MK Land Holdings Berhad is a Malaysia-based property development and investment holding company. It developed several major projects from 2012-2015, including properties in Damansara Perdana, Damansara Damai, and Meru Perdana. Financial ratio analyses show the company's profitability increased from 2012-2013, though some expenses also increased. Stability ratios indicate the company improved its working capital ratio and debt ratio over this period. While the P/E ratio was under 15, suggesting the shares were a good investment, the overall fluctuation in the company's share price performance from 2014-2015 suggests it may not be recommended to invest in MK Land.

1. Assignment : Financial Ratio Analysis
Subject : Basic Accounting
Group Members : Farah Aida Sham (0322962)
: Muhammad Fareez (0322961)
: Yee Jyh Lin(0322408)
: Areeb Amirullah (0322347)
Submission Date : 20 November 2015

2. 2
Table of content
TITLE PAGE
Company background 3-4
Recent development 5-6
Ratio Analysis & P/E Ratio 7-9
Investment Recommendation 10
Appendix
Appendix A : Calculation
Appendix B : Consolidated Balance sheet
Appendix C : Consolidated statement of income
11-12
COMPANY BACKGROUND

3. 3
MK Land Holdings Berhad , made its first debut on the main Board of the Kuala Lumpur
Stock Exchange (KLSE), now known as Bursa Malaysia on 27 August 1999 as a result of
a reverse takeover of a Second Board manufacturing company. Together With the
injection of nine 9 privately owned property companies by the founder, MK Land
become one of the largest capitalized property companies with a paid-up capital of about
1.2 billion. MK land Group has diversified portfolio of projects, which includes
residential and commercial development, hotels and resort, a water theme park, an
education arm and property investment. The main property development projects are
Damansara Perdana and Damansara Damai in Petaling Jaya and Meru Perdana in Ipoh.
The company has been firmly entrenched as one of the key players and synonymous with
property development industry under the helm and leadership of its Chairman, YBhg Tan
Sri Datuk (Dr.) Hj Mustapha Kamal Bin Hj Abu bakar . M K Land Holdings Berhad is a
Malaysia-based company engaged in the business of investment holding and the
provision of management services. The Company operates in four segments: Property
development and related activities segment is engaged in the business of the development
of mixed properties and is related activities. Leisure segment is engaged in operation of
resorts/hotels, golf course and theme parks. Educational segment is engaged in provision
of educational services. Investment holding segment is engaged in investment in
subsidiaries and property investment. The Company’s subsidiaries include BML
Management Sdn. Bhd., Bukit Merah Resort Sdn. Bhd., Centralpolitan Development
Sdn. Bhd., Dominant Star Sdn. Bhd., Golden Precinct Sdn. Bhd. and Medan Prestasi Sdn.
Bhd. BML Management Sdn. Bhd., Bukit Merah Resort Sdn. Bhd., Centralpolitan

4. 4
Development Sdn. Bhd., Dominant Star Sdn. Bhd., Golden Precinct Sdn. Bhd., Medan
Prestasi Sdn. Bhd. and Melur Unggul Sdn. Bhd.

5. 5
RECENT DEVELOPMENT
MK LAND developed most of the projects in Damansara Perdana and
Damansara Damai in Selangor, and Meru Perdana in Ipoh.
Empire Damnsara (2014)
Meru Perdana (2 story house), Ipoh (2014)

6. 6
Residensi Suasana (Condominium), Damansara Damai(2015)
The Rafflesia Semi D, Damansara Perdana. (2015)

7. 7
Ratio Calculation & Interpretation
Profitability Ratios 2012 2013 Interpretation
Return on Equity
(ROE)
24205000
1067759500
x
100%
=2.27%
40345000
1091000500
x
100%
=3.70%
During the year 2012 to 2013, the
ROE had increased from 2.27% to
3.70%. This meant the owner is
receiving a higher earning on his
capital in the year 2013 than 2012.
Net Profit Margin
(NPM)
14205000
428530000
x
100%
=3.31%
40345000
468239000
x
100%
=8.62%
Between the period of 2012 and
2013, the NPM had increased
from 3.31% to 8.62%, which
meant the business was getting
better at controlling expenses.
Gross Profit
Margin (GPM)
165270000
428530000
x
100%
=38.57%
176579000
468239000
x
100%
=37.71%
From 2012 to 2013, the GPM for
the business decreased from
38.57% to 37.71%, which meant
the business was getting worse at
controlling costof goods sold.
Selling Expenses
Ratio (SER)
10,040000
428530000
x
100%
=2.34%
11,766000
468239000
x100%
=2.75%
During the period from 2012 to
2013, the SER increased from
2.34% to 2.75%, this shows the
business was getting worse at
controlling selling expenses.
General Expenses
Ratio (GER)
66,052000
4285300000
x
100%
=15.41%
72,394000
468239000
x
100%
=16.89%
Between the years 2012 to 2013,
the GER decreased from 15.41%
to 16.89%, this means the business
is getting worse at controlling
general expenses.
Financial
Expenses Ratio
(FER)
20502000
4285300000
x
100%
=4.78%
20269000
468239000
x
100%
=4.73%
During the period 2012 and 2013,
FER had decreased from 4.78% to
4.73%, which indicated that the
business was getting better at
controlling financial expenses.

8. 8
Stability Ratios 2012 2013
Working
Capital
1013852000
719071000
=1.41 : 1
951446000
639694000
=1.49 : 1
From 2012 to 2013, working
capital had increased from 1.41:1
to 1.49:1, this meant the business
was getting better in paying their
liabilities, but it did not satisfied
the minimum 2:1 ratio.
Total Debt 896383000
1976245000
x 100%
=45.36%
845978000
1948117000
x 100%
=43.43%
From 2012 to 2013, total debt
had decreased from 45.36% to
43.43%, in addition it was still
below the maximum 50% limit.
StockTurnover 365 ÷
263260000
119493500
=165.67 days
365 ÷
291660000
118794000
=148.67 days
Between the period of 2012 and
2013, stockturnover had
decreased from 165.67 days to
148.67 days, this meant the
business is selling their products
at a faster speed.
Interest
Coverage
20502000+24205000
20502000
=2.18 times
20269000+40345000
20269000
=2.99 times
During the period 2012 to 2013,
the business’s interest coverage
had increased 2.18 times to 2.99
times, this meant the business’s
ability becomes stronger. In
addition, the IC ratio did not
satisfied minimum requirement
of 5 times.

9. 9
Appendix 1: P/E Ratio
P/E Ratio for 2012:
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑠ℎ𝑎𝑟𝑒 𝑝𝑟𝑖𝑐𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
=
0.30
2.0
= 0.150
P/E Ratio for 2013:
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑠ℎ𝑎𝑟𝑒 𝑝𝑟𝑖𝑐𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
=
0.35
3.3
=0.106
Interpretation
This ratio measures how expensive a share is. The higher the P/E ratio, the
more expensive the share is. The P/E ratio for M K LAND for 2012 is 0.15,
means that the investor need to wait for 0.15 years to recoup the investment.
The P/E ratio for M K LAND for 2013 is 0.106, means that the investor need
to wait for 0.106 years to recoup the investment. A conservative investor
normally paid no more than P/E of 15 for a share that he likes. So, based the
P/E ratio for 2012 and 2013, it shows that both of the years are worth
investing because it is less than 15 years to recoup the investment.

10. 10
APPENDIX 2 : INVESTMENT RECOMMENDATION
A) PROFITABILITY
Based on the calculations and the information provided, we will look at the profitable and
financial stability as well as the Price Earning Ratio of MK Land for the years 2012 and
2013. From the profitability ratio, the Return on Equity had increased from 2.27% to
3.07%. This means the owner is receiving a higher earning on his capital in the year 2013
than 2012 . Based on the Net Profit Margin, between the period of 2012 and 2013, the
NPM had increased from 3.31% to 8.62%, which meant the business was getting better at
controlling expenses . However, the Gross Profit Margin from 2012 to 2013, the GPM
for the business decreased from 38.57% to 37.1% which meant the business was getting
worse at controlling Cost Of Goods Sold (COGS). During the period from 2012 to 2013,
Selling Expenses Ratio increased from 2.34% to 2.75%, this shows the business was
getting worse at Selling Expenses . For General Expenses Ratio had decreased this
means the business is getting worse at controlling General Expenses. Since the company
was getting worse at controlling selling expenses, the Financial Expenses Ratio had
decreased which indicates the business was getting better at Financial Expenses.
B) STABILITY
From the Stability Ratio, the Working Capital Ratio shows that the company is getting
better at paying its current liabilities with its current assets. Its Total Debt Ratio
indicates that it has reduced debt. However , its Inventory Turnover Ratio shows that
the company is selling its inventory slower. The Debtor Turnover Ratio shows that the
company is collecting its debts slower. Nevertheless, its Interest Coverage Ratio has
shown that the company is getting better at paying its interest expenses.
C) SHARE PRICE
In conclusion, the company is a good company to invest in. It is financially stable and is
able to make good profit at the same time. However, its Price Earning Ratio is 15 which
mean that investors will have to wait for 15 years before recouping his investments. If
the investor is not conservative and is willing to wait for 15 years, then MK Land is a
very good company to invest in .

11. 11
APPENDIX 3 : BALANCE SHEET

12. 12
APPENDIX 4 : P&L STATEMENT

13. 13
FINANCIAL GRAPH OF MK LAND AND KLCI ( 1st JUNE 2014 -30th JUNE 2015 )

14. 14
DEC 15 2014 (LOW POINT )
SHARE PRICE = 0.32
INDEX = 1697.31
FEB 4 2015 (HIGH POINT)
SHARE PRICE = 0.45
INDEX = 1803.02
COMPARISON OF SHARE PRICE AND INDEX
SHARE PRICE
The number of share price (0.45) in feb 4 2015 is higher than the share price (0.32)
in dec 15 2014.
INDEX
The number of index (1697.31) in dec 15 2014 is lower than the index (1803.02) in
feb 4 2015.
CALCULATION
SHARE PRICE
(0.45-0.32)/0.32
= 13 %
INDEX
(1803.02-1697.31)/1697.31
=6.23 %

15. 15
OCT 16 2014
SHARE PRICE = 0.41
INDEX = 1767.77
NOV 14 2014
SHARE PRICE = 0.46
INDEX = 1813.79
COMPARISON OF INDEX AND SHARE PRICE
SHARE PRICE
The number of share price in 0ct 16 2014 (0.41) is lower than the number of share
price in nov 14 2014 (0.46)
INDEX
The number of index in nov 14 2014(1813.79) is higher than the number of index in
oct 16 2014(1767.77)
CALCULATIONS
INDEX
1813.79-1767.77/1767.77
= 2.6%
SHARE PRICE
0.46-0.41/0.41
=12.2 %

16. 16
CONCLUSION
Since the fluctuation shows a decrease in the performance of Mk Land. Hence, by
considering he share price ,it is not recommended to invest in MK Land.