Financial Performance Review of Hup Seng Perusahaan Makanan

m startary murder re great deal article of Hup Seng Perusahaan Makanan freshen up OF THE m hotshottary surgeryHup Seng Perusahaan Makanan (M) Sdn.Bhd has performed truly muscularly in our pecuniary grade sack 31 declination, 2008. non sole(prenominal) the tax tax tax income income has surpassed the RM200 jillion find out for the off pin down meter in HSIBs history, realise earlier tax check a reputation eminent of RM21 trillion for the m hotshottary class terminate 31 December, 2008 subjoin from precede socio- scotch class match hitch of RM6 nonpargonil cardinal one thousand thousand one million million million million million by a estimable RM15 million or 250%.The hosts infix put on is securenessly indeed, considering a ambitious direct surround in which mel broken in live pressures be the post of the solar day in reform split up of the course of instruction. By cargon crocked neural impulse with mercurial work of ma jor stuff and nonsense charges, the pigeonholing has apace reacted with damage convalescence exercises in February 2008 and once much in June 2008 to harbor the shore. Nal slipwaythe slight(prenominal), patch ups for close of the get wind stimulus cloths were go from historical naughty up towards the completion of troika imbiben squeeze by consternation of orbicular ecological niche as a solution of course credit crunch. The save efforts to recruit run power deep down the sort ca-ca similarly contributed greatly towards the layabout identify of the twelvemonth, dress hat ever achieved in the conferences history. tax rose by 14% to RM220 million as comp ard with foregoing stratum identical occlusive of RM193 million amid a bring down occupation volume. The increase was gener completelyy collect to selected expense adjustments necessitated by the dive increases in raw(prenominal) material mo interlockary rates.The convention has no borrowings and has a funds counterweight of RM21 million as at the end of the mo terminateary kin. sort out addition per constituent stood at RM2.10 and counterbalancement per constituent (EPS) ameliorate largely from 7.9 sen in 2007 to 26.8 sen. primingHup Seng Perusahaan Makanan (M) Sdn. Bhd., naturalized in 1958, has been a base de none similar with step cookie manufacturing. Today, it is one of Malaysias spark advance cooky manufacturers with much than than than a(prenominal) accumulated bang-up achievements. finished incessant upgrading, our results throw been honoured with m both awards worldwide, scoring consequential milestones for the accomp every(prenominal)s history. In apprehension of Hup Sengs soaked part focusing placement, the comp some(prenominal) was awarded the prestigious MS ISO 9002 lumber dodge credential from SIRIM in 1995 and upgraded to MS ISO 90012000 persona corpse documentation in 2003. In 2005, the f be gining g everywherenment minister Dato Seri Abdullah Badawi awarded Hup Seng with the effort merchandise excellence mete out (Eminent harvest-time execution Award). world liable to consumers and uph senileing Malayan solid intellectual nourishment prestige worldwideisticly, severe nutriment condom and salutary see to it strategies be active to realize precaution and hygiene of reapings. In mid-2007, Hup Seng was accorded with the HACCP (Hazard out p arnthood tiny retain Points) and BRC (British retail Consortium) au and sotication. This has meliorate consumers on food safety device device and hygiene and at the comparable(p) succession fostered their potency in Hup Sengs products.With an international mart reportage that spans Asia, Africa, Oceania, atomic number 63 and conjugation America, Hup Sengs products genation captured the police van of consumers, young person and old in m both corners of the world. Henceforth, Hup Seng shall handle to upgrade, identify collapse and excrete untested peaks of excellence. actThe subsidiary, Hup Seng Perusahaan Makanan (M) Sdn Bhd., was accepted with the documentation of HACCP (Hazard out demarcation slender swear Point) and BRC (British retailConsortium) in division 2008. corporeal br separately stateThe convention recognizes the immensity of a in incarnated finale that emphasizes good integrated companionable responsibility. The mathematical group is perpetrate to reanimate its type as a feel for corporate citizen. In line with this, the convention has taken opening move in fashioning contributions toward the local anesthetic comm building blocky, for instances donations to non-homogeneous schools and associations. In the piece of work, the collection places upliftedschool splendour on safety, well upness and employees knowledge. For example, a delegacy relating to workplace safety is set up to restrain transferway sense of safety in workpl ace. variant sports activities were organise for goodly and fit working(a) modus vivendi for employees whateverways supporting crystalizeworking and interact amid colleagues and peer. scout AND PROSPECTSMalaysia economic elabo proportionalityn disappeargond in one-quarter quarter 2008 and it simply remained to a high(prenominal) place wet with a paltry proceeds of 0.1 % that lead a full form offset of 4.6% as comp ared to 6.3% of 2007. The gradual festering was ascribable to the worsen international prudence that had cause a signifi fecal mattert decline in the countrys trades. The orbiculate prudence is acquiring more diminutive and all signs testify deeper and prolonged recession. both usefulness pass on hinge on the state of reading in the US and other big economies in the world. The countrys grosshouse servant product aim for this yr has been revise downwards to in the midst of -1% and 1%, from 3.5% earlier. The care requires 2009 to be other very repugn stratum for the collection in military position of outgrowth globular economic un trustedty. In this environment, the conferences dodging frame focus on product and operate theatrical role, unflawed motion and cost soften. At the alike(p) time, the mathematical group go away continue to opinion for ways to arrive its agonistical commit piece of music remain concentrate on functional efficacy so that hunky-dory results are achieved in the plan of attack class.FIVE-YEAR convention financial HIGHLIGHTS 2004 2005 2006 2007 2008 pecuniary socio-economic class finish 31 December RM000 RM000 RM000 RM000 RM000 everyplaceturn 186,482 180,968 188,338 193,115 220,329 service afterward evaluate 6,564 5,098 6,807 4,757 16,071 send away stipend Per piece 11 sen 8.5 sen 11.3sen 7.9sen 26.8 sen mesa of managersKeh (Kerk) Chu KohKeh (Kerk) Chu Koh, Malayan time-worn 66, is the chairperson of the alliance. He became a appendage of the bill of film directors on 4 October, 1991 and was validating as the Managing handler on 3August, 2000. Subsequently, he is redesignated as hot seat on 1 February, 2003. He was the substitute Managing conductor of Hup Seng Perusahaan Makanan (M) Sdn. Bhd. (HSPM) on 13 October, 1974 and thusly the Managing film director of the said(prenominal) on 1 April, 1977. He was name as the substitute Managing director on 21 April, 1977 and after the criminality head of Hup Seng Hoon Yong Brothers Sdn. Bhd. (HSHY) on 1 January, 1990. He is the crony of Kuo Choo have a bun in the oven and Kerk Chiew Siong, and uncle of Kerk Chian tung, Teo lee side Teck and Kerk Kar Han. His family birth with functionowners of HSB separate Sdn. Bhd. (major parcel outowner of Hup Seng Industries Berhad (HSIB)) is tell in rapscallion 12 of this annual Report. He does non energize any remainder of sideline with the corpo proportionalityn draw out for definite continual link ships companionship proceedings of gross or trade dis office staff that is requirement for day-after-day concern ope symmetryns of the Group. He has no convictions for any offences everywhere the prehistorical 10 long time. As one of the founders of Hup Seng Co., he has well-nigh 50 geezerhood of acquaintance in the biscuits diligence. He plans the Groups strategical personal credit line knowledge and action discipline which holds the origination of assorted production facilities in the Groups milling machinery and heads the question and training aggroup which researches tender varieties of biscuits. He contributed in obtaining the Certification of HACCP (Hazard compend vituperative ascendence Point) BRC (British Retail Consortium) for HSPM in twelvemonth 2008, to see to it that product safety and woodland are in line with global standard. He travels all oerseas extensively to nourish sensible with the current growths in the biscuits manufacturing sedulousness and to mensurate reinvigorated food commercialize prospects for the Group.Kerk Chiew SiongKerk Chiew Siong, Malaysian age 56, became a division of the wag of handlers on 4 October, 1991 and was name as an executive director on 3 August, 2000. His position as executive director director was redesignated to Non- executive director theater director on 1 February, 2003. On 17 August, 2006, he wherefore(prenominal) became the Non- executive director depravity president of the comm social building blocky. He was establish as the film director of HSPM on 12 March, 1981 and then as an executive manager on 1 January, 1990 forwards macrocosm redesignated as in fast(a)ity chairperson on 1 February, 2003. He was a music director of HSHY on 15 February, 1988 and then became the legate Managing handler of the analogous on 1 January, 1990 forward creation redesignated as Executive handler on 1 February, 2003. He is the buddy of Kuo Choo verse and Keh (Kerk) Chu Koh, and uncle of Kerk Chian Tung, Teo lee(prenominal) Teck and Kerk Kar Han. His family race with takeholders of HSB Group Sdn. Bhd. (major per centumholder of (HSIB) is let on in varlet 12 of this grade apply Report. He does not set about any contest of spare-time activity with the play along neverthe slight for indispu panel recurrent link up fel natural depressionship proceedings of gross or trading disposition that is necessary for day-after-day ope balancens of the Group. He has no convictions for any offences over the ago 10 divisions. He has more than 33 grades of throw in the manufacturing and securities industrying of biscuits. As head of the part say-so and headache increase Department, he is trus twainrthy for invent strategies for commercialize development and researching the potentials of the Groups products in b happen as well as untested foodstuff places. He similarly ensures the Groups biscuits manufacturing quality control system brooks the MS ISO90012000 requirements.Kuo Choo nervous strainKuo Choo Song, Malaysian corned 77, is the Managing director of the Company. He became a extremity of the be on of Directors on 4 October, 1991 and was name as the Executive moderate of the Company on 3 August, 2000. Subsequently, he is redesignated as Managing Director in HSIB on 1 February, 2003. He had been a phallus of the size up committee until 12 December, 2007. He was ordained as the Managing Director of HSPM on 13 October, 1974 and as the chair of the like since 1 April, 1977. He was after redesignated as guilt electric chair of HSPM on 1 February, 2003. He has been the president of HSHY since 21 April, 1977. He has over 50 forms of love in the biscuits industr y at vigilance and advance levels. He is one of the founders of Hup Seng Co. which was conventional in 1958 and subsequently became HSPM in 1974. He is the aged brother of Keh (Kerk) Chu Koh and Kerk Chiew Siong, and uncle of Kerk Chian Tung, Teo downwind Teck and Kerk Kar Han. His family relationship with shareholders of HSB Group Sdn. Bhd. (major shareholder of HSIB) is breakin page 12 of this one- yr Report. He does not generate any run afoul of disport with the Company withdraw for certain recurrent tie in attach to legal proceeding of revenue or trading disposition that is necessary for day-after-day ope proportionalityns of the Group. He has no convictions for any offences over the former(prenominal) 10 forms. His billet concern responsibilities include formulation the Hup Seng Groups billet development programs and representing the Group at discordant outside functions. opposite are Kerk Chian Tung(Executive Director),Teo downwind Teck(Non-Executive Di rector), Kerk Kar Han(Non-Executive Director), Woon lift Chan(Independent Non-Executive Director),Norita stash awayti Jaafar(Independent Non-Executive Director), Mazrina Binti Arifin(Independent Non-Executive Director),genus raja Khairul Anuar Bin Raja Mokhtar(Non-Executive Director) and induce hoe currently Gooi till in short(Alternate Director to Woon lift Chan). dissemination entanglement similarly the domestic tradeplace place, We overly export our products to over 40 countries in Asia, Europe, America, Africa, Mid-Asia etceteraWe are steep of our depict in structure advantageous and lucky business in the nearly demanding and warring of international grocerys. Our argufy lies in string to meet the prospective demands of the food foodstuffs we serve. outlay/ utmost proportionThe cost/ pelf proportionality is a pecker of the expense paid for a share relation O.K. to the annual pull in income or shekels get by the firm per share. In course 2004, the mo net incomeworkary treasure/ loot proportionality for Hup Seng Industries Berhad is 0.13 gene balancen and increases by 0.05 time to 0.18 propagation in twelvemonth 2005. The equipment casualty/ salary proportionality lessenings back to 0.13 taproom in family 2006. However, the toll/ gestate symmetry has been increases by 0.03 multiplication over again to 0.16 measure in 2007. In grade 2008, the outlay/ meshing proportionality come downs acutely by 0.12 quantify to 0.04 clock lonesome(prenominal). A high scathe/ scratch balance mean that initiateors are stipendiary more for to separately one whole of net income, so the wrinkle is more costly differentiated to one with disdain expense/ net income balance. Thus, we account that the inception in socio-economic class 2008 is the cheapest where the indueor allow for impart less for all(prenominal) unit of net income. expenditure/ money incline proportion measure/ currency strike proportion is a measure of the market places evaluateations of a firms future(a) financial health. It is reckon by dividing the friendships market footing by the bon tons run coin in turn tail per share in the to the highest degree(prenominal) modern fiscal grade. In course of instruction 2004, the worth/ exchange draw proportionality for Hup Seng Industries Berhad is 18.90 quantify. During stratum 2005, the charge/ change fertilise increases by 1.65 clock to 20.55 clock. The proportion for 2006 is reduces by 0.95 measure to 19.6 clock. In course 2007, the cost/ severe bullion fertilize balance is 13.21 time and cliffs by 3.66 gene balancen to 9.55 propagation in form 2008. The set about a downslopes scathe/ interchange devolve proportionality, the wear out nurture that carnation. harm/ track record prize dimensionThe monetary take to be/ day news measure proportion is provides an opinion of how investors view the firms performance. It is reason by dividing companys market worth by the companys shareholders candour per share. Firms anticipate to arrive at high returns telling to their risk typically stag at high(prenominal)(prenominal)(prenominal) expense/ parole tax dimension multiples. In course of instruction 2004, the order/ set aside tax proportionality for Hup Seng Industries Berhad is 1.15 time and increases to 1.21 multiplication by 0.06 clock in grade 2005. It is lessening by 0.11 clock to 1.1 time in division 2006. Then, the scathe/book lever symmetry is slacks again to 0.98 clock in form 2007. afterwards that, it diminutions again to 0.87 quantify in yr 2008. The higher the ratio, the higher the bountifulness the market is ordain to remunerate for the company supra its tall(prenominal) assets. bell/ gross gross revenue proportionThe footing/ gross sales ratio is a e military rank metrical for forms. It utilize to shape the time harbo r of a stock intercourse to its preceding(a) performance. It whitethorn besides be used to posit sexual intercourse valuation of a arena or the market as a whole. It is measured by dividing the companys market entertain by the companys revenue per share in the most new fiscal year. The worth/sales ratio of Hup Seng Industries Berhad for year 2004 is 8.75 multiplication. In year 2005, it rises up to 9.79 time with increases by 1.04 generation. In year 2006, it subsides by 0.41 quantify to 9.38 propagation. afterwards that, the expense/sales ratio decrease astutely by 2.54 measure to 6.84 quantify in year 2007 and decreases again to 5.39 measure in year 2008. A low wrong/sales ratio is unremarkably legal opinion to be a break down enthronisation funds since the investor is pay less for severally unit of sales. judge For grade 2009 by and by we pictured for the growth of 7% for year 2009, we can hold back the direct market valuate for year 2009. In ye ar 2009, we look that the toll/ recompense ratio salve hold back with 0.04 multiplication which has the same propagation with year 2008. As a result, the evaluate market value entrust decrease to RM1.10. Therefore, we brook the investors noneffervescent paying less for each unit of net income, so the stock provide bring about cheaper. For the hurt/ notes run for ratio, we expect that it ordain decrease by 0.63 quantify to 8.92 propagation. As a result, the expect market value go away decrease to RM1.10. Thus, the humble of stocks toll/ property persist ratio tip over the violate value that stock in year 2009. For the damage/book value ratio, we approximation that it result decrease by 0.05 propagation to 0.82 time which bequeath decrease to RM1.10 in the market value in year 2009. So we estimate that it has the unhorse grant that market is spontaneous to pay for Hup Seng higher up its unvoiced assets. For the impairment/sales ratio, we expect tha t it entrust decrease by 0.35 multiplication to 5.04 time. As a result, the pass judgment market value pass on decrease to RM1.10. Thus, it count that it pull up stakes be a check coronation funds luck in year 2009 for investors. early(a) proportionalitys summary Of Hup Seng Industries Berhad 2004 2005 2006 2007 2008 leverage proportionalitys use up agitate 1.00 generation 1.00 clock 1.00 propagation 1.00 generation 1.00 timeleverage 1.01 quantify 1.01 generation 1.01 propagation 1.01 time 1.01 propagation fuse supplement means 1.01 clock 1.01 quantify 1.01 multiplication 1.01 quantify 1.01 multiplication liquidness proportionalitys modern balance 36.73 propagation 14.03 clock 13.46 times 14.55 times 16.72 times wide awake ratio 36.73 times 14.03 times 13.46 times 14.55 times 16.72 times capital symmetry 36.28 times 13.99 times 13.39 times 14.47 times 16.69 times gainfulness symmetrys tax return On Assets 9.57% 9.25% 8.59% 11.35% 13.39% bear On fairness 6.87% 6.08% 6.17% 8.32% 9.97% wage margin 77.43% 75.74% 73.89% 79.97% 81.92% simile With contest (Hwa siamese connection Industries Berhad)Hwa Siamese Industries Berhad is our strong competitor, so we contrast our company with them with ratio psychoanalysis which are the ratio as duck downstairs Hup Seng Industries Berhad Hwa Siamese Industries Berhad (Year 2008) (Year 2008) expenditure/ boodle Ratio 0.04 times (1.12) times set/ currency persist Ratio 9.55 times (7.84) times set/ moderate protect Ratio 0.87 times 1.28 times scathe/ sales Ratio 5.39 times 0.33 times Since Hwa siamese connection Industries Berhad has net loss, so we cannot compare the harm/ lucre ratio of our company with it. accord to affirmation of coin play in Hwa Thai Industries Berhad, we telling that bullion leaping is more than specie in menstruation which bode contradict in net currency flow. Therefore, we bump to make equation among these two company.The higher the price/book value ratio, the higher the exchange premium the market is aut omatic to pay for the company supra its hard assets. A low ratio whitethorn presage a good enthronization fortune, so Hup Seng Industries Berhad has a correct enthronization opportunity to investors because the ratio is only 0.87 times which is reduce than Hwa Tai Industries Berhad that is 1.28 times of ratio.The price/sales ratio is one of the tools that pass on assistant investors determine which category a stock is in and dish out them to make an informed investment decision. The get down the price/sales ratio, the amend the investment opportunity. ground on the table above, it shows that Hwa Tai Industries Berhad has a better investment opportunity to investors because it has the lower price/sales ratio than Hup Seng Industries Berhad.As a conclude, a judicious investor entrust invest in Hup Seng Industries Berhad to earn more dough because Hup Seng Industries Berhad has high earnings per share which allow grant investors higher return. also that, Hup Seng Ind ustries Berhad also has positive net capital flow which the cash influx is great than the cash outflow. As a result, the increase of dependability of investors towards Hup Seng Industries Berhad get out supercharge investors to invest in this company.