MIRA INFORM REPORT

 

 

Report No. :

349013

Report Date :

13.11.2015

           

IDENTIFICATION DETAILS

 

Name :

THONG GUAN PLASTIC & PAPER INDUSTRIES SDN. BHD.

 

 

Registered Office :

Suite 16-1 (Penthouse Upper), Wisma Penang Garden, 42a Jalan Sultan Ahmad Shah, 10050 Pulau Pinang, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

07.08.1981

 

 

Com. Reg. No.:

73976-V

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing Of Plastic And Paper Products.

 

 

No. of Employee :

600 [2015]

 

 

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 :

Slow but correct

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration 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. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously 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. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB 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.

Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

73976-V

COMPANY NAME

:

THONG GUAN PLASTIC & PAPER INDUSTRIES SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/08/1981

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 16-1 (PENTHOUSE UPPER), WISMA PENANG GARDEN, 42A JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

LOT 52, JALAN PKNK 1/6, KAWASAN PERUSAHAAN SUNGAI PETANI, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

TEL.NO.

:

04-4417888

FAX.NO.

:

04-4419888

WEB SITE

:

WWW.THONGGUAN.COM

CONTACT PERSON

:

ANG POON SEONG ( EXECUTIVE DIRECTOR )

INDUSTRY CODE

:

22201

PRINCIPAL ACTIVITY

:

MANUFACTURING OF PLASTIC AND PAPER PRODUCTS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,496,350.00 DIVIDED INTO
ORDINARY SHARES 2,293,850 CASH AND 202,500 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 593,877,686 [2014]

NET WORTH

:

MYR 120,972,197 [2014]

M1000 OVERALL RANKING

:

732[2009]

M1000 INDUSTRY RANKING

:

13[2009]

STAFF STRENGTH

:

600 [2015]

BANKER (S)

:

EON BANK BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

 

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 plastic and paper products.

 

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

2009

2008

OVERALL RANKING

732

694

INDUSTRY RANKING

13

11

 

The immediate holding company of the Subject is THONG GUAN INDUSTRIES BERHAD, a company incorporated in MALAYSIA.

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

26/06/2014

MYR 5,000,000.00

MYR 2,496,350.00

25/06/1995

MYR 5,000,000.00

MYR 2,446,350.00

04/01/1994

MYR 2,000,000.00

MYR 1,530,900.00

15/10/1992

MYR 2,000,000.00

MYR 1,093,500.00

26/01/1991

MYR 2,000,000.00

MYR 729,000.00

22/07/1989

MYR 0.00

MYR 607,500.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

THONG GUAN INDUSTRIES BERHAD

SUITE 16-1, (PENTHOUSE UPPER), MENARA PENANG GARDEN, 42A, JALAN SULTAN AHMAD SHAH, 10050 PULAU PINANG, PULAU PINANG, MALAYSIA.

324203K

2,496,350.00

100.00

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

------

2,496,350.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MS. TEH BOON YEN

Address

:

NO. 1, PERSIARAN BLM 5,, BANDAR LAGUNA MERBOK, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

4913624

New IC No

:

551205-02-5182

Date of Birth

:

05/12/1955

Nationality

:

MALAYSIAN

Date of Appointment

:

02/05/2014

 

DIRECTOR 2

 

Name Of Subject

:

MR. ANG TOON CHENG @ ANG TOONG SOOI,AMK,JP

Address

:

9 LORONG 6, TAMAN PETANI JAYA, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

0109127

New IC No

:

270121-07-5085

Date of Birth

:

21/01/1927

Nationality

:

MALAYSIAN

Date of Appointment

:

15/05/1982

 

DIRECTOR 3

 

Name Of Subject

:

MR. ANG POON SHEN

Address

:

NO. 48, JALAN LAGENDA 18,, LAGENDA HEIGHT, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

7238656

New IC No

:

631117-02-5369

Date of Birth

:

17/11/1963

Nationality

:

MALAYSIAN

Date of Appointment

:

19/10/2005

 

DIRECTOR 4

 

Name Of Subject

:

MR. ANG POON SEONG

Address

:

LOT 635, HOUSE 59, TAMAN BDC PHASE 1, MILE 5 1/2, JALAN TUARAN, LIKAS, 88880 KOTA KINABALU, SABAH, MALAYSIA.

IC / PP No

:

4970482

New IC No

:

560223-07-5583

Date of Birth

:

23/02/1956

Nationality

:

MALAYSIAN

Date of Appointment

:

15/05/1982

 

DIRECTOR 5

 

Name Of Subject

:

MR. ANG POON CHUAN

Address

:

223, JALAN PERSIARAN CINTA SAYANG, KELAB CINTA SAYANG, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

1918181

New IC No

:

440728-02-5307

Date of Birth

:

28/07/1944

Nationality

:

MALAYSIAN

Date of Appointment

:

07/08/1981

 

DIRECTOR 6

 

Name Of Subject

:

DATO' ANG POON KHIM

Address

:

427, PERSIARAN CINTA SAYANG, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

4653247

New IC No

:

540709-07-5075

Date of Birth

:

09/07/1954

Nationality

:

MALAYSIAN

Date of Appointment

:

15/05/1982

 

DIRECTOR 7

 

Name Of Subject

:

MS. ANG ENG CHOO

Address

:

367, LORONG INTAN D/3,, TAMAN INTAN,, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

IC / PP No

:

3947965

New IC No

:

510816-02-5228

Date of Birth

:

16/08/1951

Nationality

:

MALAYSIAN

Date of Appointment

:

15/05/1982

 



MANAGEMENT

 

1)

Name of Subject

:

ANG POON CHUAN

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

ANG POON SEONG

Position

:

EXECUTIVE DIRECTOR

 

3)

Name of Subject

:

ANG POON KHIM

Position

:

OPERATIONS DIRECTOR

 

 

AUDITOR

 

Auditor

:

KPMG

Auditor' Address

:

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

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ONG TZE-EN

IC / PP No

:

A2054637

New IC No

:

720313-07-5210

Address

:

VILLA BATU BUKIT, 7-2-1, JALAN BATU BUKIT, 10470 PULAU PINANG, PULAU PINANG, MALAYSIA.

 

2)

Company Secretary

:

MS. LAU YOKE LENG

IC / PP No

:

A1253306

New IC No

:

690410-07-5082

Address

:

109-13A-05, GAMBIER HEIGHT APARTMENT, PERSIARAN BUKIT GAMBIR, 11700 GELUGOR, PULAU PINANG, MALAYSIA.

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

EON BANK BHD

 

2)

Name

:

MALAYAN BANKING BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

18/02/1992

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 632,000.00

Satisfied

2

29/05/1994

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 494,000.00

Satisfied

3

18/04/1995

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 5,440,000.00

Satisfied

4

18/04/1995

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 5,440,000.00

Satisfied

5

26/02/1997

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 6,220,000.00

Satisfied

6

19/02/2000

NEGATIVE PLEDGE

MALAYAN BANKING BERHAD

MYR 13,500,000.00

Unsatisfied

7

04/04/2003

NEGATIVE PLEDGE

EON BANK BERHAD

MYR 3,300,000.00

Unsatisfied

8

25/03/2010

ONE LAND CHARGE UNDER FORM 16-A

MALAYAN BANKING BERHAD

MYR 4,650,000.00

Unsatisfied

9

05/05/2014

RECEIVABLES FINANCING AGREEMENT

HSBC BANK MALAYSIA BERHAD

-

Unsatisfied

 

 

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

Overseas

:

YES

Import Countries

:

ASIA,EUROPE

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

AUSTRALIA

RUSSIA

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

PRINTING INDUSTRIES,STATIONERY SHOP

 

 

OPERATIONS

 

Products manufactured

:

PLASTIC AND PAPER PRODUCTS

Award

:

1 ) MS ISO 9001 : 2000 Year :2002

Competitor(s)

:

GREEN POINT PRECISION (M) SDN BHD
PLASTRADE TECHNOLOGY BHD

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)

SMI ASSOCIATION OF MALAYSIA

MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)

SMALL & MEDIUM ENTERPRISE

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

600

600

600

600

520

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of plastic and paper products.

The Subject's core business is manufacturing plastic products under 3 main categories as follows:

1) Plastic films

2) Plastic bags

3) Plastic sheets

The plastic bags are manufactured in various sizes, thickness and length.

The plastic bags are used as packaging materials especially for electrical and electronic industries.

The Subject utilizes advanced automated and semi-automated machineries to ensure production of high quality products.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

044417888

Current Telephone Number

:

04-4417888

Match

:

YES

Address Provided by Client

:

LOT 52, JALAN PKNK 1/6, KAWASAN PERUSAHAAN SUNGAI PETANI,08000,SUNGAI PETANI,KEDAH.

Current Address

:

LOT 52, JALAN PKNK 1/6, KAWASAN PERUSAHAAN SUNGAI PETANI, 08000 SUNGAI PETANI, KEDAH, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


On 6th November 2015 we contacted one of the staff from the Subject and he provided some information.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

4.97%

]

Return on Net Assets

:

Unfavourable

[

2.27%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Liquidity

Current Ratio

:

Unfavourable

[

0.00 Times

]

Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject.

Solvency

Liability Ratio

:

Unfavourable

[

1.20 Times

]

The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

Overall Assessment :

Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. The Subject's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : POOR

 

 

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

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,144

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

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

63.2

-

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

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)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

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

1.4

-

Plastic Products

3.8

-

-

2.7

-

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

-

-

13.0

-

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

22201 : Manufacture of semi-manufactures of plastic products

INDUSTRY :

MANUFACTURING

The manufacturing sector is expected to grow by 5.5% in 2015. It will be bolstered by strong domestic and export-oriented industries in line with growing investment activities and favorable external demand. Moreover, in 2014, the manufacturing sectors have spearheading growth. The manufacturing sector is estimated to grow at a faster pace in 2014 on higher exports of electronics and electrical (E&E) products as external demand improves.

The manufacturing sector expanded strongly during the first half of 2014, the highest growth in three years, spurred by higher global semiconductor sales. Value-added of the manufacturing sector expanded 7.1% during the first half of 2014. Production of the sector rose 6.6% in the first seven months of 2014 supported by resilient domestic demand and recovery in the external sector during the first seven months of the years. The sales value of manufactured products rebounded by 7.7% in the first seven months of 2014. The strong performance of the sector was on account of higher output at 9.4% from the domestic-oriented industries, particularly transport equipment, food and beverage.

The manufacturing sector continued to attract domestic and foreign investment with investment approved by Malaysian Investment Development Authority (MIDA) totaling RM47.4 billion during the first six months of 2014, mainly from Japan, China and Germany. Meanwhile, the capacity utilization rate remained steady at 80.4% during the second quarter of 2014 while average wage per employee and productivity improved to RM2,772 per month and 5.9%, respectively during the first seven months of 2014. Boosted by favorable domestic economic activity and recovery in the external sector, the manufacturing sector is expected to record a better performance with growth of 6.4% in 2014.

In the meantime, production of wood products rebounded by 5.1% largely supported by higher output in the saw-milling and planning of wood segment at 25.9% during the first seven months of 2014. The positive performance was attributed to vibrant residential and commercial construction activities which contributed to increased use of timber frame and glued laminated timber for cost savings compared to the use of concrete and steel. Increased demand from major export destination such as the US, Japan and Australia for Malaysian made furniture contributed to the higher output, particularly wooden and cane furniture which rebounded by 2.2%.

Production of rubber products contracted 0.3% in the first seven months of 2014 on account of slower demand for rubber gloves and rubber tyres. The decline in rubber tyres for vehicles was due to the weaker external demand from the automotive industry, particularly from China. Output of other rubber products contracted 3.8% following the product shift from rubber-based to plastics, silicones and metal alloys in the manufacture of medical devices.

Besides, exports of manufactured products are expected to grow 6.1% in 2014 boosted by the growing demand from advanced economies. However, during the first seven months of 2014, manufactured exports surged 11.4%. The robust growth was buoyed by strengthening demand in the US and EU, reflecting significant exposure of Malaysian exports to the economic performance in the advance economies. The strength in export was broad-based with robust growth in both E&E and non- E&E subsectors.

Under budget 2015, the Government will provide incentive in the form of capital allowance on automation expenditure to encourage automation in the manufacturing sector, which may help in the manufacturing sector.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1981, the Subject is a Private Limited company, focusing on manufacturing of plastic and paper products. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. A paid up capital of MYR 2,496,350 allows the Subject to expand its business more comfortably. With a strong backing from its holding company, the Subject enjoys 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. Being a large entity, the Subject has a steady workforce of 600 personnel to support its business operations. Its future prospects seem to be fairly good as its business operations are running relatively stable. 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. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject.

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 120,972,197, 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 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 normally.

 



PROFIT AND LOSS ACCOUNT

 

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

THONG GUAN PLASTIC & PAPER INDUSTRIES SDN. BHD.

 

Financial Year End

2014-12-31

2013-12-31

2012-12-31

2011-12-31

2010-12-31

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

SUMMARY

FULL

FULL

SUMMARY

SUMMARY

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

593,877,686

532,693,207

429,534,217

356,646,476

335,781,339

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

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

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

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

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

Total Turnover

593,877,686

532,693,207

429,534,217

356,646,476

335,781,339

Costs of Goods Sold

-

(497,141,198)

(416,089,225)

-

-

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

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

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

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

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

Gross Profit

-

35,552,009

13,444,992

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

6,062,282

22,454,070

4,619,213

7,148,205

12,692,518

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

6,062,282

22,454,070

4,619,213

7,148,205

12,692,518

Taxation

(54,631)

(1,059,051)

(1,285,040)

215,679

(1,858,240)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

6,007,651

21,395,019

3,334,173

7,363,884

10,834,278

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

109,841,332

88,446,313

84,546,010

77,182,126

67,847,848

Prior year adjustment

-

-

566,130

-

-

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

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

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

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

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

As restated

109,841,332

88,446,313

85,112,140

77,182,126

67,847,848

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

115,848,983

109,841,332

88,446,313

84,546,010

78,682,126

DIVIDENDS - Ordinary (paid & proposed)

-

-

-

-

(1,500,000)

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

115,848,983

109,841,332

88,446,313

84,546,010

77,182,126

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

-

9,306

8,417

-

-

Bankers' acceptance

-

28,457

4,486

-

-

Lease interest

-

8,116

185

-

-

Term loan / Borrowing

-

154,274

184,526

-

-

Others

-

194,502

276,246

-

-

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

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

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

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

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

-

394,655

473,860

-

-

-

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

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

-

-

 

BALANCE SHEET

 

THONG GUAN PLASTIC & PAPER INDUSTRIES SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

48,787,793

52,497,912

57,982,942

63,724,474

56,347,191

Others

-

2,796,889

2,895,025

-

-

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

2,698,753

2,796,889

2,895,025

-

-

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

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

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

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

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

TOTAL LONG TERM ASSETS

51,486,546

55,294,801

60,877,967

63,724,474

56,347,191

Short term quoted/unquoted investments

-

65,662,213

55,170,918

-

-

Trade debtors

-

47,092,784

16,110,717

-

-

Other debtors, deposits & prepayments

-

461,909

536,447

-

-

Short term loan to financial institutions

-

5,384,250

3,400,000

-

-

Amount due from related companies

-

41,236,791

36,752,530

-

-

Amount due from director

-

-

5,011

-

-

Cash & bank balances

-

14,026,130

11,216,251

-

-

Others

-

3,368,509

3,963,788

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

215,015,682

177,232,586

127,155,662

123,227,655

109,384,818

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

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

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

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

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

TOTAL ASSET

266,502,228

232,527,387

188,033,629

186,952,129

165,732,009

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

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

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

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

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

Other creditors & accruals

-

4,379,649

3,451,219

-

-

Bank overdraft

-

2,321,018

2,130,239

-

-

Short term borrowings/Term loans

-

2,601,723

2,449,715

-

-

Amounts owing to holding company

-

54

24

-

-

Amounts owing to related companies

-

68,297,742

52,003,013

-

-

Lease payables

-

97,900

-

-

-

Other liabilities

-

32,539,378

23,918,768

-

-

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

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

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

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

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

TOTAL CURRENT LIABILITIES

-

110,237,464

83,952,978

87,554,132

71,963,943

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

215,015,682

66,995,122

43,202,684

35,673,523

37,420,875

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

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

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

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

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

TOTAL NET ASSETS

266,502,228

122,289,923

104,080,651

99,397,997

93,768,066

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

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

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

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

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

SHARE CAPITAL

Ordinary share capital

2,496,350

2,496,350

2,496,350

2,496,350

2,496,350

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

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

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

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

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

TOTAL SHARE CAPITAL

2,496,350

2,496,350

2,496,350

2,496,350

2,496,350

Capital reserve

-

2,626,864

2,626,864

-

-

Retained profit/(loss) carried forward

115,848,983

109,841,332

88,446,313

84,546,010

77,182,126

Others

2,626,864

-

-

12,355,637

3,192,994

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

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

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

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

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

TOTAL RESERVES

118,475,847

112,468,196

91,073,177

96,901,647

80,375,120

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

120,972,197

114,964,546

93,569,527

99,397,997

82,871,470

Long term loans

-

859,049

3,488,124

-

-

Lease obligations

-

147,328

-

-

-

Deferred taxation

-

6,319,000

7,023,000

-

-

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

145,530,031

7,325,377

10,511,124

-

10,896,596

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

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

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

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

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

266,502,228

122,289,923

104,080,651

99,397,997

93,768,066

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

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

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

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

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

 

FINANCIAL RATIO

 

THONG GUAN PLASTIC & PAPER INDUSTRIES SDN. BHD.

 

TYPES OF FUNDS

Cash

-

14,026,130

11,216,251

-

-

Net Liquid Funds

-

11,705,112

9,086,012

-

-

Net Liquid Assets

215,015,682

66,995,122

43,202,684

35,673,523

37,420,875

Net Current Assets/(Liabilities)

215,015,682

66,995,122

43,202,684

35,673,523

37,420,875

Net Tangible Assets

266,502,228

122,289,923

104,080,651

99,397,997

93,768,066

Net Monetary Assets

69,485,651

59,669,745

32,691,560

35,673,523

26,524,279

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

-

22,848,725

5,093,073

-

-

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

-

22,848,725

5,093,073

-

-

BALANCE SHEET ITEMS

Total Borrowings

-

5,929,118

8,068,078

-

-

Total Liabilities

145,530,031

117,562,841

94,464,102

87,554,132

82,860,539

Total Assets

266,502,228

232,527,387

188,033,629

186,952,129

165,732,009

Net Assets

266,502,228

122,289,923

104,080,651

99,397,997

93,768,066

Net Assets Backing

120,972,197

114,964,546

93,569,527

99,397,997

82,871,470

Shareholders' Funds

120,972,197

114,964,546

93,569,527

99,397,997

82,871,470

Total Share Capital

2,496,350

2,496,350

2,496,350

2,496,350

2,496,350

Total Reserves

118,475,847

112,468,196

91,073,177

96,901,647

80,375,120

LIQUIDITY (Times)

Cash Ratio

-

0.13

0.13

-

-

Liquid Ratio

-

1.61

1.51

-

-

Current Ratio

-

1.61

1.51

1.41

1.52

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

0

0

-

-

Debtors Ratio

-

32

14

-

-

Creditors Ratio

-

0

0

-

-

SOLVENCY RATIOS (Times)

Gearing Ratio

-

0.05

0.09

-

-

Liabilities Ratio

1.20

1.02

1.01

0.88

1.00

Times Interest Earned Ratio

-

57.90

10.75

-

-

Assets Backing Ratio

106.76

48.99

41.69

39.82

37.56

PERFORMANCE RATIO (%)

Operating Profit Margin

1.02

4.22

1.08

2.00

3.78

Net Profit Margin

1.01

4.02

0.78

2.06

3.23

Return On Net Assets

2.27

18.68

4.89

7.19

13.54

Return On Capital Employed

2.27

18.34

4.80

7.19

13.54

Return On Shareholders' Funds/Equity

4.97

18.61

3.56

7.41

13.07

Dividend Pay Out Ratio (Times)

-

0

0

-

0.14

NOTES TO ACCOUNTS

Contingent Liabilities

-

0

0


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.35

UK Pound

1

Rs.100.28

Euro

1

Rs.71.30

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 


 

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.