Part A

1.0 Computation of Ratio Categories

1) Liquidity Ratio (current ratio)
Current Ratio = Current Assets / Current Liabilities
FGV Holdings Berhad FSBM Holdings Berhad
Year 2021 Current Ratio Current Ratio
(RM, 000) = 5,876,435 = 512
4,813,145 5,819
= 1.22x = 0.09x
Year 2022 Current Ratio Current Ratio
(RM, 000) = 6,061,432 = 11,726
5,165,663 3,767
= 1.17x = 3.11x

Explanation
As shown in the table above, it shows that the current ratio for FGV Holdings Berhad is
1.22x in 2021 and 1.17x in 2022. Both ratios are higher than 1.0x which means that FGV
Holdings Berhad’s current assets in 2021 and 2022 are higher than its current liabilities. FGV
Holdings Berhad has RM1.22 in current assets for every RM1 in current liabilities in 2021. In
2022, FGV Holdings Berhad only has RM1.17 in current assets for every RM1 in current
liabilities. The table above also shows that the current ratio of FGV Holdings Berhad has
decreased by 0.05x in 2022 compared to 2021 from 1.22x to 1.17x.

In 2021 and 2022, FSBM Holdings Berhad has a current ratio of 0.09x and 3.11x
respectively. As shown in the table above, in 2021 FSBM Holdings Berhad’s current ratio is less
than 1 which is 0.09x. This indicates that FSBM Holdings Berhad only has RM0.09 in current
assets for every RM1 in current liabilities. In 2022, FSBM Holdings Berhad’s current ratio is
3.11x which means FSBM Holdings Berhad has RM3.11 for every RM1 in current liabilities.

Comparison
Based on the table above, FGV Holdings Berhad’s current ratio is higher than FSBM
Holdings Berhad’s in year 2021. This indicates that FGV Holdings Berhad has a stronger short-

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term liquidity compared to FSBM Holdings Berhad’s. In the year 2022, both companies have a
current ratio of more than 1. This shows that the company has enough current assets to cover its
current liabilities but FSBM Holdings Berhad has higher current ratio compared to FGV
Holdings Berhad so FSBM Holdings Berhad is more available to pay back its current liabilities
than FGV Holdings Berhad.

2) Asset Management Ratio

Total Asset Turnover = Sales / Total Assets

FGV Holdings Berhad FSBM Holdings Berhad

Year 2021 Total asset turnover Total asset turnover

(RM’000) = RM 19,565,891 = RM 405
RM 17,956,394 RM 872
= 1.090x = 0.464x
Year 2022 Total asset turnover Total asset turnover
(RM’000) = RM 25,561,543 = RM 12,514
RM 18,110,626 RM 14,441
= 1.411x = 0.867x
Explanation

In 2021, FGV Holdings Berhad has 1.090x in total asset turnover for every RM1.00 in
sales. FGV Holdings Berhad has its covered 1.090 times over. In 2022, FGV Holdings Berhad
has 1.411x in total asset turnover for every RM1.00 in sales. FGV Holdings Berhad has its
covered 1.411 times over. The total asset turnover of FGV Holdings Berhad increased from
1.090x to 1.411x in 2021 to 2022. Besides in 2021, FSBM Holdings Berhad has 0.464x in total
asset turnover for every RM1.00 in sales. FSBM Holdings Berhad has its covered 0.464 times
over. In 2022, FSBM Holdings Berhad has 0.867x in total asset turnover for every RM1.00 in
sales. FSBM Holdings Berhad has its covered 0.867 times over. The total asset turnover ratio of
FSBM Holdings Berhad increased from 0.464x to 0.867x in 2021 to 2022.

Comparison

According to the theory of total asset turnover, the higher the number, the better. Based
on the table above, the total asset turnover of FSBM Holdings Berhad in 2021 will be 0.464x

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while the total asset turnover of FGV Holdings Berhad is 1.090x. In 2021, the total asset
turnover of FGV Holdings Berhad is higher than FSBM Holdings Berhad. Besides, in 2022, the
total asset turnover of FGV Holdings is greater than FSBM Holdings Berhad, which is 1.411x
and 0.867x. This indicates that FGV Holdings Berhad is more efficient than FSBM Holdings
Berhad in using all its assets to generate revenue in both years.

3) Financial Leverage Management

Debt ratio = Total Debt / Total Assets
FGV Holdings Berhad FSBM Holdings Berhad
Year 2021 Debt ratio Debt ratio
(RM’000) = RM10,769,876 = RM5,819
RM17,956,394 RM872
= 0.5998x / 59.98% = 6.6732x / 667.32%
Year 2022 Debt ratio Debt ratio
(RM’000) = RM10,225,941 = RM4,010
RM18,110,626 RM14,441
= 0.5646x / 56.46% = 0.2777x / 27.77%

Explanation
As shown in the table above, it shows that the FGV Holdings Berhad finances 59.98% of
its assets with debts in 2021 and 56.46% in 2022. Both ratios are lower than 1.0x which means
that FGV Holdings Berhad’s assets more than liabilities. Besides, FSBM Holdings Berhad
finances 667.32% of its assets with debts in 2021 which means that debt ratio of the company is
higher than 1.0x so FSBM Holdings Berhad’s assets less than liabilities. However, FSBM
Holdings Berhad finances 27.77% of its assets with debts in 2022 which means that debt ratio of
the company is lower than 1.0x so it’s assets more than liabilities.

Comparison
Based on the table above, the percentage of assets financed by debts of FGV Holdings
Berhad has decreased by 3.51% in 2022 compared to 2021. The FGV Holdings Berhad has
decreased its total debts by RM543,935,000. Besides, the percentage of assets financed by debts
of FSBM Holdings Berhad has decreased by 639.55% in 2022 compared to 2021. The FSBM

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Holdings Berhad has decreased its total debts by RM1,809,000 by increasing both current assets
(RM11,726,000) and non-current assets (RM2,715,000).

4）Profitability Ratio
Gross Profit Margin= Gross Profit /Sales
FGV Holding Berhad FSBM Holdings Berhad
Year 2021 Gross Profit Margin Gross Profit Margin
(RM’000) = 2,614,474 = 181
19,565,891 405
= 13.36% = 44.69%
Year 2022 Gross Profit Margin Gross Profit Margin
(RM’000) = 3,343,754 = 6,211
25,561,543 12,514
= 13.08% = 49.63%

Explanation
In 2021 and 2022, FGV Holding Berhad (FGV Holding) has a gross profit margin ratio of
13.36% and 13.08% respectively. In addition, FGV Holding has RM19,565,891,000 in sales and
RM2,614,474,000 of gross profit in 2021. In 2022, FGV Holding has RM25,561,543,000 sales
and RM3,343,754,000 in gross profit. Moreover, FGV Holding’s sales increased by
RM5,995,652,000 and gross profit also increased by RM729,280,000 from 2021 to 2022. Thus,
FGV Holding’s Gross Profit Margin ratio in 2022 is lower than the ratio in 2021.

The gross profit margin ratio for FSBM Holdings Berhad (FSBM Holdings) is 44.69% in
2021 and 49.63% in 2022. Besides, FSBM Holdings has RM405,000 in sales and RM181 of
gross profit in 2021. In 2022, FSBM Holdings has RM12,514,000 in sales and RM6211,000 in
gross profit. From 2021 to 2022, FSBM Holding’s sales increased by RM12,109,000 and gross
profit also increased by RM6,030,000. Therefore, this data shows that FSBM Holdings has a
higher gross profit margin in 2022 to earn a profit on its sales.

Comparison
Based on the table above, FSBM Holding’s gross profit margin ratio is higher than FGV
Holding’s in both years 2021 and 2022. The gross profit margin ratio difference between FSBM

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Holdings and FGV Holding is 31.33% in 2021 however 36.55% in 2022. It shows that FSBM
Holding Berhad is more profitable and efficient compared to FGV Holding Berhad.
5) Market-based Ratio
Price to Earnings Ratio = Market Price per Share / Earnings per Share
FGV Holding Berhad FSBM Holding Berhad
Year 2021 Price to Earnings Ratio Price to Earnings Ratio
= RM1.48 = RM0.185
RM0.32 RM (0.665)
= 4.63x = -0.28x
Year 2022 Price to Earnings Ratio Price to Earnings Ratio
= RM1.320 = RM0.270
RM0.364 RM0.269
= 3.63x = 1x

Explanation
In year 2021, FGV Holdings Berhad has 4.63x of Price to Earnings Ratio. However, the
Price to Earnings Ratio of FGV holdings Berhad has been decrease to 3.36x in year 2022.The
Price to Earnings Ratio for FGV Holdings Berhad has decrease for 1x from year 2021 to year
2022. In year 2021, FSBM Holdings Berhad has -0.28x of Price to Earnings Ratio. The Price to
Earnings Ratio of FSBM Holdings Berhad has been increase to 1x in year 2022. The Price to
Earnings Ratio of FSBM Holdings Berhad has increase for 1.28x from year 2021 to year 2022.

Comparison
According to the table above, investors of FGV Holding Berhad. are willing to pay RM4.63
in 2021 and RM3.63 in 2022 for every ringgit Malaysia of earnings. Besides that, investors of
FSBM Holdings Berhad are willing to pay RM0.28 in 2021 and RM1 in 2022 for every ringgit
Malaysia of earnings.

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 Part B
2.0 Financial Report
2.1 Company Background

Talasco Computers Sdn Bhd became FSBM Holdings Berhad in 1984. Talasco Computers Sdn
Bhd changed its name to Fujitsu Systems Business (Malaysia) Sdn Bhd in 1991 and was listed
on Bursa Securities (formerly known as the Kuala Lumpur Stock Exchange's Second Board) in
1994. In 2001, the company expanded its offerings to include non-Fujitsu products and services.
It expanded its commercial interests outside of Malaysia, resulting in the company name being
changed to its current one, FSBM Holdings Berhad. Following the merging of the Main Board of
Bursa Securities and the Second Board of Bursa Securities, the company was moved to the Main
Market of Bursa Securities. Its competitive advantages include the capacity to create and develop
platforms in-house, as well as provide IT hardware repair services to various enterprises and
sectors. The company's main initiatives are the Frozen Food Manufacturing Company, the
Supplement and Wellness Products Company, and the Computer Rental Service Provider.

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FGV is one of the world's top crude palm oil (CPO) producers, contributing around 15% of
Malaysia's total annual CPO output. It is present in nine countries across Asia, the Middle East,
North America, and Europe. FGV is a Malaysian agribusiness that was listed on the main market
of Bursa Malaysia on June 28, 2012. The world's third-largest initial public offering raised
RM10.4 billion. It was founded in 2007 as a commercial branch of the Federal Land
Development Authority (FELDA) to handle investments in the upstream and downstream palm
oil industries, as well as other agri-businesses. FGV is backed by a robust staff of over 45,000
individuals. They are principally concerned with three primary commercial sectors: plantation,
sugar, and logistics. They are committed to consistently developing a sustainable business while
tapping into new income streams from the circular economy to produce greater value. They have
50 years of industry knowledge. Their mission is to provide the world with sustainable foods and
agriproducts. Mission: To be a worldwide leader by producing value via our people capital,
embodying governance and compliance, developing an integrated value chain advantage, and
fostering commodity and geographic diversification. The company's principles include
cooperation, respect, honesty, energy, and passion.

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2.2 Investment Decision
It is advised that investment be made to FSBM Holdings Berhad based on the following reasons:
1. FSBM Holdings Berhad has a healthier financial ratio compared to FGV Holdings
Berhad.
1) Liquidity Ratio (Current Ratio)

According to the comparative chart above, FSBM Holdings Berhad has a greater current
ratio than FGV Holdings Berhad, indicating that it has performed better. FSBM Holdings
Berhad's liquidity ratio increased from 0.09x in 2021 to 3.11x in 2022, which is a significant
improvement even if it is smaller than FGV Holdings Berhad's in 2021. As a result, FSBM
Holdings Berhad is the recommended investment option since it has a considerably higher quick
ratio than FGV Holdings Berhad and it has better meet its short-term obligations. In accordance
with estimates, FSBM Holdings Berhad maintains its company's liquidity better than FGV
Holdings Berhad because it plans its inventory purchases more carefully, enabling them to
respond to threats against the company more effectively.

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2) Financial Leverage Management (Debt ratio)

The debt ratio for both businesses significantly decreased, as seen by the above a
diagram. However, comparing to the percentage of assets financed by debt of FGV Holdings
Berhad has decreased by 3.51% from 2021 to 2022, the percentage of assets financed by debt of
FSBM Holdings Berhad is more and more high which has decreased by 639.55% from 2021 to
2022.In 2022, FSBM Holdings Berhad successfully balanced its proportion of debt and asset by
increasing its amount of total asset from RM872 to RM14441. Since FSBM Holdings Berhad has
a far superior debt ratio than FGV Holdings Berhad and the ability to solve financial problems, it
is a better alternative for investors. Besides that, FSBM Holdings Berhad compared to FGV
Holdings Berhad, it is thought to be extremely improbable that it will be able to pay debts.

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3) Profitability Ratio (Gross Profit Margin)

The gross profit margins of two businesses are displayed in the graph above. The FSBM
Holdings Berhad (FSBM Holdings) gross profit margin ratio improved by 4.94% from 44.69%
in 2021 to 49.63% in 2022. Sales for FSBM Holding climbed significantly between 2021 and
2022, rising by RM12,109, and their gross profit rose by RM6030. As a result, the data indicates
that FSBM Holdings Berhad may continue to grow its sales while maintaining a larger gross
profit margin. In contrast, compared to the prior year, FGV Holding Berhad's gross profit margin
dropped by 0.28%, from 13.36% to 13.08%. In conclusion, FSBM Holdings Berhad is a better
investment option because it outperformed FGV Holdings Berhad in terms of profitability ratio
for the years 2021 and 2022.

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4) Market-based Ratio (Price to Earnings Ratio)

Although FSBM Holdings Berhad's market price per share is lower than FGV Holdings
Berhad's market price per share, it is still sensible to select FSBM Holdings Berhad as the
superior company for an investment. The performance of FSBM Holdings Berhad's market-
based ratio significantly improved in 2021 compared to 2022, growing by 1.28x. In addition, the
market price per share for FSBM Holdings Berhad is rising quickly, rising from RM0.185 in
2021 to RM0.27 in 2022. FGV Holdings Berhad, on the other hand, experienced the opposite, as
its market price per share dropped from RM1.48 in 2021 to RM1.32 in 2022. This indicates that
investors believe FSBM Holdings Berhad has a greater potential for growth than FGV Holdings
Berhad.

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2. FSBM Holdings Berhad has superior debt management compared to FGV Holdings
Berhad.
FSBM Holdings Berhad has a far superior debt ratio compared to FGV Holdings Berhad. A
lower debt ratio indicates a better balance between debt and asset financing and lower financial
leverage. By managing its debt more effectively, FSBM Holdings Berhad is likely to be more
resilient during challenging economic conditions and may have a reduced risk of financial
distress. Additionally, FSBM Holdings Berhad's superior debt management, reflected in its lower
debt ratio and reduced financial leverage, indicates a more conservative and stable financial
position. This prudent approach to managing its capital structure enhances the company's overall
financial health, reduces financial risks, and makes it a more attractive investment option
compared to FGV Holdings Berhad, which may have a higher debt burden and potentially
greater financial risks.

3. FSBM Holdings Berhad has a significant improvement compared to FGV Holdings

Berhad.
FSBM Holdings Berhad is its significant improvement in the market-based ratio and positive
market sentiment. The analysis indicates that FSBM Holdings Berhad experienced a substantial
increase in its market price per share, rising from RM0.185 in 2021 to RM0.27 in 2022. This
represents a growth of approximately 1.28x in its market-based ratio. The market-based ratio is
an essential indicator of investor confidence and perception of a company's future prospects. The
fact that FSBM Holdings Berhad's market price per share increased significantly while FGV
Holdings Berhad's market price per share decreased suggests that investors have more
confidence in FSBM Holdings Berhad's potential for growth and success. This positive market
sentiment can be an indicator of a company's strong fundamentals, potential for future expansion,
and ability to deliver value to its shareholders. As a result, the upward trend in FSBM Holdings
Berhad's market-based ratio makes it a more favorable investment option compared to FGV
Holdings Berhad, indicating that the market views FSBM Holdings Berhad as having better
growth prospects and overall financial health. As always, it's crucial to conduct thorough
research and consider multiple factors before making any investment decision. Market conditions
and investor sentiment can change, so it's essential to stay up to date with the latest information
and trends before making any investment choices.