MPI and its subsidiaries are involved in the contract assembly and testing of integrated circuits, semiconductor devices and electronic components, as well as the manufacture and sale of lead frames to global customers.
RAM said the rating reflected MPI’s strong cash generation and sturdy balance sheet, which had enabled it to weather the prolonged downturn in the semiconductor industry.
MPI’s sales momentum was expected to accelerate further in FY2004, driven by the recovery of the semiconductor industry and more robust sales of its micro lead packages, it added. – AFX-Asia
IOI has subsidiaries primarily involved in the cultivation, processing and trading of palm oil, property development and investment, manufacture of oleochemical products, specialty oils and fats.
RAM said for FY 2004, it expected strong crude palm oil (CPO) prices to be the key profit driver for the group.
Meanwhile, the management is planning to invest some RM270mil over the next two years for a blending facility in Port Klang and a refinery in the Netherlands for the group’s specialty oils and fats business.
“Our sensitivities, which incorporated these outlays, indicate that the group’s balance sheet would remain strong even after all these investments,” RAM said. – Bernama
It said in a statement the ratings reflected the bank's sound asset quality, strong earnings, healthy capitalisation and liquidity positions as well as stable funding structure.
“We have also taken into consideration UOBM's strong flexibility in the form of support from its sole shareholder, United Overseas Bank Ltd, Singapore,” it said.
Given the challenging operating environment as a result of the US-led Iraq war and the global outbreak of SARS, UOBM experienced a moderate increase in its gross non-performing loans (NPLs) to RM1,483.18mil for the first half of the financial year ended Dec 31, 2003, after ending FY2002 with RM1,374.18mil (3-month non-performing loan classification policy).
“For end-FY2003 and FY2004, we expect further progress in the bank's asset quality, driven by the anticipated robust economic growth and its solid underwriting standards,” the rating agency said.
The enlarged UOBM's bottom line was significantly boosted through its acquisition of Overseas Union Bank (M) Bhd in February 2002. For FY2002, the bank achieved an impressive 115.74% surge in pre-tax profit to RM453.95mil against RM210.42mil previously. – Bernama
MPI and its subsidiaries are involved in the contract assembly and testing of integrated circuits, semiconductor devices and electronic components, as well as the manufacture and sale of lead frames to global customers.
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