evaluation of financial performance

MAH SING GROUP BERHAD

HISTORY

Since our inception in 1965, Mah Sing Group Berhad has achieved recognition as an

innovative developer of niche products and trend-setting townships.

Set in prime locations, our developments in Greater KL & Klang Valley, Penang,

Johor Bahru and KK, Sabah have cemented our position as Malaysia’s premier lifestyle

developer. Our projects are a showcase of contemporary lifestyle statements; grand

entrances, lush landscaping, and practical yet functional homes with quality finishes within a

guarded and gated environment are all hallmarks of Mah Sing’s developments.

The Group has proven its versatility with a diverse range of projects, from medium to

high-end landed residential properties to Grade A office buildings, SoHo and industrial

projects. We also have a strong commercial developments being amongst the pioneers of

en-bloc sales of Grade A buildings and corporate offices in Kuala Lumpur Malaysia.

Benchmarking ourselves globally, we aim to become a world-class developer and in

our quest for excellence, we remain committed to our corporate philosophy of maximizing

shareholders value by delivering quality driven products and excellent services to our

customers.

2

GROUP VALUES

We provide our CUSTOMERS with timely delivery of quality properties. We are

uncompromising in our commitment towards total customer satisfaction.

We develop our PEOPLE and provide a professional, conducive working environment. Our

inspired team is formed on a foundation of experience and dedication.

We continuously enhance and protect SHAREHOLDER value with well-planned corporate

strategies as thanks for their trust and confidence.

Integrating our SOCIAL RESPONSIBILITIES into the way we manage our business and

operations, we try to build better COMMUNITIES whilst preserving the ENVIRONMENT.

3

MULPHA LAND BERHAD

4

PROFILE

Mulpha Land Berhad is listed on the Main Market of Bursa Malaysia and offers mixed

property development services & investment across the region. The company’s focus is on

real estate and property related services, with its primary operations and investments

centered in Malaysia.

Mulpha Land Berhad's real estate development and investments in Malaysia, located

in several strategic development areas include Raintree Residence, 6 Kenny Hills, Enclave

Bangsar and Tropicana in the Klang Valley. In the Northern Corridor Economic Region

(NCER), Mulpha’s prominent projects namely Taman Bukit Punchor, Bukit Punchor

Industrial Park and Taman Seri Bayu in Penang coupled with the mixed development

township, Taman Desa Aman near Kulim High Tech Park, Kedah, further enhance Mulpha’s

property portfolio.

Moving forward, Mulpha Land is set to expand and embark on the hospitality &

lifestyle division aside its existing core business - property development and property

investment & management. With the presence of hospitality & lifestyle, Mulpha pursues to

enrich and further heighten its portfolio as an emerging boutique developer in Malaysia.

5

VISION AND MISSION

VISION

Our vision serves as the framework for our journey and guides every aspect of our

business by describing what we need to accomplish in order to continue achieving

sustainability & quality growth.

People: Be a great place to work at, where people are inspired to be the best they

can be.

Portfolio: Bring to the customers a portfolio of quality & innovative property brands

that anticipate and satisfy their desires and needs.

Partners: Nurture a winning network of customers and suppliers, and together we

create mutual, enduring value.

Profit: Maximize long-term return for shareowners while being mindful of our overall

responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

6

MISSION

Our Journey starts with our mission, which is enduring. It declares our purpose as

a company and serves as the standard against which we weigh our actions and

decisions.

To deliver quality and innovative products and services.

Be the brand-inspire creativity, and fun in building.

We don't only craft buildings, we craft experiences as well.

7

CORPORATE INFORMATION

BOARD OF DIRECTORS

Non-Independent Non Executive

Chairman

Lee Eng Leong

Group Managing Director

Ghazie Yeoh Bin Abdullah

Independent Non-Executive Director

Lim Kok Beng

Lt. Col (R) Abdul Jalil Bin Abdullah

Henry Choo Hon Fai

Non-Independent Non-executive

Director

Datuk Low Keng Seong

Audit Committee

Lim Kok Beng (Chairman)


Henry Choo Hon Fai

Nomition Committee

Lim Kok Beng (Chairman)


Lee Eng Leong

Remuneration Committee


(Chairman)

Lim Kok Beng

Lee Eng Leong

Company Secretary

Lee Suan Choo (MAICSA 7017562)

Registered Office

PH2, Menara Mudajaya

No. 12A, Jalan PJU 7/3

Mutiara Damansara 47810

Petaling Jaya Selangor Darul Ehsan

Malaysia

Tel No : (603) 7718 6288

Fax No : (603) 7718 636

SHARE REGISTRAR

Symphony Share Registrars Sdn Bhd

(378993-D)

Level 6, Symphony House

Pusat Dagangan Dana 1

Jalan PJU 1A/46

47301 Petaling Jaya

Selangor Darul Ehsan

Malaysia

Tel No : (603) 7841 8000

Fax No : (603) 7841 8008

AUDITORS

KPMG

Chartered Accountants

PRINCIPAL BANKERS

United Overseas Bank (Malaysia) Bhd

AmBank (M) Berhad

Hong Leong Bank Berhad

Bank Islam Malaysia Berhad

STOCK EXCHANGE LISTING

Main Market of Bursa Malaysia

Securities Berhad

8

Stock Name : MULPHAL

Stock Code : 7889

WEBSITE ADDRESS

www.mulphaland.com.my

INVESTOR RELATIONS

Email : [email protected]

Tel No : (603) 7718 6368 /

(603) 7718 6266

9

PROFILE BOARD OF DIRECTOR

Lee Eng Leong

Non-Independent Non-Executive Chairman Malaysian

Mr Lee, aged 46, is a member of the Malaysian Institute of Certified Public Accountants and

Malaysian Institute of Accountants. He was formerly the Group Chief Financial Officer of

Alliance Bank Malaysia Berhad from 4 January 2010 to 2 October 2012. Prior to joining

Alliance Bank Malaysia Berhad, he was the Chief Financial Officer of a major global

company where he oversaw their finance operations covering the Asia region. For over 20

years, he has held various leadership roles in management positions within both local

companies and multi-national companies in Asia. Mr Lee was appointed to the Board on 31

January 2013 and he also serves as a member of the Nomination and Remuneration

Committees. Mr Lee has no directorships in other public companies in Malaysia apart from

Mudajaya Group Berhad.

10

Ghazie Yeoh Bin Abdullah

Group Managing Director Malaysian

En Ghazie, aged 37, holds a Bachelor of Science Degree (Business Information

Technology) from Monash University in Melbourne, Australia. Armed with 14 years of

experience in the property industry, En Ghazie also brings with him vast knowledge and

understanding of the construction and building materials requirements through his years of

exposure in Malaysia, Saudi Arabia and Qatar. En Ghazie was appointed to the Board as

Executive Director on 22 May 2012 and was later appointed as the Group Managing Director

on 19 August 2013. En Ghazie has no directorships in other public companies.

11

Lim Kok Beng

Independent Non-Executive Director Malaysian

Mr Lim, aged 67, is a Fellow of the Institute of Chartered Accountants in England & Wales

and a member of the Malaysian Institute of Certified Public Accountants and Malaysian

Institute of Accountants. He has broad experience gained internationally in the fields of

investment banking and corporate planning, and has held Chief Executive positions in

industrial, trading, development and information technology companies. He is a Senior

Partner in a Chartered Accountants firm. Mr Lim was appointed to the Board on 28 August

2001 and he also serves as Chairman of the Audit and Nomination Committees as well as a

member of the Remuneration Committee. Mr Lim has no directorships in other

public companies.

12



Lt. Col Jalil, aged 67, obtained a Certificate in Basic Accounting course in Winchester,

United Kingdom and a Certificate in Personnel Management from Institute Tadbiran Awam

Negara, both in 1976. He graduated with a Diploma in Automatic Data Processing from US

Army Computer Management School in Fort Benjamin, USA in 1982. He retired from the

Malaysian Armed Forces in 1996 after serving for nearly 30 years. Lt. Col Jalil was

appointed to the Board on 5 March 1997 and he also serves as Chairman of the

Remuneration Committee as well as a member of the Audit and Nomination Committees.

Lt. Col Jalil has no directorships in other public companies.

13

Henry Choo Hon Fai


Mr Henry Choo, aged 41, graduated with a Bachelor of Science Degree (Computer Science)

from La Trobe University in Melbourne, Australia. He started his career in 1994 as an Equity

Research Analyst in Dao Heng Securities Ltd, Hong Kong. From 1996 to 2000, he was the

Director of Business Development at Fok Lee Sdn Bhd, a specialist contractor. From 2000 to

2010, he was involved in Private Equity and Venture Capital, first with Intelligent Capital Sdn.

Bhd. from 2000 to 2003, Artisan Encipta (M) Sdn Bhd from 2003 to 2004 and was the Chief

Operating Officer of Atlantic Quantum Sdn. Bhd. From 2006 to 2010. He was the Executive

Assistant to the Chairman of Silterra Malaysia Sdn. Bhd. from 2004 to 2006. Mr Henry Choo

was appointed to the Board on 13 September 2007 and he also serves as a member of the

Audit Committee. Mr Henry Choo has no directorships in other public companies in Malaysia

apart from Mudajaya Group Berhad.

14

Dato’ Low Keng Siong

Non-Independent Non-Executive Director Malaysian

Dato’ Low, aged 40, graduated with a Bachelor of Laws (Hons) Degree from King’s College

London. He was called to the Bar of England & Wales and subsequently called to the

Malaysian Bar. A lawyer by profession, Dato’ Low has been a Partner with a leading law firm

in Kuala Lumpur since 2003, with substantial experience in the practice areas of corporate

restructuring and capital markets. Dato’ Low was appointed to the Board on 4 September

2013.Dato’ Low has no directorships in other public companies.

Notes:

1. Family Relationship with Director and/or Major Shareholder

None of the Directors has any family relationship with any director and/or major shareholder

of the Company.

2. Conflict of Interest

None of the Directors has any conflict of interest with the Company.

3. Conviction for Offences

None of the Directors has any conviction for offences within the past 10 years other than

traffic offences, if any.

4. Attendance of Board Meetings

The attendance of the Directors at Board Meetings held during the financial year ended 31

December 2013 is disclosed in the Statement on Corporate Governance.

15

16

FORMULA AND DEFINITION

LIQUIDITY RATIO

A CLASS OF FINANCIAL METRICS THAT IS USED TO DETERMINE A COMPANY’S ABILITY TO PAY OF ITS SHORT TERMS DEBTS OBLIGATION. GENERALLY, THE HIGHER THE VALUE OF THE RATIO, THE

LARGER THE MARGIN OF SAFETY THAT THE COMPANY POSSESSES TO COVER SHORT TERM DEBTS.

TWO COMMONLY USED LIQUIDITY RATIO :

CURRENT RATIO = CURRENT ASSET CURRENT LIABILITY

QUICK RATIO / ACID TEST RATIO

= CURRENT ASSET-INVENTORY-PREPAID EXPENSES

CURRENT LIABILITY

17

EFFICIENCY / ACTIVITY RATIO ACCOUNTING RATION RATIO THAT MEASURE A FIRM’S ABILITY TO CONVERT DIFFEREENT

ACCOUNTS WITHIN ITS BALANCE SHEETS TO CASH OR SALES. ACTIVITY RATIO USED TO MEASURE THE RELATIVE EFFICIENCY OF A FIRM BASED ON ITS USED OF TIS ASSETS, LEVERAGE

OR OTHER SUCH BALANCE SHEETS ITEM. THIS RATIO ARE IMPORTANT IN DETERMINING A COMPANY’S MANAGEMENT IS DOING A GOOD ENOUGH JOB OF GENERATING REVENUE, CASH,

ETC FROM ITS RESOURCES.

AFFICIENCY / ACTIVITY RATIO COMPRISED OF :

INVENTORY TURNOVER (ITO)

= COST OF GOODS SOLD (COGS)

INVENTORY

AVERAGE COLLECTION PERIOD (ACP)

= ACCOUNT RECEIVABLES

SALES/360

FIXED ASSET TURNOVER (FATO)

= SALES

NET FIXED ASSET

TOTAL ASSET TURNOVER (TATO)

= SALES

TOTAL ASSET

LEVERAGE RATIOS

DEBT TO EQUITY RATIO (DER)

= TOTAL DEBT (CL+LTD) X 100

TOTA DEBT TO EQUITY RATIO (DER)

18

COMPANIES RELY ON A MIXTURE OF OWNERS’ EQUITY AND DEBT TO FINANCE THEIR OPERATIONS. A LEVERAGE RATIO IS ANY ONE OF SEVERAL FINANCIAL

MEASUREMENTS THAT LOOK AT HOW MUCH CAPITAL COES IN THE FORM OF DEBT (LOANS), OR ASSESSES THE ABILITY OF A COMPANY TO MEET FINANCIAL

OBLIGATIONS.

DEBT RATIO (DR)


TOTAL ASSET

DEBT TO EQUITY RATIO (DER)


TOTAL LIABILITY

TIMES INTEREST EARNED (TIE)

= OPERATING INCOME / EARNING BEFORE INTEREST

TAXES (EBIT)

INTEREST

19

PROFITIBALITY RATIOS

A CLASS OF FINANCIAL METRICS THAT ARE USED TO ASSESS A BUSINESS’S ABILITY TO GENERATE

EARNING AS COMPARED TO ITS EXPENSES AND OTHER RELEVANT COSTS INCURRED DURING A

SPECIFIC PERIOD OF TIME. FOR MOST OF THESE RATIOS, HIGER VALUE RELATIVE TO A

COMPETITOR’S RATIO OR THE SAME RATIO FROM A PREVIOUS PERIOD IS INDICATIVE THAT THE

COMPANY IS DOING WELL.

20

GROSS PROFIT MARGIN (GPM)

= SALES – COGS X 100

SALES

OPERATING PROFIT MARGIN (OPM)

= EARNING BEFORE INTEREST & TAXES (EBIT) X 100

SALES

NET PROFIT MARGIN (NPM)

= EARNING AFTER TAX (EAT) X 100

SALES

RETURN ON ASSET / INVESTMENT (ROA/ROI)

= EARNING AFTER TAX (EAT) X 100

TOTAL ASSET

RETURN ON EQUITY (ROE)

= EARNING AFTER TAX (EAT) X 100 TOTAL COOMON EQUITY

(COMMON STOCK + PAID IN CAPITAL + RETAINED EARNING )

Calculation

1) LIQUIDITY RATIO

1. CURRENT RATIO = CURRENT ASSET

CURRENT LIABILITY

MAH SING GROUP BERHAD MULPHA LAND BERHAD

CURRENT RATIO = 3,745,449

1,476,393

=2.5

CURRENT RATIO =311,809

89,476

=3.48

2. QUICK RATIO = CURRENT ASSET-INVENTORY-PREPAID EXPENSE

CURRENT LIABILITY


QUICK RATIO = 3,745,449-76,225

1,476,393

=2.5

QUICK RATIO = 311,809-260,208

89,476

=0.58

2) ASSET MANAGEMENT RATIOS

3. INVENTORY TURNOVER = COST OF GOOD SOLD (COGS)

INVENTORY


INVENTORY TURNOVER = 1,396,936

76,225

=18.3

INVENTORY TURNOVER = 29,248

260,208

=0.11

21

4. AVERAGE COLLECTION PERIOD = ACC.RECEIVABLES

SALES/360


AVERAGE COLLECTION =581,748

PERIOD 1,396,936/360

=149.92

AVERAGE COLLECTION =11,357

PERIOD 47,143/360

=86.73

5. FIXED ASSET TURNOVER = SALES

NET FIXED ASSET

MUL

6. TOTAL ASSET TURNOVER = SALES

TOTAL ASSET


TOTAL ASSET =2,005,596

TURNOVER 4,583,751

=0.4

TOTAL ASSET=47,143

TURNOVER 370,282

=0.13

22


FIXED ASSET =2,005,596

TURNOVER (114,146+543,794)

= 3.05

FIXED ASSET = 47,143

TURNOVER 356

=132.42

3) LEVERAGE RATIO / DEBT RATIO

7. DEBT RATIO = TOTAL DEBT (CL+LT DEBT) X 100

TOTAL ASSET


DEBT= (1,476,393+1,144,079) X 100

RATIO 4,583,751

= 57.2

DEBT =(89,476+141,214)X100

RATIO 370,282

=62.30

8. DEBT TO EQUITY RATIO = TOTAL DEBT (CL+LTD) X 100

TOTAL EQUITY


DEBT TO= (1,476,393+1,144,079)X100

EQUITY 1,963,279

RATIO

=133.5

DEBT TO =(89,476+141,214)X100

EQUITY 139,592

RATIO

=165.26

9. TIMES INTEREST EARNED = OPERATING INCOME / EARNING BEFORE

INTEREST & TAXES (EBIT)

INTEREST


TIMES INTEREST =368,748

EARNED 3,257

=113.22

TIMES INTEREST =16,297

EARNED 4,518

=3.61

24

4) PROFITABILITY RATIOS

10. OPERATING PROFIT MARGIN = EARNING BEFORE INTEREST & TAXES

(EBIT) X 100

SALES


OPERATING = 368,748X100

PROFIT 2,005,596

MARGIN

=18.39

OPERATING =16,297X100

PROFIT 47,143

MARGIN

=34.57

11. NET PROFIT MARGIN = EARNING AFTER TAX (EAT) X 100

SALES


NET PROFIT =279,261X100

MARGIN 2,005,596

=13.92

NET PROFIT =8,880X100

MARGIN 47,143

=18.84

12. RETURN ON ASSET / INVESTMENT = EARNING AFTER TAX (EAT) X 100

TOTAL ASSET


RETURN ON =279,261X100

ASSET 4,583,751

=6.09


ASSET 370,282

=2.40

13. RETURN ON EQUITY = EARNING AFTER TAX (EAT) X 100

TOTAL COMMON EQUITY ( COMMON STOCK+PAID

IN CAPITAL+RETAINED EARNING)



EQUITY 1,963,279

=14.22


EQUITY 139,592

=6.36

25

CHART

1) LIQUIDITY RATIO

MAH SING GROUP BERHAD MULPHA LAND BERHAD0

0.5

1

1.5

2

2.5

3

3.5

4

2.5

3.48

CURRENT RATIO

Current Ratio

CR for the Mah Sing Group Berhad is 2.5x which is lower compared to Mulpha Land Berhad

which is 3.48x.

This indicates that the company is less able to pay their short term obligation when its due

compared to Mulpha Land Berhad.

27

2.5

0.58

ACID RATIO

MAHSING GROUP BERHADMULPHA LAND BERHAD

Quick Ratio

QR for the Mah Sing Group is 2.5x which is said to be more liquid compared to the Mulpha

Land Industry which is 0.58x.

This indicates that the Mah Sing Group is less able to pay their current liabilities when its

due.

Causes and suggestion : Mah Sing Group have a lower ratio in current ratio compared to

Mulpha Land Berhad because the group holding too much inventory and poor cash

management. They have to make an improvement on their collection system. But in Quick

Ratio, Mah Sing Group have a higher ratio depends on Mulpha Land Berhad because they

have a better cash management and they should maintain paying current liability by paying

existing creditor on time.

28

2) ASSET MANAGEMENT RATIO


MULPHA LAND BERHAD

02468

101214161820

18.3

0.11

INVENTORY TURNOVER

INVENTORY TURNOVER

Inventory Turnover (ITO)

ITO for the Mah Sing Group is 18.3x which is higher as compared to the Mulpha Land

Berhad which is 0.11x.

This indicates that Mah Sing Group is effectively managing its inventories and does not have

overstocking

Causes and suggestion : Mah Sing Group have a higher ratio because they doesn’t have

holding too much inventory or overstocking compared to Mulpha Land Berhad. So as

suggestion, they need to maintain their an effectively inventory control system.

29


20

40

60

80

100

120

140

160149.92

86.73

AVERAGE COLLECTION PERIOD

Average Collection Period (ACP)

ACP for the Mah Sing Group is 14.92 days which is longer as compared to the Mulpha Land

Berhad 86.73

This is indicates that the Mah Sing Group’s customers taking a longer time to settle their

debts.

Causes and Suggestion : Mah Sing Group have lower time compared to Mulpha Land because they got poor screening when accept new customers on a credit basis. They need tighter collection policy. And prepare the ageing of its debtors account.

30

3.05

132.42

FIXED ASSET TURNOVER

MAH SING GROUP BERHADMULPHA LAND BERHAD

Fixed Asset Turnover (FATO)

FATO the Mah Sing Group is 3.05x which is lower as compared to the Mulpha Land Berhad

which is 132.42

This indicates that the Mah Sing Group is ineffectively manage their fixed asset in generating

sales.

Causes and Suggestion : For FATO Mah Sing Group have a lower ratio compared to Mulpha

Land Berhad because they have lower asset turnover ratio indicates in efficient use of this

asset to produce sales.

31


0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4 0.4

0.13

TOTAL ASSET TURNOVER

TOTAL ASSET TURNOVER

Total Asset Turnover (TATO)

TATO for the Mah Sing Group is 0.4x which is lower as compared to the Mulpha Land

Berhad which 0.13

This indicates that the Mah Sing Group ineffectively manage their total asset in generating

sales.

For TATO Mah Sing Group have a lower ratio compared to Mulpha Land Berhad because

they have too much investment in non current asset and currents asset and also they low on

sales. So as suggestion, they need to increase its production so the asset are used more

efficiently.

32

3) LEVERAGE RATIO/DEBT RATIO


MULPHA LAND BERHAD

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

57.262.3

DEBT RATIO

DEBT RATIO

Debt Ratio (DR)

DR for the Mah Sing Group is 57.2% which lower as compared to the Mulpha Land Berhad

which is 62.3%

This indicates that Mah Sing Group borrowing level is low than Mulpha Land Berhad

33

MAH SING GROUP BERHAD MULPHA LAND

BERHAD

020406080

100120140160180

133.5165.26

DEBT TO EQUITY RATIO

DEBT TO EQUITY RATIO

Debt To Equity Ratio (DER)

DER for the Mah Sing Group is 133.5% which is lower compared to the Mulpha Land Berhad

which 165.26

The indicates that the Mah Sing Group lower borrowing as the sources of financing.

Causes and Suggestion : Mah Sing Group have a lower ratio compared to Mulpa Land

Berhad n Debt Ratio because the company borrowing more than its necessary. The firm

should have an optimum mixture of sources of financing.

34

113.22

3.61

TIMES INTEREST EARNED


Times Interest Earned (TIE)

TIE for the Mah Sing Group 113.22x which is higher as compared to the Mulpha Land

Berhad which is 3.61x

The indicates that Mah Sing Group is being able to pay its annual interest rates compared to

Mulpha Land Berhad

Causes and suggestion : Mah Sing Group have a higher ratio compared to Mulpha Land

Berhad because they have high dividend payout ratio. As suggestion they need to review its

dividend policy.

35

4) PROFITIBILITY RATIO


5

10

15

20

25

30

35

40

18.39

34.57

OPERATING PROFIT MARGIN

OPERATING PROFIT MARGIN

Operating Profit Margin

OPM for the Mah Sing Group is 18.39% which is lower as compared to the Mulpha Land

Berhad which is 34.57%

This indicates that Mah Sing Group is ineffectively managed its sales level & generates

higher gross profit level for every dollar of sales made.

Causes and Suggestion : Mah Sing have a lower ratio then Mulpha Land Berhad because

they have a lower profit due to pricing of the good sold. They need to review the selling

price.

36


MULPHA LAND BERHAD

0%10%

20%30%

40%50%

60%70%

80%90%

100%

13.92

18.84

NET PROFIT MARGIN

NET PROFIT MARGIN

Net Profit Margin

NPM for the Mah Sing Group is 13.92% which is lower as compared to the Mulpha Land


This indicates that the company generate less profit from the amount of sales generated.

Causes and suggestion : Mah Sing Group have a lower ratio compared to Mulpha Land

Berhad because Mulpha Land Berhad have a higher operating expenses. They need to

reduce operating expenses.

37


1

2

3

4

5

6

7

6.09

2.4

RETURN ON ASSET

RETURN ON ASSET

Return On Asset

ROA for the Mah Sing Group is 6.09% which is higher as compared to the Mulpha Land

Berhad which is 2.40

This indicates that Mah Sing Group generating more profit for every dollar invested in total

assets.

Causes and suggestion : Mah Sing Group have a higher ratio compared to Mulpha Land

Berhad because Mulpha Land Berhad not efficiency in its asset utilization and then they

need to be more efficiency in its asset utilization.

38

14.22

6.36

RETURN ON EQUITY


Return On Equity

ROE for the Mah Sing Group is 14.22% which is higher as compared to the Mulpha Land


This indicates that Mah Sing Group generating more profit for every dollar invested in equity

by its shareholder.

Causes and suggestion : Mah Sing Group have a higher ratio because they have a higher

growth firm. They need to maintain their firm.

39

CONCLUSION

There are four of financial ratio analysis that are liquidity ratios, leverage ratios, asset

management ratios and profitibality .

Firstly,according to liquidity ratios, current ratio for company Mah Sing Group Berhad 2013

which is 2.5 times is lower than Mulpha Land Berhad 2013 which is 3.48 times. This

indicates that the company is less able to pay their short term obligation when its due

compared to Mulpha Land Berhad. Quick ratio for the Mah Sing Group is 2.5 times which is

said to be more liquid compared to the Mulpha Land Berhad. This indicates that the Mah

Sing Group is less able to pay their current liabilities when its due. Mah Sing Group have a

lower ratio in current ratio compared to Mulpha Land Berhad because the group holding too

much inventory and poor cash management. They have to make an improvement on their

collection system. But in Quick Ratio, Mah Sing Group have a higher ratio depends on

Mulpha Land Berhad because they have a better cash management and they should

maintain paying current liability by paying existing creditor on time.

For the asset management ratio, inventory turnover for the Mah Sing Group is 18.3 times

which is higher as compared to the industry average. This indicates that the company is

effectively managing its inventories and does not have overstocking. Mah Sing Group have a

higher ratio because they doesn’t have holding too much inventory or overstocking

compared to Mulpha Land Berhad. So as suggestion, they need to maintain their an

effectively inventory control system. Average collection period for the Mah Sing Group is

14.92 days which is longer as compared to the Mulpha Land Berhad 86.73 days. This is

indicates that the Mah Sing Group’s customers taking a longer time to settle their debts. Mah

Sing Group have lower time compared to Mulpha Land because they got poor screening

when accept new customers on a credit basis. They need tighter collection policy. And

prepare the ageing of its debtors account. Fixed asset turnover the Mah Sing Group is 3.05

times which is lower as compared to the Mulpha Land Berhad which is 132.42 times. This

indicates that the Mah Sing Group is ineffectively manage their fixed asset in generating

sales. Mah Sing Group have a lower ratio compared to Mulpha Land Berhad because they

have lower asset turnover ratio indicates in efficient use of this asset to produce sales. Total

asset turnover for the Mah Sing Group is 0.4 times which is lower as compared to the

Mulpha Land Berhad which 0.13 times. This indicates that the Mah Sing Group ineffectively

manage their total asset in generating sales. Mah Sing Group have a lower ratio compared

to Mulpha Land Berhad because they have too much investment in non current asset and

currents asset and also they low on sales. So as suggestion, they need to increase its

production so the asset are used more efficiently.

40

Thirdly is leverage ratios or debt ratios, debt ratio for the Mah Sing Group is 57.2%

which lower as compared to the Mulpha Land Berhad which is 62.3%.This indicates that

Mah Sing Group borrowing level is low than Mulpha Land Berhad. Debt ratio for the Mah

Sing Group is 133.5% which is lower compared to the Mulpha Land Berhad which 165.26%.

The indicates that the Mah Sing Group lower borrowing as the sources of financing. Mah

Sing Group have a lower ratio compared to Mulpa Land Berhad n Debt Ratio because the

company borrowing more than its necessary. The firm should have an optimum mixture of

sources of financing. Time interest earned for the Mah Sing Group 113.22 times which is

higher as compared to the Mulpha Land Berhad which is 3.61times. The indicates that Mah

Sing Group is being able to pay its annual interest rates compared to Mulpha Land Berhad.

Mah Sing Group have a higher ratio compared to Mulpha Land Berhad because they have

high dividend payout ratio. As suggestion they need to review its dividend policy.

Next is profitability ratios, operating profit margin for the Mah Sing Group is 18.39%

which is lower as compared to the Mulpha Land Berhad which is 34.57%. This indicates that

Mah Sing Group is ineffectively managed its sales level & generates higher gross profit level

for every dollar of sales made. Mah Sing have a lower ratio then Mulpha Land Berhad

because they have a lower profit due to pricing of the good sold. They need to review the

selling price. Net profit for the Mah Sing Berhad is 13.92% which is lower as compared to the

Mulpha Land Berhad which is 18.64%. This indicates that the company generate less profit

from the amount of sales generated. Mah Sing Group have a lower ratio compared to

Mulpha Land Berhad because Mulpha Land Berhad have a higher operating expenses. They

need to reduce operating expenses. Return on assets for the Mah Sing Group is 6.09%

which is higher as compared to the Mulpha Land Berhad which is 2.40%. This indicates that

Mah Sing Group generating more profit for every dollar invested in total assets. Mah Sing

Group have a higher ratio compared to Mulpha Land Berhad because Mulpha Land Berhad

not efficiency in its asset utilization and then they need to be more efficiency in its asset

utilization. Return on equity for the Mah Sing Group is 14.22% which is higher as compared

to the Mulpha Land Berhad which is 6.36%. This indicates that Mah Sing Group generating

more profit for every dollar invested in equity by its shareholder. Mah Sing Group have a

higher ratio because they have a higher growth firm. They need to maintain their firm.

So for th conclusion is we’ll going to choose Mah Sing Group Berhad because have a

lower ratio in current ratio compared to Mulpha Land Berhad because the group holding too

much inventory and better cash management.

41

REFERENCE

1. http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-

profile.html?stock_code=8893

2. http://www.mahsing.com.my/topic/About/the-group

3. https://www.google.com.my/url?

sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CBwQFjAA&url=

http%3A%2F%2Fwww.mulphaland.com.my%2F&ei=A8kQVZSlEsX-

8QXo5oKYBg&usg=AFQjCNFDu4HcG7KutN8mDumSi9H8AQBICA

42

https://www.google.com.my/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CBwQFjAA&url=http%3A%2F%2Fwww.mulphaland.com.my%2F&ei=A8kQVZSlEsX-8QXo5oKYBg&usg=AFQjCNFDu4HcG7KutN8mDumSi9H8AQBICA



http://www.mahsing.com.my/topic/About/the-group

http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-profile.html?stock_code=8893

http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-profile.html?stock_code=8893

evaluation of financial performance

Documents

industrial projects

property related services

mulphas property portfolio

mah sing group berhad

mixed development township

property investment

quality finishes

group values