Financial Statement Analysis for Umw

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Detail Analysis

On the dividend topic, the broad declared an interim single-tier dividend of 20% or 10.0 sen per share of par value RM0.50 each for the year ended 31 December 2015 which was paid on 8 October 2015. A second interim single-tier dividend at the same rate was declared by the Broad paid on 23 Mar 2016.

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Table 1

In general of the tread analysis for the profit and loss for the Group, the revenue had drop from 7% (2014) to -3.3% (2015). It was due to the varies factors from the global and market impacts. The Group and company had showing a total down tread, the cost of sales which including of depreciation of tangible value and, impairment and amortisation intangible value, the total amount depreciation had been increase about 63.69% RM 510,711,000 (Year 2015) with compare with RM 378,744,000 (Year 2014) and RM 325,286,000 (Year 2013). It means the Group had losing much value in tangible and intangible value. Decreasing of the revenue and cost of the sales; directly impacting the gross profit of -3.30% in year 2015 compare to 7.20% in year 2014. Profit of the year showing the critical negative value comparing to past 5 years performance; in year 2015 -99.80% and 11.90 in year 2014, this result been indicating the Group are facing a critical situation, the amount of Ringgit was decrease from 1,213,005,000 (Year 2014) to 2,192,000 (Year 2015). There are some good sign was showing on cost of financing, with positive carry which means the yield earned is greater than financing cost; the value was improved from -14.10% in year 2014 to 48.90% in year 2015. Due to environment and national impact like reduction in oil price, weak local currency against USD, political instability bringing economic turmoil to the share market in Bursa Malaysia, the Group share was also directly impacting by such factors, the dividends was decreased 11.70% comparing to previous year performance.

In the following ratio analysis will looking into Group performance of profitability, liquidity, working capital, Solvency or debt management and investor ration comparing to past 2 years result.

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Table 2

From the ratio analysis of the profitability, there are few elements taking into consideration. By the asset utilisation can see the ration had been reduce from $1.64 in year 2013 to $0.79 in year 2015; it had been reduce almost 52% for the past 2 years. On operating profit margin showing a huge reduce of 9.3% to 0.9%, which means the Group pricing strategy and operating efficiency had been reduced. The net profit margin had also reduced from 7.8% to 0%, reflecting the Group facing a cash shortage and a lot of non-cash expenses in the coming years. Performance of and investment also reduce due to reduce of the efficacy from 15.2% in year 2013 to 0.7% year 2015; it could be causes by leased assets value reduced. Net ROI, prove that the efficacy of the investment was not profitable as expecting for the past 2 years.

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Table 3

The liquidity was measured by cash ratio, AR ration and quick ratio. It just to showing the most stringent and conservative of the three short-term liquidity ratios; in general sustainable for the group, there are some improvement from the past 2 years.

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Table 4

On the working capital the current ratio has been improved from 2013 to 2015 to achieve 1.21% and also the AR days had been reduced, to gain a fast and efficient AR day’s rate.

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Table 5

From the debt management point of view based on the comparison above the Group still in low side of the proportional of long term finance that used to finance of current assets; but we are seeing a good improvement to achieving a good balanced by coming years. On the Group borrowings; the Group still stays in an extremely conservative mode; it also seeing a good balancing and good control in place. In the interest earning, the Group is doing they are very best to re-gain the profitability from loan, can see there great efforts to pay out the bad debt.

A stock with a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to the overall market. Investors are paying more for today’s earnings in anticipation of future earnings growth. Conversely, a stock with low P/E ratio suggests that investors have more modest expectation for its future growth compared to the market as a whole; this is what happening to the Group situation. This could be a temporary phenomenon, will get over once the market back to bullish.

Highlights of the automotive, overall automotive sales largely help up against soft consumer sentiments in 2015, as consumers accelerated their purchases in the fourth quarter in anticipating of higher vehicle prices in 2016. The automotive industry recorded a total industry volume (“TIV”) of 666,674 units in year 2015 compared to 666,487 units in year 2014. TIV growth for the year, while marginal, nevertheless represents an all-time high. With combined automotive market share (Toyota and Perodua0 for the year 2015 was 46.4%. UMW Toyota Motor Sdn Bhd (“UMW Toyota”) sold a total of 95,861 units of Toyota and Lexus vehicles. Perodua set a new sales record for 2015, with cumulative sales increasing by 9.1% year-on-year, reflecting the success of the Axia. Perodua maintained its NO1, overall position in the automotive industry for the tenth consecutive year.

Equipment division despite the continuous low commodity process and lower domestic demand in 2015, the Equipment Division surpassed its 014 performance in both revenue and PBT. The increase was primarily because of the higher demand for equipment, parts and services by our operations in Myanmar and Papua New Guinea. The industrial Equipment segment continued to maintain its market leadership position in Malaysia’s material handling equipment business. Following with oil and gas industry emerged from a period of high growth into an era of oversupply, with crude oil prices plummeting more than 50% since mid-2014. The current state of the industry had an inevitable negative effect on the price and volume of our drilling and oilfield services, resulting in a loss before taxation of RM 348.4 million for the division in the financial year under review.

UMW