printing and lamination of flexible packaging material for the food industries.


The Subject's production lines cater for both fluted and folding cartons conversion and finishing.


We were informed that the Subject's factory is equipped with both automated and semi-automated machineries.


CURRENT INVESTIGATION

 

 

Latest fresh investigations carried out on the Subject indicated that:

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-51916588

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT 5078 & 5079, JALAN JENJAROM 28/39, SEKSYEN 28,40000,SHAH ALAM,SELANGOR.

Current Address

:

LOT 5078 & 5079, JALAN JENJAROM 28/39, SEKSYEN 28, 40000 SHAH ALAM, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the Subject and she provided some information.

 

Financial Analysis

 

Profitability

 

 

 

 

 

 

Turnover

:

Erratic

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

11.67%

]

 

Return on Net Assets

:

Acceptable

[

14.58%

]

 

 

 

 

 

 

 

 

The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's management have been efficient in controlling its operating costs. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

41 Days

]

 

Debtor Ratio

:

Unfavourable

[

73 Days

]

 

Creditors Ratio

:

Favourable

[

52 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

2.00 Times

]

 

Current Ratio

:

Favourable

[

2.42 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

103.87 Times

]

 

Gearing Ratio

:

Favourable

[

0.00 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the turnover was erratic, the Subject had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

 

 

 

 

 

 

 

Overall financial condition of the Subject : STRONG

 


 

Malaysia Economics / 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

 

 

Industry Analysis

 

MSIC CODE

17020 : Manufacture of corrugated paper and paperboard and of containers of paper and paperboard

 

 

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 1973, the Subject is a Private Limited company, focusing on manufacturing of flexible packaging materials. The Subject has been in business for over 4 decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.


Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 250 staff in its operations. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.


Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. The higher profit could be due to better control of its operating costs and efficiency in utilising its resources. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject 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 Subject 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 49,371,000, the Subject should be able to maintain its business in the near terms.


The Subject'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 Subject has a good control over its resources.


The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.


Based on the above condition, we recommend credit be granted to the Subject promptly.

 

 

PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

SAN MIGUEL YAMAMURA PACKAGING & PRINTING SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

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

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

73,198,000

74,281,000

71,355,000

67,300,000

84,242,000

 

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

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

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

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

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

Total Turnover

73,198,000

74,281,000

71,355,000

67,300,000

84,242,000

Costs of Goods Sold

(63,050,000)

(66,407,000)

(62,852,000)

-

-

 

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

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

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

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

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

Gross Profit

10,148,000

7,874,000

8,503,000

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

7,201,000

5,667,000

3,019,000

6,841,000

382,000

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

7,201,000

5,667,000

3,019,000

6,841,000

382,000

Taxation

(1,439,000)

(1,967,000)

(232,000)

(1,092,000)

1,392,000

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

5,762,000

3,700,000

2,787,000

5,749,000

1,774,000

Pre-acquisition profit/(loss)

-

-

-

(3,997,000)

(889,000)

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

5,762,000

3,700,000

2,787,000

1,752,000

885,000

 

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

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

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

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

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

5,762,000

3,700,000

2,787,000

1,752,000

885,000

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

23,269,000

16,043,000

16,761,000

15,009,000

14,919,000

Prior year adjustment

-

4,456,000

-

-

-

 

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

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

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

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

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

As restated

23,269,000

20,499,000

16,761,000

15,009,000

14,919,000

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

29,031,000

24,199,000

19,548,000

16,761,000

15,804,000

DIVIDENDS - Ordinary (paid & proposed)

(12,960,000)

(930,000)

(3,505,000)

-

(795,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

16,071,000

23,269,000

16,043,000

16,761,000

15,009,000

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Others

70,000

79,000

73,000

75,000

139,000

 

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

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

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

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

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

 

70,000

79,000

73,000

75,000

139,000

 

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

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

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

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

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

 

 

Balance sheet

 

SAN MIGUEL YAMAMURA PACKAGING & PRINTING SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

15,280,000

15,830,000

18,455,000

21,067,000

17,469,000

 

 

 

 

 

 

Deferred assets

3,465,000

4,429,000

1,463,000

1,619,000

2,700,000

Others

3,250,000

5,050,000

-

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

6,715,000

9,479,000

1,463,000

1,619,000

2,700,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

21,995,000

25,309,000

19,918,000

22,686,000

20,169,000

 

 

 

 

 

 

Stocks

8,232,000

9,345,000

8,616,000

7,279,000

12,932,000

Trade debtors

14,609,000

18,620,000

15,791,000

15,968,000

24,353,000

Other debtors, deposits & prepayments

430,000

1,165,000

4,097,000

4,174,000

1,057,000

Short term deposits

16,500,000

9,800,000

10,800,000

-

-

Amount due from related companies

45,000

117,000

121,000

101,000

831,000

Cash & bank balances

5,837,000

5,909,000

3,045,000

15,124,000

6,942,000

Others

1,800,000

1,800,000

383,000

317,000

-

 

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

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

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

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

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

TOTAL CURRENT ASSETS

47,453,000

46,756,000

42,853,000

42,963,000

46,115,000

 

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

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

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

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

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

TOTAL ASSET

69,448,000

72,065,000

62,771,000

65,649,000

66,284,000

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

9,047,000

10,954,000

6,278,000

6,459,000

7,421,000

Other creditors & accruals

1,003,000

3,462,000

2,017,000

3,511,000

2,085,000

Bank overdraft

-

-

-

-

318,000

Amounts owing to related companies

219,000

479,000

4,716,000

5,238,000

6,072,000

Provision for taxation

42,000

143,000

-

-

-

Dividends payable/proposed

-

-

-

-

795,000

Other liabilities

9,260,000

-

-

-

261,000

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

19,571,000

15,038,000

13,011,000

15,208,000

16,952,000

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

27,882,000

31,718,000

29,842,000

27,755,000

29,163,000

 

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

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

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

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

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

TOTAL NET ASSETS

49,877,000

57,027,000

49,760,000

50,441,000

49,332,000

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

33,300,000

33,300,000

33,300,000

33,300,000

33,300,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

33,300,000

33,300,000

33,300,000

33,300,000

33,300,000

 

 

 

 

 

 

Retained profit/(loss) carried forward

16,071,000

23,269,000

16,043,000

16,761,000

15,009,000

 

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

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

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

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

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

TOTAL RESERVES

16,071,000

23,269,000

16,043,000

16,761,000

15,009,000

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

49,371,000

56,569,000

49,343,000

50,061,000

48,309,000

 

 

 

 

 

 

Retirement benefits provision

506,000

458,000

417,000

380,000

1,023,000

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

506,000

458,000

417,000

380,000

1,023,000

 

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

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

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

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

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

 

49,877,000

57,027,000

49,760,000

50,441,000

49,332,000

 

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

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

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

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

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

 

 

 

 

 

 

 

 

FINANCIAL RATIO

 

SAN MIGUEL YAMAMURA PACKAGING & PRINTING SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

22,337,000

15,709,000

13,845,000

15,124,000

6,942,000

Net Liquid Funds

22,337,000

15,709,000

13,845,000

15,124,000

6,624,000

Net Liquid Assets

19,650,000

22,373,000

21,226,000

20,476,000

16,231,000

Net Current Assets/(Liabilities)

27,882,000

31,718,000

29,842,000

27,755,000

29,163,000

Net Tangible Assets

49,877,000

57,027,000

49,760,000

50,441,000

49,332,000

Net Monetary Assets

19,144,000

21,915,000

20,809,000

20,096,000

15,208,000

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

0

0

0

0

318,000

Total Liabilities

20,077,000

15,496,000

13,428,000

15,588,000

17,975,000

Total Assets

69,448,000

72,065,000

62,771,000

65,649,000

66,284,000

Net Assets

49,877,000

57,027,000

49,760,000

50,441,000

49,332,000

Net Assets Backing

49,371,000

56,569,000

49,343,000

50,061,000

48,309,000

Shareholders' Funds

49,371,000

56,569,000

49,343,000

50,061,000

48,309,000

Total Share Capital

33,300,000

33,300,000

33,300,000

33,300,000

33,300,000

Total Reserves

16,071,000

23,269,000

16,043,000

16,761,000

15,009,000

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

1.14

1.04

1.06

0.99

0.41

Liquid Ratio

2.00

2.49

2.63

2.35

1.96

Current Ratio

2.42

3.11

3.29

2.83

2.72

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

41

46

44

39

56

Debtors Ratio

73

91

81

87

106

Creditors Ratio

52

60

36

35

32

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.00

0.00

0.00

0.00

0.01

Liabilities Ratio

0.41

0.27

0.27

0.31

0.37

Times Interest Earned Ratio

103.87

72.73

42.36

92.21

3.75

Assets Backing Ratio

1.50

1.71

1.49

1.51

1.48

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

9.84

7.63

4.23

10.16

0.45

Net Profit Margin

7.87

4.98

3.91

2.60

1.05

Return On Net Assets

14.58

10.08

6.21

13.71

1.06

Return On Capital Employed

14.58

10.08

6.21

13.71

1.05

Return On Shareholders' Funds/Equity

11.67

6.54

5.65

3.50

1.83

Dividend Pay Out Ratio (Times)

2.25

0.25

1.26

0.00

0.90

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 

 

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.77

UK Pound

1

Rs.100.72

Euro

1

Rs.80.56

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NIT

 

               

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.