|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
80474-V
|
|
COMPANY NAME
|
:
|
PETRONAS CHEMICALS MARKETING SDN. BHD.
|
|
FORMER NAME
|
:
|
MALAYSIAN INTERNATIONAL TRADING CORPORATION SDN. BHD. (30/05/2011)
|
|
INCORPORATION DATE
|
:
|
28/01/1982
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL FORM
|
:
|
PRIVATE LIMITED (LIMITED BY SHARE)
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE,KUALA
LUMPUR, 50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, LEVEL 15, 50088
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-20515000
|
|
FAX.NO.
|
:
|
03-20511501
|
|
EMAIL
|
:
|
PETRONASCHEMICALS@PETRONAS.COM.MY
|
|
WEB SITE
|
:
|
WWW.PETRONASCHEMICALS.COM
|
|
CONTACT PERSON
|
:
|
YUSA' BIN HASSAN ( DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
46691
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF PETROCHEMICAL, PLASTIC RAW MATERIALS AND OTHERS
|
|
AUTHORISED CAPITAL
|
:
|
MYR 200,000,000.00 DIVIDED INTO
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 1,000,000.00 OF MYR 100.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 12,500,005.00 DIVIDED INTO
ORDINARY SHARES 12,500,005 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 11,677,581,000 [2013]
|
|
NET WORTH
|
:
|
MYR 181,458,000 [2013]
|
|
M1000 OVERALL RANKING
|
:
|
42[2011]
|
|
M1000 INDUSTRY RANKING
|
:
|
8[2011]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
400 [2015]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STABLE
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
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) trading of
petrochemical, plastic raw materials and others.
The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).
|
According to the Malaysia 1000 publication, the Subject's ranking
are as follows:
|
|
|
|
|
|
|
|
|
YEAR
|
2011
|
2009
|
2008
|
2005
|
|
|
OVERALL RANKING
|
42
|
29
|
24
|
35
|
|
|
INDUSTRY RANKING
|
8
|
8
|
9
|
8
|
|
The immediate holding company of the Subject is PETRONAS CHEMICALS
GROUP BERHAD, a company incorporated in MALAYSIA.
Share Capital History
|
Date
|
Authorised Shared Capital
|
Issue & Paid Up Capital
|
|
08/04/2014
|
MYR 200,000,000.00
|
MYR 12,500,005.00
|
|
13/04/2004
|
MYR 200,000,000.00
|
MYR 16,740,005.00
|
|
27/04/1994
|
MYR 10,000,000.00
|
MYR 2,500,000.00
|
|
01/02/1985
|
MYR 2,500,001.00
|
MYR 2,500,001.00
|
The major shareholder(s) of the Subject are shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
(%)
|
|
PETRONAS CHEMICALS GROUP BERHAD
|
TOWER 1,PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
459830K
|
12,500,005.00
|
100.00
|
|
|
|
|
---------------
|
------
|
|
|
|
|
12,500,005.00
|
100.00
|
|
|
|
|
============
|
=====
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. SAZALI BIN HAMZAH
|
|
Address
|
:
|
80, 9/4 JALAN SERI PUTRA, BANDAR SERI PUTRA, BANGI, 43000 KAJANG,
SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
A0396634
|
|
New IC No
|
:
|
660501-01-5491
|
|
Date of Birth
|
:
|
01/05/1966
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
26/05/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MS. FARINA BINTI FARIKHULLAH KHAN
|
|
Address
|
:
|
NO. 27, JALAN ELITIS ARCA BELANTARA, VALENCIA NORTH GOLF PRECINT, 47000
SUNGAI BULOH, SELANGOR, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
720308-11-5230
|
|
Date of Birth
|
:
|
08/03/1972
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
29/01/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. AKBAR BIN MD THAYOOB
|
|
Address
|
:
|
NO.23, JALAN USJ 6/2J, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
7121205
|
|
New IC No
|
:
|
630629-07-5613
|
|
Date of Birth
|
:
|
29/06/1963
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
29/01/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. ABDUL AZIZ BIN OTHMAN
|
|
Address
|
:
|
NO. 4, JALAN JERAM SATU 8/22A, SEKSYEN 8, 40000 SHAH ALAM, SELANGOR,
MALAYSIA.
|
|
IC / PP No
|
:
|
A0189753
|
|
New IC No
|
:
|
650806-02-5253
|
|
Date of Birth
|
:
|
06/08/1965
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN
|
|
Date of Appointment
|
:
|
29/01/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
YUSA' BIN HASSAN
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
KPMG DESA MEGAT & CO.
|
|
Auditor' Address
|
:
|
KPMG TOWER, 8 FIRST AVENUE,, BANDAR UTAMA, 47800 PETALING JAYA,
SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. MEK YAM @ MARIAM BINTI HASSAN
|
|
|
IC / PP No
|
:
|
A2742752
|
|
|
New IC No
|
:
|
740210-03-5388
|
|
|
Address
|
:
|
NO 11 JALAN SUAKASIH 3/6, BANDAR TUN HUSSEIN ON, 43200 KAJANG,
SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
|
|
|
|
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
LITIGATION 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.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT RECORD
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Import Countries
|
:
|
JAPAN,EUROPE,CHINA,PHILIPPINES
|
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
|
[
|
X
|
]
|
|
Average 61-90 Days
|
[
|
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
ASIA
MIDDLE EAST
|
|
Credit Term
|
:
|
30 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
TELEGRAPHIC TRANSFER (TT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
|
PETROCHEMICALS, PLASTIC RAW MATERIALS AND OTHERS
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2015
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
COMPANY
|
400
|
400
|
400
|
400
|
350
|
350
|
|
|
|
Other
Information:
The Subject is principally engaged in the (as a / as an) trading of
petrochemical, plastic raw materials and others.
The Subject offers a wide range of products including:
1) Polymers
2) Polypropylene - PP is used to produce automotive parts, appliances,
film,fiber and filaments.
3) High Density Polyethylene - HDPE is used for blown film moulding,
injection moulding, film, pipe conduit, sheet, wire and cable. It is produced
in pallet form.
4) Linear Low Density Polyethylene - LLDPE is used for variety of derivatives
through film, extrusion coating, injection molding, rotational molding, using
octane and butanes co-polymers. It is produced in pallet form.
5) Polyvinyl Chloride - PVC is used in the production of pipe, flooring, wire
& cable, building construction, home furnishing, film & sheet and
automotive parts.It is produced in powder form.
6) Low Density Polyethylene - LDPE is used for injection moulding, film, pipe
conduit, wire and cable.
7) Chemicals - Basic & Intermediate Chemicals : Aromatics, Olefins,
Oxygenates, fertilisers and agrochemicals
8) Agricultural Products: Rice, Rubber, Palm Oil, Crude Coconut Oil and etc.
The Subject is a leading marketer of chemicals, fertilisers and polymer
products in the South East Asia region, PCM has global presence in over 30
countries.
The Subject is a subsidiary of PETRONAS'.
CURRENT INVESTIGATION
Latest fresh investigations carried out on the Subject indicated that
:
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-20515000
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, LEVEL
15,50088,KUALA LUMPUR,WILAYAH PERSEKUTUAN.
|
|
Current Address
|
:
|
TOWER 1, PETRONAS TWIN TOWERS, KUALA LUMPUR CITY CENTRE, LEVEL 15,
50088 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
On 11th February 2015 we contacted one of the staff from the Subject and she
provided some information.
FINANCIAL ANALYSIS
|
Profitability
|
|
|
|
|
|
|
|
Turnover
|
:
|
Erratic
|
[
|
2010 - 2013
|
]
|
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2010 - 2013
|
]
|
|
|
Return on Shareholder Funds
|
:
|
Favourable
|
[
|
73.95%
|
]
|
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
94.12%
|
]
|
|
|
|
|
|
|
|
|
|
|
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. Generally the Subject was
profitable. The favourable return on shareholders' funds and return on net
assets indicate that the Subject's management was efficient in utilising
the assets to generate returns.
|
|
|
|
|
|
|
|
|
|
Working Capital Control
|
|
|
|
|
|
|
|
Stock Ratio
|
:
|
Nil
|
[
|
0 Days
|
]
|
|
|
Debtor Ratio
|
:
|
Favourable
|
[
|
27 Days
|
]
|
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
1 Days
|
]
|
|
|
|
|
|
|
|
|
|
|
As the Subject is a service oriented company, the Subject does not
need to keep stocks. The favourable debtors' days could be due to the good credit
control measures implemented by the Subject. 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
|
[
|
1.13 Times
|
]
|
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.13 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
|
:
|
Nil
|
[
|
0.00 Times
|
]
|
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
|
|
|
|
|
|
|
|
|
|
The Subject's interest cover was nil as it did not pay any interest during
the year. 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. The Subject did not make any interest
payment during the year. The Subject was dependent on its shareholders'
funds to finance its business needs. 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 : STABLE
|
MALAYSIA ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2011
|
2012
|
2013
|
2014*
|
2015**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
28.7
|
29.3
|
29.8
|
30.3
|
30.5
|
|
Gross Domestic Products ( % )
|
5.1
|
5.6
|
5.3
|
6.0
|
6.0
|
|
Domestic Demand ( % )
|
8.2
|
9.4
|
5.6
|
6.4
|
6.2
|
|
Private Expenditure ( % )
|
8.2
|
8.0
|
8.6
|
7.9
|
6.9
|
|
Consumption ( % )
|
7.1
|
1.0
|
5.7
|
6.5
|
5.6
|
|
Investment ( % )
|
12.2
|
11.7
|
13.3
|
12.0
|
10.7
|
|
Public Expenditure ( % )
|
8.4
|
13.3
|
4.4
|
2.3
|
4.2
|
|
Consumption ( % )
|
16.1
|
11.3
|
(1.2)
|
2.1
|
3.8
|
|
Investment ( % )
|
(0.3)
|
15.9
|
4.2
|
2.6
|
4.7
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
116,058
|
106,300
|
71,298
|
52,314
|
-
|
|
Government Finance ( MYR Million )
|
(45,511)
|
(42,297)
|
(39,993)
|
(37,291)
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
(5.4)
|
(4.5)
|
(4.0)
|
(3.5)
|
(3.0)
|
|
Inflation ( % Change in Composite CPI)
|
3.1
|
1.6
|
2.5
|
3.3
|
4.0
|
|
Unemployment Rate
|
3.3
|
3.2
|
3.0
|
3.0
|
3.0
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
415
|
427
|
-
|
417
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.50
|
2.20
|
-
|
-
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
14.80
|
14.70
|
-
|
-
|
-
|
|
Average Base Lending Rate ( % )
|
6.60
|
6.53
|
6.53
|
-
|
-
|
|
Business Loans Disbursed( % )
|
15.3
|
32.2
|
-
|
-
|
-
|
|
Foreign Investment ( MYR Million )
|
23,546.1
|
26,230.4
|
38,238.0
|
-
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
45,455
|
45,441
|
46,321
|
-
|
-
|
|
Registration of New Companies ( % )
|
3.0
|
(0.0)
|
1.9
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
132,485
|
17,092
|
26,430
|
-
|
-
|
|
Liquidation of Companies ( % )
|
417.8
|
(87.1)
|
54.6
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
284,598
|
324,761
|
329,895
|
-
|
-
|
|
Registration of New Business ( % )
|
5.0
|
14.0
|
2.0
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,121
|
20,380
|
18,161
|
-
|
-
|
|
Business Dissolved ( % )
|
1.9
|
1.3
|
(10.9)
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
535.1
|
552.2
|
576.7
|
598.4
|
610.3
|
|
Cellular Phone Subscribers ( Million )
|
35.3
|
38.5
|
43.0
|
43.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
24.7
|
25.0
|
25.7
|
28.0
|
-
|
|
Hotel Occupancy Rate ( % )
|
60.6
|
62.4
|
62.6
|
-
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
15.6
|
12.6
|
-
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
32,627
|
26,982
|
28,876
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
19,167
|
19,575
|
21,984
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
5.8
|
2.1
|
12.3
|
-
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2011
|
2012
|
2013
|
2014*
|
2015**
|
|
|
|
|
|
|
|
|
Agriculture
|
5.8
|
1.0
|
2.1
|
3.8
|
3.1
|
|
Palm Oil
|
10.8
|
(0.3)
|
2.6
|
6.7
|
-
|
|
Rubber
|
6.1
|
(7.9)
|
(10.1)
|
(10.4)
|
-
|
|
Forestry & Logging
|
(7.6)
|
(4.5)
|
(7.8)
|
(4.2)
|
-
|
|
Fishing
|
2.1
|
4.3
|
1.6
|
2.7
|
-
|
|
Other Agriculture
|
7.1
|
6.4
|
8.2
|
6.2
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
634.1
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
3.2
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Mining
|
(5.4)
|
1.4
|
0.9
|
(0.8)
|
2.8
|
|
Oil & Gas
|
(1.7)
|
-
|
-
|
-
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
46.5
|
-
|
-
|
-
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
4.7
|
4.8
|
3.4
|
6.6
|
5.5
|
|
Exported-oriented Industries
|
4.1
|
6.5
|
3.3
|
5.6
|
-
|
|
Electrical & Electronics
|
(4.0)
|
12.7
|
6.9
|
13.3
|
-
|
|
Rubber Products
|
20.7
|
3.0
|
11.7
|
(0.3)
|
-
|
|
Wood Products
|
(5.1)
|
8.7
|
(2.7)
|
5.1
|
-
|
|
Textiles & Apparel
|
13.2
|
(7.1)
|
(2.6)
|
11.5
|
-
|
|
Domestic-oriented Industries
|
10.7
|
1.7
|
6.8
|
9.4
|
-
|
|
Food, Beverages & Tobacco
|
4.80
|
2.70
|
3.60
|
6.13
|
6.13
|
|
Chemical & Chemical Products
|
10.0
|
10.8
|
5.6
|
-
|
-
|
|
Plastic Products
|
3.8
|
-
|
-
|
-
|
-
|
|
Iron & Steel
|
2.2
|
(6.6)
|
5.0
|
0.1
|
-
|
|
Fabricated Metal Products
|
21.8
|
13.8
|
9.9
|
2.9
|
-
|
|
Non-metallic Mineral
|
12.1
|
2.9
|
(2.0)
|
5.4
|
-
|
|
Transport Equipment
|
12.0
|
3.4
|
13.8
|
22.9
|
-
|
|
Paper & Paper Products
|
9.5
|
3.1
|
1.8
|
4.7
|
-
|
|
Crude Oil Refineries
|
9.3
|
-
|
-
|
-
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,537.2
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
25.7
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Construction
|
4.7
|
18.6
|
10.9
|
12.7
|
10.7
|
|
Industry Non-Performing Loans ( MYR Million )
|
3,856.9
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
10.2
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Services
|
7.1
|
6.4
|
5.9
|
5.9
|
5.6
|
|
Electric, Gas & Water
|
3.5
|
4.4
|
4.2
|
3.6
|
3.9
|
|
Transport, Storage & Communication
|
6.50
|
7.10
|
7.30
|
7.50
|
7.15
|
|
Wholesale, Retail, Hotel & Restaurant
|
5.2
|
4.7
|
5.9
|
6.9
|
6.5
|
|
Finance, Insurance & Real Estate
|
6.90
|
9.70
|
3.70
|
4.65
|
4.25
|
|
Government Services
|
12.4
|
9.4
|
8.3
|
6.1
|
5.6
|
|
Other Services
|
5.1
|
3.9
|
5.1
|
4.8
|
4.5
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,825.2
|
-
|
-
|
-
|
-
|
|
% of Industry Non-Performing Loans
|
23.4
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On Manufacturing Production Index
|
INDUSTRY ANALYSIS
|
MSIC CODE
|
|
46691 : Wholesale of industrial chemicals
|
|
|
|
|
INDUSTRY :
|
TRADING
|
|
|
|
|
|
|
The wholesale and retail trade is expected to increase 7.1% in 2015
(2014: 7.7%) driven by strong domestic consumption and higher tourist arrivals
following the Malaysia Year of Festivals 2015. Besides, in 2014, the
wholesale and retail trade subsector is expected to increase 7.7% (2013:
6.4%) supported by strong domestic consumption.
|
|
|
|
According to Retail Group Malaysia (RGM), the pharmacy and personal
care sub-sector had slow growth rate of 2.6% for the first quarter of 2014,
while "other specialty stores" grew at a rate of 3.5%. During the
first quarter of 2014, fashion and fashion accessories recorded a
sustainable growth of 6.3% as compared with the same period last year
(3.6%).
|
|
|
|
The retail segment increased 10.1% (January - June 2013: 7.1%)
attributed to brisk sales in retail outlets such as hypermarkets and
large-scale superstores. Since the launch of the Small Retailer Transformation
programme (TUKAR) in January 2011 up to end-July 2014, 1,761 small retailer
stores (end-July 2013: 1,381) have been modernized to improve their
competitiveness. In addition, the strong growth of the retail segment was
supported by 1Malaysia Unified Sales held from 29 June 2014 to 1 September
2014 to attract foreign and local tourists to shop in Malaysia. Meanwhile,
the wholesale segment expanded 8.2% (January - June 2013: 4.9%) due to
higher sales of non-agricultural intermediate products, such as petrol,
diesel, lubricants and household goods. Furthermore, food and beverage
outlets, laundry outlets, car wash centres, abd health and beauty outlets
took a hit from the water rationing in the Klang Valley since February this
year.
|
|
|
|
On the other hand, in 2014, Malaysia's total trade is expected to
grow 5.2% to RM1.44 trillion (2013: 4.5%; RM1.37 trillion) underpinned by
recovery in key advanced economies, resilient regional demand, and partly
due to the base effect arising from sluggish exports in the corresponding
period last year. Gross exports are anticipated to expand 6% to RM762.8
billion while import decreased 4.3% to RM677.2 billion (2013: 2.4%; RM719.8
billion; 7%; RM 649.1 billion). Consequently, the trade surplus is expected
to be higher at RM85.6 billion or 7.9% of GDP in 2014 (2013: RM70.7
billion; 7.2%).
|
|
|
|
Furthermore, gross exports rebounded by 10.7% to RM441.3 billion
during the first seven months of 2014 (January - July 2013: -2.8%; RM398.5
billion), with manufactured and mining exports rising at a double digit
pace of 11.4% and 12.5%. Shipment of agriculture products grew at a slower
pace of 2.7%, primarily due to lower receipts of crude rubber (-24.6%)
while export growth of other commodities remained steady. Consequently,
exports of manufactured and mining products are expected to grow 6.1% and
6.4% in 2014 (2013: 5.1%; 3.3%). Meanwhile, agriculture exports are
expected to rebound sharply by 4.5% in 2014 (2013: -14.4%) despite
moderating commodity prices. Malaysia's top 3 trading partners are China,
Singapore, and Japan.
|
|
|
|
Over 60% of Gross Domestic Product (GDP) is contributed by domestic
consumption. Therefore the wholesale and retail sector plays a crucial role
in driving Malaysia's growth over the next decade despite the ongoing
global economic slowdown. By 2020, Malaysia's wholesale and retail sector
is expected to boost the country's total Gross National Income (GNI) by
RM156 billion, creating 454,190 new jobs.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
CREDIT RISK
EVALUATION & RECOMMENDATION
|
Incorporated in 1982, the Subject is a Private Limited company, focusing on
trading of petrochemical, plastic raw materials and others. The Subject has
been in business for over two 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. The Subject is a large entity with strong capital position
of MYR 12,500,005. We are confident with the Subject's business and its
future growth prospect. Having a strong shareholders' backing , the Subject
has the advantage to compete with its rivals and it is expected to enjoy
timely financial assistance should the needs arise.
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 400 staff in its
operations The Subject has a good management capability. Its capable
management team has enabled the Subject to keep its business on going.
Hence, the future prospect of the Subject is bright.
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.
Based on the higher profitability, the Subject has generated a favourable
return based on its existing shareholders' funds 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 181,458,000, the Subject should be able to maintain its business in
the near terms.
Having a strong assets backing, the Subject possesses latent assets as
collateral for further financial extension. Hence, it has good chance of
getting loans if the needs arises. 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.
Overall, the Subject's payment habit is good as the Subject has a good
credit control and it could be taking advantage of the cash discounts while
maintaining a good reputation with its creditors.
The industry shows an upward trend and this trend is very likely to sustain
in the near terms. Hence, the Subject is expected to benefit from the
favourable outlook of the industry.
In view of the above favourable condition, we recommend credit be proceeded
to the Subject with favourable term.
|
|
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN
FINANCIAL REPORTING STANDARDS(FRS)
|
|
Financial Year End
|
2013-12-31
|
2012-12-31
|
2011-12-31
|
2011-03-31
|
2010-03-31
|
|
Months
|
12
|
12
|
9
|
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
|
11,677,581,000
|
12,135,677,000
|
8,388,906,000
|
9,452,210,000
|
7,546,310,000
|
|
Other Income
|
50,852,000
|
12,296,000
|
34,590,000
|
27,842,000
|
17,339,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Total Turnover
|
11,728,433,000
|
12,147,973,000
|
8,423,496,000
|
9,480,052,000
|
7,563,649,000
|
|
Costs of Goods Sold
|
(11,439,198,000)
|
(11,910,530,000)
|
(8,254,865,000)
|
(9,307,498,000)
|
(7,439,459,000)
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
Gross Profit
|
289,235,000
|
237,443,000
|
168,631,000
|
172,554,000
|
124,190,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
170,796,000
|
150,276,000
|
106,658,000
|
90,174,000
|
52,179,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
170,796,000
|
150,276,000
|
106,658,000
|
90,174,000
|
52,179,000
|
|
Taxation
|
(36,614,000)
|
(38,717,000)
|
(25,650,000)
|
(23,649,000)
|
10,235,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT/(LOSS) AFTER TAXATION
|
134,182,000
|
111,559,000
|
81,008,000
|
66,525,000
|
62,414,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
|
|
|
|
|
|
|
As previously reported
|
210,246,000
|
98,687,000
|
17,679,000
|
254,154,000
|
192,980,000
|
|
Prior year adjustment
|
-
|
-
|
-
|
-
|
(600,000)
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
As restated
|
210,246,000
|
98,687,000
|
17,679,000
|
254,154,000
|
192,380,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
344,428,000
|
210,246,000
|
98,687,000
|
320,679,000
|
254,794,000
|
|
TRANSFER TO RESERVES - General
|
-
|
-
|
-
|
(3,000,000)
|
(640,000)
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
(180,000,000)
|
-
|
-
|
(300,000,000)
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD
|
164,428,000
|
210,246,000
|
98,687,000
|
17,679,000
|
254,154,000
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
BALANCE SHEET
|
ASSETS EMPLOYED:
|
|
|
|
|
|
|
FIXED ASSETS
|
299,000
|
115,000
|
148,000
|
237,000
|
386,000
|
|
|
|
|
|
|
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
Subsidiary companies
|
14,758,000
|
14,758,000
|
14,758,000
|
-
|
210,000,000
|
|
Deferred assets
|
581,000
|
-
|
5,000
|
77,000
|
1,758,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
15,339,000
|
14,758,000
|
14,763,000
|
77,000
|
211,758,000
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM ASSETS
|
15,638,000
|
14,873,000
|
14,911,000
|
314,000
|
212,144,000
|
|
|
|
|
|
|
|
|
Stocks
|
-
|
22,937,000
|
-
|
20,239,000
|
7,655,000
|
|
Trade debtors
|
865,865,000
|
1,078,843,000
|
1,078,827,000
|
1,299,044,000
|
662,714,000
|
|
Other debtors, deposits & prepayments
|
375,000
|
991,000
|
1,925,000
|
3,726,000
|
13,477,000
|
|
Short term deposits
|
1,630,000
|
685,599,000
|
360,156,000
|
-
|
-
|
|
Deposits with financial institutions
|
-
|
-
|
-
|
344,496,000
|
256,208,000
|
|
Amount due from holding company
|
-
|
-
|
9,360,000
|
-
|
-
|
|
Amount due from subsidiary companies
|
-
|
-
|
-
|
-
|
252,000
|
|
Amount due from related companies
|
73,000,000
|
164,480,000
|
89,000
|
-
|
342,288,000
|
|
Amount due from associated companies
|
28,301,000
|
1,496,000
|
-
|
-
|
-
|
|
Cash & bank balances
|
511,394,000
|
7,904,000
|
4,055,000
|
2,390,000
|
3,336,000
|
|
Others
|
2,561,000
|
60,000
|
-
|
-
|
15,586,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT ASSETS
|
1,483,126,000
|
1,962,310,000
|
1,454,412,000
|
1,669,895,000
|
1,301,516,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL ASSET
|
1,498,764,000
|
1,977,183,000
|
1,469,323,000
|
1,670,209,000
|
1,513,660,000
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Trade creditors
|
37,041,000
|
145,809,000
|
159,613,000
|
187,210,000
|
427,726,000
|
|
Other creditors & accruals
|
2,691,000
|
4,359,000
|
5,584,000
|
1,516,000
|
3,170,000
|
|
Amounts owing to holding company
|
37,034,000
|
7,876,000
|
1,152,000
|
94,496,000
|
3,726,000
|
|
Amounts owing to related companies
|
1,223,027,000
|
1,571,444,000
|
1,171,009,000
|
1,343,502,000
|
660,854,000
|
|
Provision for taxation
|
7,835,000
|
19,229,000
|
16,248,000
|
8,280,000
|
-
|
|
Other liabilities
|
9,678,000
|
1,127,000
|
-
|
496,000
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL CURRENT LIABILITIES
|
1,317,306,000
|
1,749,844,000
|
1,353,606,000
|
1,635,500,000
|
1,095,476,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
165,820,000
|
212,466,000
|
100,806,000
|
34,395,000
|
206,040,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL NET ASSETS
|
181,458,000
|
227,339,000
|
115,717,000
|
34,709,000
|
418,184,000
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
|
Ordinary share capital
|
12,500,000
|
12,500,000
|
12,500,000
|
12,500,000
|
12,500,000
|
|
Preference share capital
|
-
|
-
|
-
|
-
|
3,000,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL SHARE CAPITAL
|
12,500,000
|
12,500,000
|
12,500,000
|
12,500,000
|
15,500,000
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
Share premium
|
290,000
|
290,000
|
290,000
|
290,000
|
147,290,000
|
|
Capital reserve
|
4,240,000
|
4,240,000
|
4,240,000
|
4,240,000
|
1,240,000
|
|
Retained profit/(loss) carried forward
|
164,428,000
|
210,246,000
|
98,687,000
|
17,679,000
|
254,154,000
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL RESERVES
|
168,958,000
|
214,776,000
|
103,217,000
|
22,209,000
|
402,684,000
|
|
|
|
|
|
|
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
181,458,000
|
227,276,000
|
115,717,000
|
34,709,000
|
418,184,000
|
|
|
|
|
|
|
|
|
Deferred taxation
|
-
|
63,000
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
TOTAL LONG TERM LIABILITIES
|
-
|
63,000
|
-
|
-
|
-
|
|
|
----------------
|
----------------
|
----------------
|
----------------
|
----------------
|
|
|
181,458,000
|
227,339,000
|
115,717,000
|
34,709,000
|
418,184,000
|
|
|
=============
|
=============
|
=============
|
=============
|
=============
|
|
|
|
|
|
|
|
FINANCIAL RATIO
|
TYPES OF FUNDS
|
|
|
|
|
|
|
Cash
|
513,024,000
|
693,503,000
|
364,211,000
|
2,390,000
|
3,336,000
|
|
Net Liquid Funds
|
513,024,000
|
693,503,000
|
364,211,000
|
2,390,000
|
3,336,000
|
|
Net Liquid Assets
|
165,820,000
|
189,529,000
|
100,806,000
|
14,156,000
|
198,385,000
|
|
Net Current Assets/(Liabilities)
|
165,820,000
|
212,466,000
|
100,806,000
|
34,395,000
|
206,040,000
|
|
Net Tangible Assets
|
181,458,000
|
227,339,000
|
115,717,000
|
34,709,000
|
418,184,000
|
|
Net Monetary Assets
|
165,820,000
|
189,466,000
|
100,806,000
|
14,156,000
|
198,385,000
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
0
|
0
|
0
|
|
Total Liabilities
|
1,317,306,000
|
1,749,907,000
|
1,353,606,000
|
1,635,500,000
|
1,095,476,000
|
|
Total Assets
|
1,498,764,000
|
1,977,183,000
|
1,469,323,000
|
1,670,209,000
|
1,513,660,000
|
|
Net Assets
|
181,458,000
|
227,339,000
|
115,717,000
|
34,709,000
|
418,184,000
|
|
Net Assets Backing
|
181,458,000
|
227,276,000
|
115,717,000
|
34,709,000
|
418,184,000
|
|
Shareholders' Funds
|
181,458,000
|
227,276,000
|
115,717,000
|
34,709,000
|
418,184,000
|
|
Total Share Capital
|
12,500,000
|
12,500,000
|
12,500,000
|
12,500,000
|
15,500,000
|
|
Total Reserves
|
168,958,000
|
214,776,000
|
103,217,000
|
22,209,000
|
402,684,000
|
|
LIQUIDITY (Times)
|
|
|
|
|
|
|
Cash Ratio
|
0.39
|
0.40
|
0.27
|
0.00
|
0.00
|
|
Liquid Ratio
|
1.13
|
1.11
|
1.07
|
1.01
|
1.18
|
|
Current Ratio
|
1.13
|
1.12
|
1.07
|
1.02
|
1.19
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
|
Stock Ratio
|
0
|
1
|
0
|
1
|
0
|
|
Debtors Ratio
|
27
|
32
|
47
|
50
|
32
|
|
Creditors Ratio
|
1
|
4
|
7
|
7
|
21
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
|
Gearing Ratio
|
0.00
|
0.00
|
0.00
|
0.00
|
0.00
|
|
Liabilities Ratio
|
7.26
|
7.70
|
11.70
|
47.12
|
2.62
|
|
Times Interest Earned Ratio
|
0.00
|
0.00
|
0.00
|
0.00
|
0.00
|
|
Assets Backing Ratio
|
14.52
|
18.19
|
9.26
|
2.78
|
26.98
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
|
Operating Profit Margin
|
1.46
|
1.24
|
1.27
|
0.95
|
0.69
|
|
Net Profit Margin
|
1.15
|
0.92
|
0.97
|
0.70
|
0.83
|
|
Return On Net Assets
|
94.12
|
66.10
|
92.17
|
259.80
|
12.48
|
|
Return On Capital Employed
|
94.12
|
66.10
|
92.17
|
259.80
|
12.48
|
|
Return On Shareholders' Funds/Equity
|
73.95
|
49.09
|
70.01
|
191.66
|
14.93
|
|
Dividend Pay Out Ratio (Times)
|
1.34
|
0.00
|
0.00
|
4.51
|
0.00
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
|
Contingent Liabilities
|
0
|
0
|
0
|
0
|
0
|
|