|
Report No. : |
340242 |
|
Report Date : |
09.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
LOTTE CHEMICAL TITAN TRADING SDN. BHD. |
|
|
|
|
Formerly Known As : |
TITAN TRADING CORP. SDN BHD (20/12/2012)
|
|
|
|
|
Registered Office : |
Bangunan Malaysia Re, 17, Lorong Dungun, Damansara Heights, Tingkat 6,
50490 Kuala Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
27.04.1988 |
|
|
|
|
Com. Reg. No.: |
170232-H |
|
|
|
|
Legal Form : |
Private Limited (Limited By Share) |
|
|
|
|
Line of Business : |
Subject is engaged in the trading of high density polyethlene,
ethylene, and other chemical products. |
|
|
|
|
No. of Employees : |
50 [2015] |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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. 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 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 also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplied about 29% of government revenue in 2014. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays. 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. |
: |
170232-H |
||||
|
COMPANY NAME |
: |
LOTTE CHEMICAL TITAN TRADING SDN. BHD. |
||||
|
FORMER NAME |
: |
TITAN TRADING CORP. SDN BHD (20/12/2012) |
||||
|
INCORPORATION DATE |
: |
27/04/1988 |
||||
|
COMPANY STATUS |
: |
EXIST |
||||
|
LEGAL FORM |
: |
PRIVATE LIMITED (LIMITED BY SHARE) |
||||
|
LISTED STATUS |
: |
NO |
||||
|
REGISTERED ADDRESS |
: |
BANGUNAN MALAYSIA RE, 17, LORONG DUNGUN, DAMANSARA HEIGHTS, TINGKAT 6,
50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
||||
|
BUSINESS ADDRESS |
: |
PLO 312, JALAN TEMBAGA 4, PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR
GUDANG, JOHOR, MALAYSIA. |
||||
|
TEL.NO. |
: |
07-2538888/2538621 |
||||
|
FAX.NO. |
: |
07-2510784 |
||||
|
WEB SITE |
: |
WWW.LOTTECHEM.MY |
||||
|
CONTACT PERSON |
: |
CHEONG PENG KHUAN ( MANAGING DIRECTOR ) |
||||
|
INDUSTRY CODE |
: |
46691 |
||||
|
PRINCIPAL ACTIVITY |
: |
TRADING OF HIGH DENSITY POLYETHLENE,
ETHYLENE, AND OTHER CHEMICAL PRODUCTS |
||||
|
AUTHORISED CAPITAL |
: |
MYR 310,000,000.00 DIVIDED INTO |
||||
|
ISSUED AND PAID UP CAPITAL |
: |
MYR 292,500,000.00 DIVIDED INTO |
||||
|
SALES |
: |
MYR 3,368,357,000 [2013] |
||||
|
NET WORTH |
: |
MYR 959,870,000 [2013] |
||||
|
M1000 OVERALL RANKING |
: |
161[2011] |
||||
|
M1000 INDUSTRY RANKING |
: |
4[2011] |
||||
|
STAFF STRENGTH |
: |
50 [2015] |
||||
|
||||||
|
LITIGATION |
: |
CLEAR |
||||
|
DEFAULTER CHECK |
: |
CLEAR |
||||
|
FINANCIAL CONDITION |
: |
STRONG |
||||
|
PAYMENT |
: |
PROMPT |
||||
|
MANAGEMENT CAPABILITY |
: |
AVERAGE |
||||
|
COMMERCIAL RISK |
: |
LOW |
||||
|
CURRENCY EXPOSURE |
: |
MODERATE |
||||
|
GENERAL REPUTATION |
: |
GOOD |
||||
|
INDUSTRY OUTLOOK |
: |
AVERAGE GROWTH |
||||
HISTORY/
BACKGROUND
|
The Subject is a private limited company and is allowed to have a
minimum of one and a maximum of forty-nine shareholders. As a private limited
company, the Subject must have at least two directors. A private limited
company is a separate legal entity from its shareholders. As a separate legal
entity, the Subject is capable of owning assets, entering into contracts, sue
or be sued by other companies. The liabilities of the shareholders are to the
extent of the equity they have taken up and the creditors cannot claim on
shareholders' personal assets even if the Subject is insolvent. The Subject is
governed by the Companies Act, 1965 and the company must file its annual
returns, together with its financial statements with the Registrar of
Companies.
The Subject is principally engaged in the (as a / as an) trading of high
density polyethlene, ethylene, and other chemical 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 |
2011 |
2009 |
2004 |
|
|
OVERALL RANKING |
161 |
139 |
174 |
|
|
INDUSTRY RANKING |
4 |
5 |
3 |
|
Share Capital History
|
Date |
Authorised Shared Capital |
Issue & Paid Up Capital |
|
15/02/2013 |
MYR 310,000,000.00 |
MYR 292,500,000.00 |
|
20/11/1990 |
MYR 135,000,000.00 |
MYR 135,000,000.00 |
|
27/04/1988 |
MYR 25,000.00 |
MYR 2.00 |
The major shareholder(s) of the Subject are shown as follows :
Name |
Address |
IC/PP/Loc No |
Shareholding |
(%) |
|
LOTTE CHEMICAL TITAN HOLDING SDN. BHD. |
PLO 312, JALAN TEMBAGA 4, PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR GUDANG,
JOHOR, MALAYSIA. |
222357P |
292,500,000.00 |
100.00 |
|
--------------- |
------ |
|||
|
292,500,000.00 |
100.00 |
|||
|
============ |
===== |
+ Also Director
The Subject's interest in other companies (Subsidiaries/Associates) are shown
as follow :
Local No |
Country |
Company |
(%) |
As At |
|
HONG KONG |
TITAN TRADING CORP LIMITED |
100.00 |
31/12/2011 |
|
DIRECTORS
|
DIRECTOR 1
|
Name Of Subject |
: |
KIM GYO HYUN |
|
Address |
: |
UNIT 23-5, BANYAN CONDOMINIUM, JALAN KIARA 2, MONT KIARA, 50480 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
IC / PP No |
: |
M69904116 |
|
Nationality |
: |
KOREAN |
|
Date of Appointment |
: |
02/05/2014 |
DIRECTOR 2
|
Name Of Subject |
: |
MR. CHEONG PENG KHUAN |
|
Address |
: |
3, LORONG HIJAU TIGA, GREEN LANE, 11600 PULAU PINANG, PULAU PINANG,
MALAYSIA. |
|
IC / PP No |
: |
5281877 |
|
New IC No |
: |
580222-07-5125 |
|
Date of Birth |
: |
22/02/1958 |
|
Nationality |
: |
MALAYSIAN |
|
Date of Appointment |
: |
23/02/2010 |
DIRECTOR 3
|
Name Of Subject |
: |
PARK BEONJIN |
|
Address |
: |
TOWER 2, 19-05, MOLEK PINE CONDOMINIUM, JALAN MOLEK 1/27, TAMAN MOLEK,
81100 JOHOR BAHRU, JOHOR, MALAYSIA. |
|
IC / PP No |
: |
M48955072 |
|
Date of Appointment |
: |
01/02/2015 |
MANAGEMENT
|
|
1) |
Name of Subject |
: |
CHEONG PENG KHUAN |
|
Position |
: |
MANAGING DIRECTOR |
|
|
2) |
Name of Subject |
: |
KAMAL AZHAR |
|
Position |
: |
TREASURY MANAGER |
|
|
3) |
Name of Subject |
: |
MD KAHAR SALLEH |
|
Position |
: |
HUMAN RESOURCE MANAGER |
|
|
4) |
Name of Subject |
: |
SHARAZ |
|
Position |
: |
TRAINING MANAGER |
|
|
|
AUDITOR
|
|
Auditor |
: |
DELOITTE & TOUCHE |
|
Auditor' Address |
: |
MENARA LGB, 1 JALAN WAN KADIR, TAMAN TUN DR. ISMAIL, LEVEL 16, 60000
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
|
|
COMPANY
SECRETARIES
|
|
1) |
Company Secretary |
: |
MR. KONG CHOCK HOON |
|
IC / PP No |
: |
5800719 |
|
|
New IC No |
: |
600101-01-6001 |
|
|
Address |
: |
92, JALAN DATUK SULAIMAN 6, TAMAN TUN DR. ISMAIL, 60000 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA. |
|
|
|
BANKING
|
Banking relations are maintained principally with :
|
1) |
Name |
: |
MALAYAN BANKING BHD |
|
2) |
Name |
: |
RHB BANK BHD |
|
3) |
Name |
: |
HSBC BANK MALAYSIA BHD |
ENCUMBRANCE
(S)
|
|
Charge No |
Creation Date |
Charge Description |
Chargee Name |
Total Charge |
Status |
|
1 |
10/03/1992 |
N/A |
ASEAMBANKERS MALAYSIA BHD |
MYR 352,250,000.00 |
Satisfied |
|
2 |
12/12/1994 |
N/A |
ASEAMBANKERS MALAYSIA BERHAD |
MYR 202,000,000.00 |
Satisfied |
|
3 |
14/02/1995 |
N/A |
ASEAMBANKERS MALAYSIA BERHAD |
MYR 202,000,000.00 |
Satisfied |
|
4 |
17/12/2004 |
N/A |
MAYBANK INTERNATIONAL L LTD AS SECURITY AGENT FOR |
- |
Satisfied |
|
5 |
17/12/2004 |
N/A |
MALAYAN BANKING BERHAD AS SECURITY AGENT FOR ITSEL |
- |
Satisfied |
|
6 |
17/12/2004 |
N/A |
MAYBANK INTERNATIONAL L LTD AS SECURITY AGENT FOR |
- |
Satisfied |
|
7 |
27/03/2009 |
N/A |
RHB BANK (L) LTD |
USD 332,500,000.00 |
Satisfied |
|
8 |
27/03/2009 |
N/A |
RHB BANK (L) LTD |
USD 332,500,000.00 |
Satisfied |
|
9 |
15/11/2011 |
DEBENTURE |
STANDARD CHARTERED BANK, OFFSHORE LABUAN |
USD 116,592,800.00 |
Unsatisfied |
|
10 |
15/11/2011 |
INSURANCE ASSIGNMENT |
STANDARD CHARTERED BANK, OFFSHORE LABUAN |
USD 116,592,800.00 |
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 |
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 |
[ |
X |
] |
Good 31-60 Days |
[ |
] |
Average 61-90 Days |
[ |
] |
|||||
|
Fair 91-120 Days |
[ |
] |
Poor >120 Days |
[ |
] |
|||||||||
CLIENTELE
|
|
Local |
: |
YES |
Percentage |
: |
60% |
|
Domestic Markets |
: |
MALAYSIA |
|||
|
Overseas |
: |
YES |
Percentage |
: |
40% |
|
Export Market |
: |
AUSTRALIA |
|||
|
Credit Term |
: |
AS AGREED |
|||
|
Payment Mode |
: |
CHEQUES |
|||
OPERATIONS
|
|
Goods Traded |
: |
HIGH DENSITY POLYETHLENE, ETHYLENE, AND OTHER CHEMICAL PRODUCTS |
|
|
Product Brand Name |
: |
|
|
|
Member(s) / Affiliate(s) |
: |
FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)CHEMICAL INDUSTRIES COUNCIL
OF MALAYSIA (CICM) |
|
|
Ownership of premises |
: |
LEASED/RENTED |
|
|
Production Line |
: |
3 |
|
|
Shifts |
: |
1 |
|
|
Total Number of Employees: |
|
||||||||
|
YEAR |
2015 |
2014 |
2012 |
2011 |
|||||
|
GROUP |
N/A |
N/A |
N/A |
N/A |
|||||
|
COMPANY |
50 |
40 |
60 |
50 |
|||||
|
Branch |
: |
NO |
Other Information:
The Subject is principally engaged in the (as a / as an) trading of high
density polyethlene, ethylene, and other chemical products.
The Subject is engage in manufacturing of chemical substances such as olefins
and polyolefins.
Besides that, the Subject also acts as the International Procurement Centre
(IPC).
We were informed that the Subject is under the Titan Chemicals Group of Companies
and it also acts as the marketing arm for its group.
The Subject's products are includes Ethylene, Propylene, Olefin co-products,
Low Density Polythylene Film and others.
The Subject's products are mainly used in a variety of consumer and industrial
applications, including packaging film, trash bags, automotive parts, plastic
bottles and caps, and compounds for wire and cable insulation.
The Subject's IPC's status allow the Group to specialize in and centralize all
procurement and international sales of raw materials, components and finished
products for its operations in Malaysia and Indonesia.
The Subject also has ten world-class manufacturing plants located on two
integrated industrial sites in Pasir Gudang and Tanjung Langsat, Johor.
Their production site in Malaysia consists of eleven process facilities, two
co-generation plants and 3 tank farms.
CURRENT
INVESTIGATION
|
Latest fresh investigations carried out on the Subject indicated that :
|
Telephone Number Provided By Client |
: |
072538888 |
|
Current Telephone Number |
: |
07-2538888/2538621 |
|
Match |
: |
YES |
|
Address Provided by Client |
: |
PLO 312, JALAN TEMBAGA 4, PASIR GUDANG INDUSTRIAL ESTATE,81700,PASIR
GUDANG,JOHOR. |
|
Current Address |
: |
PLO 312, JALAN TEMBAGA 4, PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR
GUDANG, JOHOR, MALAYSIA. |
|
Match |
: |
YES |
|
Latest Financial Accounts |
: |
YES |
Other Investigations
We contacted one of the staff from the Subject and he provided some information.
FINANCIAL
ANALYSIS
|
|
Profitability |
||||||
|
Turnover |
: |
Erratic |
[ |
2009 - 2013 |
] |
|
|
Profit/(Loss) Before Tax |
: |
Decreased |
[ |
2009 - 2013 |
] |
|
|
Return on Shareholder Funds |
: |
Acceptable |
[ |
18.73% |
] |
|
|
Return on Net Assets |
: |
Acceptable |
[ |
19.50% |
] |
|
|
The fluctuating turnover reflects the fierce competition among the
existing and new market players.The dip in profit could be due to the stiff market
competition which reduced the Subject's profit margin. The Subject's
management had generated acceptable return for its shareholders using its
assets. |
||||||
|
Working Capital Control |
||||||
|
Stock Ratio |
: |
Nil |
[ |
0 Days |
] |
|
|
Debtor Ratio |
: |
Favourable |
[ |
39 Days |
] |
|
|
Creditors Ratio |
: |
Favourable |
[ |
6 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 |
[ |
9.38 Times |
] |
|
|
Current Ratio |
: |
Favourable |
[ |
9.38 Times |
] |
|
|
A minimum liquid ratio of 1 should be maintained by the Subject in
order to assure its creditors of its ability to meet short term obligations
and the Subject was in a good liquidity position. Thus, we believe the
Subject is able to meet all its short term obligations as and when they fall
due. |
||||||
|
Solvency |
||||||
|
Interest Cover |
: |
Favourable |
[ |
31.54 Times |
] |
|
|
Gearing Ratio |
: |
Favourable |
[ |
0.00 Times |
] |
|
|
The interest cover showed that the Subject was able to service the
interest. The favourable interest cover could indicate that the Subject was
making enough profit to pay for the interest accrued. The Subject had no
gearing and hence it had virtually no financial risk. The Subject was
financed by its shareholders' funds and internally generated fund. During the
economic downturn, the Subject, having a zero gearing, will be able to
compete better than those which are highly geared in the same industry. |
||||||
|
Overall Assessment : |
||||||
|
The Subject recorded lower profits as its turnover showed a erratic
trend. The Subject's management was unable to control its costs efficiently as
its profit showed a downward trend. The Subject was in good liquidity
position with its total current liabilities well covered by its total current
assets. With its current net assets, the Subject should be able to repay its
short term obligations. With the favourable interest cover, the Subject could
be able to service all the accrued interest without facing any difficulties.
The Subject was a zero gearing company, it was solely dependant on its
shareholders to provide funds to finance its business. The Subject has good
chance of getting loans, if the needs arises. |
||||||
|
Overall financial condition of the Subject : STRONG |
||||||
|
|
||||||
MALAYSIA
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 |
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
|
|
|
|
|
PROFIT
AND LOSS ACCOUNT
|
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN
FINANCIAL REPORTING STANDARDS(FRS) |
|
LOTTE CHEMICAL TITAN TRADING SDN. BHD. |
|
Financial Year
End |
2013-12-31 |
2012-12-31 |
2011-12-31 |
2010-12-31 |
2009-12-31 |
|
Months |
12 |
12 |
12 |
12 |
12 |
|
Consolidated Account |
Company |
Company |
Company |
Company |
Company |
|
Audited Account |
YES |
YES |
YES |
YES |
YES |
|
Unqualified Auditor's Report (Clean Opinion) |
YES |
YES |
YES |
YES |
YES |
|
Financial Type |
FULL |
FULL |
FULL |
FULL |
FULL |
|
Currency |
MYR |
MYR |
MYR |
MYR |
MYR |
|
TURNOVER |
3,368,357,000 |
3,511,186,000 |
3,437,047,000 |
2,687,470,000 |
2,414,517,000 |
|
Other Income |
2,977,000 |
- |
- |
25,186,000 |
8,345,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Total Turnover |
3,371,334,000 |
3,511,186,000 |
3,437,047,000 |
2,712,656,000 |
2,422,862,000 |
|
Costs of Goods Sold |
(3,144,895,000) |
(3,276,477,000) |
(3,254,972,000) |
(2,511,577,000) |
(2,244,402,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
Gross Profit |
226,439,000 |
234,709,000 |
182,075,000 |
201,079,000 |
178,460,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) FROM OPERATIONS |
181,206,000 |
186,618,000 |
140,549,000 |
164,838,000 |
137,822,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) BEFORE TAXATION |
181,206,000 |
186,618,000 |
140,549,000 |
164,838,000 |
137,822,000 |
|
Taxation |
(1,383,000) |
(1,468,000) |
(287,000) |
12,000 |
1,565,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT/(LOSS) AFTER TAXATION |
179,823,000 |
185,150,000 |
140,262,000 |
164,850,000 |
139,387,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) BROUGHT FORWARD |
|||||
|
As previously reported |
357,490,000 |
172,340,000 |
195,796,000 |
30,946,000 |
(108,441,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
As restated |
357,490,000 |
172,340,000 |
195,796,000 |
30,946,000 |
(108,441,000) |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
537,313,000 |
357,490,000 |
336,058,000 |
195,796,000 |
30,946,000 |
|
TRANSFER TO RESERVES - General |
- |
- |
(1,818,000) |
- |
- |
|
DIVIDENDS - Ordinary (paid & proposed) |
(19,013,000) |
- |
(161,900,000) |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
RETAINED PROFIT/(LOSS) CARRIED FORWARD |
518,300,000 |
357,490,000 |
172,340,000 |
195,796,000 |
30,946,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
INTEREST EXPENSE (as per notes to P&L) |
|||||
|
Others |
5,934,000 |
4,775,000 |
2,931,000 |
3,409,000 |
3,302,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
5,934,000 |
4,775,000 |
2,931,000 |
3,409,000 |
3,302,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
BALANCE
SHEET
|
|
LOTTE CHEMICAL TITAN TRADING SDN. BHD. |
|
LONG TERM INVESTMENTS/OTHER ASSETS |
|||||
|
Subsidiary companies |
3,000 |
3,000 |
3,000 |
3,000 |
3,000 |
|
Deferred assets |
- |
31,000 |
27,000 |
24,000 |
2,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
3,000 |
34,000 |
30,000 |
27,000 |
5,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL LONG TERM ASSETS |
3,000 |
34,000 |
30,000 |
27,000 |
5,000 |
|
Trade debtors |
357,922,000 |
295,283,000 |
385,006,000 |
219,689,000 |
261,112,000 |
|
Other debtors, deposits & prepayments |
399,000 |
373,000 |
363,000 |
363,000 |
487,000 |
|
Short term deposits |
- |
- |
- |
11,050,000 |
- |
|
Amount due from holding company |
11,430,000 |
8,573,000 |
8,470,000 |
1,318,000 |
1,318,000 |
|
Amount due from subsidiary companies |
- |
- |
- |
80,000 |
379,000 |
|
Amount due from related companies |
635,359,000 |
644,467,000 |
168,542,000 |
461,789,000 |
331,324,000 |
|
Cash & bank balances |
69,233,000 |
17,714,000 |
70,288,000 |
633,000 |
2,014,000 |
|
Others |
- |
- |
- |
431,000 |
428,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT ASSETS |
1,074,343,000 |
966,410,000 |
632,669,000 |
695,353,000 |
597,062,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL ASSET |
1,074,346,000 |
966,444,000 |
632,699,000 |
695,380,000 |
597,067,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
CURRENT LIABILITIES |
|||||
|
Trade creditors |
50,273,000 |
121,635,000 |
44,000 |
- |
- |
|
Other creditors & accruals |
63,981,000 |
106,568,000 |
12,658,000 |
7,535,000 |
8,909,000 |
|
Amounts owing to holding company |
222,000 |
- |
- |
- |
- |
|
Amounts owing to subsidiary companies |
- |
418,000 |
803,000 |
- |
- |
|
Amounts owing to related companies |
- |
- |
43,481,000 |
110,763,000 |
124,894,000 |
|
Provision for taxation |
- |
8,000 |
4,000 |
- |
- |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL CURRENT LIABILITIES |
114,476,000 |
228,629,000 |
56,990,000 |
118,298,000 |
133,803,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
NET CURRENT ASSETS/(LIABILITIES) |
959,867,000 |
737,781,000 |
575,679,000 |
577,055,000 |
463,259,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL NET ASSETS |
959,870,000 |
737,815,000 |
575,709,000 |
577,082,000 |
463,264,000 |
|
============= |
============= |
============= |
============= |
============= |
|
|
SHARE CAPITAL |
|||||
|
Ordinary share capital |
292,500,000 |
292,500,000 |
292,500,000 |
292,500,000 |
292,500,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL SHARE CAPITAL |
292,500,000 |
292,500,000 |
292,500,000 |
292,500,000 |
292,500,000 |
|
Exchange equalisation/fluctuation reserve |
149,070,000 |
87,825,000 |
110,869,000 |
88,786,000 |
139,818,000 |
|
Retained profit/(loss) carried forward |
518,300,000 |
357,490,000 |
172,340,000 |
195,796,000 |
30,946,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
TOTAL RESERVES |
667,370,000 |
445,315,000 |
283,209,000 |
284,582,000 |
170,764,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
SHAREHOLDERS' FUNDS/EQUITY |
959,870,000 |
737,815,000 |
575,709,000 |
577,082,000 |
463,264,000 |
|
---------------- |
---------------- |
---------------- |
---------------- |
---------------- |
|
|
959,870,000 |
737,815,000 |
575,709,000 |
577,082,000 |
463,264,000 |
|
|
============= |
============= |
============= |
============= |
============= |
|
|
|
|
|
|
|
|
FINANCIAL
RATIO
|
|
LOTTE CHEMICAL TITAN TRADING SDN. BHD. |
|
TYPES OF FUNDS |
|||||
|
Cash |
69,233,000 |
17,714,000 |
70,288,000 |
11,683,000 |
2,014,000 |
|
Net Liquid Funds |
69,233,000 |
17,714,000 |
70,288,000 |
11,683,000 |
2,014,000 |
|
Net Liquid Assets |
959,867,000 |
737,781,000 |
575,679,000 |
577,055,000 |
463,259,000 |
|
Net Current Assets/(Liabilities) |
959,867,000 |
737,781,000 |
575,679,000 |
577,055,000 |
463,259,000 |
|
Net Tangible Assets |
959,870,000 |
737,815,000 |
575,709,000 |
577,082,000 |
463,264,000 |
|
Net Monetary Assets |
959,867,000 |
737,781,000 |
575,679,000 |
577,055,000 |
463,259,000 |
|
BALANCE SHEET ITEMS |
|||||
|
Total Borrowings |
0 |
0 |
0 |
0 |
0 |
|
Total Liabilities |
114,476,000 |
228,629,000 |
56,990,000 |
118,298,000 |
133,803,000 |
|
Total Assets |
1,074,346,000 |
966,444,000 |
632,699,000 |
695,380,000 |
597,067,000 |
|
Net Assets |
959,870,000 |
737,815,000 |
575,709,000 |
577,082,000 |
463,264,000 |
|
Net Assets Backing |
959,870,000 |
737,815,000 |
575,709,000 |
577,082,000 |
463,264,000 |
|
Shareholders' Funds |
959,870,000 |
737,815,000 |
575,709,000 |
577,082,000 |
463,264,000 |
|
Total Share Capital |
292,500,000 |
292,500,000 |
292,500,000 |
292,500,000 |
292,500,000 |
|
Total Reserves |
667,370,000 |
445,315,000 |
283,209,000 |
284,582,000 |
170,764,000 |
|
LIQUIDITY (Times) |
|||||
|
Cash Ratio |
0.60 |
0.08 |
1.23 |
0.10 |
0.02 |
|
Liquid Ratio |
9.38 |
4.23 |
11.10 |
5.88 |
4.46 |
|
Current Ratio |
9.38 |
4.23 |
11.10 |
5.88 |
4.46 |
|
WORKING CAPITAL CONTROL (Days) |
|||||
|
Stock Ratio |
0 |
0 |
0 |
0 |
0 |
|
Debtors Ratio |
39 |
31 |
41 |
30 |
39 |
|
Creditors Ratio |
6 |
14 |
0 |
0 |
0 |
|
SOLVENCY RATIOS (Times) |
|||||
|
Gearing Ratio |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
Liabilities Ratio |
0.12 |
0.31 |
0.10 |
0.20 |
0.29 |
|
Times Interest Earned Ratio |
31.54 |
40.08 |
48.95 |
49.35 |
42.74 |
|
Assets Backing Ratio |
3.28 |
2.52 |
1.97 |
1.97 |
1.58 |
|
PERFORMANCE RATIO (%) |
|||||
|
Operating Profit Margin |
5.38 |
5.31 |
4.09 |
6.13 |
5.71 |
|
Net Profit Margin |
5.34 |
5.27 |
4.08 |
6.13 |
5.77 |
|
Return On Net Assets |
19.50 |
25.94 |
24.92 |
29.15 |
30.46 |
|
Return On Capital Employed |
19.50 |
25.94 |
24.92 |
29.15 |
30.46 |
|
Return On Shareholders' Funds/Equity |
18.73 |
25.09 |
24.36 |
28.57 |
30.09 |
|
Dividend Pay Out Ratio (Times) |
0.11 |
0.00 |
1.15 |
0.00 |
0.00 |
|
NOTES TO ACCOUNTS |
|||||
|
Contingent Liabilities |
0 |
0 |
0 |
0 |
0 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.60 |
|
|
1 |
Rs.102.30 |
|
Euro |
1 |
Rs.74.61 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.