TOWS MATRIX
STRENGTHS (S)
S1 A Cash-rich company
S2 Backed by strong shareholders
S3 Low level of debts WEAKNESSES (W)
W1 Significant reliance only one business
W2 Sluggish marketing strategy
OPPORTUNITIES (O)
O1 Technology advancement
O2 Globalization
O3 Population growth
O4 WTO
O5 AFTA S1,O2 W1,O1
THREATS(T)
T1 Inflation
T2 Tainted money lending industry reputation due to loan shark activities
T3 Interest rate uncertainty S1,T3
S3,T1,T3 W1,W2,T2
6.0 RATIO ANALYSIS
1. Liquidity Ratio
• Short-term liquidity measures
Hwang Capital does not incur current liabilities to sustain its business operations over the past few years.
In other words, the company has no obligations to pay any short-term debts, which will come due within the next twelve months.
Thus, the risk of being …show more content…
The said “discount” price will likely to be diminished over time, especially if Hwang Capital is successful to explore new potential business with the RM 250 million fund.
If Hwang Capital finally decides to exit the Malaysian market or not to remain its listing status, it is likely to carry out capital repayment and to go through liquidation exercise for the remaining assets and to return any cash recoverable to the shareholders. Shareholders can still obtain a high return by referring back to its high NAV value as compared to the share price.
“Moving forward, the profitability is expected to be better due to interest savings from repayment of the group’s borrowings from proceeds received from the sale of its banking and financial services businesses,” said the spoke person of Hwang Capital.
It is worth pointing out that most analysts are positive about the future of Hwang Capital. This is because the public believes in the powerful shareholder of the group, DBS Bank
STRENGTHS (S)
S1 A Cash-rich company
S2 Backed by strong shareholders
S3 Low level of debts WEAKNESSES (W)
W1 Significant reliance only one business
W2 Sluggish marketing strategy
OPPORTUNITIES (O)
O1 Technology advancement
O2 Globalization
O3 Population growth
O4 WTO
O5 AFTA S1,O2 W1,O1
THREATS(T)
T1 Inflation
T2 Tainted money lending industry reputation due to loan shark activities
T3 Interest rate uncertainty S1,T3
S3,T1,T3 W1,W2,T2
6.0 RATIO ANALYSIS
1. Liquidity Ratio
• Short-term liquidity measures
Hwang Capital does not incur current liabilities to sustain its business operations over the past few years.
In other words, the company has no obligations to pay any short-term debts, which will come due within the next twelve months.
Thus, the risk of being …show more content…
The said “discount” price will likely to be diminished over time, especially if Hwang Capital is successful to explore new potential business with the RM 250 million fund.
If Hwang Capital finally decides to exit the Malaysian market or not to remain its listing status, it is likely to carry out capital repayment and to go through liquidation exercise for the remaining assets and to return any cash recoverable to the shareholders. Shareholders can still obtain a high return by referring back to its high NAV value as compared to the share price.
“Moving forward, the profitability is expected to be better due to interest savings from repayment of the group’s borrowings from proceeds received from the sale of its banking and financial services businesses,” said the spoke person of Hwang Capital.
It is worth pointing out that most analysts are positive about the future of Hwang Capital. This is because the public believes in the powerful shareholder of the group, DBS Bank