Tuesday, Jun 21, 2005
MARC has assigned a rating of A (A Flat) to Haisan Resources Berhad (HRB)’s proposed RM30 million bond; reflecting its strong competitive position in the refrigeration and ice industry, the assignment of specific contract proceeds towards redemption of the bonds, and its good operating profit margin and manageable debt leverage position. The rating is, however, moderated by the Group’s vulnerability towards cyclical developments in the industry.
From its beginnings as a company trading in refrigeration equipment over 30 years ago, HRB is today an integrated refrigeration player. It is principally involved in industrial refrigeration and logistics solution, provision of engineering services related to industrial refrigeration, ice manufacturing and warehousing. The Group is listed on the Second Board of Bursa Malaysia.
HRB’s temperature-controlled logistics (TCL) operation has been expanding over the years and is currently the biggest revenue contributor for the Group. With a strong foothold locally, HRB has successfully ventured into China and Philippines. HRB’s engineering division is also well-regarded as one of the leading fabricator-contractor of industrial refrigeration equipment in Malaysia.
Under the issue structure, a Revenue Account will capture the rental proceeds of approximately RM6.5 million per annum from three specified contracts. Monies in this account are earmarked for the redemption of the bonds upon maturity.
Financially, HRB’s revenue has been on an upward trend. While operating profit margin weakened in recent financial years due to the Group’s expansion plan, it is nevertheless still in double-digit territory. The Group’s balance sheet is well managed with a debt-equity ratio of below one time for the past four fiscal years.
From its beginnings as a company trading in refrigeration equipment over 30 years ago, HRB is today an integrated refrigeration player. It is principally involved in industrial refrigeration and logistics solution, provision of engineering services related to industrial refrigeration, ice manufacturing and warehousing. The Group is listed on the Second Board of Bursa Malaysia.
HRB’s temperature-controlled logistics (TCL) operation has been expanding over the years and is currently the biggest revenue contributor for the Group. With a strong foothold locally, HRB has successfully ventured into China and Philippines. HRB’s engineering division is also well-regarded as one of the leading fabricator-contractor of industrial refrigeration equipment in Malaysia.
Under the issue structure, a Revenue Account will capture the rental proceeds of approximately RM6.5 million per annum from three specified contracts. Monies in this account are earmarked for the redemption of the bonds upon maturity.
Financially, HRB’s revenue has been on an upward trend. While operating profit margin weakened in recent financial years due to the Group’s expansion plan, it is nevertheless still in double-digit territory. The Group’s balance sheet is well managed with a debt-equity ratio of below one time for the past four fiscal years.