FAR670 Group Project

FACULTY OF ACCOUNTANCY
(AC220)
FINANCIAL STATEMENT ANALYSIS
FAR670
GROUP PROJECT ASSIGNMENT:
HAP SENG PLANTATION & SARAWAK PLANTATIONS BERHAD
STUDENT NAME STUDENT ID
AMIR FARHAN BIN MAT RODZI 2021149385
MUHAMMAD AZWAN NORFIRDAUS BIN MOHD. AZHAR 2021119289
HANIF HAKIMI BIN SAMZINI 2021132245
AHMAD MUZAKKIR BIN MOHD TAUFIK 2021120341
GROUP 7A
PREPARED FOR: DR. YUNITA AWANG

TABLE OF CONTENT
Page
Table of content 1
Background of the Company 2-4
Vertical Analysis 5-12
Activity Ratios 13-17
Liquidity Ratios 17-20
Leverage Ratios 20-22
Profitability Ratios 22-26
Market Ratios 27-31
Conclusion 31
Reference 32
Appendices 33-55
1
Background of the company
Hap Seng Plantation
Hap Seng Plantation is a leading integrated palm oil plantation company based in Malaysia.
The business, established in 1969, has a long history spanning more than 50 years and has
emerged as a significant participant in the palm oil sector.
The production of oil palm goods is the main objective of Hap Seng Plantation's operations.
The business owns and manages a sizable land bank that extends across several Malaysian
states, including Sabah, Sarawak, and Peninsular Malaysia. The company's ability to develop
oil palm on a large scale and maintain a steady supply of high-quality palm oil is made
possible by its huge land portfolio.
Hap Seng Plantation has invested in cutting-edge infrastructure over the years and adopted
contemporary agricultural methods to increase productivity and efficiency. In order to ensure
that its operations are both environmentally and socially responsible, the company places
great emphasis on sustainable and responsible agricultural practises.
Hap Seng Plantation engages in the upstream processing of palm oil products in addition to
palm oil farming. The business has a number of palm oil mills where raw palm oil and palm
kernel oil are extracted from fresh palm fruit bunches. Cooking oil, margarine, shortening and
specialty fats are only a few of the goods made from these oils after they have undergone
additional refinement and processing.
Hap Seng Plantation is dedicated to providing top-notch goods that satisfy the requirements
of its wide range of clients. The company is able to serve clients in a variety of industries,
including the food and beverage, personal care, and biofuel sectors, thanks to the robust
distribution network it has built up both domestically and globally.
Hap Seng Plantation places a high priority on community improvement and corporate social
responsibility outside of its core business operations. The business makes investments in a
number of programmes designed to advance healthcare, environmental protection, and
education in the areas where it conducts business. It actively engages with local stakeholders,
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fostering long-term relationships and contributing to the overall socio-economic development
of the regions.
Hap Seng Plantation has made a name for itself in the palm oil sector thanks to its proven
track record, dedication to sustainability, and ongoing quest for innovation. The company is
well-positioned for future growth and success in the constantly changing global market
thanks to its commitment to quality, effectiveness, and ethical business practises.
Sarawak Plantation Berhad
Sarawak Plantation Berhad is a leading Malaysian palm oil producer that has a significant
market share in the palm oil sector. Since its founding in 1996, the business has expanded
gradually and gained recognition for its dedication to environmentally friendly practises,
premium goods, and involvement in the community.
Sarawak Plantation, a significant actor in the palm oil industry, concentrates on the growth of
oil palm and the creation of palm oil-based goods. The business is the owner and manager of
a sizable land bank in Malaysia's state of Sarawak. Sarawak Plantation is able to cultivate oil
palm trees on a vast scale because to this strategically located landholding, ensuring a steady
supply of palm oil of the highest quality.
Sarawak Plantation places a high priority on ecological responsibility and ethical farming
methods. The business uses cutting-edge tools and industry best practises to boost output
while lowering its environmental impact. Sarawak Plantation works to accomplish
sustainable and environmentally friendly operations by utilising effective irrigation systems,
putting good waste management practises into practise, and supporting biodiversity
preservation.
Sarawak Plantation actively participates in the downstream processing of palm oil in addition
to its primary business of palm oil farming. The business owns and runs mills and refineries
for the production of palm oil, where fresh palm fruit bunches are processed to yield crude
palm oil and palm kernel oil. These oils are processed further to provide a variety of goods,
such as cooking oil, margarine, specialty fats, and biodiesel.
3
The Sarawak Plantation Company is dedicated to ongoing innovation and development. The
company makes investments in R&D projects to improve palm oil yields, boost operational
effectiveness, and investigate new uses for palm oil derivatives. Sarawak Plantation wants to
preserve its competitive edge in the market and meet the changing needs of its consumers by
being at the forefront of technical development.
Engagement in the community and corporate social responsibility are very important to the
business. In the communities where it conducts business, Sarawak Plantation actively
supports numerous programmes that advance sustainable development, healthcare, and
education. Sarawak Plantation contributes to the long-term development and prosperity of the
areas it serves by building trusting relationships with regional stakeholders and placing a high
priority on social and environmental well-being.
4
HAP SENG PLANTATION
Vertical Analysis for the Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December
Group
2022 2021 2020
% % %
Revenue 100.00 100.00 100.00
Cost of sales (53.59) (47.00) (66.58)
Gross profit 46.41 53.00 33.42
Other operating income 5.28 6.06 7.37
Distribution expenses (9.16) (8.20) (6.60)
Administrative expenses (3.97) (4.36) (6.15)
Other operating expenses (5.78) (2.90) (4.44)
Operating profit 32.77 43.61 23.72
Finance costs (0.37) (0.35) (0.54)
Profit before tax 32.41 43.27 23.18
Tax expenses (6.59) (9.87) (3.87)
Profit and total comprehensive income 25.82 33.39 19.31

for the year
Gross profit demonstrated a fluctuating trend, decreasing from 66.58% in 2020 to 47.00% in
2021 and then increasing to 53.00% in 2022. The decline in 2021 may have been influenced
by higher costs of sales, while the subsequent increase in 2022 suggests improved
profitability in generating revenue compared to the cost of sales. Potential reasons for these
fluctuations include changes in commodity prices, production costs, or market dynamics.
Operating profit showed a similar pattern, declining from 23.72% in 2020 to 43.61% in 2021
and then decreasing to 32.77% in 2022. The significant increase in 2021 could be attributed
to the impact of higher gross profit combined with lower distribution and administrative
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expenses. However, the subsequent decrease in 2022 suggests potential challenges in cost
management or increased operating expenses.
Profit before tax displayed a similar fluctuating trend, declining from 23.18% in 2020 to
43.27% in 2021 and then decreasing to 32.41% in 2022. The fluctuations in profit before tax
could be influenced by factors such as changes in operating profit, finance costs, or variations
in non-operating income or expenses.
Profit and total comprehensive income for the year followed a similar pattern, decreasing
from 19.31% in 2020 to 33.39% in 2021 and then decreasing to 25.82% in 2022. The
fluctuations in profit and total comprehensive income can be attributed to changes in tax
expenses, non-operating income or expenses, or other factors impacting the company's
financial performance.
6
SARAWAK PLANTATION BERHAD
Vertical Analysis for the Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December
Group
2022 2021 2020
% % %
Revenue 100.00 100.00 100.00
Cost of sales (71.14) (73.24) (76.24)
Gross profit 28.86 26.76 23.76
Other operating income 0.35 0.19 0.27
Distribution expenses (6.69) (5.62) (5.42)
Administrative expenses (3.04) (2.65) (4.17)
Net gain on financial instruments 0.00 0.00 0.00
Result from operating activities 19.48 18.68 14.44
Other non-operating income - 2.71 3.36
Other non-operating expenses (0.95) (0.25) -
Finance income 0.45 0.26 0.39
Finance costs (0.11) (0.10) (0.35)
Net finance income 0.35 0.16 0.04
Profit before tax 18.88 21.30 17.83
Tax expenses (5.19) (5.07) (4.60)
Profit and total comprehensive income 13.69 16.23 13.24

for the year
Gross profit has shown an increasing trend, rising from 23.76% in 2020 to 26.76% in 2021
and further increasing to 28.86% in 2022. This suggests improved profitability in generating
revenue compared to the cost of sales. Possible reasons for this increase include effective cost
management, productivity improvements, or favorable pricing strategies.
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Result from operating activities also demonstrated an increasing trend, with percentages of
14.44% in 2020, 18.68% in 2021, and 19.48% in 2022. This indicates the company's ability
to generate higher profits from its core operations. The upward trend could be attributed to
factors such as revenue growth, cost control measures, or operational efficiencies.
Profit before tax experienced fluctuations over the three-year period. It decreased from
17.83% in 2020 to 21.30% in 2021 and slightly decreased further to 18.88% in 2022. The
reasons for these fluctuations could include changes in taxation policies, variations in
non-operating income or expenses, or shifts in financial market conditions.
Profit and total comprehensive income for the year showed a similar trend as profit before
tax, decreasing from 13.24% in 2020 to 16.23% in 2021 and further decreasing to 13.69% in
2022. The fluctuations in profit and total comprehensive income could be attributed to
changes in tax expenses, non-operating income or expenses, or other external factors
affecting the company's financial performance.
8
HAP SENG PLANTATION
Vertical Analysis for the Statement of Financial Position for the year ended 31 December
Group
2022 2021 2020
% % %
Assets
Property, plant and equipment 71.56 72.20 82.57
Investment in subsidiaries - - -
Total non-current assets 71.56 72.20 82.57
Inventories 4.94 3.84 2.49
Biological assets 1.18 2.44 1.55
Receivables 0.38 0.60 1.46
Current tax assets 1.04 0.50 0.06
Money market deposits 14.03 12.52 8.95
Cash and cash equivalents 6.87 5.11 2.92
Assets held for sale - 2.79 -
Total current assets 28.44 27.80 17.43
Total assets 100.00 100.00 100.00
Equity
Share capital 60.96 62.28 67.63
Merger reserves 55.68 56.88 61.77
Retained earnings 74.46 74.11 72.77
Less: Treasury shares 0.03 0.04 0.04
Total equity 79.70 79.47 78.59
Liabilities
Deferred tax liabilities 14.96 15.99 17.10
Lease liability 2.39 1.82 2.09
Total non-current liabilities 17.35 17.81 19.19
9
Payables 2.53 2.19 1.52
Current tax liabilities - 0.27 0.25
Lease liabilities 0.42 0.26 0.44
Total current liabilities 2.95 2.72 2.21
Total liabilities 20.30 20.53 21.41
Total equity and liabilities 100.00 100.00 100.00
Over the three-year period analyzed, Hap Seng Plantation experienced a downward trend in
Total Assets. The percentage of Total Assets decreased from 82.57% in 2020 to 72.20% in
2021 and further declined to 71.56% in 2022. This decline can be attributed to a decrease in
property, plant, and equipment, possibly resulting from asset disposals or impairment losses.
Additionally, there was an upward trend in the proportion of inventories, which rose from
2.49% in 2020 to 3.84% in 2021 and further to 4.94% in 2022, indicating a higher investment
in inventory.
On the other hand, Total Liabilities remained relatively stable. The percentage of Total
Liabilities slightly decreased from 21.41% in 2020 to 20.53% in 2021 and further to 20.30%
in 2022. This suggests prudent debt management by the company.
Similarly, Total Equity exhibited a relatively stable trend with minor fluctuations. The
percentage of Total Equity decreased slightly, possibly due to the use of retained earnings for
business operations, dividend payments, or other capital outflows. However, the retained
earnings increased slightly from 72.77% in 2020 to 74.11% in 2021 and further to 74.46% in
2022, indicating overall profitability and accumulation of earnings.
These trends in the financial position of Hap Seng Plantation highlight the company's
management of assets, liabilities, and equity over the three-year period.
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SARAWAK PLANTATION BERHAD
Vertical Analysis for the Statement of Financial Position for the year ended 31 December
Group
2022 2021 2020
% % %
Assets
Property, plant and equipment 27.63 27.07 31.09
Bearer plant 34.73 33.92 37.45
Right of use asset 10.02 9.76 11.08
Investment in properties 0.55 0.56 0.66
Total non-current assets 72.93 71.31 80.29
Biological assets 5.98 6.57 4.88
Inventories 1.91 2.00 1.91
Trade and other receivables 1.42 1.41 0.99
Prepayment and other assets 0.78 0.71 0.73
Current tax recoverable - - -
Other investment 3.74 6.34 1.85
Cash and cash equivalent 13.25 11.66 9.34
Total current assets 27.07 28.69 19.71
Total assets 100.00 100.00 100.00
Equity
Share capital 35.87 34.98 38.83
Reserves 39.03 33.87 27.81
Total equity attributable to owners of 74.89 68.85 66.64

the company
Non-controlling interest (0.64) (0.67) (1.14)
Total equity 74.26 68.18 65.5
Liabilities
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Deferred tax liabilities 12.94 12.93 14.12
Loans and borrowings 0.14 0.20 5.26
Lease liability 0.26 0.23 0.29
Total non-current liabilities 13.33 13.36 19.67
Trade and other payables 6.83 7.12 5.83
Loans and borrowings 1.08 6.65 6.56
Lease liability 4.12 0.02 -
Current tax payables 1.56 1.80 0.85
Dividend payable 2.94 2.86 1.59
Total current liabilities 12.41 18.46 14.83
Total liabilities 25.74 31.82 34.5
Total equity and liabilities 100.00 100.00 100.00
The vertical analysis of Sarawak Plantation Berhad's Statement of Financial Position for the
year ended 31 December reveals significant trends and percentages. Total Assets experienced
a decreasing trend, declining from 80.29% in 2020 to 71.31% in 2021 and slightly increasing
to 72.93% in 2022. This decrease can be attributed to reductions in property, plant, and
equipment, as well as bearer plants, potentially due to asset disposals or impairment losses.
However, there was an increasing trend in the proportion of biological assets. Total Liabilities
showed a decreasing trend, decreasing from 34.5% in 2020 to 31.82% in 2021 and further
decreasing to 25.74% in 2022. This suggests a reduction in the company's debt load,
primarily driven by a decrease in loans and borrowings, possibly due to debt repayments or
refinancing activities. Conversely, Total Equity exhibited an increasing trend, rising from
65.5% in 2020 to 68.18% in 2021 and further increasing to 74.26% in 2022. This indicates
growth in the equity portion of the company's capital structure, resulting from increases in
share capital and reserves. These trends reflect strategic asset management, potential
divestments, deleveraging efforts, improved financial position, and the accumulation of
shareholder capital.
12
A. Activity ratios
1. Account Receivable Turnover
Account Receivable Turnover = NET SALES / AVERAGE GROSS RECEIVABLES
2022 2021 2020
Hap Seng = 814,554,000 / = 670,851,000 / = 467,595,000 /

Plantation [(9,204,000 + [(14,266,000 + [(31,852,000 +
14,266,000) / 2] 31,852,000) / 2] 30,017,000) / 2]
= 69.41 times = 29.09 times = 15.11 times
Sarawak Plantation = 710,912,149 / = 790,524,187 / = 465,749,704 /

Berhad [(13,458,786 + [(13,735,151 + [(8,672,986 +
13,735,151) / 2] 8,672,986) / 2] 15,658,909) / 2]
In 2020, Hap Seng Plantation's account receivable turnover ratio was 15.11 times, indicating
its ability to recover payments from customers. This ratio increased significantly to 29.09
times in 2021 and further to 69.41 times in 2022. The rising trend suggests that Hap Seng
Plantation improved its credit management and collection activity, resulting in a faster
turnover of accounts receivable. On the other hand, Sarawak Plantation Berhad had a higher
account receivable turnover ratio of 70.56 times in 2021, which decreased to 52.28 times in
2022. Although the ratio remained relatively high compared to Hap Seng Plantation, the
decline in 2022 suggests that Sarawak Plantation Berhad faced challenges in collecting
payments or managing credit compared to the previous year. Overall, Hap Seng Plantation
had a better account receivable turnover ratio than Sarawak Plantation Berhad in 2020 and
2021, but the positions reversed in 2022, indicating a shift in their respective abilities to
collect accounts receivable.
2. Account Receivable Turnover in Days
Account Receivable Turnover in Days = AVERAGE GROSS RECEIVABLES / (NET

SALES / 365)
13
2022 2021 2020
Hap Seng = [(9,204,000 + = [(14,266,000 + = [(31,852,000 +

Plantation 14,266,000) / 2] / 31,852,000) / 2] / 30,017,000) / 2] /
(814,554,000 / 365) (670,851,000 / 365) (465,749,704 / 365)
= 5.26 days = 12.55 days = 24.24 days
Sarawak Plantation = [(13,458,786 + = [(13,735,151 + = [(8,672,986 +

Berhad 13,735,151) / 2] / 8,672,986) / 2] / 15,658,909) / 2] /
(710,912,149 / 365) (790,524,187 / 365) (465,749,704 / 365)
= 6.98 days = 5.17 days = 9.53 days
Hap Seng Plantation's account receivable turnover in days showed a significant decrease
from 24.24 days in 2020 to 12.55 days in 2021 and further to 5.26 days in 2022. This
indicates that the company has improved its efficiency in collecting payments from
customers, resulting in a faster turnover of accounts receivable. On the other hand, Sarawak
Plantation Berhad experienced a slight increase in the collecting period, with 9.53 days in
2020, followed by 5.17 days in 2021, and a slight rise to 6.98 days in 2022. Despite the slight
increase, Sarawak Plantation Berhad maintained a relatively low collection period compared
to Hap Seng Plantation. The overall trend suggests that Sarawak Plantation Berhad has
enhanced its ability to collect payments more swiftly from clients over time.
3. Inventory Turnover
Inventory Turnover = COST OF GOOD SOLD / AVERAGE INVENTORY
2022 2021 2020
Hap Seng = 436,549,000 / = 315,288,000 / = 311,316,000 /

Plantation [(119,545,000 + [(91,078,000 + [(54,286,000 +
91,078,000) / 2] 54,286,000) / 2] 50,790,000) / 2]
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Berhad [(18,181,870 + [(19,522,749 + [(16,767,531 +
19,522,749) / 2] 16,767,531) / 2] 12,614,980) / 2]
Hap Seng Plantation's inventory turnover ratio showed a slight decrease from 5.93 times in
2020 to 4.34 times in 2021, and further to 4.15 times in 2022. This suggests that the company
takes longer to sell and replace inventories over time, potentially indicating challenges in
inventory management or changes in sales and production procedures. On the other hand,
Sarawak Plantation Berhad experienced an increase in inventory turnover ratio, from 24.17
times in 2020 to 31.91 times in 2021, followed by a slight decline to 26.83 times in 2022.
Despite the decrease compared to Hap Seng Plantation, Sarawak Plantation Berhad
maintained a relatively high inventory turnover ratio. The decreasing trend for Sarawak
Plantation Berhad could be attributed to shifts in inventory management strategy or a decline
in market demand for their products. Overall, Sarawak Plantation Berhad consistently had
higher inventory turnover ratios than Hap Seng Plantation, indicating their ability to sell and
replace inventory more frequently, while Hap Seng Plantation struggled with relatively lower
inventory turnover ratios, suggesting potential difficulties in managing and selling inventories
efficiently.
4. Days’ Sales of Inventory
Days’ Sales of Inventory = AVERAGE INVENTORY / (COST OF GOOD SOLD / 365)
2022 2021 2020
Hap Seng = [(119,545,000 + = [(91,078,000 + = [(54,286,000 +

Plantation 91,078,000) / 2] / 54,286,000) / 2] / 50,790,000) / 2] /
(436,549,000 / 365) (315,288,000 / 365) (311,316,000 / 365)
= 88.05 days = 84.14 days = 61.60 days
Sarawak Plantation = [(18,181,870 + = [(19,522,749 + = [(16,767,531 +

Berhad 19,522,749) / 2] / 16,767,531) / 2] / 12,614,980) / 2] /
(505,738,845 / 365) (578,962,732 / 365) (355,074,107 / 365)
= 13.61 days = 11.44 days = 15.10 days
15
Hap Seng Plantation's Days' Sales of Inventory (DSI) showed an increasing trend, rising from
61.60 days in 2020 to 84.14 days in 2021, and further to 88.05 days in 2022. This suggests
that the company took more days to sell its products over time, indicating potential
challenges in efficiently managing inventory turnover or changes in sales and production
processes. In contrast, Sarawak Plantation Berhad experienced a decreasing trend in DSI,
declining from 15.10 days in 2020 to 11.44 days in 2021, with a slight increase to 13.61 days
in 2022. Despite the slight increase, Sarawak Plantation Berhad maintained a shorter DSI
compared to Hap Seng Plantation. The decreasing trend for Sarawak Plantation Berhad
indicates faster inventory turnover in previous years, although there may have been a slight
slowdown in inventory turnover in 2022. Overall, Sarawak Plantation Berhad consistently
had a shorter time for inventory sales compared to Hap Seng Plantation, indicating faster
sales and a shorter cash conversion cycle. Hap Seng Plantation, on the other hand, had longer
days of inventory sales, suggesting a slower cash conversion process.
5. Operating Cycle
Operating Cycle = ACCOUNT RECEIVABLE TURNOVER IN DAYS + INVENTORY

TURNOVER IN DAYS
2022 2021 2020
Hap Seng Plantation = 5.26 + 88.05 = 12.55 + 84.14 = 24.24 + 61.60

= 93.31 days = 96.69 days = 85.84
Sarawak Plantation = 6.98 + 13.61 = 5.17 + 11.44 = 9.53 + 15.10

Berhad = 20.59 days = 16.61 days = 24.63 days
Hap Seng Plantation has a relatively long operating cycle, with durations ranging from 85.84
days in 2020 to 96.69 days in 2021, and then 93.31 days in 2022. This extended operating
cycle suggests that the company takes a significant amount of time to convert inventory into
cash through the sales process. It implies a slower cash flow generation and a lengthier cash
conversion cycle. In contrast, Sarawak Plantation Berhad has a considerably shorter operating
cycle, ranging from 16.61 days in 2021 to 20.59 days in 2022. The shorter operational cycle
of Sarawak Plantation Berhad indicates a faster conversion of inventory into cash through its
sales process, potentially leading to faster cash flow generation and a shorter cash conversion
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period. In summary, Hap Seng Plantation's longer operating cycle suggests a slower cash
conversion process and cash flow production, while Sarawak Plantation Berhad's shorter
operating cycle implies a faster cash conversion process and potentially faster cash flow
generation.
B. Liquidity ratios
1. Current Ratio
Current Ratio = Current Assets / Current liabilities
2022 2021 2020
Hap Seng Plantation = 688,296,000 / = 658,732,000 / = 380,377,000 /

71,374,000 64,357,000 48,269,000
= 9.64 = 10.24 = 7.88
Sarawak Plantation = 257,394,189 / = 279,633,549 / =173,085,630 /

Berhad 117,965,185 179,916,315 130,205,718
= 2.18 = 1.55 = 1.33
Hap Seng Plantation and Sarawak Plantation Berhad had different liquidity experiences over
the span of three years. During this time period, Hap Seng Plantation demonstrated a steady
increase in liquidity. In the year 2020, their current ratio was 7.88, indicating that their
current assets significantly exceeded their current liabilities. This indicated an advantageous
liquidity position. The following year, in 2022, their current ratio increased to 10.24,
indicating a firmer liquidity position with a significant increase in the coverage of current
assets over current liabilities. Even though the current ratio decreased to 9.64 in 2022, the
company's liquidity position remained favourable.
On the other hand, liquidity was a challenge for Sarawak Plantation Berhad. In 2020, their
current ratio was 1.33, indicating that their liquidity position was relatively weaker than that
of Hap Seng Plantation. This indicated that Sarawak Plantation Berhad's current assets were
insufficient to cover its current liabilities. In 2021, the company's current ratio decreased to
1.55, indicating an increased strain on its ability to meet short-term obligations. The current
17
ratio improved to 2.18 in 2022, indicating a modest increase in the ratio of current assets to
current liabilities.
Throughout the three-year period, Hap Seng Plantation consistently demonstrated greater
liquidity, as indicated by higher current ratios. In contrast, Sarawak Plantation Berhad's
liquidity position deteriorated in 2020 and 2021, but showed some improvement in 2022.
Consider that these current ratios provide only a snapshot of a company's liquidity at specific
periods in time, and that a complete analysis of a company's financial health and liquidity
should also incorporate additional financial metrics and industry benchmarks.
2. Acid - Test (Quick) Ratio
Acid Test Ratio = (Current Assets - Inventory) / Current liabilities
2022 2021 2020
Hap Seng Plantation = (688,296,000 - = (658,732,000 - = (380,377,000 -

119,545,000) / 91,078,000)/ 54,286,000)/
71,374,000 64,357,000 64,357,000
Sarawak Plantation = (257,394,189 - = (279,633,549 = (173,085,630

Berhad 18,181,870) / -19,522,749)/ -16,767,532)/130,20
117,965,185 179,916,315 5,718
Hap Seng Plantation has demonstrated a promising trend in its acid test ratios over the
analysed years. In 2022, the ratio stood at 7.97 times, indicating that the company's liquid
assets, excluding inventory, were nearly 8 times higher than its current liabilities. This
suggests a robust ability to meet short-term obligations. The following year, in 2021, the acid
test ratio showed improvement, reaching 8.82 times. This upward movement highlights Hap
Seng Plantation's strengthening liquidity position. However, it's worth noting that in 2020, the
ratio decreased to 5.07 times, signalling a potential decrease in liquidity compared to the
previous year.
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On the other hand, Sarawak Plantation Berhad exhibited lower acid test ratios compared to
Hap Seng Plantation. In 2022, the ratio was 2.03 times, indicating that Sarawak Plantation
Berhad's liquid assets exceeded its current liabilities by more than twice the amount.
Although lower than Hap Seng Plantation's ratio, it still suggests a reasonable ability to meet
short-term obligations. However, concerns arose in 2021 when the acid test ratio declined to
1.45 times, indicating a decrease in liquidity and potentially raising questions about the
company's ability to cover immediate obligations. This decline persisted in 2020, with the
ratio further dropping to 1.20 times, signifying a deteriorating liquidity position for Sarawak
Plantation Berhad.
In summation, Hap Seng Plantation consistently displayed higher acid test ratios than
Sarawak Plantation Berhad, indicating a stronger liquidity position. However, it is essential to
consider these ratios alongside industry benchmarks and other financial indicators in order to
obtain a complete understanding of the companies' overall financial health.
3. Free Cash Flow
Free Cash Flow = Net operating income - investment during period
2022 2021 2020
Hap Seng Plantation = RM 246,079,000 = RM 277,490,000 =RM136,823,000

– RM 27,251,000 – RM 154,208,000 –RM84,969,000
= RM 218,828,000 = RM 123,282,000 =RM 51,854,000
Sarawak Plantation = RM 132,367,030 = RM 173,361,990 = RM90,288,307

Berhad – RM 6,839,250 – RM75,763,591 – RM43,978, 344
= RM 125,527,780 = RM 97,598,199 =RM 46,309,963
Hap Seng Plantation generated RM 218,828,000 in free cash flow in 2022, suggesting that
they had enough cash to pay their expenses after accounting for capital expenditures. This is a
good sign since it indicates that the company had enough funds to support operations, invest
in expansion, or payout to shareholders. Despite a decline from the previous year, their free
cash flow in 2021 remained positive at RM 123,282,000, demonstrating their ability to create
cash flow. Similarly, Hap Seng Plantation generated a positive free cash flow of RM
19
51,854,000 in 2020, however this was smaller than the previous year. This could be due to
lower profitability or higher capital expenditure during that time period.
In the case of Sarawak Plantation Berhad, their free cash flow in 2022 was RM 125,527,780,
providing positive cash flow and adequate liquidity to pay capital expenditures. However,
compared to the previous year, their free cash flow fell to RM 97,598,199 in 2021. This dip
could suggest a drop in profitability or an increase in capital expenditure over that time
period. Similarly, Sarawak Plantation Berhad generated a positive free cash flow of RM
46,309,963 in 2020, slightly less than the previous year. This indicates a possible decrease in
profitability or an increase in capital expenditure.
Hap Seng Plantation appears to have outperformed Sarawak Plantation Berhad in terms of
free cash flow. In all three years, Hap Seng Plantation consistently generated positive free
cash flow, demonstrating their ability to create cash flow after accounting for capital
expenditures. While free cash flow decreased somewhat from 2021 to 2022, the corporation
maintained positive cash flow.
C. Leverage ratios
1. Debt Ratio
Debt Ratio = TOTAL LIABILITIES / TOTAL ASSETS
2022 2021 2020
Hap Seng = 491,278,000 / = 486,431,000 / = 467,059,000 /

Plantation 2,420,529,000 2,369,302,000 2,181,885,000
= 20.30% = 20.53% = 21.41%

Berhad 950,676,887 974,683,090 878,007,304
= 25.74% = 31.82% = 34.50%
Hap Seng Plantation's debt ratio remained relatively consistent over the last three years,
ranging from 20.30% in 2022 to 21.41% in 2020. The slight decrease in the debt ratio from
2021 to 2022 suggests a potential reduction in debt or an increase in total assets. Hap Seng
Plantation consistently maintained a low debt ratio, reflecting a cautious approach to debt
20
financing. Sarawak Plantation Berhad experienced a declining trend in the debt ratio,
decreasing from 34.50% in 2020 to 31.82% in 2021, and further to 25.74% in 2022. This
indicates a reduction in debt levels or an increase in total assets. In 2022, Sarawak Plantation
Berhad had a lower debt ratio, indicating a relatively lower reliance on debt financing
compared to previous years. Overall, Hap Seng Plantation maintained a stable and low debt
ratio, showcasing a conservative capital structure, while Sarawak Plantation Berhad managed
to decrease its debt ratio over time, reflecting an improvement in debt management or asset
growth.
2. Debt-to-Equity Ratio
Debt-to-Equity Ratio = TOTAL LIABILITIES / SHAREHOLDER’S EQUITY
2022 2021 2020
Hap Seng = 491,278,000 / = 486,431,000 / = 467,059,000 /

Plantation 1,929,251,000 1,882,871,000 1,714,826,000
= 25.46% = 25.83% = 27.24%

Berhad 705,955,749 664,571,153 575,136,992
= 34.67% = 46.66% = 52.66%
Hap Seng Plantation's debt-to-equity ratio remained stable over the three years, ranging from
25.46% in 2022 to 27.24% in 2020. The decreasing trend suggests a potential reduction in
debt or an increase in equity. Overall, Hap Seng Plantation maintained a conservative capital
structure with a relatively low debt-to-equity ratio, indicating a balanced mix of debt and
equity financing. Sarawak Plantation Berhad's debt-to-equity ratio decreased from 52.66% in
2020 to 46.66% in 2021 and further to 34.67% in 2022. This decreasing pattern indicates a
reduction in debt or an increase in equity compared to previous years. In 2022, Sarawak
Plantation Berhad had a lower debt-to-equity ratio, indicating a decreased reliance on debt
financing and a stronger equity position. In summary, Hap Seng Plantation maintained a
stable and low debt-to-equity ratio, demonstrating a careful capital structure. Sarawak
Plantation Berhad managed to decrease its debt-to-equity ratio over time, indicating an
improvement in financial leverage and a stronger equity position.
21
3. Times Interest Earned
Times Interest Earned = (RECURRING EARNINGS, EXCLUDING INTEREST EXPENSE,

TAX EXPENSE,EQUITY EARNINGS AND NONCONTROLLING INTEREST)/
(INTEREST EXPENSE, INCLUDING CAPITALISED INTEREST)
2022 2021 2020
Hap Seng = (263,973,000 + = (290,260,000 + = (108,400,000 +

Plantation 2,976,000) / 2,322,000) / 2,526,000) /
2,976,000 2,322,000 2,526,000
Sarawak Plantation = (134,213,067 + = (168,391,239 + = (83,054,711 +

Berhad 763,593) / 763,593 811,052) / 811,052 1,625,155) /
= 176.77 times = 208.62 times 1,625,155
= 52.11 times
The times interest earned ratio measures a company's ability to cover its interest expenses
with its operating income. At Hap Seng Plantation, the ratio fluctuated from 43.91 times in
2020 to 126.00 times in 2021, and then decreased to 89.70 times in 2022. Despite the
decrease in 2022, the company still showed a strong ability to meet its interest commitments.
Sarawak Plantation Berhad consistently maintained high ratios, ranging from 52.11 times in
2020 to 208.62 times in 2021, with a slight decrease to 176.77 times in 2022. This indicates a
strong financial position and a robust ability to cover interest payments. Sarawak Plantation
Berhad consistently outperformed Hap Seng Plantation in terms of times interest earned
ratios, demonstrating a better capacity to meet interest obligations. Both companies, however,
had favorable ratios overall, suggesting their ability to cover interest expenses with their
operational income.
D. Profitability ratios
1. Profit Margin Ratio
Profit Margin Ratio = Net income before non-controlling interest / Net Sales
22
2022 2021 2020
Hap Seng Plantation RM 210,315,000 / RM 224,023,000 / RM 90,296,000 /

RM 814,554,000 RM 670,851,000 RM 467,595,000
=25.82% = 33.39% = 19.31%
Sarawak Plantation RM 97,341,036 / RM 128,289,021 / RM 61,421,101 /

Berhad RM 710,912,149 RM 790,524,187 RM 465,749,704
=13.69% =16% = 13%
Hap Seng Plantation's profit margin ratio showed a mixed trend. In 2020, the ratio was
19.31%, which implies that they made a profit of RM 90,296,000 for every RM 467,595,000
in revenue. In 2021, their profitability improved, with the profit margin ratio rising to
33.39%. This time, they made a profit of RM 224,023,000 for every RM 670,851,000 in
revenue. However, things took a turn for the worst in 2022, when the profit margin ratio fell
to 25.82%. Despite being lower than the previous year, it was greater than in 2020.
Sarawak Plantation Berhad, on the other hand, consistently had lower profit margin ratios
than Hap Seng Plantation throughout the analysed period. In 2020, their profit margin ratio
was 13%. In 2021, they saw a minor improvement in profitability, with the profit margin ratio
climbing to 16%. This time, they made a profit of RM 128,289,021 for every RM
790,524,187 in revenue. Unfortunately, their profit margin ratio fell to 13.69% in 2022,
suggesting a drop in profitability over the previous year.
Based only on the profit margin alone, Hap Seng Plantation appears to have outperformed
Sarawak Plantation Berhad in terms of creating profit relative to sales over the analysed
years. However, it is critical to realise that profit margin ratios do not simply define
profitability.
2. Operating Income Margin
Operating Income Margin = Operating Income / Net Sales
2022 2021 2020
23
Hap Seng Plantation RM 266,949,000 / RM 292,582,000 / RM 110,926,000 /
RM 814,554,000 RM 670,851,000 RM 467,595,000
=32.77% = 43.61% = 23.72%
Sarawak Plantation RM 138,508,743 / RM 147,700,186 / RM67,232,850 /

Berhad RM 710,912,149 RM 790,524,187 RM465,749,704
= 19.48% = 18.70% = 14.43%
For operating income margin for Hap Seng Plantation and Sarawak Plantation Berhad,
certain trends become apparent. Hap Seng Plantation has experienced a decline in its
operating income margin over the years. However, in 2021, the company reached its peak
operating income margin at around 43.61%, indicating a robust profitability in relation to its
revenue. Conversely, in 2020, the operating income margin dipped to its lowest point at
approximately 23.72%. Although there was some improvement in 2022 compared to 2020,
the operating income margin remained lower than the 2021 level.
In contrast, Sarawak Plantation Berhad has maintained a relatively stable operating income
margin. Its margin fluctuated between approximately 14.43% in 2020 and 19.48% in 2022.
The highest operating income margin was attained in 2022, reflecting a positive trend in
profitability. On the other hand, the lowest operating income margin occurred in 2020, with a
value of around 14.43%.
Hap Seng Plantation appears to have performed better than Sarawak Plantation Berhad. In
2021, Hap Seng Plantation attained a higher operating income margin than Sarawak
Plantation Berhad, indicating greater profitability relative to revenue. Despite a downward
trend in operational income margin over the years, Hap Seng Plantation's margin remained
greater than the highest margin recorded by Sarawak Plantation Berhad in 2022. This
indicates that Hap Seng Plantation is operating their business more efficiently.
24
3. Return On Asset
Return on Asset = Net Income Before Non Recurring Interest of Earnings and Nonrecurring
Items/Average Total Assets
2022 2021 2020
Hap Seng Plantation Net income before Net income before Net income before
non non non
recurring interest of recurring interest of recurring interest of
earnings and non earnings and non earnings and non
recurring recurring recurring
items does not items does not items does not
disclose disclose disclose
Sarawak Plantation RM 97,341,036 / RM128,289,021 / RM61,421,101 /

Berhad [(RM950,676,887 + [(RM974,683,090 + [(RM878,007,304 +
RM974,683,090)/2] RM878,007,304)/2] RM833,996,198)/2]
= RM 97,341,036 / =RM128,289,021 / =RM61,421,101 /
RM 962,679,989 RM926,345,197 RM856,001,751
=10.11% = 14% = 7.2%
Sarawak Plantation Berhad's Return on Assets (ROA) showed fluctuations throughout the
years 2022, 2021, and 2020. In 2022, the company achieved an ROA of 10.11%, which
means that for every unit of assets it had, it generated a return of 10.11%. This indicates a
moderate level of asset efficiency and profitability during that year.
Moving on to 2021, Sarawak Plantation Berhad experienced an improvement in its ROA,

reaching 14%. This suggests that the company became more effective in utilizing its assets
to generate profit compared to the previous year. The higher ROA indicates improved asset
management and a boost in profitability.
However, in 2020, Sarawak Plantation Berhad faced a dip in its ROA, recording 7.2%. This
indicates a decrease in asset efficiency and profitability compared to the subsequent years.
It suggests that the company encountered challenges in effectively utilising its assets to
generate earnings during that specific year.
25
4. Return On Equity
Return on Equity = Net Income Before Non Recurring Items - Dividends on Redeemable
Preference Stock/Average Total Equity
2022 2021 2020
Hap Seng Plantation Net income before Net income before Net income before
non non non
recurring interest of recurring interest of recurring interest of
earnings and non earnings and non earnings and non
recurring recurring recurring
items does not items does not items does not
disclose disclose disclose
Sarawak Plantation RM 97,341,036 / RM128,289,021 / RM61,421,101 /

Berhad [(RM705,955,749 + [(RM664,571,153 + [(RM575,136,992 +
RM664,571,153)/2] RM575,136,992)/2] RM541,393,146)/2]
= RM 97,341,036 / RM128,289,021 / RM61,421,101 /
RM 685,263,451 RM619,854,072.5 RM558,265,069
=14.20% = 21% = 11%
The return on equity (ROE) for Sarawak Plantation Berhad can be analysed using the
available data for the years 2020, 2021, and 2022. In 2022, the company achieved an ROE of
around 14.20%. This indicates that for each unit of average shareholders' equity, Sarawak
Plantation Berhad generated a return of approximately 14.20%. Similarly, in 2021, the ROE
stood at about 21%, implying a higher level of profitability and a more efficient utilisation of
equity capital. However, the ROE dropped to around 11% in 2020, signalling a relatively
lower level of profitability during that period. Overall, these figures highlight the varying
performance of Sarawak Plantation Berhad in terms of profit generation in relation to the
shareholders' equity. Higher ROE values reflect improved financial performance and
effective utilisation of investments.
26
E. Market ratios
1. Earnings Per Share (EPS)
Formula
(𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 − 𝑃𝑟𝑒𝑓𝑒𝑟𝑟𝑒𝑑 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑)
𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐶𝑜𝑚𝑚𝑜𝑛 𝑆ℎ𝑎𝑟𝑒𝑠 𝑂𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔
Year / Company Hap Seng Plantation Sarawak Plantation Berhad
2022 210,315 / 799,685 96,712,708 / 279,032,200

= 26.29 @ 26.30 = 34.66
2021 224,023 / 799,685 127,825,817 / 279,032,200

= 28.01 = 45.81
2020 90,296 / 799,685 61,421,101 / 279,032,200

= 11.29 = 22.01
The earnings per share for both companies have been stated in the financial statement
(SOPL). Over the past three years, Hap Seng Plantation's earnings per share have fluctuated
somewhat. As opposed to 28.01 sen in 2021 and 11.29 sen in 2020, the EPS declined to
roughly 26.29 sen in 2022. Various reasons, including changes in net income, the number of
outstanding shares, or a combination of both, may be to blame for the decline in EPS in 2022.
Hap Seng Plantations Berhad's EPS in 2021 was higher than it was in the year before and the
year after, showing increased earnings per share during that time.
However, for Sarawak Plantation Berhad, earnings per share over the past three years have
also fluctuated. The greatest EPS, or roughly 45.81 sen, was recorded in 2021, followed by
34.66 sen in 2022 and 22.01 sen in 2020. The higher EPS in 2021 can signify greater
profitability or a more effective distribution of earnings during that year. Even if EPS fell in
2022, it nevertheless remained substantially greater than EPS in 2020.
27
2. Price to Earnings Ratio (P/E Ratio)
Formula
𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
𝐷𝑖𝑙𝑢𝑡𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑝𝑒𝑟 𝑆ℎ𝑎𝑟𝑒, 𝐵𝑒𝑓𝑜𝑟𝑒 𝑁𝑜𝑛 𝑟𝑒𝑐𝑢𝑟𝑟𝑖𝑛𝑔 𝑖𝑡𝑒𝑚𝑠
Diluted earnings per share before non-recurring items is not stated in Hap Seng Plantations
Berhad annual report. The market price per share also is not stated in Sarawak Plantations
Berhad annual report. Hence, no calculation or comparison can be made.
3. Dividend Payout Ratio

Formula
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠 𝑝𝑒𝑟 𝐶𝑜𝑚𝑚𝑜𝑛 𝑆ℎ𝑎𝑟𝑒
𝐷𝑖𝑙𝑢𝑡𝑒𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑝𝑒𝑟 𝑆ℎ𝑎𝑟𝑒, 𝐵𝑒𝑓𝑜𝑟𝑒 𝑁𝑜𝑛 𝑟𝑒𝑐𝑢𝑟𝑟𝑖𝑛𝑔 𝑖𝑡𝑒𝑚𝑠
Year / Company Hap Seng Plantation Sarawak Plantation Berhad
2022 Not Available @ NA 15 sen / 34.66

= 0.43
2021 NA 20 sen / 45.81

= 0.44
2020 NA 10 sen / 22.01

= 0.45
Hap Seng Plantation has not stated diluted earnings per share before non-recurring items on
their annual report so the result cannot be compared with Sarawak Plantation Berhad. Over
the past three years, Sarawak Plantation Berhad's dividend payout ratio has stayed largely
steady. The dividend payout ratio in 2022 was 0.43, meaning that 43% of the company's
profits were distributed as dividends to shareholders. With a dividend payout ratio of 0.44 for
2021, it can be deduced that roughly 44% of the company's earnings were paid out as
dividends. The dividend payout ratio in 2020 was 0.45, which meant that 45 percent of the
company's earnings went towards paying dividends.
28
The dividend payout ratio offers insight into how much of a company's earnings are
distributed to shareholders as opposed to being kept for reinvestment or other uses. A smaller
dividend payout ratio implies that the business keeps more of its earnings, which could be put
to better use for potential future development opportunities or to fortify its financial position.
A greater dividend payout ratio, on the other hand, shows that the company is delivering a
larger portion of its earnings to shareholders, which may be appealing to income-oriented
investors.
4. Dividend Yield
Formula
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠 𝑝𝑒𝑟 𝐶𝑜𝑚𝑚𝑜𝑛 𝑆ℎ𝑎𝑟𝑒
𝑀𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠ℎ𝑎𝑟𝑒𝑠
Year / Company Hap Seng Plantations Berhad Sarawak Plantations Berhad
2022 12 sen / 1.94 = 7.10%

= 6.19%
2021 17 sen / 1.97 = 8.10%

= 8.63%
2020 7 sen / 1.80 = 4.40%

= 3.89%
The dividend yield has been stated in the financial statements (Financial Review) for
Sarawak Plantations Berhad. Over the past three years, Hap Seng Plantations Berhad's
dividend yield has fluctuated a bit. The highest dividend yield, 8.63%, was recorded in 2021,
signifying a dividend return on investment that was larger than the stock's market price at that
time. In 2022, the dividend yield fell to 6.19%, still considered to be favourable but less so
than in the prior year. The dividend yield for 2020 was 3.89%, which indicates a lesser
dividend return on investment compared to the years after.
Over the past three years, Sarawak Plantations Berhad's dividend yield has also fluctuated a
bit. The dividend yield in 2021 was 8.10%, indicating a dividend return on investment that
29
was highly appealing when contrasted to the stock's market price. In comparison to the prior
year, the dividend yield for 2022 declined slightly to 7.10%, indicating a somewhat smaller
return on investment in the form of dividends. The dividend yield in 2020 was 4.40%, still
rather favourable but with a smaller dividend return on investment than in the years after.
Investors can determine whether a stock has the ability to generate money through dividends
by looking at its dividend yield. A greater dividend yield implies a better dividend return on
investment in relation to the stock's market price. Note that the dividend yield alone should
not be used to make investment decisions because it does not account for a company's
capacity for capital growth or other critical fundamentals.
5. Dividend Per Share (DPS)
Formula
𝑇𝑜𝑡𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑
𝑆ℎ𝑎𝑟𝑒𝑠 𝑂𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔
Year / Company Hap Seng Plantations Berhad Sarawak Plantations Berhad
2022 = 12 sen = 15 sen
2021 = 17 sen = 20 sen
2020 = 7 sen = 10 sen
The dividend per share has been stated in financial statements (Financial Highlights). For
Hap Seng Plantations Berhad, over the past three years, there has been some fluctuation in
Hap Seng Plantations Berhad's dividend per share. The corporation paid the largest dividend
per share which is 17 sen in the year 2021, demonstrating a better effort to distribute profits
to shareholders. A change in the company's dividend policy or financial performance may
have caused the dividend per share to drop to 12 sen in 2022. The dividend per share in 2020
was 7 sen, which indicates that earnings were distributed less generously than in years after.
Over the past three years, Sarawak Plantations Berhad's dividend per share has also
fluctuated. The corporation paid out the highest dividend per share, 20 sen, in 2021,
30
indicating a significant dividend payout to shareholders. In 2022, the dividend per share
dropped to 15 sen, possibly due to a variety of circumstances, including modifications to the
company's financial performance or dividend policy. The dividend per share in 2020 was 10
sen, which represents a lower distribution of earnings than in the years after but is still more
significant than in the years before.
Conclusion
In conclusion, there are similarities and differences between Hap Seng Plantations and
Sarawak Plantation Berhad's financial statements. We discover information about the
development of the companies and current trends in the plantation industry by calculating,
examining, and interpreting the ratios based on the financial data. We evaluate their market
performance and industry position by comparing the chairman's remarks to those in the
annual reports. Based on the data, Sarawak Plantation Berhad seems to be in a stronger
financial position than Hap Seng Plantations, exhibiting efficient asset management and
dependable financial performance over the past three years. Eventhough in 2021, the
performance of Sarawak Plantation Berhad is better than 2022, but it still better compared to
Hap Seng Plantation Berhad. Over the course of the three years, Sarawak Plantation Berhad
has made more progress.
31
References
Hap Seng Plantations Berhad. (2022). Annual Report 2022. Retrieved from
hapseng.com.my/en/download/annualreports/consolidated/ar2022.pdf
Sarawak Plantations Berhad. (2022). Annual Report 2022. Retrieved from

http://spb.listedcompany.com/misc/ar2022.pdf


32
Appendices
Hap Seng Plantation
33
34
35
36
37
38
39
40
Sarawak Plantation Berhad
41
42
43
44
45
46
47
48
49
50
51
52
53
54

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FACULTY OF ACCOUNTANCY

FINANCIAL STATEMENT ANALYSIS

GROUP PROJECT ASSIGNMENT:

HAP SENG PLANTATION & SARAWAK PLANTATIONS BERHAD

STUDENT NAME STUDENT ID

AMIR FARHAN BIN MAT RODZI 2021149385

MUHAMMAD AZWAN NORFIRDAUS BIN MOHD. AZHAR 2021119289

HANIF HAKIMI BIN SAMZINI 2021132245

AHMAD MUZAKKIR BIN MOHD TAUFIK 2021120341

PREPARED FOR: DR. YUNITA AWANG

Background of the Company 2-4

Vertical Analysis 5-12

Activity Ratios 13-17

Liquidity Ratios 17-20

Leverage Ratios 20-22

Profitability Ratios 22-26

Market Ratios 27-31

Hap Seng Plantation

Sarawak Plantation Berhad

2022 2021 2020

Revenue 100.00 100.00 100.00

Cost of sales (53.59) (47.00) (66.58)

Gross profit 46.41 53.00 33.42

Other operating income 5.28 6.06 7.37

Distribution expenses (9.16) (8.20) (6.60)

Administrative expenses (3.97) (4.36) (6.15)

Other operating expenses (5.78) (2.90) (4.44)

Operating profit 32.77 43.61 23.72

Finance costs (0.37) (0.35) (0.54)

Profit before tax 32.41 43.27 23.18

Tax expenses (6.59) (9.87) (3.87)

Profit and total comprehensive income 25.82 33.39 19.31

2022 2021 2020

Revenue 100.00 100.00 100.00

Cost of sales (71.14) (73.24) (76.24)

Gross profit 28.86 26.76 23.76

Other operating income 0.35 0.19 0.27

Distribution expenses (6.69) (5.62) (5.42)

Administrative expenses (3.04) (2.65) (4.17)

Net gain on financial instruments 0.00 0.00 0.00

Result from operating activities 19.48 18.68 14.44

Other non-operating income - 2.71 3.36

Other non-operating expenses (0.95) (0.25) -

Finance income 0.45 0.26 0.39

Finance costs (0.11) (0.10) (0.35)

Net finance income 0.35 0.16 0.04

Profit before tax 18.88 21.30 17.83

Tax expenses (5.19) (5.07) (4.60)

Profit and total comprehensive income 13.69 16.23 13.24

2022 2021 2020

Property, plant and equipment 71.56 72.20 82.57

Total non-current assets 71.56 72.20 82.57

Inventories 4.94 3.84 2.49

Biological assets 1.18 2.44 1.55

Receivables 0.38 0.60 1.46

Current tax assets 1.04 0.50 0.06

Money market deposits 14.03 12.52 8.95

Cash and cash equivalents 6.87 5.11 2.92

Assets held for sale - 2.79 -

Total current assets 28.44 27.80 17.43

Total assets 100.00 100.00 100.00

Share capital 60.96 62.28 67.63

Merger reserves 55.68 56.88 61.77

Retained earnings 74.46 74.11 72.77