A Taylor's University Lakeside Campus Project

2. 1.Financial Management QSB3413/QSB3414/FIN60203
ABOUT THE COMPANY
Sycal Venture Berhad (Group)
 Established since 1980
 Public Limited Liability Company
 Listed on the main board of Bursa Malaysia on the 29th March 1995
 Core Businesses
 Construction and Infrastructure
 Property Development
 Hotels and Resorts

3. 2.Financial Management QSB3413/QSB3414/FIN60203
PRINCIPAL ACTIVITIES
Name of subsidiary companies Principal Activities
Sycal Kulai Sdn Bhd Property development
Cygal Construction Sdn Bhd Dormant
Sycal Plant & Machinery Sdn Bhd Contractor for management and operator of plant
and machinery
Cygal Industries Sdn Bhd Dormant
Cygal Hotel Management Services Sdn Bhd Dormant
Cygal Entertainment Sdn Bhd Dormant
Sycal Concrete Sdn Bhd Manufacturing and trading in ready mix concrete
Sycal Geotechniecs Sdn Bhd Dormant
United Golden Mile Aviation Ltd Leasing of aircraft parts and equipment and
provision of related services
Sycal ICC Properties Sdn Bhd Property development
Sycal Properties Management Sdn Bhd Property development, investment holding and
operator of theme park

4. ANALYSIS OF REVENUE CONTRIBUTIONS OF DIFFERENT SEGMENTS
3.Financial Management QSB3413/QSB3414/FIN60203

5. REVENUE CONTRIBUTION OF DIFFERENT SEGMENTS IN 2014 & 2015
REVENUE GROUP VARIANCE
2015 2014
RM’000 RM’000 RM’000 %
Revenue comprises:
Contract revenue 248,351 291,859 (43,508) (15)%
Consultation and project
management fee
7,311 1,200 6,111 509%
Property development revenue 1,458 51,715 (50,257) (97%)
Joint venture development
revenue
3,182 - 3,182 100%
Sales of goods and services 61,415 62,609 (1,194) (2%)
TOTAL 321,717 407,383 (85,666) (21%)
4.Financial Management QSB3413/QSB3414/FIN60203

6. CURRENT STATE OF MAJOR INDUSTRY OF SYCAL BERHAD
 CURRENTLY FACING THE CHALLENGES OF ECONOMIC SLOWDOWN.
 ECONOMIC GROWTH IS EXPECTED TO SLUGGISH FROM 4.7% TO 4.5% IN ONE YEAR PERIOD.
 THE HOUSING MARKET ECONOMIST PREDICTED THE NUMBER OF SALES FOR HOUSING MARKET WILL
ATTAIN BETWEEN 190,000 AND 210,000.
 HOUSE PRICE INDEX- RISE IN BETWEEN 3.5% & 5.5%.
 GDV- GROW BY 2% IN 2016.
 OVERALL, SYCAL BERHAD IS COMPETENT TO KEEP PROFITABLE.
5.Financial Management QSB3413/QSB3414/FIN60203

7. 6.Financial Management QSB3413/QSB3414/FIN60203
STRENGTHS
 Awarded the Bureau Veritas Certification, ISO 9001:2008
 Requirements of the management system standards
 Handful of Completed Projects
 Segmentations of Services
 Services by different subsidiaries
WEAKNESSES
 Diversification
 Into Hotels & Resorts
 Affects by Economic Downturn

8. 7.Financial Management QSB3413/QSB3414/FIN60203
STRATEGIC PLANS TO SEIZE OPPORTUNITIES
 Planned Developments in developing areas
 Potential GDV of RM 1.2 billion
 Expand one of their core business
 Hotels & Resorts segment
CHALLENGES
 Global financial crisis
 Goods and Service Tax issue
 Comply with stringent regulations
 Threats of increased interest rates
 Stringent lending policies by bank
 Ability to fund its projects

9. 8.Financial Management QSB3413/QSB3414/FIN60203
MAJOR CAPITALS
Last three years
Year 2013
• Purchased RM 7,245,000 of property, plant and equipment
• As well as RM 63,000 in other investments
Year 2014
• Purchased RM 15,371,000 of property, plant and equipment
• As well as RM 63,000 in other investments
Year 2015
• Purchased RM 16,882,000 of property, plant and equipment
• As well as RM 63,000 in other investments
SOURCE OF FUNDINGS
 Bank borrowings of RM 62,578,000 and RM 60,345,000 in the year 2014
and 2015 respectively

10. EVALUATING THE COMPANY’S CASH FLOW
9.Financial Management QSB3413/QSB3414/FIN60203
Company’s Cash Flow
Statement Year
2011 2012 2013 2014 2015
Total of Cash and Cash
Equivalents (RM)
611,000 485,000 2,270,000 8,340,000 (4,260,000)
Differences (RM) - (126,000) 1,785,000 6,070,000 (12,600,000)

11. THE COMPANY’S MAJOR CASH FLOW
10.Financial Management QSB3413/QSB3414/FIN60203

12. THE COMPANY’S MAJOR CASH FLOW (CONT’D)
11.Financial Management QSB3413/QSB3414/FIN60203

13. Net cash decrease by RM 4,260,000 in 2015 while in 2014 the net cash increase is RM 8,340,000
which is higher than net cash in 2015
THE COMPANY’S CASH AND CASH EQUIVALENT
12.Financial Management QSB3413/QSB3414/FIN60203

14. THE COMPANY’S FREE CASH FLOW
 WHAT IS FCF (FREE CASH FLOW)?
 A MEASUREMENT OF FINANCE PERFORMANCE
 HOW TO CALCULATES FCF?
 USING THE COMPANY’S OCF – CAPEX = FCF
Financial Management QSB3413/QSB3414/FIN60203
13.

15. Year 2011 RM
Net Operating
Activities
1,436,000
Total Investment (908,000)
Total FCF 528,000
Year 2012 RM
Net Operating
Activities
21,420,000
Total Investment (40,000)
Total FCF 21,380,000
Year 2013 RM
Net Operating
Activities
(14,148,000)
Total Investment (407,000)
Total FCF (14,555,000)
Year 2014 RM
Net Operating Activities (41,770,000)
Total Investment (1,401,000)
Total FCF (43,171,000)
Year 2015 RM
Net Operating Activities (426,000)
Total Investment (1,473,000)
Total FCF (1,473,000)
THE COMPANY’S FREE CASH FLOW
Financial Management QSB3413/QSB3414/FIN60203
14.

16. Year of Company’s Free Cash Flow (FCF) Total in RM
31st of March 2011 528,000
31st of March 2012 21,380,000
31st of March 2013 (14,555,000)
31st of March 2014 (43,171,000)
31st of March 2015 (1,473,000)
Total Free Cash Flow in 5 Years (34,291)
Financial Management QSB3413/QSB3414/FIN60203
THE COMPANY’S FREE CASH FLOW
15.

17. COMPANY’S FINANCIAL PERFORMANCE
Financial Management QSB3413/QSB3414/FIN60203
2015 2014 2013 2012 2011
a. Current Ratio
current assets
current liabilities
434,729,000
225,848,000
= 1.92
443,676,000
224,002,000
= 1.98
328,261,000
211,296,000
= 1.55
192,754,000
132,343,000
= 1.46
190,409,000
113,703,000
= 1.67
b. Quick Ratio
cash+accounts receivable
current liabilities
5,205,000+
173,076,000
225,848,000
= 0.79
9,720,000+
172,333,000
224,002,000
= 0.81
3,529,000+
160,551,000
211,296,000
= 0.78
2,425,000+
36,812,000
132,343,000
= 0.30
1,199,000+
51,329,000
113,703,000
= 0.46
i. Liquidity
16.

18. Financial Management QSB3413/QSB3414/FIN60203
17.
COMPANY’S FINANCIAL PERFORMANCE
ii. Activity
2015 2014 2013 2012 2011
a. Inventory turnover
Cost of goods sold
Inventory
280,540,000
19,932,000
=14.07x
363,933,000
19,811,000
=18.37x
260,573,000
6,589,000
=39.55x
148,907,000
8,161,000
=18.25x
83,241,000
7,789,000
=10.69x
b. Average collection
period
Accounts receivables
Daily credit sales
189,939,000
297,652,000 x 365
=233.6 days
176,130,000
384,514,000 x 365
=167.4 days
112,942,000
272,125,000 x 365
=151.5 days
51,522,000
157,327,000 x 365
=119.5 days
48,676,000
89,006,000 x 365
=199.6 days
c. Total asset turnover
Sales
Total assets
321,717,000
434,729,000
=0.74x
407,383,000
443,676,000
=0.92x
292,327,000
328,261,000
=0.89x
169,406,000
192,754,000
=0.88x
100,131,000
190,409,000
=0.53x

19. COMPANY’S FINANCIAL PERFORMANCE
iii. Debt
Financial Management QSB3413/QSB3414/FIN60203
18.
2015 2014 2013 2012 2011
a. Debt Ratio
Total liabilities
Total assets
286,193,000
528,225,000
=0.54
286,580,000
511,862,000
=0.56
215,311,000
405,161,000
=0.53
142,879,000
315,140,000
=0.45
128,539,000
291,673,000
=0.44
b. Debt to Equity
Total liabilities
Common stock equity
286,193,000
242,032,000
=1.18
286,580,000
225,282,000
=1.27
215,311,000
189,850,000
=1.13
142,879,000
172,261,000
=0.83
128,539,000
163,134,000
=0.79
c. Interest cover ratio
Operating profits
Interest expense
24,603,000
1,593,000
=15.44
29,195,000
1,480,000
=19.73
20,427,000
228,000
=89.59
12,748,000
917,000
=13.90
6,927,000
1,876,000
=3.69

20. COMPANY’S FINANCIAL PERFORMANCE
iv. Profitability
Financial Management QSB3413/QSB3414/FIN60203
19.
2015 2014 2013 2012 2011
a. Gross Profit Margin
Gross profit
Revenue
41,177,000
321,717,000
=0.13
43,450,000
407,383,000
=0.11
31,754,000
292,327,000
=0.11
20,499,000
169,406,000
=0.12
16,890,000
87,322,000
=0.19
b. Return on Assets
Net income
Total assets x 100%
18,452,000
528,225,000 x 100%
=3.49%
35,804,000
511,862,000 x 100%
=6.99%
17,977,000
405,161,000 x 100%
4.44%
8,936,000
315,140,000 x 100%
=2.84%
5,200,000
291,673,000 x 100%
=1.78%
c. Return on Equity
Net income
Shareholders’ equity x 100%
18,452,000
238,203,000 x 100%
=7.75%
35,804,000
222,312,000 x 100%
=16.11%
17,977,000
187,685,000 x 100%
9.58%
8,936,000
170,641,000 x 100%
=5.24%
5,200,000
161,543,000 x 100%
=3.22%

21. COMPANY’S FINANCIAL PERFORMANCE
v. Market Performance
Financial Management QSB3413/QSB3414/FIN60203
20.
2015 2014 2013 2012 2011
a. Earnings per Share
Net income
Total outstanding
common shares
17,293,000
320,250,000
=0.05
34,999,000
320,250,000
=0.11
17,432,000
320,250,000
=0.06
8,907,000
288,256,000
=0.03
5,056,000
251,959,000
=0.02
b. Price / Earnings
Market value per share
Earnings per share
0.41
0.05
=8.20
0.33
0.11
=3.00
0.28
0.06
=4.67
0.18
0.03
=6.00
0.20
0.02
=10.00
c. Price / Book Ratio
Market value per share
Equity book value /
share
0.41
0.74
=0.55
0.33
0.69
=0.48
0.28
0.59
=0.47
0.18
0.59
=0.31
0.20
0.64
=0.31

22. Financial Management QSB3413/QSB3414/FIN60203
FORECAST REVENUE GROWTH
2015 2016
RM'000
% of
Revenue RM'000
Revenue 321,717 100.0% 341,020
Cost of Sales (280,540) -87.2% (297,372)
Gross Profit 41,177 12.8% 43,648
Other Operation Income 6,426 2.0% 6,812
47,603 14.8% 50,459
Administration Expenses (10,854) -3.4% (11,505)
Other Operating Expenses (13,211) -4.1% (14,004)
Profit/(Loss) From Operations 23,538 7.3% 24,950
Finance Costs (1,727) -0.5% (1,831)
Profit/(Loss) Before Taxation 21,811 6.8% 23,120
Taxation (3,359) -1.0% (3,561)
Profit/(Loss) For the Year 18,452 5.7% 19,559
Other Comprehensive Income (1,402) -0.4% (1,486)
Total Comprehensive Income/(Loss) for
the Year
17,050 5.3% 18,073
21.

23. Financial Management QSB3413/QSB3414/FIN60203
REQUIRED NEW FUNDS
)1()()( 2
11
DPSS
S
L
S
S
A
RNF 
- This shows that the company does not require any new funds to achieve this sales growth
A/S = Percentage relationship of variable assets to sales
S = Change in sales
L/S = Percentage relationship of variables liabilities to sales
P = Profit margin
S2 = New sales level
D = Dividend payout ratio
22.

24. CONCLUSIONS & RECOMMENDATIONS
23.Financial Management QSB3413/QSB3414/FIN60203
 Worsening performance in the year ended 2015
 Attributed to the downturn in economy
 Diversify its revenue streams or investments
 Utilisation of assets

25. Financial Management QSB3413/QSB3414/FIN60203
“Enjoy little things in life, because one day you will look back, and realize they were the big things.” – Barrack Obama