INTRODUCTION

Established in year 1983, Weida is a listed company in Main Board of Bursa Malaysia Securities since 2001. With workforce that more than 1,500 employees in Malaysia, Philippines and Middle East, we provide solution adapted and personal service in order to meet council needs of the customer and industry in ten parts synergized: water infrastructure, Infrastructure sewage, rural infrastructure solution, renewable energy, storm water management, trenchless pipe recovery, one-stop solution engineering, international technology transfer and HDPE product manufacturing. Since recent years, Group also has indicated the presence in telecommunications infrastructure and oil palm plantation. Weida record turnover as much as RM276.2 million in year 2010.

Today, this polyethylene local supplier engineering (PE) has evolved in order to be the country's history-making team country icon project who leads first design build Biogas and Wastewater Treatment Plant project in Malaysia. Group had also been implemented turnkey water and sewage treatment project in the Middle East under bilateral government initiative between Republic Arab Syria Government and Malaysia Government.

We have manufacturing and provide various engineering products and especially solution in ecosustainable engineering industry all over Southeast Asia and Middle east as long as 3 decades.

To overcome complex global needs of the customer we, we offer various services and technology solution by HDPE product manufacturing to maximize efficiency and effectiveness while considerate to environment.

Our commitment to quality assurance number, detailed study, hands-on experience pool development and talent has made us a leader in the building sustainable and infrastructure development industry.

FINANCIAL HIGHLIGHTS

By refer to revenue graph in appendix; the revenue of Weida (M) Berhad has an upward trend from year 2007 to year 2011. This shows that Weida (M) Berhad is having stable growth in their revenues. From year 2007 to year 2008, its revenue grows for 7.28% from RM 1933,792 to RM 207,899.There is 30.6% increase of revenue from year 2008 to year 2009, 0.33% growth in revenue from year 2009 to year 2010 and 4.94% increase in year 2010 to year 2011. In year 2007, profit attributable to owners of Weida (M) Berhad reached RM 14,029. From the graph above, there is ascending trend of profit attributable to owners. The profit attributable to owners increased by RM 7,806 or 55.6% from year 2007 to RM21, 835 in year 2011. From the five year financial highlight table in appendix, total assets of AEON has increased by 90.3% from RM 242,870 in year 2007 to RM 462,240 in year 2011. Total equity attributable to the owners of the company has also increased. It increased by 56.2% from RM 116,971 to RM 182,672 from year 2007 to year 2011. The increase in equity is contributed by the increase in basic earnings. From year 2007, basic earnings are 10.54 and it increases by 6.67 for 63.3% to 17.21 in year 2011.The total liabilities are RM45,858,309, RM139,556,386, RM119,317,120, RM79,127,824 and RM99,173,738 respectively for year 2007 to year 2011. From year 2007 to year 2011, total liabilities increased by 116.3%. This might because Weida (M) Berhad needs large monetary aid such as loan to finance their expansion and renovation expenses. The gross dividend remain same for year 2007 and year 2011.Meanwhile the net assets increase 61.8% from 0.89 in year 2007 to 1.44 in year 2008.

RATIO ANALYSIS
Ratio analysis is a form Financial Statement Analysis used to get financial performance. Ratio can be used to compare firm financial performance with industry average. Ratio also can be used in trend analysis form to identify areas wherever performance had improved or otherwise from time to time.

PROFITABILITY RATIO
Profit ratio measure how a company who implement by analyzing how profit achieved compared to sales, total asset and net worth.

OPERATING MARGIN

Show to you how efficient firm manager use business operation to generate profit.

Formula:

Operating Margin = (Operating Income)

Revenue

Year 2007 2008 2009 2010 2011

Operating Margin 0.07 0.64 0.42 0.39 0.08

From year 2007 to year 2011, the operating margin of Weida (M) Sdn Bhd shows unbalanced percentage that indicates the company is not keep its costs under control. The sales are decreasing faster than costs, and the firm is not in a relatively liquid position. This is prove by the dramatic

dropping in year 2011 which is 0.08 compare to year 2010 which is 0.39.Where there is a significance 0.31% drop.

RETURN ON EQUITY (ROE)

Shows the return earned from the fund invested by the shareholders of the company.

Formula:

ROE = Net Income (After Tax) Shareholder Equity Year 2007 2008 2009 2010 2011 ROE 0.08 -0.04 0.15 0.06 0.03

From year 2007 to year 2011, the return on equity of Weida (M) Sdn Bhd shows unbalanced percentage that indicates it is not much effective. The lower number shows that the company no effective turning its assets and employees into lots of money for its investors. This is prove by the few differences of dropping in year 2011 which is 0.03 compare to year 2010 which is 0.06.Where there is a significance 0.03% drop.

LIQUIDITY RATIO
Liquidity ratio is ratio that excluded from Balance Sheet and consequently measures the company liquidity in a certain day, namely day that Balance Sheet was provided. This ratio is important in Measure Companys capability in order to meet both short-term and long-term obligation.

CURRENT RATIO
Current ratio assesses the solvency of the company. It determines the ability of the company to meet their financial obligations in short term with their current assets.

Formula:

Year 2007 2008 2009 2010 2011

Current Ratio 1.37 1.24 1.19 0.36 0.27

From year 2007 to year 2011, the current ratio of Weida (M) Sdn Bhd shows below industry average. The lower current ratio shows that Weida are not readily available to pay off its short-term liabilities. However, there is a slight decreasing trend of current ratio from 0.36 in year 2010 to 0.27 in year 2011. This indicates of drop of 0.09% from year 2010 to year 2011.

ACID TEST RATIO

Measurement how businesses could meet short-term financial duty without sell inventory. This calculation purpose is to show how easy him company may be dissolved, and thus help financial institution decide above how credit of a company strength.

Formula: Acid Test Ratio = (Current Assets Inventory)

Current Liabilities

Year 2007 2008 2009 2010 2011

Acid Test Ratio 1.37 1.24 1.19 0.36 0.27

From year 2007 to year 2011, the acid test ratio of Weida (M) Sdn Bhd shows lesser than 1 which is 0.36 in year 2010 and 0.27 in year 2011. This show that Weida could not pay their current liability and must be seen with very interested - heart. Acid-test ratio is lower than working capital ratio; it means current asset is very depend on inventory.

EFFICIENCY RATIO
Efficiency ratio measures the effectiveness of company in using its resources or assets in producing sales.

INVENTORY TURNOVER
Inventory turnover is used as a measure of how regular the inventories of a firm being replaced and sold. . Formula:

Year 2007 2008 2009 2010 2011

Inventory Turnover 5.79 3.93 4.36 2.22 1.46

From year 2007 to year 2011, the inventory turnover of Weida (M) Sdn Bhd decreased which are 2.22 in year 2010 and 1.46 in year 2011. This shows that Weida decision should be based on how fast the inventory is "turned" (or sold). Shows the number of days it takes for a business to clear its inventory. Weida perform well compare to previous year in clearing their inventory in differences 0.76.

FIXED ASSET TURNOVER

Fixed asset turnover ratio is net asset net selling ratio still (are also known as property, plant, and equipment).

Formula:

Fixed Asset Turnover = Net Sales

Average Net Fixed Assets

Year

Fixed Asset Turnover

2007 2008 2009 2010 2011

0.25 0.19 0.13 0.08 0.12

From year 2007 to year 2011, the fixed asset turnover of Weida (M) Sdn Bhd shows increased a little bit around 0.04% difference which is 0.08 in year 2010 and 0.12 in years 2011. This shows that Padini using the investment in fixed assets to generate revenues.

LEVERAGE RATIO
What ratio used to calculate leverage corporate finance to get method idea that financing company or measure capacity in order to meet financial obligation. There is ratio a few, but key factors assessed by ratio including debt, equity, asset and interest expense. (2) Ratio used to measure operating cost company mixture which produces estimate of how internal change product would affect operating income.

DEBT RATIO
A corporate debt measure of the amount to total asset. A ratio less than a way that a company that has more asset from debt, while ratio more than one mean on the other hand. Measure debt ratio how risky it will be a bank to continue loan to something company, with ratio that is higher show great stake. Formula: Debt Ratio = Total Liability Total Assets

Year 2007 2008 2009 2010 2011

Debt Ratio 0.39 0.69 0.64 0.53 0.59

From year 2007 to year 2011, the debt ratio of Weida (M) Sdn Bhd shows higher this is 0.59 in year 2011 compare to year 2010 which is 0.53. This show that debt that is higher / EBTIDA ratio mean that the company benefited a lot and it may be sail against in settles up. That high EBITDA Weida debt ratio may be causing credit score that is lower for business.

MARKET RATIO
Market ratio / book, sometimes mentioned price-to-book ratio, is one way to measure company relative value compared to share price or market value.

EARNINGS PER SHARE

EPS is income per share, or part of corporate profitability associated with every stock individual stock. EPS is good indications corporate profitability, and is very important Metric to see by evaluate particular stock.

Formula:

Earnings per Share = Net Income Average Common Shares

Year 2007 2008 2009 2010 2011

Earnings Per Share 0.03 -0.01 0.04 0.02 0.01

From year 2007 to year 2011, the debt ratio of Weida (M) Sdn Bhd shows lower earnings per share which is 0.01 in year 2011 compare to year 2010 which is 0.02.It is decreased in 0.01 differences. This shows that lower ratio is, not better for the business because the value of the share will decrease. When the company publishes what proportion of its profits will be paid out as dividend to the stockholders, by having a lower EPS it is not better, since than less dividends will be received after each shares owned.

SHAREHOLDERS INFORMATION
The authorized share capital is RM100, 000,000.00.The issued and Paid-up Share Capital is RM66, 666,666.00.The ordinary share is RM0.50 each. The total number of shareholders is 2,803 and their total holdings are 126,895,332.The following is 1,481 which is the highest rank of shareholders is and their total holdings are 4,390 which they owned 1,001 to 10,000 shares. The second rank of shareholders is 682 and their total holdings are 22,790,512 which they owned 10,001 to 100,000 shares. The third rank of shareholders is 419 and their total holdings are 206,980 which they owned 100 to 1,000 shares. The fourth rank of shareholders is 116 and their total holdings are 4,390 which they owned less than 100 shares. The fifth rank of shareholders is 101 and their total holdings are 44,446,552 which they owned 100,001 to less than 5% of issued shares. The lowest rank of shareholders is 4 and their total holdings are 51,123,214 which they owned 5% and above of issued shares. The difference in the numbers of shareholders which is between the highest and lowest is 1477 and the differences between the highest and lowest in the total holdings are (42,799,530) which show the negative relation.

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SWOT ANALYSIS OF WEIDA (M) BERHAD

STRENGTH

Strength is an advantage of the business.

Weida (M) Berhad biggest strength is being Malaysia's largest septic tank manufacturer. Strength of Weida (M) Berhad is also with their eco-friendly system that reduces household waste by 20% or more, eco-friendly alternative to garbage disposals, dispose of food waste quickly, safely and keep garbage bins odor-free and clean. Example of one of its products is WEIDA Solar Food Composter.

WEAKNESSES
Weaknesses are disadvantages of the business. WEIDA do not warrant that the servers that make this website available will be error, virus or bug free and you accept that it is your responsibility to make adequate provision for protection against such threats. Weida Irresponsible to any loss due to access that improper any third party to website, password or data or information in website.

OPPORTUNITIES
Is an external chance to improve company performance in the environment. Weida (M) Berhad consumer communication practice. When customer e-mails or Weida other communication, Weida could keep persons communication to process their question, react to their demand and improve their services also.

THREATS
Is an external element in the environment that could cause trouble for the business or project. The threats for Weida(m) Berhad is its competitors which is Pembinaan Jayabumi (Sarawak).Based on an average market its shows that PJSB is its close competitor which value RM2.12, yielding a 25% premium to the IPO price. This competitor restricts the performance growth of Weida (m) Berhad.

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RECENT NEWS
KUCHING: based in Sarawak Weida (M) Bhd is in discussion that more water and contract relating sewage in Syria where it is Contactor turnkey for a project that continued sewerage RM375mil.

DENMARK: Sar-alam Indah Sdn Bhd, Weida subsidiary (M) Bhd, signing of a contract worth US $ 4m with Niras Denmark Consulting Engineers waste management firm & Planners A/ s integrate

digester facility sludge or biogas plant into septic Matang septic sludge treatment in Kuching. Saralam Indah manage Matang AS septic $ 4.42m treatment plant sludge owned by property Inc. Sdn Bhd. Sarawak government

BETA ANALYSIS
By refer to the beta calculation in the appendix; the beta for Weida (M) Bhd is 0.81. Beta is the measure of non-diversifiable risk, which is the market risk. They further explain that beta could also be defined as the sensitivity of investments return in relation to the markets return movement. In addition, shares that have beta of less than 1 are less risky as compared to the market, and vice versa, shares with beta greater than 1 are relatively more risky as compared to the market. The beta of 0.81 for Weida (M) Bhd represents the share price of Weida (M) Bhd would increase or decrease 0.81% if the market increases or decreases 1%. As a result, Weida (M) Bhd shares are relatively lower at market risk because they are less sensitive to the fluctuation in the share market.

CONCLUSION
I find out that Weida (m) Berhad are performing in an average zone. So, I would like to suggest the company to improve on their capability more on how to manage with their assets and settle down all their liabilities. If they improve on this part, definitely more investors will invest in their business. This also will open a path for them to make a good profit in future and become one in the list of the top companies.

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REFERENCES Books
Lumby S (2003). Corporate Finance Theory and Practice. 7th ed. London: Prentice Hall. p123-127.

McLaney (2008). Fundamentals of Corporate Finance. 6th ed. England: Prentice Hall. p101-116.

Website
Coyne T. (2009). Market/Book Ratio. Available: http://www.qfinance.com/asset-managementcalculations/market-book-ratio. Last accessed 12th April 2012.

Guinan.J.

(2011).

Leverage

Ratio.

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http://financial-

dictionary.thefreedictionary.com/Leverage+Ratio. Last accessed 12th April 2012.

Harvey

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Operating

Margin.

Available:

http://financial-

dictionary.thefreedictionary.com/Operating+Margin. Last accessed 12th April 2012.

Harvey.C.

(2011).

Debt

Ratio.

Available:

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dictionary.thefreedictionary.com/Debt+Ratio. Last accessed 12th April 2012.

Lane

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(2002).

Ratio

Analysis.

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http://www.zenwealth.com/BusinessFinanceOnline/RA/RatioAnalysis.html. Last accessed 12th April 2012.

Unknown

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Unknown

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Operating

Margin.

Available:

http://financial-

dictionary.thefreedictionary.com/Operating+Margin. Last accessed 12th April 2012.

Unknown Author. (2011). P/E Ratio. Available: http://www.investorwords.com/3656/P_E_ratio.html. Last accessed 12th April 2012.

Unknown

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Ratios.

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http://kbr.dnb.com/help/Ratios/Profitability_Ratios.htm. Last accessed 12th April 2012.

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APPENDIX 1. Profitability
Operating Margin= (Operating Income) Revenue Year 2011=1,390,925 16,816,028 =0.08

Year 2010=4,591,951 11,590,299 =0.39

Year 2009=6,081,004 14,626,591 =0.42

Year 2008=8,199,466 12,763,064 =0.64

Year 2007=881,201 11,940,272 =0.07

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ROE=Net Income (After Tax) Shareholder Equity

Year 2011=2,079,122 67,266,014 =0.03 Year 2010=4,223,596 68,994,001 =0.06 Year 2009=9,926,044 68,364,977 =0.15 Year 2008= (2,559,071) 61,886,551 =-0.04 Year 2007=5,504,478 71,103,972 =0.08

2. Liquidity Ratio
Current Ratio=Current Assets Current Liabilities

Year 2011=12,626,190 46,080,142 =0.27 Year 2010=17,740,175 48,961,824 =0.36 Year 2009=44,243,509 37,098,945

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=1.19 Year 2008=120,104,534 96,724,216 =1.24 Year 2007=62,852,966 45,858,309 =1.37

Acid Test Ratio= (Current Assets-Inventory) Current Liabilities Year 2011=12,626,190-0 46,080,142 =0.27

Year 2010=17,740,175-0 48,961,824 =0.36

Year 2009=44,243,509-0 37,098,945 =1.19

Year 2008=120,104,534-0 96,724,216 =1.24

Year 2007=62,852,966-0 45,858,309 =1.37

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3. Efficiency Ratio
Inventory Turnover=Cost of Goods Sold Average Inventory Year 2011=12,387,328 3,869,510+13,064,775/2 =12,387,328 8,467,142.5 = 1.46 Year 2010=16,354,886 13,064,775+1,656,729/2 =16,354,886 7,360,752 = 2.22 Year 2009=12,292,459 1,656,729+3,978,018/2 =12,292,459 2,817,373.5 = 4.36 Year 2008=10,541,393 3,978,018+1,384,556/2 =10,541,393 2,681,287 = 3.93 Year 2007=7,442,104 1,384,556+1,186,019/2 =7,442,104 1,285,287.5 = 5.79

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Fixed Assets Turnover=Net Sales Average net Fixed Assets Year 2011=16,816,028 153,813,562+130,381,650/2 =16,816,028 142,097,606 = 0.12 Year 2010=11,590,299 130,381,650+143,438,588/2 =11,590,299 136,910,119 = 0.08 Year 2009=14,626,591 143,438,588+81,338,403/2 =14,626,591 112,388,495.5 = 0.13 Year 2008=12,763,064 81,338,403+54,109,315/2 =12,763,064 67,723,859 = 0.19 Year 2007=11,940,272 54,109,315+43,009,053/2 =11,940,272 48,559,184 = 0.25

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4. Leverage ratio
Debt Ratio=Total Liability Total Assets Year 2011=99,173,738 166,439,752 = 0.59 Year 2010=79,127,824 148,121,825 = 0.53 Year 2009=119,317,120 187,682,097 = 0.64 Year 2008=139,556,386 201,442,937 = 0.69 Year 2007=45,858,309 116,962,281 = 0.39

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5. Market Ratio
Earnings per Share=Net Income Average Common Shares Year 2011=2,079,122 200,000,000+200,000,000/2 = 2,079,122 200,000,000 = 0.01 Year 2010=4,223,596 200,000,000+200,000,000/2 = 4,223,596 200,000,000 = 0.02 Year 2009=9,926,044 200,000,000+200,000,000/2 = 9,926,044 200,000,000 = 0.04 Year 2008= (2,559,071) 200,000,000+200,000,000/2 = (2,559,071) 200,000,000 = -0.01 Year 2007=5,504,478 200,000,000+200,000,000/2 = 5,504,478 200,000,000 = 0.03

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