1

1.0 INTRODUCTION OF THE COMPANY

1.1 ECONPILE HOLDINGS BERHAD

Econpile Holdings Berhad are included from one of construction and piling
industry in Malysia. The company established in 1987 founded by group Managing
Director Mr The Cheng Eng and headquartered of the company in Kuala Lumpur,
Malaysia. Econpile’s main activities including piling solution and foundation
works such as earthworks, substructure and basement construction work and more.
The Construction Industry Development Board of Malaysia give an award to
Econpile Holdings Berhad and they got Grade 7 License which allows the group
and company to tender for projects of unlimited values in the categories of building
and infrastructure works.

1.1.1 DIRECTOR’S PROFILE

PANG SAR (Executive Director/ Group Chief Executive Officer)

A Malaysian. He is also a substantial shareholder of the group. He was appointed
to the company Board on 8 October 2013. As a member of key senior
management, he is responsible for managing the day-to-day operations as well as
establishing the overall strategic direction for the group. He graduated with a
Bachelor of Science with Honours Degree in Civil Engineering from University of
Leeds, United Kingdom. Mr Pang has over thirty years of experience in managing
on-site and off-site responsibilities in the piling and foundation sector

1.1.2 PERCENTAGE OF SHAREHOLDER

Percentage of Shareholder

THE CHENG ENG

PANG SAR

KENANGA NOMINEES
(TEMPATAN) SDN BHD

HSBC NOMINEES (ASING) SDN

BHD

LEMBAGA TABUNG HAJI

OTHERS
 2

1.2 CREST BUILDER HOLDINGS BERHAD

CREST BUILDER HOLDINGS BERHAD is the one of construction company

in Malaysia. The company was founded in 1983 by the late Mr. Yong Soon Chow.
The principal of the business of the company is located at Petaling Jaya, Selangor
Darul Ehsan. Crest Builder Holding has build various types of building such as
Ampang Puteri Specialist Hospital in Kuala Lumpur, Menara Wakaf, Menara
Binjai, The Meritz, KLCC and more. The upcoming projects are The Bank and
Galleria at Jalan Ampang. Most of director in Crest Builder are Malaysia. Crest
Builder Holdings Bhd won the World Quality Commitment Gold International
Gold Star Award in 2008.

1.2.1 DIRECTOR’S PROFILE

TEH HOCK HUA -Chief Executive Officer (Construction Division)

Teh Hock Hua, a Malaysian, graduated from Universiti Malaya, with a Bachelor in
Civil Engineering with a First Class Honours in 1998. He joined Crest Builder Sdn.
Bhd. in the same year as a Project Engineer and re-designated as the Chief
Executive Officer of Construction Division with effect from 1 August 2017. He is
the overall person in charge in the Construction Division, and overseas the day to
day operations, including the Contracts, M&E and other departments under the
Construction Division.

1.2.2 PERCENTAGE OF SHAREHOLDER

Percentage of Shareholder

SC Yong Holdings Sdn. Bhd.

Kenanga Nominees (Tempatan) Sdn.

Bhd.

Maybank Nominees (Tempatan) Sdn.

Bhd.

CIMB Group Nominees (Asing) Sdn.

Bhd.

Malaysia Nominees (Tempatan)

Sendirian Berhad

Others
 3

1.3 SUNWAY CONSTRUCTION GROUP BERHAD

Sunway Construction Group Berhad is included from one of construction and

piling industry in Malaysia. Sunway Construction’s world-class expertise is
in building, civil engineering, geotechnical solutions, M&E solutions, industrial
building systems, machinery and logistics. Sunway Construction’s strength lies in
its ability to plan and construct virtually any project, successfully taking the form
conception to completion. They also established as a manufacturer and supplier of
precast concrete products, including IBS components for residential, commercial
and industrial development projects.

1.3.1 DIRECTOR’S PROFILE

Tan Sri Dato’ Seri Dr. Jeffrey Cheah is the visionary founder and chairman of
Sunway Group, a leading Malaysian conglomerate with core interests in property,
construction, education and healthcare. After graduating from Victoria University,
London, he returned to Malaysia to take a job as an accountant in a motor assembly
plant. He soon left this employment, and in 1974, he started his own company, a
small tin-mining company with a startup capital of RM 100,000. Today, Sunway
Group is one of Malaysia's most formidable property-construction conglomerates.

1.3.2 PERCENTAGE OF SHAREHOLDER

 4

1.4 FAJARBARU BUILDER GROUP BERHAD

Fajarbaru Builder Group Bhd started its operation in Malaysia on 6 May 1976
and based in Kuala Lumpur as a turnkey contractor with principal activities in civil
and infrastructure works, as well as building construction. The Chief Executive
Officer of Fajarbaru Builder Group Bhd is Dato’ Ir. Low Keng Kok. Fajarbaru’s
principal activities of the subsidiaries are construction, manufacturing of readymix
concrete, trading of construction materials and property development. This group
also registered as a turnkey contractor with Petroliam Nasional Berhad, and is a
certified ISO 900:2015 company.

1.4.1 DIRECTOR’S PROFILE

DATO’ IR. LOW. A Malaysian, was appointed to the Board on 1 August 2007.
He is a Chartered Engineer and Chartered Environmentalist (U.K.). He is a Fellow
of the Institution of Engineers, Malaysia and the Institution of Highways and
Transportation, U.K. He is a corporate member of the Institution of Water and
Environmental Management, U.K. (M.I.W.E.M) and the Institution of Civil
Engineers, U.K. He has more than 40 years of experience in management of
building, infrastructural and privatization projects. He is also a Director of Fitters
Diversified Berhad, a Director of Asia Knight Berhad, a Director of Universiti
Teknologi Malaysia (UTM) and an Advisor for Contractors Intelligence and
Contract Variation Committee of Penang Development Corporation (PDC).

1.4.2 PERCENTAGE OF SHAREHOLDER

Peng Ching Kuan

Jaya J. B. Tan
Mei Yun Chang
Hong Mun Lai
CIMB-Principal Asset Management
Bhd.
 5

1.5 GEORGE KENT (MALAYSIA) BERHAD

George Kent (Malaysia) Bhd. is an investment holding and management
company, which engages in the provision of engineering services and
manufacture and supply of water metering products. It operates through the
following segments: Metering, Engineering, and Others. The Metering segment
provides metering products and solutions for residential, industrial, and
commercial sectors such as consumption measurement, network monitoring, and
distribution applications. The Engineering segment focuses on the rail
transportation, healthcare industry, and water supply infrastructure. The company
was founded in 1936 and is headquartered in Puchong, Malaysia.

1.5.1 DIRECTOR’S PROFILE

Tan Sri Dato’ Kay Hock Tan, 69-Non-Executive Chairman

Mr. Kay Hock Tan is Chairman at George Kent (Malaysia) Bhd., Chairman &
Chief Executive Officer at Johan Holdings Bhd., a Member at The Honourable
Society of Lincoln's Inn and a Member at Iskandar Regional Development
Authority. He is on the Board of Directors at Malaysian Humanitarian
Foundation. Mr. Tan was previously employed as Chairman by Jacks
International Ltd.

1.5.2 PERCENTAGE OF SHAREHOLDER

Star Wealth Investment Limited; 13.14

Puan Sri Datin Tan Swee Bee; 5.91

Tan Sri Dato' Tan Kay Hock; 4.77

Kin Fai International Ltd.; 4.74

Others; 67.94
Kwok Heng Holdings Ltd.; 3.5
 6

2.0 RATIO ANALYSIS

2.5 ECONPILE HOLDINGS BERHAD

LIQUIDITY
RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
SOLVENCY
RATIO /
CURRENT TOTAL RATIOCURRENT
ANALYSISASSETS
EACH YEAR (TIMES)
DEBT
RATIO CURRENT LIABILITIES
RATIO 2016 2017 2018
DEBT-TO- 331,734,007 403,353,074
TOTAL LIABILITIES 529,881,000
EQUITY 150,587,953 185,281,666
TOTAL EQUITY 254,034,000
2016
= 2.2 times = 2.182017
times 2018
= 2.09 times
RATIO
QUICK 165,754,699 210,162,240
(CURRENT ASSETS – INVENTORIES) 281,896,000

RATIO 247,256,591 CURRENT 303,951,198

LIABILITIES 369,652,000
2016
= 0.67 (67%) 2017
= 0.69 (69%) 2018(76%)
= 0.76
DEBT-TO- ( 331,734,007 – 0 ) TOTAL
( 403,353,074 – 0
LIABILITIES ) ( 529,881,000 –0)
TOTAL 150,587,953 185,281,666
(TOTAL LIABILITIES 254,034,000
+ TOTAL EQUITY)
2016
= 2.2 times 2017
= 2.18 times 2018
= 2.09 times
CAPITAL
CASH RATIO 165,754,699 210,162,240
(CASH + SHORT TERM INVESTMENTS) 281,896,000
(165,754,699 + CURRENT(210,162,240 +
LIABILITIES (281,896,000 +
2016
247,256,591) 2017
303,951,198) 2018
369,652,000)
( 43,636,342 (36,436,516 + (24,151,000 +
= 0.4 (40%) = 0.41 (41%) = 0.43 (43%)
+ 8,943,475) 17,383,538) 2,502,000)
TIMES 150,587,953 185,281,666
EARNING BEFORE 254,034,000
INTEREST AND TAX (EBIT)
INTEREST = 0.35 times = 0.29 times
INTEREST EXPENSES = 0.1 times
2016 2017 2018
EARNED
93,115,000 113,321,000 116,896,000
1,572,507 1,701,081 2,433,000
= 59.2 times = 66.6 times = 48.0 times

PROFITABILITY
TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
RATIO
GROSS PROFIT SALES-COST OF GOODS SOLD
MARGIN SALES
2016 2017 2018
(462,061,387 – (581,910,415 – ( 728,399,000 –
351,714,549) 451,822,988 ) 596,479,000 )
 7

462,061,387 581,910,415 728,399,000

= 0.24 (24%) = 0.22 (22%) = 0.18 (18%)
OPERATING PROFIT OPERATING PROFIT
MARGIN NET SALES
2016 2017 2018
92,292,762 112,620,945 116,366,000
462,061,387 581,910,415 728,399,000
= 0.20 (20%) = 0.19 (19%) = 0.16 (16%)
NET PROFIT NET PROFIT
MARGIN SALES
2016 2017 2018
67,544,000 80,769,607 87,101,000
462,061,387 581,910,415 728,399,000
= 0.15 (15%) = 0.14 (14%) = 0.12 (12%)
RETURN ON NET PROFIT + INTEREST (1 – TAX RATE)
ASSETS (ROA) TOTAL ASSETS
2016 2017 2018
67,544,000 + 80,769,607 + 87,101,000+
1,572,507 1,701,081 2,433,000
(1 – 23,997,940 ( 1 – 30,850,000 ( 1 – 27,362,000
91,541,999) 111,619,607 ) 114,463,000 )
413,011,290 514,113,438 651,548,000
= 0.17 (17%) = 0.16 (16%) = 0.14 (14%)
RETURN OF (NET PROFIT-DIVIDENDS ON PREFERENCE SHARES –
MINORITY INTEREST )
EQUITY (ROE)
COMMON EQUITY
2016 2017 2018
( 67,544,059 – 0 – ( 80,769,607 – 0 ( 87,101,000 – 0
0) –0)
–0)
369,652,000
247,256,591 303,951,198 = 0.24 (24%)
= 0.27 (27%) = 0.27 (27%)

MARKET RATIO
TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
PRICE EARNING PRICE PER SHARE
EARNING PER SHARE
RATIO (P/E)
2016 2017 2018
0.87 1.46 1.21
0.05 0.06 0.17
= 17.4 times = 24.33 times = 7.12 times
EARNING PER NET PROFIT AVAILABLE FOR COMMON SHAREHOLDER
NUMBER OF COMMON SHARES OUTSTANDING
SHARE (EPS)
2016 2017 2018
 8

67,544,000 80,769,607 87,101,000

1,337,500,000 1,337,500,000 1,337,500,000
= RM 0.05 = RM 0.06 = RM 0.07

EFFICIENCY
ANALYSIS /
TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
ACTIVITY
RATIO
INVENTORY COST OF GOODS SOLD
INVENTORY
TURNOVER
2016 2017 2018
351,714,549 451,822,988 596,479,000
0 0 0
= 0 times = 0 times = 0 times
RECEIVABLE CREDIT SALES
RECEIVABLE
TURNOVER
2016 2017 2018
462,061,387 581,910,415 728,399,000
277,727,754 347,369,576 500,566,000
= 1.66 times = 1.68 times = 1.46 times

AVERAGE 365 DAYS

RECEIVABLES TURNOVER
COLLECTION
2016 2017 2018
PERIOD 365 365 365
 9

1.66 1.68 1.46

= 219.9 days = 217.3 days = 250 days
TOTAL ASSETS SALES
TOTAL ASSETS
TURNOVER
2016 2017 2018
462,061,387 581,910,415 728,399,000
413,011,290 514,113,438 651,548,000
= 1.12 times = 1.13 times = 1.12 times

2.2 CREST BUILDER HOLDINGS BERHAD

LIQUIDITY TOTAL RATIO ANALYSIS EACH YEAR (TIMES)

RATIO
CURRENT CURRENT ASSETS
CURRENT LIABILITIES
RATIO
2016 2017 2018
= 630,961,148 789,867,157 777,120,000
430,672,654 612,597,169 557,035,000
= 1.47 times = 1.29 times = 1.40 times
QUICK RATIO (CURRENT ASSETS – INVENTORIES)
CURRENT LIABILITIES
2016 2017 2018
= (630,961,148 – (789,867,157 – (777,120,000 –
66,356.780) 37,818,451) 24,741,000)
430,672,654 612,597,169 557,035,000
= 1.31 times = 1.23 times = 1.35 times
CASH RATIO (CASH + SHORT TERM INVESTMENTS)
CURRENT LIABILITIES
2016 2017 2018
( 10,807,466 (22,165,775 + (25,230,000 +
23,790,000)
+ 28,020,520) 20,356,336)
557,035,000
430,672,654 612,597,169 = 0.08 times
= 0.09 times = 0.07 times
 10

SOLVENCY
TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
RATIO / DEBT
RATIO
DEBT-TO-EQUITY TOTAL LIABILITIES
TOTAL EQUITY
RATIO
2016 2017 2018
927,103,331 1,085,617,617 1,020,895,000
416,729,449 440,352,648 488,660,000
= 2.22 (222%) = 2.48 (248%) = 2.10 (210%)
DEBT-TO-TOTAL TOTAL LIABILITIES
(TOTAL LIABILITIES + TOTAL EQUITY)
CAPITAL
2016 2017 2018
927,103,331 1,085,617,617 1,020,895,000
( 927,103,331 + ( 1,085,617,617 + (1,020,895,000
416,729,449) 440,352,648) + 488,660,000)
= 0.7 (70%) = 0.71 (71%) = 0.68 (68%)

TIMES INTEREST EARNING BEFORE INTEREST AND TAX (EBIT)

INTEREST EXPENSES
EARNED
2016 2017 2018
25,915,203 44,600,659 59,980,000
46,422,094 44,555,534 14,772,000
= 0.56 times = 1.0 times = 4.06 times

PROFITABILITY
TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
RATIO
GROSS PROFIT SALES-COST OF GOODS SOLD
MARGIN SALES
2016 2017 2018
(282,197,256 – (498,294,418 – (236,076,000 –
184,180,661) 382,958,470) 151,133,333)
 11

282,197,256 498,294,418 236,076,000

= 0.35 (35%) = 0.23 (23%) = 0.36 (36%)
OPERATING OPERATING PROFIT
PROFIT MARGIN NET SALES
2016 2017 2018
72,337,297 89,156,193 74,752,000
282,197,256 498,294,418 236,076,000
= 0.26 (26%) = 0.18 (18%) = 0.32 (32%)
NET PROFIT NET PROFIT
MARGIN SALES
2016 2017 2018
14,988,214 30,380,456 45,733,333
282,197,256 498,294,418 236,076,000
= 0.05 (5%) = 0.06 (6%) = 0.19 (19%)
RETURN ON NET PROFIT + INTEREST (1 – TAX RATE)
ASSETS TOTAL ASSETS
2016 2017 2018
14,988,214 + 30,380,456 + 45,733,333 +
46,422,094 44,555,534 14,772,000
(1 – 10,926,989 ) ( 1 – 14,220,203 ( 1 – 14,246,667
25,915,203) 44,600,659) 59,980,000 )
1,343,832,780 1,525,970,265 1,509,555,000
= 0.03 (3%) = 0.04 (4%) = 0.04 (4%)
RETURN OF NET PROFIT-DIVIDENDS ON PREFERENCE SHARES –
MINORITY INTEREST
EQUITY
COMMON EQUITY
(14,988,214 – 0 (30,380,456 –0 – (45,733,333 – 0 –
– 0) 0) 0)
416,729,449 440,352,648 488,660,000
= 0.04 (4%) = 0.07 (7%) = 0.09 (9%)
 12

MARKET
RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
PRICE PRICE PER SHARE
EARNING EARNING PER SHARE
2016 2017 2018
RATIO (P/E)
1.02 0.91 0.91
0.09 0.18 0.21
= 11.33 times = 5.06 times = 4.33 times
EARNING PER NET PROFIT AVAILABLE FOR COMMON SHAREHOLDER
SHARE (EPS) NUMBER OF COMMON SHARES OUTSTANDING
2016 2017 2018
14,988,214 30,380,456 45,733,333
170,690,000 170,690,000 215,120,500
= RM 0.09 = RM 0.18 = RM 0.21

EFFICIENCY
 13

ANALYSIS /
ACTIVITY TOTAL RATIO ANALYSIS EACH YEAR (Times)
RATIO
INVENTORY COST OF GOODS SOLD
TURNOVER INVENTORY
2016 2017 2018
184,180,661 382,958,470 151,133,333
66,356,780 37,818,415 24,741,000
= 2.78 times = 10.13 times = 6.12 times
RECEIVABLE CREDIT SALES
TURNOVER RECEIVABLE
2016 2017 2018
282,197,256 498,294,418 236,076,000
281,078,014 206,539,963 218,929,000
= 1.00 times = 2.41 times = 1.08 times

AVERAGE 365 DAYS

COLLECTION RECEIVABLES TURNOVER
2016 2017 2018
PERIOD
365 365 365
1.00 2.41 1.08
= 365 days = 151.5 days = 338 days
TOTAL ASSETS SALES
TURNOVER TOTAL ASSETS
2016 2017 2018
282,197,256 498,294,418 236,076,000
1,343,832,780 1,525,970,265 1,509,555,000
= 0.21 times = 0.33 times = 0.16 times
 14

2.3 SUNWAY CONSTRUCTION GROUP BERHAD

LIQUIDITY
RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
CURRENT CURRENT ASSETS
RATIO CURRENT LIABILITIES
2016 2017 2018
=1,442,185,000 1,728,869,000 1,719,374,000
1,102,905,000 1,325,337,000 1,367,764,000
= 1.3 times = 1.3 times = 1.26 times
QUICK (CURRENT ASSETS – INVENTORIES)
RATIO CURRENT LIABILITIES
2016 2017 2018
=1,418,235,000 1,704,440,000 1,688,639,000
1,102,905,000 1,325,337,000 1,367,764,000
= 1.3 times = 1.3times = 1.2 times
CASH RATIO (CASH + SHORT TERM INVESTMENTS)
CURRENT LIABILITIES
2016 2017 2018
(465,768,000+0 ) (487,240,000 + 0 ) (449,373,000 +0 )
1,102,905,000 1,325,337,000 1,367,764,000
= 0.4times = 0.36 times = 0.33 times
 15

SOLVENCY
RATIO / DEBT TOTAL RATIO ANALYSIS EACH YEAR (Times)
RATIO
DEBT-TO-EQUITY TOTAL LIABILITIES
RATIO TOTAL EQUITY
2016 2017 2018
1,103,513,000 1,332,346,000 1,376,332,000
493,782,000 554,845,000 562,566,000
= 2.23 (223%) = 2.4 (240%) = 2.45 (245%)
DEBT-TO-TOTAL TOTAL LIABILITIES
CAPITAL (TOTAL LIABILITIES + TOTAL EQUITY)
2016 2017 2018
1,103,513,000 1,332,346,000 1,376,332,000
(1,103,513,000 (1,332,346,000+ (1,376,332,000 +
+ 493,782,000) 554,845,000) 562,566,000)
= 0.7 (70%) = 0.7 (70%) = 0.7 (70%)
 16

TIMES INTEREST EARNING BEFORE INTEREST AND TAX (EBIT)

EARNED INTEREST EXPENSES
2016 2017 2018
153,677,000 146,686,000 135,799,000
(6,056,000) (6,084,000) (6,256,000)
= 25.38 times = 24.11times = 21.71 times

PROFITABILI
TY RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
GROSS PROFIT SALES-COST OF GOODS SOLD
MARGIN SALES
2016 2017 2018
(1,788,844,000 – (2,076,290,000 – (743,089,333.3 – 0 )
1,409,876,000) 1,647,661,000) 743,089,333.33
1,788,844,000 2,076,290,000 = 1.0 (100%)
= 0.21 (21%) = 0.21 (21%)
OPERATING OPERATING PROFIT
PROFIT NET SALES
2016 2017 2018
MARGIN
149,245,000 164,649,000 59,706,666.67
1,788,844,000 2,076,290,000 743,089,333.3
= 0.08 (8%) = 0.07 (7%) = 0.08 (8%)
NET PROFIT NET PROFIT
MARGIN SALES
2016 2017 2018
77,193,000 113,660,000 48,668,000
1,788,844,000 2,076,290,000 743,089,333.33
 17

= 0.04 (4%) = 0.14 (14%) = 0.07 (7%)

RETURN ON NET PROFIT + INTEREST (1 – TAX RATE)
ASSETS TOTAL ASSETS
2016 2017 2018
77,193,000 + 113,660,000 + 36,501,000 +
6,056,000 6,084,000 6,256,000
(1 – 30,039,000 ( 1- 36,227,000 ( 1 – 13,901,333.33
153,677,000) 174,195,000 ) 62,569,333.33)
1,597,295,000 1,887,191,000 1,938,898,000
= 0.05 (5%) = 0.05 (5%) = 0.02 (2%)
RETURN OF NET PROFIT-DIVIDENDS ON PREFERENCE SHARES –
EQUITY MINORITY INTEREST
COMMON EQUITY
(77,193,000 – 0 – 0) (113,660,000 – 0 – 0) (36,501,000 – 0 – 0)
493,782,000 554,845,000 562,566,000
= 0.16 (16%) = 0.20 (20%) = 0.06 (6%)

MARKET
RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
PRICE PRICE PER SHARE
EARNINGS EARNINGS PER SHARE
2016 2017 2018
RATIO
1.35 1.70 2.52
(P/E)
0.09 0.11 0.03
= 15.5 = 15.5 = 84
EARNINGS NET PROFIT AVAILABLE FOR COMMON SHAREHOLDER
PER SHARE NUMBER OF COMMON SHARES OUTSTANDING
2016 2017 2018
(EPS)
123,519,000 137,830,000 36,830,000
1,292,900,000 1,292,553,000 1,292,246,000
= RM 0.09 = RM 0.11 = RM 0.03
 18

EFFICIENCY
ANALYSIS / TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
ACTIVITY RATIO
INVENTORY COST OF GOODS SOLD
TURNOVER INVENTORY
2016 2017 2018
1,409,876,000 1,647,661,000 0
23,950,000 24,429,000 30,735,000
= 58 times = 67 times = 0 times
RECEIVABLE CREDIT SALES
TURNOVER RECEIVABLE
2016 2017 2018
 19

1,788,844,000 2,076,290,000 743,089,333.33

732,034,000 1,065,912,000 1,216,382,000
= 2.44 times = 1.95 times = 0.6 times

AVERAGE 365 DAYS

COLLECTION RECEIVABLES TURNOVER
2016 2017 2018
PERIOD
365 365 365
2.44 1.95 0.6
= 149.6 days = 187.2 days = 608.3 days
TOTAL ASSETS SALES
TURNOVER TOTAL ASSETS
2016 2017 2018
1,788,844,000 2,076,290,000 743,089,333.33
1,597,295,000 1,887,191,000 1,938,898,000
= 1.12 times = 1.10 times = 0.4 times

2.4 FAJARBARU BUILDER GROUP BERHAD

LIQUIDITY
RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
CURRENT CURRENT ASSETS
RATIO CURRENT LIABILITIES
2016 2017 2018
426,683,849 399,009,565 412,723,453
212,855,915 157,435,881 181,531,796
= 2 times =2.53 times = 2.27 times
QUICK (CURRENT ASSETS – INVENTORIES)
RATIO CURRENT LIABILITIES
2016 2017 2018
(426,683,849- (399,009,565- (412,723,453-
212,617,130) 158,868,640) 135,127,763)
212,855,915 157,435,881 181,531,796
= 1 times = 1.53 times = 1.53 times
 20

CASH (CASH + SHORT TERM INVESTMENTS)

RATIO CURRENT LIABILITIES
2016 2017 2018
(41,936,598 + (65,388,619+ (40,696,203+
28,987,829) 5,431,60) 12,564,874)
212,855,915 157,435,881 181,531,796
=0.33 times = 0.42 times = 0.29 times
 21

SOLVENCY
RATIO / DEBT TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
RATIO
DEBT-TO- TOTAL LIABILITIES
EQUITY RATIO TOTAL EQUITY
2016 2017 2018
278,060,645 198,619,533 220,389,078
255,811,782 318,722,493 313,823,977
= 1.09 (109%) = 0.62 (62%) = 0.70 (70%)
DEBT-TO- TOTAL LIABILITIES
TOTAL (TOTAL LIABILITIES + TOTAL EQUITY)
2016 2017 2018
CAPITAL
278,060,645 198,619,533 220,389,078
(278,060,645+ (198,619,533+ (220,389,078+
255,811,782) 318,722,493) 313,823,977)
= 0.52 (52%) = 0.38 (38%) = 0.41 (41%)
TIMES EARNING BEFORE INTEREST AND TAX (EBIT)
INTEREST INTEREST EXPENSES
2016 2017 2018
EARNED
49,010,378 107,233,597 58,635,557
1,282,581 4,445,832 3,120,936
= 38.2 times = 24.1 times = 18.8 times
 22

PROFITABILITY
RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
GROSS PROFIT SALES-COST OF GOODS SOLD
MARGIN SALES
2016 2017 2018
(423,914,434- (453,319,706- (395,629,658-
69,246,153) 191,348,240) 86,222,484)
423,914,434 453,319,706 395,629,658
= 0.84 (84%) = 0.58 (58%) = 0.78 (78%)
OPERATING OPERATING PROFIT
PROFIT MARGIN NET SALES
2016 2017 2018
55,237,850 114,988,666 73,233,187
423,914,434 453,319,706 395,629,658
= 0.13 (13%) = 0.25 (25%) = 0.19 (19%)
NET PROFIT NET PROFIT
MARGIN SALES
2016 2017 2018
31,561,075 79,639,769 40,952,187
423,914,434 453,319,706 395,629,658
= 0.07 (7%) = 0.18(18%) = 0.10 (10%)
RETURN ON NET PROFIT + INTEREST (1 – TAX RATE)
ASSETS TOTAL ASSETS
2016 2017 2018
31,561,075 + 79,639,769 + 40,952,187 +
1,282,581 5,968,231 3,120,936
(1-17,449,303 (1 – 27,593,828 (1 – 17,683,370
49,010,378) 107,233,597) 58,635,557)
533,872,427 517,342,026 534,213,055
= 0.06 (6%) = 0.17 (17%) = 0.08 (8%)
RETURN OF NET PROFIT-DIVIDENDS ON PREFERENCE SHARES –
EQUITY MINORITY INTEREST
COMMON EQUITY
(31,561,075 – 0 (79,639,769 – 0 (40,952,187 – 0
– 0) – 0) – 0)
318,722,493 318,722,493 313,823,977
= 0.10 (10%) = 0.25 (25%) = 0.13 (13%)

MARKET
RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
PRICE PRICE PER SHARE
 23

EARNING EARNING PER SHARE

2016 2017 2018
PER RATIO
0.52 0.56 0.81
0.09 0.22 0.11
= 5.78 times = 2.55 times = 7.36 times
EARNING NET PROFIT AVAILABLE FOR COMMON SHAREHOLDERS
PER SHARE NUMBERS OF COMMON SHARES OUTSTANDING
2016 2017 2018
31,561,075 79,639,769 40,952,187
361,670,000 366,080,000 372,770,000
= RM 0.09 = RM 0.22 = RM 0.11
 24

EFFICIENCY
ANALYSIS /
ACTIVITY RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
INVENTORY COST OF GOODS SOLD
TURNOVER INVENTORY
2016 2017 2018
69,246,153 191,348,240 86,222,484
212,617,130 158,868,640 135,127,763
= 0.33 times = 1.20times = 0.64times
RECEIVABLE CREDIT SALES
TURNOVER RECEIVABLE
2016 2017 2018
423,914,434 453,319,706 395,629,658
103,877,973 121,334,506 146,665,571
= 4.1 times = 3.74 times = 2.7 times
AVERAGE 365 DAYS
COLLECTION RECEIVABLES TURNOVER
2016 2017 2018
PERIOD
365 365 365
4.10 3.74 2.70
= 89.02 days = 97.60 days = 135.18 days
TOTAL ASSETS SALES
TURNOVER TOTAL ASSETS
2016 2017 2018
423,914,434 453,319,706 395,629,658
533,872,427 517,342,026 534,213,055
= 0.79 times = 0.88 times = 0.74 times

2.5 GEORGE KENT (MALAYSIA) BERHAD

LIQUIDITY
 25

RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)

CURRENT CURRENT ASSETS
RATIO CURRENT LIABILITIES
2016 2017 2018
531,166,000 741,744,000 770,948,000
359,024,000 505,114,000 471,719,000
= 1,48 times = 1.47 times = 1.63 times
QUICK (CURRENT ASSETS – INVENTORIES)
RATIO CURRENT LIABILITIES
2016 2017 2018
(531,166,000 – (741,744,000– (770,948,000–
47,911,000) 43,126,000) 47,708,000)
359,024,000 505,114,000 471,719,000
= 1.35 times = 1.38 times = 1.53 times
CASH (CASH + SHORT TERM INVESTMENTS)
RATIO CURRENT LIABILITIES
2016 2017 2018
( 241,645,000 (430,204,000 + (510,612,000 +
+ 199,000) 266,000) 302,000)
359,024,000 505,114,000 471,719,000
= 0.67 times = 0.85 times = 1.08 times

SOLVENCY
RATIO / DEBT TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
RATIO
DEBT-TO- TOTAL LIABILITIES
EQUITY RATIO TOTAL EQUITY
 26

2016 2017 2018

360,753,000 509,679,000 475,720,000
321,966,000 400,023,000 475,783,000
= 1.12 (112%) = 1.27 (127%) = 1.00 (100%)
DEBT-TO-TOTAL TOTAL LIABILITIES
CAPITAL (TOTAL LIABILITIES + TOTAL EQUITY)
2016 2017 2018
360,753,000 509,679,000 475,720,000
682,719,000 909,702,000 951,503,000
= 0.53 (53%) = 0.56 (56%) = 0.43 (43%)

TIMES INTEREST EARNING BEFORE INTEREST AND TAX (EBIT)

EARNED INTEREST EXPENSES
2016 2017 2018
90,482,000 145,416,000 186,538,000
2,916,000 2,677,000 2,424,000
= 31.03 times = 54.32 times = 76.95 times

PROFITABILITY
RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
GROSS PROFIT SALES-COST OF GOODS SOLD
MARGIN SALES
2016 2017 2018
(536,207,000 – (598,965,000 – (616,994,000 –
442,923,000) 450,425,000) 426,810,000)
536,207,000 598,965,000 616,994,000
= 0.17 (17%) = 0.25 (25%) = 0.31 (31%)
OPERATING OPERATING PROFIT
PROFIT MARGIN NET SALES
2016 2017 2018
90,482,000 145,416,000 186,538,000
 27

536,207,000 598,965,000 616,994,000

= 0.17 (17%) = 0.24 (24%) = 0.30 (30%)
NET PROFIT NET PROFIT
MARGIN SALES
2016 2017 2018
50,074,000 101,279,000 124,402,000
536,207,000 598,965,000 616,994,000
= 0.09 (9%) = 0.17 (17%) = 0.20 (20%)
RETURN ON NET PROFIT + INTEREST (1 – TAX RATE)
ASSETS TOTAL ASSETS
2016 2017 2018
50,074,000 + 101,279,000 + 124,402,000 +
2,916,000 2,677,000 2,424,000
(1 - 20,625,000 (1 - 32,819,000 (1 – 35,893,000
70,699,000) 134,098,000) 160,295,000)
682,719,000 909,702,000 951,503,000
= 0.07 (7%) = 0.11 (11%) = 0.13 (13%)
RETURN OF NET PROFIT-DIVIDENDS ON PREFERENCE SHARES –
EQUITY MINORITY INTEREST
COMMON EQUITY
(50,074,000 – 0 – 0) (101,279,000 – 0 – 0) (124,402,000 – 0 – 0)
360,753,000 509,679,000 475,720,000
= 0.14 (14%) = 0.20 (20%) = 0.26 (26%)

MARKET
RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
PRICE PRICE PER SHARE
EARNINGS EARNING PER SHARE
2016 2017 2018
RATIO (P/E)
87.0 203.0 351.0
16.67 26.97 22.09
= 5.22 times = 7.53 times = 15.89 times
EARNINGS NET PROFIT AVAILABLE FOR COMMON SHAREHOLDERS
PER SHARE NUMBER OF COMMON SHARES OUTSTANDING
2016 2017 2018
(EPS)
50,074,000 101,279,000 124,402,000
300,410,000 375,513,000 563,269,000
= 16.67 sen = 26.97 sen = 22.09 sen
 28

EFFICIENCY
ANALYSIS /
ACTIVITY RATIO TOTAL RATIO ANALYSIS EACH YEAR (TIMES)
INVENTORY COST OF GOODS SOLD
TURNOVER INVENTORY
2016 2017 2018
442,923,000 450,425,000 426,810,000
47,911,000 43,126,000 47,708,000
= 9.24 times = 10.44 times = 8.95 times
RECEIVABLE CREDIT SALES
TURNOVER RECEIVABLE
2016 2017 2018
536,207,000 598,965,000 616,994,000
240,870,000 267,151,000 202,130,000
= 2.23 times = 2.24 times = 3.05 times

AVERAGE 365 DAYS

COLLECTION RECEIVABLES TURNOVER
2016 2017 2018
PERIOD
365 365 365
 29

2.23 2.24 3.05

= 163.7 days = 162.9 days = 119.7 days
TOTAL ASSETS SALES
TURNOVER TOTAL ASSETS
2016 2017 2018
536,207,000 598,965,000 616,994,000
682,719,000 909,702,000 951,503,000
= 0.79 times = 0.66 times = 0.65 times

3.0 GRAF AND ANALYSIS

3.1 ECONPILE HOLDINGS BERHAD

LIQUIDITY RATIO
2.5

1.5

0.5

0
2016 2017 2018

CURRENT RATIO AND QUICK RATIO Column1

Based on the graph above, current ratio and quick ratio of Econpile Holding
Berhad have same value. (2016 = 2.2 times, 2017 = 2.18 times and 2018 = 2.09
times). It’s mean in 2016 for every Ringgit of current liability, the company has
RM 2.20 of current assets to pay for it and in 2017, for every Ringgit of current
liability company have RM 2.18 and RM 2.09 for 2018. So, as we can see
 30

Econpile Holding Berhad have positive financial performance and can pay off
its current liabilities without selling any long-term assets.

Next, for cash ratio Econpile Holding show the value are lower than 1. Its
mean Econpile Holding have major activities on credit selling because without
account receivable or with only cash, this company cannot cover all the current
liabilities.

SOLVENCY / DEBT RATIO

70

60

50

40

30

20

10

0
2016 2017 2018

DEBT-TO-EQUITY RATIO DEBT-TO-TOTAL CAPITAL

TIMES INTEREST EARNED

Based on the graph above, in 2016 the value of debt-to equity ratio is 0.67 and
it’s mean the company has RM 0.67 of debt for every Ringgit of equity. In 2017,
the company has RM 0.69 of debt for every Ringgit of Equity. For 2018, the
company has Rm 0.76 of debt for every Ringgit of Equity. It’s mean the company
are in the safe position from facing financial problem. This thing will make the
company get approval of loan easily from bank and can be as ideal company for
investment.

Next, if we look at Econpile Holdings Berhad at 2016, every Ringgit Malaysia

of company Econpile owned by the shareholders, company owes RM 0.40 to
creditor. In 2017, every Ringgit Malaysia of company Econpile owned by the
shareholders, company owes RM 0.41 to creditor. Lastly, every Ringgit Malaysia
 31

of company Econpile owned by the shareholders, company owes RM 0.43 to

creditor. The value of debt-to capital is less than 1 so the debt levels are still
manageable and the firm is considered less risky.

Lastly, for the time interest earned, in 2016 Econpile’s income is 59.2 times
greater the their annual interest expense. In 2016, the company’s income is 66.6
times higher than their annual interset expenses. So, Econpile Holdings Berhad is
less risky and the bank shouldn’t have a problem accepting their loan.

PROFITABILITY RATIO
0.3

0.25

0.2

0.15

0.1

0.05

0
2016 2017 2018

GROSS PROFIT MARGIN OPERATING PROFIT MARGIN

NET PROFIT MARGIN RETURN ON ASSETS (ROA)
RETURN ON EQUITY (ROE)

Based on the graph above, Econpile Holdings Berhad’s gross profit margin in
2016 is 24%, in 2017 is 22% and 18% in 2018. It’s mean that after the company pays
off his inventory costs, the company still has 24% (2016), 22% (2017), and 18%
(2018) of their sales revenue to cover his operating costs.

For operating profit margin of Econpile, in 2016 Econpile’s operating margin is

0.20. This means the company have used RM0.80 (RM1 – RM0.20) on every
Ringgit Malaysia of sales to pay for variable cost and only RM0.20 are remains to
cover all non-operating expenses or fixed cost. For 2017, the value of operating
margin is 0.19. The company have used RM0.81 (RM1 – RM0.19) on every Ringgit
of sales to pay for variable cost and only remain RM0.19 to cover all non-operating
expenses or fixed cost. Same to with 2018.

For net profit margin, in 2016 Econpile Holdings has RM0.15 of net income for
every Ringgit of sales. In 2017, the company has RM0.14 of net income for every
Ringgit of sales and RM0.12 of net income for every Ringgit of sale on 2018.

Next for the return on assets (ROA), for every Ringgit in assets during 2016,
Econpile earned RM 0.17 in profit. For 2017, the company earned RM 0.16 for
 32

every Ringgit in assets and RM 0.14 for every Ringgit in assets for 2018. In other
words, the management of Econpile Holdings Berhad are efficient in generating
earning from their assets.

Lastly for the return of equity Econpile during 2016 and 2017 is 0.27 (27%) and
during 2018, the value of return of equity for the company is 0.24 (24%). In other
words, Econpile Holdings Berhad will give investors a better picture of the growth
of the company.

MARKET RATIO
30

25

20

15

10

0
2016 2017 2018

PRICE EARNING RATIO (P/E) Column1

Based on the graph, Econpile Holdings Berhad has the value of earning per
share on 2016 is 0.05. It mean every share of the common stock earns RM 0.05 of
net income. Next, for 2017 for every share of the common stock the company earns
RM 0.06 and RM 0.07 for 2018.

Lastly, for price earning ratio Econpile’s value is 17.4 times in 2016. In other
words, every investor are willing to pay RM 17.40 for every Ringgit of earning.
For 2017, every investor of the company are willing to pay RM 24.33 for every
Ringgit of earning. Lastly, Econpile Holding’s investor or shareholder of the
company are willling to pay RM 7.12 for every Ringgit of earning.
 33

EFFICIENCY / ACTIVITY RATIO

1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2016 2017 2018

INVENTORY TURNOVER RECEIVABLE TURNOVER Column1

Based on the graph above, Econpile Holdings Berhad’s inventory turnover

value for both 2016, 2017 and 2018 is 0 times. It’s because the company does not
have sell and replace their inventoris because the company does not have any
inventory in their operation.

Next for the receivable turnover ratio, Econpile turnover is 1.66 for 2016. This
mean that the company collects their receivables about 1.66 times a year or once
every 220 days (365/1.66). For 2017, Econpile receivable turnover is 1.68. In other
words, the company collects their receivables about 1.68 times a year or once every
217.3 days (365/1.68). Lastly, Econpile Holdings Berhad receivable turnover in
2018 is 1.46. So the company collects their receivables 1.46 times a year or once
every 250 days. So the coonclusion that we can made is the company’s collection
process is poor.

Lastly, for the total assets turnover of Econpile Holding in 2016 is 1.12 which
mean every Ringgit Malaysia invested in assets generates RM1.12 in sales. In
2017, the company’s total assets turnover of Econpile is 1.13. So, every Ringgit
Malaysia invested in assets generates RM1.13 in sales. For 2018, every Ringgit
Malaysia invested in assets generates RM1.12 in sales.
 34

3.2 CREST BUILDER HOLDINGS BERHAD

LIQUIDITY Ra tio
1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2016 2017 2018

CURRENT RATIO QUICK RATIO CASH RATIO

Based on the graph above, Crest Holdings Berhad can cover all their current
liabilities (short-term debts) with their current assets on current ratio (used all current
asset) and also on quick ratio (acid test) which is exclude inventory from current
asset. In 2016 for every Ringgit of current liability, the company has RM 1.47 of
current assets to pay for it and RM 1.31 if exclude inventories. In 2017, for every
Ringgit of current liability, the company has RM 129 of current assets to pay for it
and RM 1.23 if exclude inventories. Next for 2018, for every Ringgit of current
liability, the company has RM 1.40 of current assets to pay for it and RM 1.35 if
exclude inventories. So, we can analysis that Crest Holding have a good financial
performance.

Lastly for the cash ratio, (2016= RM 0.09, 2017= RM 0.07 and 2018= RM 0.08)
It’s all lower than 1. So, Crest Holding cannot cover all the current liabilities without
 35

including receivable account because of the company are lacking of cash and their
major activities are sell on credit.

SOLVENCY / DEBT RATIO

3.5

2.5

1.5

0.5

0
2016 2017 2018

DEBT-TO-EQUITY RATIO DEBT-TO-TOTAL CAPITAL

TIMES INTEREST EARNED

Based on the graph above, in 2016, Crest Holdings has RM 2.22 of debt for
every Ringgit Malaysia of equity. In 2017, the company has RM 2.48 of debt for
every Ringgit Malaysia of shareholders equity. For 2018, Crest Holdings has RM
2.10 of debt for every Ringgit Malaysia of shareholders equity. As we can see from
solvency or debt ratio Crest Holdings Berhad are facing risky position and if we look
to debt-to-equity ratio we can know that the company is having risk because of total
liabilities are higher than total Equity.

For the debt-to capital, in 2016 the value of debt-to capital is 0.70 times. Next,
in 2017 the value of debt-to capital is 0.71 times and 0.68 times in 2018. So, Crest
Holdings Berhad’s financial performance are on stable position and still manageable.
But the company still has to fight and improve it to make their value of debt-to
capital less than 1.
 36

For the time interest earned, Crest Holdings Berhad has 0.56 times greater than
their annual interest expenses in 2016, 1.0 times higher in 2017 and 4.06 times
higher in 2018. In other words, Crest Holdings is risky and the bank will have a
problem in accepting and approving their loans.

PROFITABILITY RATIO
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2016 2017 2018

GROSS PROFIT MARGIN OPERATING PROFIT MARGIN

NET PROFIT MARGIN RETURN ON ASSETS
RETURN ON EQUITY

Based on the graph above, Crest Holdings Berhad’s gross profit margin in 2016
is 35%, in 2017 is 23% and 36% in 2018. It’s mean that after the company pays off
his inventory costs, the company still has 35% (2016), 23% (2017), and 36%
(2018) of their sales revenue to cover his operating costs.

For operating profit margin of Crest, in 2016 Crest’s operating margin is 0.26.
This means the company have used RM0.74 (RM1 – RM0.26) on every Ringgit
Malaysia of sales to pay for variable cost and only RM0.26 are remains to cover all
non-operating expenses or fixed cost. For 2017, the value of operating margin is
0.18. The company have used RM0.82 (RM1 – RM0.18) on every Ringgit of sales
to pay for variable cost and only remain RM0.18 to cover all non-operating
expenses or fixed cost. For 2018, Crest Holdings Berhad have used RM0.68 (RM1
– RM0.32) on every Ringgit of sales to pay for variable cost and remain RM0.32 to
cover all non-operating expenses.
 37

For net profit margin, in 2016 Crest Holdings has RM0.05 of net income for
every Ringgit of sales. In 2017, the company has RM0.06 of net income for every
Ringgit of sales and RM0.19 of net income for every Ringgit of sale on 2018.

Next for the return on assets (ROA), for every Ringgit in assets during 2016,
Crest have earned RM 0.03 in profit. For both 2017 and 2018, the company earned
RM 0.04 for every Ringgit in assets. In other words, the management of Crest
Holdings Berhad are not enough efficient in generating earning from their assets.

Lastly for the return of equity Crest during 2016 is 0.04 (4%) and during 2017,
the value of return of equity for the company is 0.07 (7%). In 2018, the value of
return of equity is 0.09 (9%). In other words, Crest Holdings Berhad will not give
investors a better picture of the growth of their company.

MARKET RATIO
12

10

0
2016 2017 2018

PRICE EARNING RATIO (P/E) Column1

Based on the graph, Crest Holdings Berhad has the value of earning per share
on 2016 is 0.09. It mean every share of the common stock earns RM 0.09 of net
income. Next, for 2017 for every share of the common stock the company earns
RM 0.18 and RM 0.21 for 2018.

Lastly, for price earning ratio Crest’s value is 11.33 times in 2016. In other
words, every investor are willing to pay RM 11.33 for every Ringgit of earning.
For 2017, every investor of the company are willing to pay RM 5.06 for every
Ringgit of earning. Lastly, Crest Holding’s investor or shareholder of the company
are willling to pay RM 4.33 for every Ringgit of earning.
 38

EFFICIENCY / ACTIVITY RATIO

12

10

0
2016 2017 2018

INVENTORY TURNOVER FOR JOMJIMAT RECEIVABLE TURNOVER

TOTAL ASSETS TURNOVER

Based on the graph above, Crest Holdings Berhad’s inventory turnover value
for 2016 is 2.78 times. This mean that there would be 2.78 inventory turn per year
and the company would take 6 month or 4 month to sell and replace all their
inventories. For 2017, Crest Holdings Berhad have 10.13 times inventory turns per
year. So this is mean that the company take 1 month or 2 month to sell and buy
their inventories. Lastly for 2018, the compony have 6.12 inventory turns per year.
So, the company take 2 month to sell and refill their inventories stock.

Next for the receivable turnover ratio, Crest turnover is 1.00 for 2016. This
mean that the company collects their receivables about 1 times a year (365/1). For
2017, Crest receivable turnover is 2.41. In other words, the company collects their
 39

receivables about 2.41 times a year or once every 151.5 days (365/1.41). Lastly,
Crest Holdings Berhad receivable turnover in 2018 is 1.08. So the company
collects their receivables 1.08 times a year or once every 338 days (365/1.08). So
the coonclusion that we can made is the company’s collection process is little poor.

Lastly, for the total assets turnover of Crest Holding in 2016 is 0.21 which
mean every Ringgit Malaysia invested in assets generates RM0.21 in sales. In
2017, the company’s total assets turnover of Crest is 0.33. So, every Ringgit
Malaysia invested in assets generates RM0.33 in sales. For 2018, every Ringgit
Malaysia invested in assets generates RM0.16 in sales.

3.3 SUNWAY CONSTRUCTION GROUP BERHAD

LIQUIDITY RATIO
1.4

1.2

0.8

0.6

0.4

0.2

0
2016 2017 2018

CURRENT RATIO QUICK RATIO CASH RATIO

Based on the graph above, Sunway Construction Group Berhad can cover 1.3
times its current liabilities in 2016 while in 2017 the current assets still constant and
for 2018 the current assets decreasing to 1.26 times. This shows that the company is
experiencing stability and there is a slight fall in 2018 by 0.04 times. While in cash
ratio section shows that the year ended in 2016 and 2018 , the Sunway Construction
Group Berhad get the lower than 1 and for the year 2018 , its increase to 3 times. It
shown that Sunway Construction Group had a good achievement.
 40

SOLVENCY / DEBT RATIO

30

25

20

15

10

0
2016 2017 2018

DEBT-TO EQUITY RATIO DEBT-TO TOTAL CAPITAL

TIMES INTEREST EARNED

Based on the graph above, debt-to equity ratio shown at 2016 the ratio is higher
than 1.0 which is 2.23 times and that means more assets are financed by debt that
those financed by money of shareholders ,while in 2017 the ratio decreasing to
0.24 times and its means that the business depends on the outsider borrower
especially at higher interest rates and on 2018 the ratio increasing again to 2.45
times. Debt-to total capital shown that the ratio from the year 2016 to 2018 remain
constant at 0.7 times. Times interest earned for Sunway Construction Group
Berhad shown a decreasing graph from 2016 to 2018.
 41

PROFITABILITY RATIO
1.2

0.8

0.6

0.4

0.2

0
2016 2017 2018

GROSS PROFIT MARGIN OPERATING PROFIT MARGIN

NET PROFIT MARGIN RETURN ON ASSETS

Based on the graph above, the gross profit margin for the company Sunway
Construction Group Berhad on 2016 at 21% while on 2017 the gross profit still
constant and on 2018 increasing to 100%. This show the company ability to control
cost of inventories from 2016 to 2017 is constant and increasing for 2018.

For the year 2016, the Sunway Construction Group Berhad operating profit
margin at 8% and decreasing on 2017 at 7% while in 2018 the operating profit
 42

margin increase to 8%. Its show the company overall operating efficiency of the
company is decreasing from 2016 to 2017 and increasing 0n 2018.

Ended year 2016, the company show the net profit margin at 4% while in 2017
Sunway Construction Group Berhad increasing net profit margin at 14% and 2018
decrease at 7%. This show a income the Sunway Construction Group Berhad
makes with total sales achieved on 2016 to 2017 is decreasing but 2017 to 2018
increasing.

In year 2016, the return on assets of company Sunway Construction Berhad at

5% and in 2017 the return on assets still constant while in 2018 decrease to 2%.
This show the net income produced by total assets for the Sunway Construction
Group Berhad was constant at 2016 to 2017 while decreasing for 2018.

MARKET RATIO
90

80

70

60

50

40

30

20

10

0
2016 2017 2018

PRICE EARNINGS RATIO Column1

Based on the graph above the price eranings for the Sunway Construction Group
Berhad in 2016 at 15.5 times while in 2017 still constant at 15.5 times and increase 84
times in 2018. Its show the ability of Sunway Construction Group Berhad to multiple
stock at market places on a company earnings at 2016 to 2017 is contant and
increasing at 2018.

Year ended 2016 show the company earnings per share at RM 0.09 and increasing at
RM 0.11 in 2017 and in 2018 earnings per share decreasing at RM 0.03. This show the
Sunway Construction Group Berhad has ability of net income earned per share of
stock outstanding in 2016 to 2017 is increasing while in 2017 to 2018 decrease.
 43

EFFICIENCY / ACTIVITY RATIO

700

600

500

400

300

200

100

0
2016 2017 2018

INVENTORY TURNOVER FOR JOMJIMAT RECEIVABLE TURNOVER

AVERAGE COLLECTION PERIOD TOTAL ASSETS TURNOVER

Based on the graph the inventory turnover of Sunway Construction Group Berhad
in 2016 at 58 times while in 2017 increasing at 67 times and in 2018 was decreasing at
0 times. Its show the ability of company to sold or used the inventory in period times
increasing on 2016 to 2017 and decreasing on 2017 to 2018.

In year 2016, the Sunway Construction Group Berhad receivable turnover at 2.44
times while in 2017 decreasing at 1.95 times and at 2018 the receivable turnover also
decreasing at 0.6 times. This show the ability of company Sunway Construction Group
Berhad to collect average accounts receivable for the three years from 2016 to 2018
was decreasing.
 44

For the year 2016, the average collection period for the Sunway Construction
Group Berhad at 149.6 days and increase on 2017 at 187.2 days while at 2018 also
increase at 608.3 days. This show the company average collection for ability to
receive payment was increase for three years from 2016 to 2018.

Year ended 2016, the total assets turnover for the company Sunway Construction
Group Berhad at 1.12 times while in 2017 was decreasing at 1.1 times and on 2018 the
totals assets turnover also decreasing at 0.4 times. This show the company turnover
ability to generate sales fromits assets was decreasing fro three years from 2016 to
2018.

3.4 FAJARBARU BUILDER GROUP BERHAD

LIQUIDITY RATIO
8

0
2016 2017 2018

CURRENT RATIO QUICK RATIO CASH RATIO

Current ratio matches current assets with current liabilities and tells us whether
the current assets are enough to settle current liabilities. For 2016 current ratio is 2
times and increased on 2017 which is 2.53 times and decreased on 2018 to 2.27.
From 2016 to 2017, current liabilities decreased that makes the times on 2017 is
 45

more that 2016.However on 2018, current liabilities increased from 2017 that
makes the times on 2018 decreased to 2.27 times.

Quick ratio is an indicator of most readily available current assets to pay off
short-term obligations. From 2017 to 2017, quick ratio is increased from 1 to 1.53
times and stable on 2018. Cash equivalents are assets which can be converted into
cash quickly whereas current liabilities are those liabilities which are to be settled
within 12 months or the business cycle.

Cash ratio from 2016 to 2017 increased 0.09 because cash and short-term
investment is higher than 2016. On 2018, the cash ratio is decreased 0.13 because
the cash and short-term investment lower than 2017.

SOLVENCY / DEBT RATIO

45
40
35
30
25
20
15
10
5
0
2016 2017 2018

DEBT-TO-EQUITY RATIO DEBT-TO-TOTAL CAPITAL

TIMES INTEREST EARNED

Debt-to-Equity ratio is the ratio of total liabilities of a business to its

shareholders' equity. On 2016, debt to equity ratio is 1.09 and decreased to 0.62 on
2017 and continue increased to 0.70 on 2018. Total liabilities on 2016 is higher
than 2017 and 2018. That’s make debt to equity ratio on 2016 is higher than other.
A value higher than 1.00 means that more assets are financed by debt that those
financed by money of shareholders' and vice versa.

Debt-to-total capital ratio is a solvency ratio that measures the proportion of

total liabilities to the total liabilities and total equity. Debt to total capital on 2016
 46

is 0.52 and decreased to 0.38 on 2017 because total liabilities is lower on 2017 than
2016, however its increased to 0.41 on 2018. The higher total liabilities, higher the
debt to total capital.

Times interest earned ratio is an indicator of the company’s ability to pay off its
interest expense with available earnings. On 2016, the time interest earned is 38.2
times and decreased to 24.1 on 2017 and still decreased on 2018. Higher value of
times interest earned (TIE) ratio is favourable as it shows that the company has
sufficient earnings to pay off interest expense and hence its debt obligations. Lower
values highlight that the company may not be in a position to meet its debt
obligations.

PROFITABILITY RATIO
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2016 2017 2018

GROSS PROFIT MARGIN OPERATING PROFIT MARGIN NET PROFIT MARGIN

RETURN ON ASSETS RETURN OF EQUITY

Gross profit margin ratio is the ratio of gross profit of a business to its revenue.
Gross profit margin on 2016 is 0.84 and its decreased on 2017 to 0.58 however its
increased on 2018 to 0.78. The higher of sales, the lower gross profit margin will
be. In this case higher gross margin ratio means that the retailer charges higher
mark up on goods sold.

Operating profit margin or return on sales ratio is the ratio of operating income
of a business to its revenue. On 2016 operating profit margin is 0.13 and its
increased on 2017 to 0.25, however its continue decreased on 2018 to 0.19. It’s is
because profitability operating margin ratio is not improving.

Net profit margin is the most basic profitability ratio that measures the
percentage of net income of an entity to its net sales. Net profit margin on 2016 is
0.07 and its increased to 0.18 on 2017. Its is because net profit and sales are
increased. However, its decreased on 2018 to 0.10 because decreased in net profit
margin.
 47

Return on assets is the ratio of annual net income to average total assets of a
business during a financial year. Return on assets on 2016 is 0.06 and its increased
on 2017 to 0.17 because higher values of return on assets show that business is
more profitable. However, on 2018 its decreasing to 0.08 because the return on
assets not profitable.

Return of equity is the ratio of net income of a business during a year to its
average shareholders' equity during that year. On 2016, return of equity is 0.10 and
its increased to 0.25 on 2017, however its going decreased to 0.13 on 2018. The
increased from 2016 to 2017 is because efficient in generating income on new
investment. The decreased on 2018 its because decreasing on net income.

MARKET RATIO
8

0
2016 2017 2018

PRICE EARNING RATIO Column1

For the market ratio, the value of earning per share for Fajarbaru Building
Berhad during 2016 is 0.09. In other word, every share of company’s stock earns
RM 0.09 of net profit. For 2017, every share of company’s stock earns RM 0.22 of
net profit and 0.11 for 2018.

For price earnings ratio, Fajarbaru’s value is 5.78 times in 2016. In other
words, every investor are willing to pay RM 5.78 for every Ringgit of earning. For
2017, every investor of the company are willing to pay RM 2.55 for every Ringgit
of earning and it’s dropping from 2016. Lastly, Fajarbaru Building’s investor or
shareholder of the company are willling to pay RM 7.36 for every Ringgit of
earning.
 48

EFFICIENCY / ACTIVITY RATIO

4.5

3.5

2.5

1.5

0.5

0
2016 2017 2018

INVENTORY TURNOVER RECEIVABLE TURNOVER TOTAL ASSETS TURNOVER

Inventory turnover is an efficiency ratio which calculates the number of times

per period a business sells and replaces its entire batch of inventories. Inventory
turnover for 2016 is 0.33 and increased to 0.88 on 2017 because cost of goods sold
increased. However, in 2018, its decreased to 0.64. In general, a high inventory
turnover indicates efficient operations.

Receivable turnover is the ratio of net credit sales of a business to its average
accounts receivable during a given period, usually a year. For 2016, receivable
turnover is 4.1 and continue decreased to 2017 at 3.74 and 3 on 2018. Decreasing
in accounts receivable turnover overtime generally indicates will not improve the
process of cash collection on credit sales.

Total assets turnover is the ratio of a company's sales to its assets. It is an

efficiency ratio which tells how successfully the company is using its assets to
generate revenue. For total assets turnover on 2016 is 0.79 and continue increased
to 2018 from 0.88 to 2.7. The increasing in total assets turnover because company
can generate more sales with fewer assets it has a higher turnover ratio which tells
it is a good company because it is using its assets efficiently.
 49

3.5 GEORGE KENT (MALAYSIA) BERHAD

LIQUIDITY RATIO
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2016 2017 2018

CURRENT RATIO QUICK RATIO CASH RATIO

Based on graph above, the current ratio for year 2016, 2017, 2018 are RM 1.48, RM
1.47, RM 1.63. George Kent (Malaysia) Berhad should not face any liquidity problem
because current ratio for each year is more than 1 which means that currents assets are
more than current liabilities. The higher current ratio is always more favourable than a
lower current ratio. It shows the company can more easily make current debt payments.

The quick ratio for this company are (2016=1.35, 2017=1.38, 2018=1.53). The quick
ratio shows how well a company can quickly convert its assets into cash in order to pay off
its current liabilities. It also shows the level of quick assets to current liabilities. So, as we
can see George Kent (Malaysia) Berhad have positive financial performance and can pay
off its current liabilities without selling any long-term assets.

0.67, 0.85, 1.08 are the cash ratio for year 2016, 2017, 2018. A cash ratio of 1.00 and
above means that the business will be able to pay all its current liabilities in immediate
short term. Therefore, creditors usually prefer high cash ratio. But businesses usually do
not plan to keep their cash and cash equivalent at level with their current liabilities because
 50

they can use a portion of idle cash to generate profits. This means George Kent (Malaysia)
Berhad has a normal value of cash ratio.

SOLVENCY / DEBT RATIO

90

80

70

60

50

40

30

20

10

0
2016 2017 2018

DEBT-TO EQUITY RATIO DEBT-TO TOTAL CAPITAL TIMES INTEREST EARNED

George Kent (Malaysia) Berhad Debt-To-Equity Ratio are 2016=1.12,

2017=1.27, 2018=1.00. A lower debt to equity ratio usually implies a more
financially stable business. Companies with a higher debt to equity ratio are
considered more risky to creditors and investors than companies with a lower ratio.
The debt-to-equity ratio for year 2018 is 1.00 which means that investors and
creditors have an equal stake in the business assets.

The Debt-To-Total Capital Ratio is an important measure to identify how much

a company is dependent on debt to finance its day-to-day activities and to estimate
the risk level to a company’s shareholders. It also measures the creditworthiness of
a firm to meet its liabilities in the form of interest expenses and other payments.
George Kent (Malaysia) Berhad is considered quite good because their ratio are
0.53, 0.56, 0.43 for the year 2016,2017 and 2018.Typically the higher the ratio, the
greater the risk to lenders and shareholders, but this is not always the case.
 51

The times interest ratio for George Kent (Malaysia) are (2016=31.03)
(2017=54.32) (2018=76.95). The ratio indicates how many times a company could
pay the interest with its before tax income, so obviously the larger ratio are
considered more favourable than smaller ratio because it shows the company can
afford to pay its interest payments when they come due. Time interest ratio for
George Kent (Malaysia) Bhd. is getting better year by year from 2016 to 2018.
Higher ratio is less risky while lower ratio indicates credit risk.

PROFITABILITY RATIO
0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
2016 2017 2018

GROSS PROFIT MARGIN OPERATING PROFIT MARGIN NET PROFIT MARGIN

RETURN ON ASSETS RETUN OF EQUITY

Gross Profit Margin Ratio for George Kent (Malaysia) Bhd. are (2016=17%,
2017=25%, 2018=31%). This ratio shows management and investors how
efficiently the business can produce and sell products. In other words, it shows how
profitable a product is. The concept of gross profit is particularly important to cost
accountants and management because it allows them to create budgets and forecast
future activities. The higher ratio are preferable so, year 2018=31% is better than
others ratio.

17%, 24%, 30% are Operating Profit Margin for the year 2016, 2017 and 2018.
Operating profit margin shows whether the fixed costs are too high for the
production or sales volume. High or increasing operating profit margin is preferred
because if operating margin is increasing, the company is earning more per ringgit
of sales. Here, 2018 (30%) is better than other ratio.

Net Profit Margin is an indicator of how efficient a company is and how well it
controls its costs. 2016=9%, 2017=17%, 2018=20% are net profit margin for
George Kent (Malaysia) Berhad. The higher the margins, the more effective the
company is in converting revenue into actual profit. Here, 2018=20% is more
acceptable.
 52

The Return On Assets Ratio is a profitability ratio that measures the net income
produce by total assets during a period by comparing net income to average total
assets. 7%, 11%, 13% are ROA for this company. The greater a company’s
earnings in proportion to its assets, the more effectively that company is said to be
use its assets. Here, 2018 (13%) is better than year 2016 and 2017.

The return of equity ratio or ROE is a profitability ratio that measures the
ability of a firm to generate profits from its shareholders investments in the
company. In other words, the return of equity ratio shows how much profit each
ringgit of common stockholders’ equity generates. George Kent (Malaysia)
Berhad’s return of equity ratio are 2016=14%, 2017=20%, 2018=26%. Higher ratio
are almost always better than lower ratio, but have to be compared to other
companies’ ratio in the industry. Since every industry has different levels of
investors and income, ROE can’t be used to compare companies outside of their
industries very effectively. Here, 2018 (26%) is better than others ratio.
 53

MARKET RATIO
30

25

20

15

10

0
2016 2017 2018

PRICE EARNING RATIO EARNING PER SHARE (EPS)

Price Earnings Ratio for George Kent (Malaysia) are 2016=5.22, 2017=7.53,
2018=15.88. The price to earnings ratio indicates the expected price of a share
based on its earnings. As a company’s earnings per share being to rise, so does
their market value per share. A company with a high P/E ratio usually indicated
positive future performance and investors are willing to pay more for this
company’s shares. The best P/E ratio for George Kent (Malaysia) Bhd. (2016-
2018) is 15.85.

Earnings per Share are a calculation that shows how profitable a company is
on a shareholder basis. The EPS for this company are 16.67, 29.97, 22.09 for the
year 2016, 2017 and 2018. The higher the EPS figure, the better it is. A higher EPS
is the sign of higher earnings, strong financial position and a reliable company to
invest money. Here, 2017 (26.97) is more acceptable.
 54

EFFICIENCY / ACTIVITY RATIO

180
160
140
120
100
80
60
40
20
0
2016 2017 2018

INVENTORY TURNOVER RECEIVABLE TURNOVER

AVERAGE COLLECTION PERIOD TOTAL ASSETS TURNOVER

Inventory Turnover ratio or ITO for George Kent (Malaysia) Berhad are
2016=9.24, 2017=10.44, 2018=8.95. ITO shows how many times a company’s
inventory is sold and replaced over a period. A lower turnover implies poor sales
and excess inventory. A high ratio implies either strong sales or ineffective buying.
High inventory levels are unhealthy because they represent an investment with rate
of return of zero. Here, the low turnover is 2018 (8.95) and high turnover is 2017
(10.44).

2.23, 2.24, 3.05 are receivable turnover ratio for year 2016, 2017, 2018.
Accounts receivable turnover is an efficiency ratio or activity ratio that measures
how many times a business can turn its accounts receivable into cash during a
period. In other words, the accounts receivable turnover ratio measures how many
times a business can collect its average accounts receivable during the year. A
higher ratio would be more favorable so, 2018(3.05) is better than 2016 and 2017.

Average Collection Period is the amount of time that it takes for a company to
receive payments owed, in rms of receiveables, from its customers and clients. This
company average collection period are 2016=163.7 days, 2017=162.9 days, 2018=
191.7. Here, 2018 (119.7 days) is more acceptable.
 55

Total Asset Turnover for George Kent (Malaysia) Berhad are 0.79, 0.66, 0.69
for the year 2016, 2017, 2018. Total asset turnover measures the turnover of all the
company’s assets into sales so, a higher ratio is always more favourable. Higher
turnover ratio mean the company is using its assets more efficiently. Lower ratio
mean that the company isn’t using its assets efficiently and most likely have
management or production problems. Here, 2016 (0.79) is better than 2017 and
2018.

4.0 CONCLUSION

For this Fundamental of Finance assignment, we examine the ratio analysis of 5

company under sector of construction including Econpile Holdings Berhad, Crest
Builder Holdings Berhad, Sunway Construction Group Berhad, Fajarbaru Builder
Group Berhad and George Kent (Malaysia) Berhad.

Firstly, from the liquidity ratio analysis we can see that Fajarbaru Builder Group
Berhad are the perform company in this ratio. So, this company have positive financial
performance and can pay off its current liabilities without selling any long-term assets.
For the worst performance for this ratio is from the Crest Builder Holdings Berhad.
The company should change the credit policy and proper use of its assets.

Next, for the debt or solvency ratio analysis we can see that Econpile Holdings
Berhad is the most save company from any risk to face bankruptcy while Sunway
Construction Group Berhad is the most risky company. So, the company should avoid
the use of debt otherwise company would be fall into bankruptcy.

For the profitability ratio, the company who is the most stable is Fajarbaru Builder
Group Berhad. The company always get big net profit from their operating activity
than others company. So, the company will easy to get any loan from any bank
because of their company performance. Beside, Sunway Construction Group berhad
should fokus on getting more profit from their operating activities.

Next, for the market ratio analysis Econpile Holdings Berhad is the most stable
construction company in the aspect of getting capital from any shareholder because
they got many shareholder who is invest in their company. For George Kent
(Malaysia) Berhad should improve on aspect of annual report and company
performance to get more intention to any person or agency to invest to their company.

Lastly for activity ratio, Econpile Holdings Berhad aree the one who is the most
efficient in their operating activity while the Crest Builder Holdings Berhad is the
unefficient in their operatin activities.
 56

APPENDIX