Mr. Willy of Wealthy Assets Sdn Bhd wants to buy the ordinary shares of Guan Chong Berhad which is listed in Bursa Malaysia. He has RM3 million available for investment purpose. However, he is undecided whether he should invest in this company. His friend, Mr. Wacky of Whack Sdn Bhd has recommended that he should buy this counter.

Required: 

As the investment consultant for Mr. Willy, you have instructed your staff to investigate and report on the financial information of the company. The team must prepare a report to present their findings and make recommendations.

Your team’s professional reports should include the following:

a. Propose with reasons on ONE (1) opportunity and ONE (1) threat which the company may be facing in the industry. 

b. Recommend with rationale your team’s recommendation to the client. The recommendation should include investors’ ratios such as price earnings (PE) ratio, earnings per share (EPS), and dividends per share.