Xmh Holdings Ltd. · SGX:BQF
Xmh — FY2014 Earnings Presentation
35 slides from Xmh's earnings presentation, Jun 24, 2014
Slide 1: FY2014 Results Presentation
FY2014 Results Presentation PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Slide 2: Disclaimer
Disclaimer The information contained in this presentation (the "Information") is provided by XMH Holdings Ltd. (the "Company") to you solely for your reference and may not be retransmitted or distributed to any other person. The Information has not been independently verified and may not contain all
Slide 3: Presentation Outline
Presentation Outline Corporate Profile Business Overview Financial Highlights Outlook & Strategies / Recent Developments 1 PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Slide 4: Corporate Profile
Corporate CorporateProfile Profile 2
Slide 5: Corporate Profile
Corporate Profile •A diesel engine, propulsion and power generating solutions provider in the marine and industrial sectors •Over 50 years of operating track record mainly in Asia •Listed on the Main Board of the SGX-ST on 26 January 2011 3 PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Slide 6: Corporate Milestones
Corporate Milestones 1955 1960 - 70s 1980s 1990s 2000s 2010s • Leading supplier of used • Xin Ming Hua (“XMH”) • Progressively secured • Acquired Mech-Power • Founder Mr Tan Tum • Resale of used industrial industrial and marine incorporated in 1991 distribution rights for products Generator Group (M
Slide 7: Key Executive Management
Key Executive Management Key Executive Management Chia Chung Chua Tiong Wei Tan Guat Lian Koh Lay Choo, Yap Lee Ann Tan Tin Yeow Jessie Mun, Alphonsus Executive Director Executive Director Financial Chairman & CEO (Sales & Business Deputy CEO (HR & Admin) Finance Director Controller Development) Ove
Slide 8: Investment Merits
Investment Merits Strong balance sheet and operating fundamentals to foster growth Experienced and committed management team Diversified customer base allows minimization of fluctuations in demand arising from a downturn in any particular sector Exposure to significant growth opportunities e.g. deve
Slide 9: Share Statistics
Share Statistics Bloomberg code XMH SP EQUITY Reuters code XMHL.SI Share Price S$0.30 Market Capitalization S$129.5 million (433.4M shares) P/E 10.8 NAV per share S$0.13 Free Float 22.0% Directors 58.4% Substantial Shareholders Credence Capital 19.4% Source: Bloomberg as at 24 Jun 2014 7 PRIVATE & C
Slide 10: Analyst Calls
Analyst Calls House Call / Target Price OSK-DMG (Lee YueJer) BUY / S$0.41 NRA Capital (Joel Ng) OVERWEIGHT / $0.40 8 PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Slide 11: Business Overview
Business Business Overview Overview 9
Slide 12: Business Segments
Business Segments XMH Holdings Distribution and Provision After-Sales Services, of Value-added Projects Trading and Others Products and Services Cover assembly, installation & Agency commissioning Repair & Maintenance Products Service & Maintenance In-House Brand/ Sourcing & Supply of Spare Parts &
Slide 13: Product Range & Applications
Product Range & Applications Distribute a wide range of marine and industrial diesel engines, power generating sets and related components for the following applications: Marine Industrial Applications: • Transportation vessels (tugs and barges, • Power generating sets used in self-propelled barges,
Slide 14: Geographical Coverage
Geographical Coverage China Middle East India Myammar Thailand Vietnam Philippines Cambodia Malaysia Sri Lanka Singapore Maldives Indonesia 12 PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Slide 15: Reputable Distribution Brands
Reputable Distribution Brands BRAND PRODUCT TYPE TERRITORIES 1) Limited range of high-speed and medium-speed 1) China, India, Indonesia, the Maldives, marine diesel engine and power generating sets, Singapore, Vietnam Mitsubishi including related spare parts and accessories 2) OEM industrial power g
Slide 16: Reputable Distribution Brands
Reputable Distribution Brands BRAND PRODUCT TYPE TERRITORIES Reintjes Gearboxes and related spare parts Indonesia Gearbox Singapore and Indonesia D-I Steering Systems and PTO Singapore and Indonesia China, India, Indonesia, Malaysia, Korsør Controllable pitch propellers Middle East, Singapore, Thail
Slide 17: In-house Brands/Solutions
In-house Brands/Solutions Leveraged on internal technical know-how to develop value-added products and customized solutions: • In-house range of marine and industrial power generating sets • Offers customers a choice between standardised and customised packages • A one-stop integrated solution to ve
Slide 18: After-Sales Services & Trading Activities
After-Sales Services & Trading Activities • Provision of after-sales services such as repair and maintenance o Supported by a team of skilled and experienced engineers and technicians • Sourcing and supply of spare parts and accessories o Achieve time-savings for customers by maintaining a ready sup
Slide 19: Projects (MPG)
Projects (MPG) • Cover assembly, installation & commissioning o Manufacturing & assembly of generator sets o Fabrication, manufacturing and customization of supporting equipment • Service & Maintenance 16 PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Slide 20: Key Competitive Strengths
Key Competitive Strengths • Wide product range of reputable brand names o Currently have distributorship agency or dealership arrangements for mainly 13 brands of products, covering a range of over 4000 product items o Recognised by Mitsubishi as its largest worldwide distributor for marine diesel e
Slide 21: Key Competitive Strengths
Key Competitive Strengths • Developed strong customer and supplier relationships over the years o Strong customer loyalty with high repeat sales averaging over 70% in the last three financial years o Key distributor of Mitsubishi for 17 years and running • Experienced and committed management team o
Slide 22: Financial Highlights
Financial Financial Highlights Highlights 19
Slide 23: P&L Snapshot
P&L Snapshot Profit & Loss FY2014 FY2013 Change S$’000 S$’000 % Increase in revenue due to Revenue 105,174 97,645 7.7 contribution from MPG Group Gross Profit 27,309 22,918 19.2 In line with higher revenue & increase in sales of higher Gross Profit Margin 26.0% 23.5% 2.5 pp margin products Increased
Slide 24: Profitability Trend
Profitability Trend S$’ million FY Analysis 30.0 30.0% 27.8% 27.8% 23.5% 26.0% 25.2% 15.0 20.4% 27.3 22.9 20.7 19.5 15.7 9.9 - 15.0% Gross Profit Gross Profit Margin 21 PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Slide 25: Profitability Trend
Profitability Trend S$’ million FY Analysis 20.0 30.0% 23.6% 15.0 20.0% 15.3% 11.7% 12.8% 10.0 17.6 8.1% 5.8% 10.0% 5.0 11.4 9.0 9.5 5.3 6.1 - 0.0% Net Profit Net Profit Margin 22 PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Slide 26: Balance Sheet
Balance Sheet Balance Sheet 30 Apr 2014 30 April 2013 S$’000 S$’000 Property, plant and equipment 6,844 1,964 Inventories 22,525 15,964 Trade and other receivables 26,185 6,638 Cash and cash equivalents 36,388 43,687 Total equity 58,381 44,200 Net gearing ratio Net cash Net cash Net asset value per
Slide 27: Outlook & Strategies
Outlook Outlook&& Strategies Strategies 25
Slide 28: Outlook
Outlook Ongoing uncertainties in the Indonesian coal industry Source: http://www.worldcoal.com/news/special- reports/articles/The_coal_industry_and_the_Indian_and_Indonesian_elections_coal870.aspx#.U6e9w_mSz51 26 PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Slide 29: Outlook
Outlook MPG’s advantage as a leader in the data centre industry Source: http://www.ida.gov.sg/infocomm-Landscape/iN2015-Masterplan 26 PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Slide 30: Outlook
Outlook • Potentially benefit from continual growth in oil & gas sector o Increased offshore oil & gas exploration activities o Potential replacement of a number of supply vessels which are near their scrap age • Expected increase in demand for after-sales services and spare parts o Increase in dema
Slide 31: Growth Strategies
Growth Strategies • Expand in-house range of products and services o Further develop and market range of power generating units under trademark and strengthen project management services o Establish assembly line for in-house range of power generating sets and exhaust silencers o Acquisition and dev
Slide 32: Growth Strategies
Growth Strategies • Exploration of new revenue streams o Focus on expansion of supplier base and secure new distributorships from other manufacturers o Received orders for new products XMH currently represents o Increase market share in relevant markets by forming strategic partnerships of joint ven
Slide 33: Recent Developments
Recent Developments • Aug 2013 – Contract win of S$4.6 million from a return Indonesian customer • Oct 2013 – Completed acquisition of Mech-Power Generator Group • March 2014 – Awards building contract for new 7-storey ramp-up industrial building in Tuas facilities to Soilbuild Construction o Expect
Slide 34: Recent Developments
Recent Developments • Progress on the construction of the Group’s new premises o Acquired from JTC on total land area of 15,184 square metres o Construction is targeted for completion in 2nd quarter of 2015 o To accommodate new assembly and production lines o Increase general warehousing capabilitie
Slide 35: Thank You
THANK YOU Investor Relations | Financial PR Pte Ltd | Romil SINGH | Jonathan THEO T: +65 6438 2990 F: +65 6438 0064 | staff@financialpr.com.sg