SEBERANG PERAI POLYTECHNICCOMMERCE DEPARTMENT

COURSE: PB604 – BUSINESS FINANCE PRESENTATIONCHAPTER 3 – FINANCIAL ANALYSIS

NAMES OF COMPANY :BP PLASTICS HOLDING BHD (644902-V)

PREPARED BY :

No. Name. Matric Number.1 NUR DALILA BT MOHD ZAMRI 10DAT11F20162 NORFARAH AQILAH BT MOHAMAD SALEH 10DAT11F20173 NOR AFIERA BT MOHAMMAD HAJI 10DAT11F20314 NOR HAZWANI FASIHAH BT MOHAMMAD NAZRI 10DAT11F2046

PREPARED FOR :

CIK SUHAILI BINTI YUSOF

DATE OF SUBMISSION :

14 JULY 2014

Company Profile

BPPLAS has grown in leaps and bounds from a cottage plastic

manufacturer to become one of the leading producers of industrial

plastic packaging bags and stretch film based in Malaysia today.

Established in 1990, we began by supplying polyethylene (PE) bags to

the garment and textile industries and BPPLAS started producing cast

stretch film and plastic bags for industrial, commercial, logistic and

warehousing usage ten years later.

Today, we have a total workforce of approximately 370 staff and

more than 80 units of manufacturing machineries. Our two production

plants are located in Sri Gading Industrial Estate, Batu Pahat, Johor,

Malaysia. They occupy 10 factory blocks with the total built up areas

of more than 250,000 square feet on 15.5 acres of land and have a

combined annual capacity of 60,000 metric tonnes.

Our wide customer base of more than 800 companies in over 35 countries worldwide reflects BPPLAS’

commitment and experience in the industry.

By investing in the latest technology, BPPLAS has evolved from a manufacturer with a simple PE extruder to one

with advanced multilayer co-extrusion technology that is capable to produce cast stretch film, blown lamination

film, shrink film and various general purpose mPE, mLLDPE, LDPE, LLDPE, MDPE, HDPE, PP bags.

We are now supplying cost-competitive, innovative and superior quality PE film to our customers using a

combination of advanced grade resins and sophisticated multiple layer extrusion technology.

After years of unrelenting hard work and effort, BPPLAS was successfully listed on the Main Board of Bursa

Malaysia (previously known as “Kuala Lumpur Stock Exchange”) in 2005, bringing us closer towards our vision

to be the plastic packaging specialist of choice in the Asian region.

i

COMPANY’S CORE BUSSINESS

Cast Film

Cast film is a thin layer of polyethylene (PE) film similar to

plastic food wrap but has superior stretching, puncture resistance

and load retention properties. It is the most economical and

suitable packaging material to unitise, secure and protect

palletised goods during transits, storage and warehousing.

Blown Film

Blown film is a film that can be meticulously turned into plastic

bags according to specifications, tailored to suit the needs and

requirements of various packaging applications.

2

COMPANY’S MISSION AND VISION

VISION  

To be the Plastics Packaging Specialist of Choice in the Asian

Region

MISSION  

To Produce Reliable & High Quality Packaging Products for

Industries

3

COMPANY’S BOARD OF DIRECTOR

Mr. Lim Chun Yow

Mr. Lim Kim Hock

Ms. Tan Ming-Li

Mr. Hey Shiow

Mr. Tan See

Mr. Lam Jin Fatt

Mr. Lim Chun Yow

4

MR. LIM KIM HOCK

Age: 48

Nationality: Malaysian

Position in the Company: Chairman and Senior

Independent Non-Executive Director

Qualification: Member of the Malaysian Institute of

Accountants, Fellow Member of the Malaysian

Institute of Taxation, and Fellow Member of the

Institute of Chartered Accountants in England and

Wales (ICAEW). He holds a Bachelor Degree in

Accountancy in the United Kingdom in 1988 and

Chartered Accountancy (Institute of Chartered

Accountants in England and Wales) qualification in

1992.

Working Experience and Occupation: He started

his articleship at Garners, Chartered Accountants,

United Kingdom in 1988 until 1992. He joined Price

Waterhouse in 1992 and was promoted to the

position of Senior Consultant before he left the firm

3 years later to head the Finance Division of a

subsidiary of Arab-Malaysian Development Berhad.

Subsequently, he joined the Rashid Hussain Berhad

Group and his employment stint with the group

included a 2½ years overseas posting as the Director

and Head of Finance and Administration for the

group’s subsidiary in Indonesia. He is currently in

public practice as a Chartered Accountant and the

Managing Director of Alliance Corporate Taxation

Services Sdn. Bhd., a tax advisory and consulting

company. He was appointed as the Independent

Non-Executive Director of the Company on 22

February 2008. On 29 May 2013, he has been re-

designated as the Senior Independent Non-Executive

Director and appointed as the Chairman of the

Company. He also sits on the Board of several

private limited companies.

Other Directorship of Public Companies: None.

Details of Any Board Committee to which He

Belongs: He is a member of the Audit and the

Remuneration Committees of the Company. He is

also the Chairman of the Nomination Committee of

the Company

5

MR. LIM CHUN YOW

Age: 51

Nationality: Malaysian

Position in the Company: Managing Director

Qualification: Holds a degree in Bachelor of

Science in Business Administration from The Ohio

State University, United States of America in 1985.

Working Experience: He started his career as a

Marketing Executive with a plastic bag

manufacturing company in 1986. In 1990, he set up

the business with the two cofounders of BP Plastics

Sdn. Bhd. He was appointed as the Managing

Director and Chairman of the Company on 3

September 2004 and 23 November 2005,

respectively. He retired as Chairman of the Company

on 29 May 2013 in line with the Malaysian Code on

Corporate Governance 2012 (the “Code”)

recommendations to separate the roles of the

Chairman and Managing Director. He also sits on the

board of several private limited companies.

Other Directorship of Public Companies: None

Details of Any Board Committee to which He

Belongs: He is the Chairman of ESOS Committee of

the Company.

TAN SEE KHIM

Age: 50

Nationality: Malaysian

Position in the Company: Executive Director

Qualification: Holds a Certificate in Senior Middle

Three from Chung Hwa High School in Muar in

1982.

Working Experience: He was appointed as an

Executive Director of the Company on 3 September

2004. He is a cofounder of BP Plastics Sdn Bhd. He

was involved in the sales, trading, marketing,

distribution, resource planning and training in

consumer products between 1983 and 1990, prior to

the establishment of BP Plastics Sdn Bhd in 1991.

His experience and knowledge in sales have been

very instrumental towards the growth of the

Company. He also sits on the board of several

private limited companies.

Other Directorship of Public Companies: None

Details of Any Board Committee to which He

Belongs: He is a member of the ESOS and the Risk

Management Committees of the Company.

6

HEY SHIOW HOE

Age: 51

Nationality: Malaysian

Position in the Company: Executive Director

Qualification: Holds a degree in Bachelor of Science

in Industrial and Systems Engineering from The

Ohio State University, United States of America in

1986.

Working Experience: He was appointed as an

Executive Director of the Company on 3 September

2004. He is a cofounder of BP Plastics Sdn Bhd. He

started his career in a plastic manufacturing company

upon his graduation in 1986. He was responsible for

the strategic planning and total management of the

manufacturing operations, infrastructure upgrading

and development, technical improvement and

support to the production team ever since the

business set up of BP Plastics Sdn Bhd. He also sits

on the board of several private limited companies.

Other Directorship of Public Companies: None

Details of Any Board Committee to which He

Belongs: He is a member of the Remuneration and

the ESOS Committees of the Company. He is also

the Chairman of the Risk Management Committee of

the Company.

7

LAM JIN FATT

Age: 55

Nationality: Malaysian

Position in the Company: Independent Non-

Executive Director Qualification: Fellow Member of

the Association of Chartered Certified Accountants,

Chartered Member of the Institute of Internal

Auditors Malaysia, and Chartered Accountant of the

Malaysian Institute of Accountants. Holds a Diploma

in Accountancy from the City of London Polytechnic

in United Kingdom in 1980.

Working Experience and Occupation: Embarked on

a career as an auditor with a firm of Chartered

Accountants in London in the United Kingdom for

over 3 years. Since returning to Malaysia, has gained

over 29 years of internal audit working experience

and broad exposure in various industries covering

manufacturing, trading and retailing, life and general

insurance, property development and management,

investment banking, stock-broking, futures and

options trading, asset and wealth management, and

private equity. He was appointed as the Independent

Non- Executive Director of the Company on 29 May

2013.

Other Directorship of Public Companies: None.

Details of Any Board Committee to which He

Belongs: He is the Chairman of the Audit

Committee of the Company. He is also a member of

the Nomination and the Remuneration Committees

of the Company.

TAN MING-LI

Age: 45

Nationality: Malaysian

Position in the Company: Independent Non-

Executive Director Qualification: Graduate from

University of Melbourne, Australia with a double

degree in Law (Hons) and Science.

Working Experience and Occupation: She is

currently a partner in the legal firm of Messrs.

Cheang & Ariff and has been in active legal practice

since 1994. She specializes in the area of corporate

and securities law where she is principally involved

in advising on capital market transactions, mergers

and acquisitions, corporate restructuring as well as

corporate finance related work. She was appointed as

the Independent Non-Executive Director of the

Company on 29 May 2013.

Other Directorship of Public Companies: She is

an Independent Non-Executive Director of Tune Ins

Holdings Berhad and Tune Insurance Malaysia

Berhad.

Details of Any Board Committee to which She

Belongs: She is the Chairman of the Remuneration

Committee of the Company. She is also a member of

the Audit and the Nomination Committees of the

Company.

8

COMPANY’S RATIO

LIQUIDITY RATIO

2012 2013 COMMENT

CURRENT RATIO =

CURRENT ASSET

CURRENT LIABILITY

= RM 121,363,900

RM 31,611,255

= 3.84 x

= RM 129,623,685

RM 33,908,674

=3.82x

2012 IS BETTER THAN

2013

QUICK RATIO =

CURRENT ASSETS –

INVENTORY

CURRENT LIABILITIES

= RM 121,363,900 –

RM 47,840,910

RM 31,611,255

= 2.33 x

=RM 129,623,685 –

RM 46,204,941

RM 33,908,674

= 2.46 x

2013 IS BETTER THAN

2012

ACTIVITY RATIO

2012 2013 COMMENT

ACC. RECEIVABLE

TURNOVER =

CREDIT SALES

ACC. RECEIVABLE

= RM 220,283,820

RM 32,914,379

= 6.70 x

= RM 241,003,540

RM 33,132,241

= 7.27 x

2013 IS BETTER THAN

2012

AVERAGE

COLLECTION PERIOD

= ACC. RECEIVABLE

DAILY CREDIT SALES

= RM 32,914,379

(RM 220,283,820/365)

=55 DAYS

= RM 33,132,241

( RM 241,003,540/365)

=50 DAYS

2013 IS BETTER THAN

2012

INVENTORY

TURNOVER =

COGS

INVENTORY

= RM 195,076,040

RM 47,840,910

= 4.08 x

= RM 213,003,540

RM 67,978,034

= 3.55 x

2012 IS BETTER THAN

2013

9

FIXED ASSET

TURNOVER =

SALES

NET FIXED ASSET

= RM 220,283,820

RM 71,681,067

= 3.07 x

= RM 241,003,540

RM 67,978,034

= 3.55 x

2013 IS BETTER THAN

2012

TOTAL ASSET

TURNOVER =

SALES

TOTAL ASSET

=RM 220,283,820

RM 193,044,967

= 1.14 x

= RM 241,003,540

RM 197,601,719

= 1.22 x

2013 IS BETTER THAN

2012

LAVERAGE RATIO

2012 2013 COMMENT

DEBT RATIO =

TOTAL LIABILITIES × 100 %

TOTAL ASSET

= RM 42,496,005 × 100%

RM 193,044,967

= 22.01 %

= RM 44,030,674 × 100%

RM 197,601,719

= 22.28 %

2012 IS BETTER

THAN 2013

DEBT ON EQUITY =

TOTAL LIABILITIES

SHAREHOLDER EQUITY

= RM 42,496,005

RM 150,548,962

= 0.28 x

=RM 44,030,674

RM 153,571,045

= 0.29 x

2012 IS BETTER

THAN 2013

EQUITY MULTIPLIER =

TOTAL ASSET

SHAREHOLDER EQUITY

= RM193,044,967

RM 150,548,962

=1.28 x

=RM 197,601,719

RM 153,571,045

= 1.29 x

2013 IS BETTER

THAN 2012

INTEREST EARNED RATIO

= EBIT

INTEREST

=RM 12,971,947

RM 1,332,478

= 9.74 x

=RM 13,549,716

RM 1,193,244

=11.36 x

2013 IS BETTER

THAN 2012

10

PROFIT RATIO

2012 2013 COMMENT

GROSS PROFIT MARGIN

= SALES-COGS

SALES

RM 220,283,820-

RM 195,076,040 x100%

RM 220,283,820

=11.44%

RM 241,003,540-

RM 213,291,876 x100%

RM 241,003,540

=11.50 %

2013 IS BETTER

THAN 2012

OPERATIONAL PROFIT

MARGIN

= EBIT x 100%

SALES

RM 12,971,947 x100%

RM220,283,820

=5.89%

RM 13,549,716 x100%

RM 241,003,540

=5.62%

2012 IS BETTER

THAN 2013

NET PROFIT MARGIN

= NET PROFIT x 100%

SALES

RM 9,664,174 x100%

RM 193,044,967

=5.00%

RM 10,100,838 x100%

RM 241,003,540

=4.19%

2012 IS BETTER

THAN 2013

RETURN ON INVESTMENT @

RETURN ON TOTAL ASSET

= NET PROFIT x 100%

TOTAL ASSET

RM 9,664,174 x100%

RM 193,044,967

=5.0%

RM 10,100,838 x100%

RM 197,601,719

=5.11%

2013 IS BETTER

THAN 2012

RETURN ON EQUITY

= NET PROFIT x 100%

SHAREHOLDER EQUITY

RM 9,664,174 x100%

RM 150,548,962

=6.42%

RM 10,100,838 x 100%

RM 153,571,045

=6.58%

2013 IS BETTER

THAN 2012

EARNING PER SHARE

= NET PROFIT

NUMBER OF SHARE

RM 5.03 RM 5.61 2013 IS BETTER

THAN 2012

11

CONTENTS

NO. TITLE. PAGE.

1 ACKNOWLEDGE (COMPANY’S PROFILE) i

2 CONTENTS ii

3 COMPANY’S CORE BUSSINESS 2

4 COMPANY’S MISSION AND VISION 3

5 COMPANY’S BOARD OF DIRECTOR 4 - 8

6 COMPANY’S RATIO 9 - 11

7 COMMENT ON EACH RATIO 9 – 11

8 APPENDIX

ii