|
Report Date : |
22.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
LUM CHOON & COMPANY SDN BHD |
|
|
|
|
Formerly Known As : |
LUM CHOON & CO LTD |
|
|
|
|
Registered Office : |
151-B, First Floor, Lebuh Victoria, 10300 George Town, Pulau Pinang |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Date of Incorporation : |
30.12.1960 |
|
|
|
|
Com. Reg. No.: |
4020-H |
|
|
|
|
Legal Form : |
Exempt Private (Limited By Share) |
|
|
|
|
Line of Business : |
Wholesaler of Building and Engineering Materials |
|
|
|
|
No of Employees : |
25 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Unknown |
|
|
|
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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. |
: |
4020-H |
||||
|
COMPANY NAME |
: |
LUM CHOON &
COMPANY SDN BHD |
||||
|
FORMER NAME |
: |
LUM CHOON & CO LTD (28/08/1970) |
||||
|
INCORPORATION DATE |
: |
30/12/1960 |
||||
|
|
|
|
||||
|
|
|
|
||||
|
COMPANY STATUS |
: |
EXIST |
||||
|
LEGAL FORM |
: |
EXEMPT PRIVATE (LIMITED BY SHARE) |
||||
|
LISTED STATUS |
: |
NO |
||||
|
|
|
|
||||
|
|
|
|
||||
|
REGISTERED ADDRESS |
: |
151-B,(FIRST FLOOR), LEBUH VICTORIA, 10300
GEORGE TOWN, PULAU PINANG, MALAYSIA. |
||||
|
BUSINESS ADDRESS |
: |
NO 55, LEBUH PANTAI, 10300 GEORGE TOWN, PULAU
PINANG, MALAYSIA. |
||||
|
TEL.NO. |
: |
04-2614650 |
||||
|
FAX.NO. |
: |
04-2614972 |
||||
|
EMAIL |
: |
INFO@LUMCHOON.COM |
||||
|
WEB SITE |
: |
WWW.LUMCHOON.COM |
||||
|
CONTACT PERSON |
: |
TAN CHONG KHENG ( MANAGING DIRECTOR ) |
||||
|
|
|
|
||||
|
INDUSTRY CODE |
: |
46639 |
||||
|
PRINCIPAL ACTIVITY |
: |
WHOLESALE OF BUILDING AND ENGINEERING
MATERIALS |
||||
|
AUTHORISED CAPITAL |
: |
MYR 10,000,000.00 DIVIDED INTO |
||||
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 1,980,000.00 DIVIDED INTO |
||||
|
|
|
|
||||
|
SALES |
: |
N/A |
||||
|
NET WORTH |
: |
N/A |
||||
|
|
|
|
||||
|
STAFF STRENGTH |
: |
25 [2014] |
||||
|
||||||
|
LITIGATION |
: |
CLEAR |
||||
|
DEFAULTER CHECK |
: |
CLEAR |
||||
|
FINANCIAL CONDITION |
: |
N/A |
||||
|
PAYMENT |
: |
N/A |
||||
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
||||
|
|
|
|
||||
|
COMMERCIAL RISK |
: |
HIGH |
||||
|
CURRENCY EXPOSURE |
: |
MODERATE |
||||
|
GENERAL REPUTATION |
: |
SATISFACTORY |
||||
|
INDUSTRY OUTLOOK |
: |
AVERAGE GROWTH |
||||
HISTORY / BACKGROUND
|
The Subject is an
exempt private company which is allowed to have a minimum of two and a maximum
of twenty shareholders and all the shareholders must be individuals. An exempt
company is a type of private limited company. 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, suing or be sued
by other companies. The Subject is governed by the Companies Act, 1965 and must
file in its annual return. The Subject need not file in its financial
statements but it has to file in a document duly signed by its director in
charge of its finance, the secretary and its auditor stating that the Subject
is able to meet all its obligations as and when they fall due. Although the Subject
is not required to file in its financial statements, it also has to prepare its
financial account which must be presented at the Annual General Meeting.
The Subject is
principally engaged in the (as a / as an) wholesale of building and engineering
materials.
The Subject is not
listed on Bursa Malaysia (Malaysia Stock Exchange).
Share Capital
History
|
Date |
Authorised
Shared Capital |
Issue & Paid
Up Capital |
|
15/02/2013 |
MYR 10,000,000.00 |
MYR 1,980,000.00 |
The major shareholder(s) of the Subject are shown as follows :
|
Name |
Address |
IC/PP/Loc
No |
Shareholding |
(%) |
|
MR. TAN SHIH THOE + |
55 LBH PANTAI, 10300 GEORGE TOWN, PULAU
PINANG, MALAYSIA. |
720113-07-5005 |
917,000.00 |
46.31 |
|
MR. TAN CHONG KHENG + |
55,LEBUH PANTAI, 10300 PENANG, MALAYSIA. |
460911-07-5271 |
462,000.00 |
23.33 |
|
MS. TAN JO WEI |
55 BEACH STREET, 10300 GEORGE TOWN, PULAU
PINANG, MALAYSIA. |
791106-07-5478 |
300,000.00 |
15.15 |
|
MR. TAN CHONG PHOK + |
59, TAMAN BERJAYA, 10350 PULAU PINANG,
PULAU PINANG, MALAYSIA. |
520819-07-5035 |
1,000.00 |
0.05 |
|
MS. TAN JO AN |
55 LEBUH PANTAI, 10300 GEORGE TOWN, PULAU
PINANG, MALAYSIA. |
751204-07-5344 |
300,000.00 |
15.15 |
|
|
|
|
--------------- |
------ |
|
|
|
|
1,980,000.00 |
100.00 |
|
|
|
|
============ |
===== |
+ Also Director
DIRECTORS
|
DIRECTOR
1
|
Name Of Subject |
: |
MR. TAN CHONG PHOK |
|
Address |
: |
59, TAMAN BERJAYA, 10350 PULAU PINANG, PULAU PINANG, MALAYSIA. |
|
|
|
|
|
New IC No |
: |
520819-07-5035 |
|
Date of Birth |
: |
19/08/1952 |
|
|
|
|
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
18/08/1976 |
DIRECTOR 2
|
Name Of Subject |
: |
MR. TAN CHONG KHENG |
|
Address |
: |
55,LEBUH PANTAI, 10300 PENANG, MALAYSIA. |
|
|
|
|
|
New IC No |
: |
460911-07-5271 |
|
Date of Birth |
: |
11/09/1946 |
|
|
|
|
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
22/11/1967 |
DIRECTOR 3
|
Name Of Subject |
: |
MR. TAN SHIH THOE |
|
Address |
: |
55 LBH PANTAI, 10300 GEORGE TOWN, PULAU
PINANG, MALAYSIA. |
|
|
|
|
|
New IC No |
: |
720113-07-5005 |
|
Date of Birth |
: |
13/01/1972 |
|
|
|
|
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
23/05/2006 |
MANAGEMENT
|
|
|
|
1) |
Name of Subject |
: |
TAN CHONG KHENG |
|
|
Position |
: |
MANAGING DIRECTOR |
|
|
|
|
|
|
2) |
Name of Subject |
: |
TAN JO AN |
|
|
Position |
: |
ACCOUNT MANAGER |
|
|
|
|
|
|
3) |
Name of Subject |
: |
S T TAN |
|
|
Position |
: |
SALES MANAGER |
AUDITOR
|
No
Auditor found in our databank
COMPANY SECRETARIES
|
|
1) |
Company Secretary |
: |
MR. LOW SOO KEONG |
|
|
|
|
|
|
|
New IC No |
: |
470905-07-5389 |
|
|
Address |
: |
29 LORONG LEMBAH PERMAI, 11200 TANJONG
TOKONG, PULAU PINANG, MALAYSIA. |
BANKING
|
Banking
relations are maintained principally with:
|
1) |
Name |
: |
CIMB BANK BHD |
|
|
|
|
|
|
|
|
|
|
|
2) |
Name |
: |
OCBC BANK (MALAYSIA) BHD |
|
|
|
|
|
|
|
|
|
|
|
3) |
Name |
: |
RHB BANK BHD |
|
|
|
|
|
|
|
|
|
|
|
4) |
Name |
: |
UNITED OVERSEAS BANK (MALAYSIA) BHD |
|
|
|
|
|
ENCUMBRANCE (S)
|
|
Charge No |
Creation Date |
Charge
Description |
Chargee Name |
Total Charge |
Status |
|
0 |
10/12/1979 |
N/A |
ALGEMENE BANK NEDERLAND NV |
MYR 200,000.00 |
Satisfied |
|
4 |
10/12/1979 |
N/A |
ALEGEMENE BANK NEDERLAND NV |
MYR 200,000.00 |
Unsatisfied |
|
3 |
06/02/1980 |
N/A |
D C BANK LTD |
MYR 1,270,000.00 |
Satisfied |
|
5 |
17/06/1980 |
N/A |
THE CHARTERED BANK |
MYR 1,410,000.00 |
Satisfied |
|
6 |
10/11/1982 |
N/A |
PERTAMA MALAYSIA FINANCE BHD |
MYR 200,000.00 |
Satisfied |
|
7 |
25/01/1983 |
N/A |
DEVELOPMENT COMMERCIAL BANK BHD |
MYR 2,300,000.00 |
Satisfied |
|
8 |
09/02/1983 |
N/A |
ALGEMENE BANK NEDERLAND NV |
MYR 490,000.00 |
Satisfied |
|
9 |
29/06/1984 |
N/A |
OVERSEAS UNION BANK LTD |
MYR 200,000.00 |
Satisfied |
|
10 |
29/06/1984 |
N/A |
OVERSEAS UNION BANK LTD |
MYR 800,000.00 |
Satisfied |
|
11 |
23/04/1985 |
N/A |
UMBC |
MYR 200,000.00 |
Satisfied |
|
12 |
08/08/1989 |
N/A |
DEVELOPMENT AND COMMERCIAL BANK BERHAD |
MYR 1,800,000.00 |
Satisfied |
|
13 |
19/10/1990 |
N/A |
UNITED OVERSEAS BANK MALAYSIA BHD |
MYR 500,000.00 |
Unsatisfied |
|
14 |
14/05/1992 |
N/A |
OCBC BANK MALAYSIA BERHAD |
MYR 7,900,000.00 |
Satisfied |
|
15 |
22/06/1993 |
N/A |
UNITED OVERSEAS BANK MALAYSIA BHD |
MYR 6,280,000.00 |
Satisfied |
|
16 |
08/05/1995 |
N/A |
OCBC BANK MALAYSIABHD |
MYR 5,000,000.00 |
Unsatisfied |
|
17 |
10/11/1997 |
N/A |
UNITED OVERSEAS BANK MALAYSIA BHD |
MYR 420,000.00 |
Unsatisfied |
|
18 |
10/11/1997 |
N/A |
UNITED OVERSEAS BANK MALAYSIA BHD |
MYR 6,280,000.00 |
Unsatisfied |
|
19 |
21/05/2001 |
N/A |
OCBC BANK MALAYSIA BERHAD |
MYR 5,000,000.00 |
Satisfied |
|
20 |
29/08/2002 |
N/A |
BUMIPUTRACOMMERCE BANK BERHAD |
MYR 2,000,000.00 |
Unsatisfied |
|
21 |
07/11/2006 |
OPEN CHARGE |
RHB BANK BHD |
- |
Unsatisfied |
|
22 |
07/11/2006 |
OPEN CHARGE |
RHB BANK BHD |
- |
Unsatisfied |
|
23 |
05/06/2012 |
N/A |
OCBC BANK (MALAYSIA) BHD |
- |
Unsatisfied |
LEGAL CHECK AGAINST SUBJECT
|
* A
check has been conducted in our databank against 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 |
: |
JAPAN,GERMANY,CHINA |
|
CLIENTELE
|
|
Local |
: |
YES |
Percentage |
: |
100% |
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
NO |
|
|
|
|
|
|
|
|
|
|
|
Credit Term |
: |
30 - 60 DAYS |
|||
|
|
|
|
|
|
|
|
Payment Mode |
: |
CHEQUES |
|||
|
Type of Customer |
: |
HARDWARE SHOP,RETAIL |
|||
OPERATIONS
|
|
Goods Traded |
: |
BUILDING AND ENGINEERING MATERIALS
|
|
|
|
|
|
|
|
Member(s) / Affiliate(s) |
: |
METAL DEALERS ASSOCIATION SELANGOR AND
KUALA LUMPUR |
|
|
|
|
|
|
Total Number of Employees: |
|||||||||
|
YEAR |
2014 |
2009 |
|
||||||
|
|
|||||||||
|
GROUP |
N/A |
N/A |
|
|
|
|
|
|
|
|
COMPANY |
25 |
28 |
|
|
|
|
|
|
|
|
Branch |
: |
YES
|
|
|
No of Branches |
: |
2
|
|
|
|
|
|
Other Information:
The Subject is principally engaged in the (as a / as an) wholesale of building and
engineering materials.
The Subject offers a wide range of products including:-
* API pipes - API black seamless pipes.
* Brass - round rod, square, flat, hexagonal, sheet, tube and reeded tube.
* Copper - copper in 15 meter coil, cooper tube, hard drawn, copper sheet &
copper coil.
* Industrial insulations - valve stem, stern tube packing, stern tubes &
fresh sea water pump and others.
* Stainless Steel - stainless steel square pipe & rectangular pipe,
seamless stainless steel round pipe, stainless steel angel etc.
The Subject's products are mostly used in the marine, oil and gas, piping,
plantation, light industrial, construction, precision, automotive &
industries.
We were informed that the Subject also provides consultancy and cutting services
based on its customers' requirements.
The Subject provides its hand tools & wire knitting products under
"suntools and sunrise" brand name.
CURRENT INVESTIGATION
|
Latest fresh
investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client |
: |
N/A |
|
Current Telephone Number |
: |
04-2614650 |
|
Match |
: |
N/A |
|
|
|
|
|
Address Provided by Client |
: |
NO.55 LEBUH PANTAI 10300 PENANG |
|
Current Address |
: |
NO 55, LEBUH PANTAI, 10300 GEORGE TOWN, PULAU PINANG, MALAYSIA. |
|
Match |
: |
YES |
|
|
|
|
|
Latest Financial Accounts |
: |
NO |
|
|
||
|
|
||
Other Investigations
We contacted one of the staff from the Subject and she provided some
information.
FINANCIAL ANALYSIS
|
|
The Subject is a private exempt company which does not need to file in
its accounts with the Registrar of Companies for the information of the
public. Therefore, we are not able to comment on the Subject's financial
performance. |
||||||
|
|
|
|
|
|
|
|
|
Overall
financial condition of the Subject : N/A |
||||||
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 |
|||||
INDUSTRY ANALYSIS
|
|
MSIC CODE |
|
|
46639 : Wholesale of other construction
materials, hardware, plumbing and heating equipment and supplies n.e.c. |
|
|
|
|
|
INDUSTRY : |
CONSTRUCTION |
|
|
|
|
|
|
|
The construction sector consists of four subsectors: residential,
non-residential, civil engineering and special trade works. During a period
of rapid economic expansion, the sector generally outperforms Gross Domestic
Product (GDP) growth. |
|
|
|
|
|
Construction's contribution to gross domestic product (GDP) is
expected to fall to 11.2% in 2013 from 15 % in 2012, with all subsectors
registering steady growth. The sector is expected to benefit from the
acceleration of ongoing construction activities, particularly from the
Economic Transformation Programme (ETP) and Second Rolling Plan (RP2)
construction-related projects. Of significance, exploration activities in
O&G industries and major projects such as the electrified double-tracking
between lpoh -Padang Besar, LPT2 Jabur - Kuala Terengganu, MRT and the River
of Life are expected to drive the growth of the civil engineering subsector.
The non-residential subsector is expected to expand spurred by the industrial
building segment and the commencement of construction of the Tun Razak
Exchange (TRX). The residential subsector is also projected to expand, albeit
at a moderate pace, after recording several years of strong growth. Key
housing development projects, particularly in Sungai Buloh and Bandar
Malaysia in Sungai Besi, which are expected to commence in 2013, will support
residential construction activities. According to the Minister of Finance,
the domestic demand is expected to grow at 5.6% and will remain the main
driver of growth in 2013 underpinned by strong private sector expenditure. |
|
|
|
|
|
The industry is set to receive a further boost from a wave of new
developments earmarked for 2013, including rail projects worth an estimated $52
billion that should be launched in the coming year. It was predicted that the
growth in other sectors will largely drive Malaysia's economy but the
construction sector's contribution to GDP could still remain stable. However,
while the construction sector is expected to have a solid 2013, it remains
hampered by a shortage of skilled labourers, with rapid growth in recent
years triggering a drain on its workforce. In late November of 2012, the
Builders Association Malaysia (MBAM) request the government to do more to
facilitate the training of building workers or run the risk of supply side
bottlenecks delaying new projects. |
|
|
|
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth |
|
CREDIT RISK EVALUATION &
RECOMMENDATION
|
Incorporated in 1960, the Subject is a Exempt Private company, focusing on
wholesale of building and engineering materials. With its long presence in the
industry coupled with its vast experiences in the business, the Subject should
have built up certain goodwill with its clients over times. The capital
standing of the Subject is fair. With an adequate share capital, the Subject
has the potential of expanding its business in future.
Over the years, the Subject should have build up its clientele base and received
supports from its regular customers. Investigation revealed that the Subject's
interest lies mostly in the local market. Thus, any adverse changes to the
local economy might have a negative impact on the Subject's business
performance. Being a small company, the Subject's business operation is
supported by 25 employees. Overall, we regard that the Subject's management
capability is average.
As the Subject is registered as an Exempt Private company, it is not required
to file financial statements for public review. As such, we are unable to
ascertain its present financial health.
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.
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.
In view of the above, we recommend credit be granted to the Subject with close
monitoring.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.53 |
|
|
1 |
Rs. 101.08 |
|
Euro |
1 |
Rs. 83.37 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.