Jep Holdings Ltd. · SGX:1J4
Jep — Investor Presentation (August 2016)
25 slides from Jep's investor presentation, Aug 23, 2016
Slide 1: JEP Holdings Ltd Analyst and Fund Manager Presentation
JEP Holdings Ltd Analyst and Fund Manager Presentation 23 August 2016
Slide 2: Group Background
fe Group Background
Slide 3: Group Overview
Group Overview • JEP was established in 1986, and listed on Catalist in 2004 (formerly known as Alantac Technology Ltd until May 2010) • Primary business is precision engineering, with a majority of the Group’s revenue coming from the aerospace industry • Home-grown company with a Singaporean manage
Slide 4: Group Structure and Locations
Group Structure and Locations JEP Holdings Ltd JEP Precision Dolphin JEP Industrades Engineering Engineering Pte Ltd Pte Ltd Pte Ltd Main office and Office, factory and Office and warehouse factory floor at dormitories at at Bedok North Changi South Loyang Way Special processes at Surface Engineerin
Slide 5: JEP Precision (acquired in 2007)
JEP Precision (acquired in 2007) • Main operating subsidiary; carries out precision machining and engineering services, mainly for the aerospace and oil & gas industries • Main aerospace products include engine casings, landing gear components, etc. • Oil and gas products: drilling equipment such as
Slide 6: JEP Precision Company Milestones
JEP Precision Company Milestones 1986 JEP Precision Engineering was established 1996 Moved to new production facility in Loyang 1997 Obtained ISO 9002:1994 certification 2005 Obtained AS9100:2004 certification 2007 Moved to current premises in Changi South with 50,000 sq ft of manufacturing floor sp
Slide 7: Examples of JEP Precision's Aerospace Products
Examples of JEP Precision’s Aerospace Products CFM56 Engine Casing Boeing 787 Air Management System Components
Slide 8: Dolphin Engineering (acquired in 2012)
Dolphin Engineering (acquired in 2012) • Carries out large format CNC milling and enclosure fabrication • Major customers are in semiconductor and consumer electronics industries, e.g. HP which works with Dolphin to manufacture large format printers New 4-storey building at Loyang, Example of steel
Slide 9: Dolphin Engineering
Dolphin Engineering • Services offered: - precision CNC milling and lathe turning - stainless steel supply, machining & fabrication - sheet metal fabrication - fabrication and welding work
Slide 10: JEP Industrades (acquired in 2015)
JEP Industrades (acquired in 2015) • Trading company which markets cutting tools used in manufacturing activities, for industries such as aerospace, mould and die, oil and gas • Provides stability and diversity to the Group’s earnings, and vertical integration as some of these cutting tools are used
Slide 11: Segment Information
fe Segment Information
Slide 12: Revenue by Segment
Revenue by Segment HY2016 23.4% FY2015 53.8% 10.6% 11.8% 55.8% 14.1% 4.2% 6.8% 16.7% 2.8% Aerospace Trading Equipment Mfg Oil and Gas Others
Slide 13: Financial Highlights
Financial Highlights S$ million 1H2016 2H2015 1H2015 2H2014 1H2014 Group Revenue 35.6 30.3 28.5 29.4 20.4 Aerospace 19.1 16.3 16.5 17.2 11.6 Segment Revenue • Growth in aerospace orders, and the acquisition of JEPI in 2015, have been the main drivers of revenue growth S$ million 1H2016 1H2015 % Chan
Slide 14: Market Landscape, Competitive Advantages
Market Landscape, Competitive Advantages • JEP Precision is building up its special process capabilities, to position the company as a turnkey solutions provider for aerospace manufacturing • Special processes are accredited with NADCAP, a globally recognised industry body for aerospace & defense ma
Slide 15: Financial Performance
ge Financial Performance
Slide 16: 1H2016 Financial Highlights
1H2016 Financial Highlights S$ million 1H2016 1H2015 % Change Revenue 35.6 28.5 24.8 Cost of Sales (31.7) (25.5) 23.9 Gross Profit 3.9 3.0 32.9 Other Operating Income 0.9 0.9 (1.9) Selling and Distribution Expenses (1.0) (0.6) 50.0 Administrative Expenses (4.1) (2.2) 91.1 Finance Costs (0.4) (0.4) 3
Slide 17: Balance Sheet
Balance Sheet S$ million 30 June 2016 30 Dec 2015 Current Assets 32.8 31.6 Inventories 12.7 13.5 Trade Receivables 16.2 13.2 Cash and Bank Balances 2.3 3.1 Current Liabilities 21.7 23.1 Total Assets 88.1 82.3 Total Liabilities 47.1 41.0 Total Loans and Borrowings 26.4 15.3 Shareholders’ Equity 38.5
Slide 18: Historical Data
Historical Data Revenue (S$ million) Gross Profit and Net Profit 58.8 (S$ million) 60 Gross Profit Margin (%) 5-year CAGR 10 20.0% 50 19.8% 49.8 8 15.0% 40 36.8 6.8 34.7 35.5 5.9 6 30 10.0% 4.8 23.8 4.5 3.9 4 20 5.0% 2 1.6 10 1.1 1 0.0% 0.5 0 0 -0.3 FY2011 FY2012 FY2013 FY2014 FY2015 HY2016 FY2011 F
Slide 19: Financial Performance Notes
Financial Performance Notes • Net loss in FY2014 was mainly due to costs associated with new product launches • FY2015 profit affected by fall-off in oil and gas orders, made up by aerospace growth and acquisition of JEPI • Loans and borrowings have increased over FY15-16, largely due to capex for n
Slide 20: Current and Future Plans
Current and Future Plans
Slide 21: Recent Developments
Recent Developments • Implemented Lean Manufacturing principles in 2015, focusing on the 7 Wastes concept – reduced cycle time, consumables, and overtime. • Surface Engineering Hub – 4 special processes currently in operation, with 2 more to follow by end 2016 • Completed a new 4-storey building for
Slide 22: Outlook and Future Plans
Outlook and Future Plans • Shifting and consolidation of precision engineering activities to new Seletar premises in 2017; expected to result in operational synergies and economies of scale • Positive outlook for the global aerospace sector, underpinned by growth in passenger travel and resultant ai
Slide 23: Safe Harbour Statement
Safe Harbour Statement This presentation may contain forward looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward looking statements as a result of a number of risks, uncertainties and assumptio
Slide 24: Thank You
Thank You For more information, please contact: Evan Ong NRA Capital Consulting evan.ong@nracapital.com 6236 6895 Eruwin Sudirman NRA Capital Consulting eruwin.sudirman@nracapital.com 6236 6883
Slide 25: Sponsor statement
This presentation slides has been prepared by the Company and its contents have been reviewed by the Company’s Sponsor, Stamford Corporate Services Pte Ltd (the “Sponsor”), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the “SGX-ST”). The Sponsor has not