Oriental Holdings Berhad
2011 and 2010 Annual Report
The purpose of this report is to analysis from a financial perspective on Oriental Holdings Berhad (OHB).
Listed on the main board of Bursa Malaysia Securities Berhad since 10 March 1964， Oriental Holdings Berhad is a trusted company diversified Malaysian conglomerate engaged in automotive dealerships, automotive components, financial services, healthcare, property development, retailing and plantations.
Oriental Holdings Berhad was established on 24 December 1963 as private limited company under the Companies Act, 1965 and was converted to a public company on 22 February 1964 under its present name.
The scope of this report is to study OHB from its 2011 and 2010 annual report and audited financial statement by using financial analysis to identify how the performance of the company and group is during the last 2 years and how it face the uncertain recovery of global economic in the market in future.
The report began a brief introduction to the background with the OHB and its market, and it comes with financial analysis on its 2011 and 2010 annual report and audited financial statement. Finally it ends with the overall assessment and conclusion.
1.2Nature of Business3
1.3Year End Overview of 20114
2.Financial Analysis on Oriental Holdings Berhad4
2.1Nature and Purpose of Financial analysis4
2.2Profitability Analysis of OHB Group5
2.2.1Calculation of OHB’s Profitability6
2.2.2Analysis of Profitability6
2.3Asset Efficiency Analysis of OHB Group7
2.3.1Calculation of OHB’s Asset Efficiency7
2.3.2Analysis of Asset Efficiency8
2.4Liquidity Analysis of OHB Group9
2.4.1Calculation of OHB’s Liquidity9
2.4.2Analysis of Liquidity10
2.5Capital Structure Analysis of OHB Group11
2.5.1Calculation of OHB’s Capital Structure11
2.5.2Analysis of Capital Structure11
2.6Market Performance Analysis of OHB Group12
2.6.1Calculation of OHB’s Market Performance12
2.6.2Analysis of Market Performance13
3.Assessment of Overall Performance14
4.Conclusion and Recommendation15
2.1 Company Profile
Oriental Holdings Berhad has come a long way from its beginning in Penang, Malaysia over 40 years ago, now the company operates in Malaysia, Singapore, China, Thailand, Indonesia, Australia and internationally.
For the financial year ended 31 December 2011, the group posted its record sales, a slightly decrease of 3% to RM3.1 billion compared to 2010, while its profit after tax increased by 19.9% to RM369.2 million, from RM307.9 million in 2010 (Fig 1.1.1 shows some financial highlights 2011 of OHB). As a result, net asset per share rose to RM7.09 from RM6.65 (OHB Annual Report, 2011).
Fig 1.1.1 Financial highlights of the group (Source: OHB Annual Report 2011) 2.2 Nature of Business
OHB is an investment holding company, which engages in automotive and related products, healthcare, hotels and resorts, investment holdings and financial services, plantation, plastic products, and property development businesses.
It mainly operates in six segments:
1) Automotive and related products
It includes retailing, assembly and distribution of motor vehicles, and manufacture of engines, seats and other related parts, as well as trading of spare parts, accessories and related component parts.
2) Plastic products
It includes the manufacture, assembly and distribution of plastic component parts, and manufacture of plastic technical and industrial goods and equipment.
3) Hotels and resorts
4) Investment holding and financial services
It includes investment in shares and bonds, letting of properties and leasing companies.