Apollo Background Company from chapter 1 to chapter 2 PDF

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FACULTY OF BUSINESS MANAGEMENT BACHELOR OF BUSINESS ADMINISTRATION (HONS.) FINANCE INTRODUCTION TO TECHNICAL ANALYSIS INDIVIDUAL ASSIGNMENT

PREPARED BY NUR IZZATIE SYAKIRAH BINTI SHAARANI

MATRIX NUMBER 2020628452

CLASS: BA2424C PREPARED FOR: DR. HAIRULNIZAM HASHIM

APOLLO BACKGROUND COMPANY

Apollo Food Holdings Berhad was founded on 5th March 1994 as a private limited company. The company subsequently converted as a public listed company on 8th September 1994 and was listed under consumer sector in Bursa Malaysia. The company was located at Johor Bharu, Johor, Malaysia. The company operates by two segments which investment and manufacturing sectors. The company’s subsidiaries which Apollo Food Industries (M) Sdn Bhd are engages in manufacturing sectors and Hap Huat Food Industries Sdn Bhd are engages in an investment holding company. Their ultimate holding company is Keynote Capital Sdn Bhd. The company manufactures in supplier of chocolate confectionery products and layer cakes the company’s aim is to always fulfilled the customer’s needs and requirements by using the latest equipment and technology. The company strengths are on their quality and innovation by implementing and maintaining the management system and improving its effectiveness. Second, to produce the products with the top quality of raw and packaging materials by using world class wafer and layer cake machinery and upgrading and improving to remain competitively. The company also ensure the quality assurances procedures which had been credited with HALAL certificate. Apollo’s product was divided into two main categories, chocolate wafer products and layer cake and swiss roll products. Currently, there about 24 products had been produced by the company. Some of the products are Apollo Chocolate Layer Cake, Apollo Chocolate Stick Fingers, Apollo Waffles and Apollo Super Checkers. The products were distributed to several ASEAN country, Singapore, Indonesia, Philippines, Vietnam and some other countries such as Maldives, China, Hong Kong, Taiwan, Japan and India. The company had oversea market which under the name of Kean Ann Company that located in Singapore.

ORGANIZATIONAL STRUCTURE Apollo Food Holdings Berhad organizational structure can be seen under the chart below.

MR. LIANG CHIANG HENG (EXECUTIVE CHAIRMAN)

MR.LIANG KIM POH (EXECUTIVE DIRECTOR )

MS. FOO SWEE ENG (IDENPENDENT NONEXECUTIVE DIRECTOR)

EN.HALID BIN HASBULLAH (INDEPENDENT NONEXECUTIVE DIRECTOR)

MR.JOHNSON KANDASAMY A/L DAVID NAGAPPAN (INDEPENDENT NONEXECUTIVE DIRECTOR)

LIST OF MAIN SHAREHOLDERS Below there is list of main shareholders of Apollo Food Holdings Berhad NAME KEYNOTE CAPITAL SDN.BHD PERMODALAN NASIONAL BHD KAM LOONG MINING SDN.BHD KHEN LING FOO SHOPTRA JAYA MALAYSIA SDN.BHD CHIANG HENG LIANG SIN BONG GOH BANK JULIUS BAER & CO. LTD DENVER CAPITAL SDN.BHD KOON KHOW CHAI

EQUITIES 41,048,415

% 51.3%

9,804,000

12.3%

2,688,000

3.36%

991,000 633,700

1.24% 0.79%

480,000 386,300 352,500

0.60% 0.48% 0.44%

300,000

0.38%

293,400

0.37%

HIGHLIGHTS OF FINANCIAL PERFORMANCE

Based on the graph above, the financial summary that can be concluded is there is decline pattern in 2020 while slightly upward in 2021. The decline of this financial causes the companny to pay dividend eventhough the it is ont covered enough by earnings. There is around 11.9% of dividend that is not covered by it. It shows that the company facing some difficulties to obtain the profit during this year.

FINANCIAL RATIO 1. LIQUIDITY RATIO 202 0

CURRENT RATIO

NET WORKING CAPITAL

QUICK RATIO

16.65 times

RM147,178,268

15.06 times

2. ACTIVITY RATIO 202 0

ACCOUNT FIXED RECIEVABLE ASSET TURNOVER TURNOVE R

TOTAL ASSET TURNOVE R

0.62 times

0.49 times

1.20 times

3. LEVERAGE RATIO 2020

DEBT RATIO 7.69%

2020

DEBT TO EQUITY RATIO 8.33%

4. PROFITABILITY RATIO GROSS NET PROFIT PROFIT MARGIN MARGIN 35.56% 6.79%

OPERATING PROFIT MARGIN 15.45%

TIME INTEREST EARNED 3.50

RETURN ON ASSET 4.4%

RETURN ON EQUITY 1.30%

5. MARKET RATIO 2020 EARNINGS PER SHARE RM 0.17.81

DIVIDEND PER SHARE RM 4.08

DIVIDEND YIELD 11.90%

IMPORTANT GRAPHIC FINACIAL HIGHLIGHTS

TECHNICAL CHART

Apollo Food Holdings Berhad had exceeded the Malaysia Food Industry which it returned -2.4% in 2020.However, it is qualified as underperformed market as it its only returned 8.2% in 2020.

BACKGROUND INFORMATION THAT BENEFICIAL TO POTENTIAL INVESTOR Apollo Food Holdings Berhad hold the reputation as one of the famous confectionary companies in Malaysia. Even though there are many companies come through years over years in the industries, it does not affect the company reputation. As other companies, Apollo Food Holdings Berhad had to paid out their dividend every year to their investor. In 2020, the company had paid out around 93% of their cash flows. As we know, in dividend field, cash is more important that the profit. If the company has strong net cash position, it secures the investor to investing in the company. Based on the amount of cash flow had been paid out, it shows that the company has strong net cash position which let it pay larger dividends for a time. Besides, Apollo Food Holdings Berhad’s is affordable and their dividend payment are fairly stable and it also has quite decent prospects for the growing in earnings and dividend.

CHAPTER 1: INTRODUCTION TO TECHNICAL ANALYSIS Technical analysis was defined as the art of identifying trend changes at an early stage and to maintain an investment or trading posture until the weight of the evidence indicates that the trend has reversed. In order to identify a trend reversal, we must first know what that trend is. There are three important trends in this chapter. 1. Primary - Generally last between 9 months to 2 years. It is reflective towards the investor attitude towards unfolding fundamentals in technical analysis. Primary has the thickest line in chart and the bull market generally longer than bear market due to the long takes of it. 2. Intermediate - Generally last between 6 weeks to 9 months and usually longer but rarely shorter. It is to determining when the primary movement may have run its course. 3. Short Term Trends - Generally last between 3 to 6 weeks and it influenced by random news events and more difficult to identify....