MIRA INFORM REPORT

 

 

Report No. :

508488

Report Date :

16.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

PMH TIMBER INDUSTRIES SDN. BHD.

 

 

Registered Office :

63C, Jalan Ss 25/2, Taman Bukit Emas, 47301 Petaling Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

28.02.2017

 

 

Date of Incorporation :

18.03.2015

 

 

Com. Reg. No.:

1135995-W

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

The Subject is engaged in the trading of timber and its related products.

 

 

No. of Employees :

6

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB's Economic Transformation Program 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. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports - particularly of electronics, oil and gas, and palm oil - remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia’s current account surplus and weighed heavily on the Malaysian ringgit, which was among the region’s worst performing currencies during 2013-17. The ringgit hit new lows following the US presidential election amid a broader selloff of emerging market assets.

Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia’s competitiveness, Prime Minister 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, policies that favor and advance the economic condition of ethnic Malays.

Malaysia signed the 12-nation Trans-Pacific Partnership (TPP) free trade agreement in February 2016, although the future of the TPP remains unclear following the US withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to advance regional economic integration.

 

Source : CIA

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

1135995-W

GST NO.

:

001720569856

COMPANY NAME

:

PMH TIMBER INDUSTRIES SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

18/03/2015

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

63C, JALAN SS 25/2, TAMAN BUKIT EMAS, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

10-2, SUTERA SQUARE, JALAN PJU 10/5B, TAMAN SUTERA DAMANSARA, 47830 PETALING JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61450968

FAX.NO.

:

03-61440968

WEB SITE

:

WWW.PMHTIMBER.COM

CONTACT PERSON

:

LOW KAI MENG ( DIRECTOR )

INDUSTRY CODE

:

46203

PRINCIPAL ACTIVITY

:

TRADING OF TIMBER AND ITS RELATED PRODUCTS

ISSUED AND PAID UP CAPITAL

:

500,000.00 ORDINARY SHARE, OF A VALUE OF MYR 500,000.00

SALES

:

MYR 7,028,444 [2017]

NET WORTH

:

MYR 582,713 [2017]

STAFF STRENGTH

:

6 [2018]

BANKER (S)

:

HONG LEONG BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

SLOW BUT CORRECT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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 shall have a minimum one director. 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 timber and its related products.

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

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

16/01/2018

N/A

MYR 500,000.00

27/05/2016

MYR 400,000.00

MYR 400,000.00

29/10/2015

N/A

MYR 100,000.00

24/03/2015

MYR 400,000.00

MYR 3.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. LOW KAI MENG +

68, JALAN PJU 10/16D, SUTERA DAMANSARA, 47830 PETALING JAYA, SELANGOR, MALAYSIA.

671126-06-5131 A0838151

300,000.00

60.00

MS. KONG YOKE KEAT +

68, JALAN PJU 10/16D, SUTERA DAMANSARA, 47830 PETALING JAYA, SELANGOR, MALAYSIA.

760817-08-6374 A3462725

100,000.00

20.00

MS. WAI MOI CHAI +
[ALTERNATE DIRECTOR LOW KAI MENG]

68, JALAN PJU 10/16D, SUTERA DAMANSARA, 47830 PETALING JAYA, SELANGOR, MALAYSIA.

491205-01-5396 7559081

100,000.00

20.00

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

------

500,000.00

100.00

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

=====

+ Also Director



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

MS. KONG YOKE KEAT

Address

:

68, JALAN PJU 10/16D, SUTERA DAMANSARA, 47830 PETALING JAYA, SELANGOR, MALAYSIA.

Other Address(es)

:

6C-6-4,BLK.C,KENANGA APT,JALAN WAWASAN 2/3,PUSAT BANDAR,PUCHON, 47100 PUCHONG, SELANGOR, MALAYSIA.

IC / PP No

:

A3462725

New IC No

:

760817-08-6374

Date of Birth

:

17/08/1976

Nationality

:

MALAYSIAN

Date of Appointment

:

18/03/2015



INTEREST CHECK

Interest in companies

:

see below

Interest in business

:

none in our databank

Former interest

:

none in our databank

INTEREST IN COMPANY

No

Local No

Company

Designation

App Date

Shareholding

Profit/(loss) After Tax

Financial Year

Status

As At

No.

%

1

1135995W

PMH TIMBER INDUSTRIES SDN. BHD.

Director

18/03/2015

100,000.00

20.00

MYR75,304.00

2017

-

23/04/2018

 

DIRECTOR 2

 

Name Of Subject

:

MS. WAI MOI CHAI

Address

:

68, JALAN PJU 10/16D, SUTERA DAMANSARA, 47830 PETALING JAYA, SELANGOR, MALAYSIA.

Other Address(es)

:

NO: 163, KAMPUNG BARU, 28380 KEMAYAN., MALAYSIA.

IC / PP No

:

7559081

New IC No

:

491205-01-5396

Date of Birth

:

05/12/1949

Nationality

:

MALAYSIAN

Date of Appointment

:

16/02/2016

Remark

:

ALTERNATE DIRECTOR LOW KAI MENG



INTEREST CHECK

Interest in companies

:

see below

Interest in business

:

none in our databank

Former interest

:

see below

INTEREST IN COMPANY

No

Local No

Company

Designation

App Date

Shareholding

Profit/(loss) After Tax

Financial Year

Status

As At

No.

%

1

1135995W

PMH TIMBER INDUSTRIES SDN. BHD.

Director

16/02/2016

100,000.00

20.00

MYR75,304.00

2017

-

23/04/2018


FORMER INTEREST

No

Local No

Company

Designation

App Date

Withdrawn Date

Shareholding

Status

1

547511A

PAN MAJESTIC HOLDINGS SDN. BHD.

Director

15/07/2003

10/08/2004

-

-

 

DIRECTOR 3

 

Name Of Subject

:

MR. LOW KAI MENG

Address

:

68, JALAN PJU 10/16D, SUTERA DAMANSARA, 47830 PETALING JAYA, SELANGOR, MALAYSIA.

Other Address(es)

:

- 14 JALAN DESA 3.5, BANDAR COUNTRY HOMES, 48000 RAWANG, MALAYSIA.

- 63, JALAN WANGSA 2/8, TAMAN WANGSA PERMAI, 52200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A0838151

New IC No

:

671126-06-5131

Nationality

:

MALAYSIAN

Date of Appointment

:

18/03/2015



INTEREST CHECK

Interest in companies

:

see below

Interest in business

:

none in our databank

Former interest

:

see below

INTEREST IN COMPANY

No

Local No

Company

Designation

App Date

Shareholding

Profit/(loss) After Tax

Financial Year

Status

As At

No.

%

1

547511A

PAN MAJESTIC HOLDINGS SDN. BHD.

Director

10/08/2004

200,000.00

40.00

MYR(4,902.00)

2017

-

23/04/2018

2

741471D

PAN MAJESTIC TIMBER INDUSTRIES SDN. BHD.

Director

19/07/2006

1.00

33.33

MYR(1,580.00)

2015

Disolved by Registrar

23/04/2018

3

1135995W

PMH TIMBER INDUSTRIES SDN. BHD.

Director

18/03/2015

300,000.00

60.00

MYR75,304.00

2017

-

23/04/2018

4

1215441T

SEKINCHAN BAY DEVELOPMENT SDN. BHD.

Shareholder

-

2.00

2.86

-

2017

-

23/04/2018

5

1127933U

SEKINCHAN BAY SDN. BHD.

Shareholder

-

2.00

2.86

MYR(59,188.00)

2016

-

23/04/2018


FORMER INTEREST

No

Local No

Company

Designation

App Date

Withdrawn Date

Shareholding

Status

1

001285838U

NKS TIMBER TRADING

SOLE PROPRIETORSHIP

18/06/2004

23/11/2007

-

-



MANAGEMENT

 

 

1)

Name of Subject

:

LOW KAI MENG

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

ADRIANYEO PLT

Auditor' Address

:

63B, JALAN SS 25/2, TAMAN BUKIT EMAS, 47301 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ANG SOO TIN

IC / PP No

:

A2442840

New IC No

:

730915-10-5770

Address

:

47, JALAN GELANG 8, BANDAR PUTERI, 41200 KLANG, SELANGOR, MALAYSIA.

 

2)

Company Secretary

:

MS. CHENG PO SIN

New IC No

:

790105-01-5196

Address

:

8-8, 8TH FLOOR, FORTUNA COURT, 54, JALAN AWAN CINA, OUG, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HONG LEONG BANK BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

05/01/2018

1ST PARTY MEMORANDUM OF DEPOSIT

MALAYAN BANKING BERHAD

-

Unsatisfied

2

05/01/2018

LETTER OF SET OFF

RHB BANK BERHAD

-

Unsatisfied

 

 

CIVIL LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT


* A check has been conducted in our databank against the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

 

CRIMINAL RECORDS CHECK - SUBJECT COMPANY AS A DEFENDANT


* A check has been conducted in our databank against the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No criminal record was found in our databank.

CIVIL LITIGATION CHECK - SUBJECT COMPANY AS A PLAINTIFF


* A check has been conducted in our databank against the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

There is/are CLOSED litigation case(s) on the Subject in our database as below:
- 1 case(s) filed in year 2017

According to the Credit Reporting Agencies Act 2010, consent from the Subject is required for the disclosure of this credit information. In order to have the consent from the Subject, we need to serve a notice to the Subject by disclose the following according to the Act Section 23(1) :

1) Enquirer or Company who request for this credit information.
2) Contact person of Enquirer
3) Purpose of this credit information being used.
4) Contact person of the Subject.

We shall appreciate if you can furnish us the above in order for us to serve a notice or inform the Subject accordingly. Otherwise, we are prohibited to disclose this credit information if there is no consent from the Subject according to the Act Section 24(1)(a).

 

CRIMINAL RECORDS CHECK - SUBJECT COMPANY AS A PLAINTIFF


* A check has been conducted in our databank against the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No plaintiff record 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 listed by our customers and debtors that have been placed or assigned to us for collection.

No defaulter record & debt collection case was found in our defaulters' databank.

 

 

 

RED ALERT FROM CENTRAL BANK OF MALAYSIA

 

* A check has been conducted with the Central Bank of Malaysia whether the Subject has carried out any illegal or suspicious financial activities.

 

The Subject has not been carried out any illegal money services business without licence under the Money Services Business Act 2011.

 

The Subject has not been placed under the Financial Consumer Alert list by the Central Bank of Malaysia.

 

 

INVESTOR ALERT BY SECURITIES COMMISSION MALAYSIA & BURSA MALAYSIA

 

* A check has been conducted with the Securities Commission Malaysia whether the Subject has involved in any unlicensed capital market activities under the Securities Laws and Bursa Malaysia should the Subject is listed as Practice Note (PN) 17 or Guidance Note (GN) 3.

 

The Subject has not been carried out any unlicensed capital market activities.

 

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose its supplier information.

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

EUROPE

MIDDLE EAST

ASIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

TIMBER AND ITS RELATED PRODUCTS

 

Total Number of Employees:

YEAR

2018

2017

GROUP

N/A

N/A

COMPANY

6

6

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of timber and its related products.

Being the leader in the timber industry, the Subject specialize in handling and dealing with all kind of sawn timber here in Malaysia.

Their timber are exported to European Continent, Middleast and Asian countries. Without a doubt, Asian resources are in line with the demand worldwide.

The characteristic features that made modern architecture possible were buildings, stylistic movements, technology and modern materials with eco-friendly that correspond with Green Building Index (GBI).

The Subject's business activities involves distribution and marketing of various kinds of sawn timbers which is widely use in the markets such as mouldings, timber flooring, wooden panels, timber staircase, laminated scantling and other timber products. This is in line with the demands from our customers here locally and overseas.


RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA) database, but no recent development was noted during the time of inspection.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

60361450968

Current Telephone Number

:

03-61450968

Match

:

YES

Address Provided by Client

:

NO 10-2 SUTERS SQUARE JALAN PJU 10/58 TAMAN SUTEQA DAMANSARA 47830 PETALING JAYA MALAYSIA

Current Address

:

10-2, SUTERA SQUARE, JALAN PJU 10/5B, TAMAN SUTERA DAMANSARA, 47830 PETALING JAYA, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations

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

The address provided is incomplete.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

17.06%

]

Profit/(Loss) Before Tax

:

Decreased

[

36.64%

]

Return on Shareholder Funds

:

Acceptable

[

12.92%

]

Return on Net Assets

:

Acceptable

[

17.93%

]

The higher turnover could be attributed to the favourable market condition and the Subject could be gaining the market share progressively.The Subject's profit fell sharply because of the high operating costs incurred. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

3 Days

]

Debtor Ratio

:

Unfavourable

[

87 Days

]

Creditors Ratio

:

Unfavourable

[

72 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity

Liquid Ratio

:

Favourable

[

1.30 Times

]

Current Ratio

:

Unfavourable

[

1.34 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

[

15.56 Times

]

Gearing Ratio

:

Favourable

[

0.18 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 was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

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. 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 as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

Overall financial condition of the Subject : STRONG

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2014

2015

2016

2017*

2018**

Population ( Million)

30.0

31.0

31.6

32.1

32.9

Gross Domestic Products ( % )

6.0

4.6

4.2

5.3

5.4

Domestic Demand ( % )

6.4

6.2

4.3

6.3

6.4

Private Expenditure ( % )

7.9

6.9

7.8

7.4

7.3

Consumption ( % )

6.5

6.1

5.1

6.9

6.8

Investment ( % )

12.0

8.1

10.0

9.3

8.9

Public Expenditure ( % )

2.3

4.2

3.3

5.3

5.5

Consumption ( % )

2.1

4.3

2.0

2.7

1.3

Investment ( % )

2.6

(1.0)

1.1

3.4

3.8

Balance of Trade ( MYR Million )

82,480

91,577

88,145

94,593

96,993

Government Finance ( MYR Million )

(37,414)

(37,194)

(38,401)

(39,887)

(39,790)

Government Finance to GDP / Fiscal Deficit ( % )

(3.4)

(3.2)

(3.1)

(3.0)

(2.8)

Inflation ( % Change in Composite CPI)

3.2

4.0

2.1

3.5

3.0

Unemployment Rate

2.9

3.1

3.4

3.4

3.3

Net International Reserves ( MYR Billion )

417

390

391

-

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

4.00

3.50

-

-

-

Average 3 Months of Non-performing Loans ( % )

2.10

2.00

1.90

-

-

Average Base Lending Rate ( % )

6.85

6.79

6.81

6.73

-

Business Loans Disbursed( % )

18.6

2.2

-

-

-

Foreign Investment ( MYR Million )

43,486.6

43,435.0

-

-

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

49,203

45,658

43,255

47,871

-

Registration of New Companies ( % )

6.1

(7.2)

(5.3)

10.7

-

Liquidation of Companies ( No. )

33,226

34,667

36,778

38,632

-

Liquidation of Companies ( % )

0.5

4.3

6.1

5.0

-

Registration of New Business ( No. )

332,723

364,230

376,720

484,029

-

Registration of New Business ( % )

1.0

9.0

3.0

29.0

-

Business Dissolved ( No. )

26,966

-

-

-

-

Business Dissolved ( % )

48.5

-

-

-

-

Sales of New Passenger Cars (' 000 Unit )

588.3

591.3

514.6

527.8

-

Cellular Phone Subscribers ( Million )

44.0

44.2

44.0

-

-

Tourist Arrival ( Million Persons )

27.4

25.7

30.2

30.1

-

Hotel Occupancy Rate ( % )

63.6

58.8

61.2

-

-

Credit Cards Spending ( % )

5.8

6.8

6.3

-

-

Bad Cheque Offenders (No.)

-

-

-

-

-

Individual Bankruptcy ( No.)

22,351

18,457

-

-

-

Individual Bankruptcy ( % )

1.7

(17.4)

-

-

-



INDUSTRIES ( % of Growth ):

2014

2015

2016

2017*

2018**

Agriculture

2.0

1.3

(5.1)

5.6

2.4

Palm Oil

6.7

7.0

(12.7)

11.8

-

Rubber

(10.4)

(11.0)

(6.3)

10.8

-

Forestry & Logging

(4.2)

(7.2)

(3.0)

(15.0)

-

Fishing

2.7

2.1

2.2

0.2

-

Other Agriculture

6.2

6.0

5.1

2.4

-

Industry Non-Performing Loans ( MYR Million )

303.8

343.7

420.3

-

-

% of Industry Non-Performing Loans

1.4

1.5

1.8

-

-

Mining

3.3

5.3

2.2

0.5

0.9

Oil & Gas

3.0

3.5

4.5

-

-

Other Mining

46.6

47.1

42.6

-

-

Industry Non-performing Loans ( MYR Million )

63.5

180.1

190.0

-

-

% of Industry Non-performing Loans

0.3

0.8

0.8

-

-

Manufacturing #

6.1

4.9

4.4

5.5

5.3

Exported-oriented Industries

7.1

6.5

4.3

6.5

-

Electrical & Electronics

11.8

9.2

6.8

9.3

-

Rubber Products

(1.3)

5.1

5.0

6.9

-

Wood Products

7.8

7.0

7.8

7.3

-

Textiles & Apparel

10.8

7.5

7.5

7.4

-

Domestic-oriented Industries

7.7

4.7

3.4

6.2

-

Food, Beverages & Tobacco

6.1

8.9

7.5

11.0

-

Chemical & Chemical Products

1.4

3.5

4.5

3.5

-

Plastic Products

2.7

3.9

5.1

-

-

Iron & Steel

2.8

1.6

2.2

-

-

Fabricated Metal Products

2.8

4.6

5.6

4.6

-

Non-metallic Mineral

6.9

6.8

6.3

5.4

-

Transport Equipment

14.4

5.2

(3.1)

4.7

-

Paper & Paper Products

4.7

3.2

5.4

5.8

-

Crude Oil Refineries

13.0

14.3

13.7

-

-

Industry Non-Performing Loans ( MYR Million )

5,730.8

4,243.7

4,214.1

-

-

% of Industry Non-Performing Loans

25.6

19.0

18.5

-

-

Construction

11.7

8.2

7.4

7.6

7.5

Industry Non-Performing Loans ( MYR Million )

1,666.4

1,638.0

1,793.9

-

-

% of Industry Non-Performing Loans

7.5

7.3

7.9

-

-

Services

6.6

5.1

5.6

5.9

5.8

Electric, Gas & Water

3.8

3.6

5.4

2.5

2.6

Transport, Storage & Communication

7.70

7.55

6.85

7.35

7.30

Wholesale, Retail, Hotel & Restaurant

7.70

6.65

6.65

7.05

6.65

Finance, Insurance & Real Estate

5.15

2.90

4.70

5.70

5.90

Government Services

6.3

4.0

4.9

4.4

4.5

Other Services

4.8

4.7

4.8

5.3

5.3

Industry Non-Performing Loans ( MYR Million )

5,373.5

6,806.6

7,190.6

-

-

% of Industry Non-Performing Loans

24.1

30.5

31.5

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index  



INDUSTRY ANALYSIS

 

MSIC CODE

 

46203 : Wholesale of lumber and timber

INDUSTRY :

TRADING

Malaysia's retail sales will likely grow 3.7% in 2017, slower than previously estimated 3.9%, as consumer sentiment remains weak amid rising cost of living in Southeast Asia's third largest economy.

The cut in forecast was the second of such revision by Retail Group Malaysia, a retail consulting firm, from an initial target of 5% retail sales expansion pace in 2017. The estimate follows a survey of members of Malaysia Retailers Association on their second quarter performance and outlook for the year. Retail sales grew 1.7% in 2016.

According to Retail Group Malaysia (RGM), Malaysian retailers have seen the sales expanded 4.9 % from April to June 2017, reversing a dismal performance in first three months 2017. For the first six months 2016, the retail sale growth rate was 2.5 %. However, the businesses in the next three months are not optimistic, estimating an average growth rate of 2.9 %. The department stores cum supermarket operators are expecting to return to red with a contraction of 2.5 %. Similarly, the department store operators expect their businesses to dip with a negative 1.5 %.

The rise of purchasing power will continue to fall behind the increase in prices of retail goods. More retail goods are expected to raise prices because of higher fuel prices in recent months.

The wholesale trade sub-sector index increased 5.9 % to 165.9 points year-on-year (y-o-y) driven mainly by other specialised wholesale (7.5 %), wholesale of agricultural raw materials and livestock (7.3 %) and wholesale of machinery, equipment and supplies (6.2 %).

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 : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2015, the Subject is a Private Limited company, focusing on trading of timber and its related products. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. Presently, the issued and paid up capital of the Subject stands at MYR 500,000. We considered that the Subject's business position in the market is much dependent on the efforts of its directors.

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 small company, the Subject's business operation is supported by 6 employees. 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.

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. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs.

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


The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

 
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)

PMH TIMBER INDUSTRIES SDN. BHD.

 

Financial Year End

2017-02-28

2016-02-29

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

TURNOVER

7,028,444

6,004,209

Other Income

51,239

40

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

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

Total Turnover

7,079,683

6,004,249

Costs of Goods Sold

(6,308,099)

(5,151,629)

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

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

Gross Profit

771,584

852,620

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

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

PROFIT/(LOSS) FROM OPERATIONS

97,765

154,292

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

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

PROFIT/(LOSS) BEFORE TAXATION

97,765

154,292

Taxation

(22,461)

(46,883)

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

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

PROFIT/(LOSS) AFTER TAXATION

75,304

107,409

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

107,409

-

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

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

As restated

107,409

-

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

182,713

107,409

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

182,713

107,409

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

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

INTEREST EXPENSE (as per notes to P&L)

Lease interest

6,713

-

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

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

6,713

-

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

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

DEPRECIATION (as per notes to P&L)

54,540

53,609

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

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

Total Amortization And Depreciation

54,540

53,609

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

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

 

 

 

 

 

BALANCE SHEET

 

 

PMH TIMBER INDUSTRIES SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

187,709

232,940

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

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

TOTAL LONG TERM ASSETS

187,709

232,940

CURRENT ASSETS

Stocks

58,425

45,751

Trade debtors

1,671,774

2,128,753

Other debtors, deposits & prepayments

46,480

5,000

Amount due from director

83,449

9,626

Cash & bank balances

37,549

308,867

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

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

TOTAL CURRENT ASSETS

1,897,677

2,497,997

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

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

TOTAL ASSET

2,085,386

2,730,937

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

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

CURRENT LIABILITIES

Trade creditors

1,236,032

1,934,781

Other creditors & accruals

127,703

111,864

Hire purchase & lease creditors

24,525

23,047

Provision for taxation

26,486

42,147

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

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

TOTAL CURRENT LIABILITIES

1,414,746

2,111,839

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

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

NET CURRENT ASSETS/(LIABILITIES)

482,931

386,158

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

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

LONG TERM LIABILITIES

Lease obligations

82,428

106,953

Deferred taxation

5,499

4,736

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

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

TOTAL LONG TERM LIABILITIES

87,927

111,689

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

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

TOTAL NET ASSETS

582,713

507,409

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

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

FINANCED BY:

SHARE CAPITAL

Ordinary share capital

400,000

400,000

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

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

TOTAL SHARE CAPITAL

400,000

400,000

RESERVES

Retained profit/(loss) carried forward

182,713

107,409

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

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

TOTAL RESERVES

182,713

107,409

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

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

SHAREHOLDERS' FUNDS/EQUITY

582,713

507,409

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

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

 

 

 

 

 

FINANCIAL RATIO

 

 

PMH TIMBER INDUSTRIES SDN. BHD.

 

TYPES OF FUNDS

Cash

37,549

308,867

Net Liquid Funds

37,549

308,867

Net Liquid Assets

424,506

340,407

Net Current Assets/(Liabilities)

482,931

386,158

Net Tangible Assets

582,713

507,409

Net Monetary Assets

336,579

228,718

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

104,478

154,292

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

159,018

207,901

BALANCE SHEET ITEMS

Total Borrowings

106,953

130,000

Total Liabilities

1,502,673

2,223,528

Total Assets

2,085,386

2,730,937

Net Assets

582,713

507,409

Net Assets Backing

582,713

507,409

Shareholders' Funds

582,713

507,409

Total Share Capital

400,000

400,000

Total Reserves

182,713

107,409

GROWTH RATIOS (Year on Year) (%)

Revenue

17.06

-

Proft/(Loss) Before Tax

(36.64)

-

Proft/(Loss) After Tax

(29.89)

-

Total Assets

(23.64)

-

Total Liabilities

(32.42)

-

LIQUIDITY (Times)

Cash Ratio

0.03

0.15

Liquid Ratio

1.30

1.16

Current Ratio

1.34

1.18

WORKING CAPITAL CONTROL (Days)

Stock Ratio

3

3

Debtors Ratio

87

129

Creditors Ratio

72

137

SOLVENCY RATIOS (Times)

Gearing Ratio

0.18

0.26

Liabilities Ratio

2.58

4.38

Times Interest Earned Ratio

15.56

0

Assets Backing Ratio

1.46

1.27

PERFORMANCE RATIO (%)

Operating Profit Margin

1.39

2.57

Net Profit Margin

1.07

1.79

Return On Net Assets

17.93

30.41

Return On Capital Employed

15.03

24.03

Return On Shareholders' Funds/Equity

12.92

21.17

Dividend Pay Out Ratio (Times)

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

0

0



 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 67.53

UK Pound

1

INR 91.49

Euro

1

INR 80.53

MYR

1

INR 17.12

                                                                  

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRI

 

 

Report Prepared by :

TRU

                                                


 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.