Kumpulan Perangsang Selangor Bhd. · MYX:KPS
Kumpulan Perangsang Selangor Bhd — Q4 2019 Earnings Presentation
33 slides from Kumpulan Perangsang Selangor Bhd's earnings presentation, Feb 28, 2020
Slide 1: Managing Director / Group CEO
Ahmad Fariz Hassan Managing Director / Group CEO
Slide 2: Cautionary Statement
Cautionary Statement Kumpulan Perangsang Selangor Berhad (“KPS” or “the Company” or “the Group”) makes no representation or warranty, whether expressed or implied, as to the accuracy or completeness of the facts highlighted in this presentation, disclaiming responsibility from any liability that mig
Slide 3: Table of Contents
TABLE OF CONTENTS 01. YTD Highlights 02. Financials 03. Effective Tax Rate 04. Group Prospect 05. What’s Next? Kumpulan Perangsang Selangor Berhad Presentation title in footer 3
Slide 4: YTD Highlights
01 YTD Highlights Kumpulan Perangsang Selangor Berhad 4Q19 Results Briefing 4
Slide 5: Results Driven by Stronger Manufacturing Performance
Results Driven by Stronger Manufacturing Performance Resounding PATAMI Turn Around 01 Revenue 49.0% Growth Led by Manufacturing Businesses 41.2% Growth due to CPI & KKMW’s Full-year Contribution and Inaugural 02 EBIT Contribution from Toyoplas 03 PBT: RM53.9m Strong Turn Around from Loss Position ar
Slide 6: Financials
02 Financials Kumpulan Perangsang Selangor Berhad 4Q19 Results Briefing 6
Slide 7: Financials
Financials 01. 4Q19 Group Results 02. YTD Group Results 03. Subsidiary Performance on Group Results 04. Review on Manufacturing Business 05. Review on Other Businesses Kumpulan Perangsang Selangor Berhad Presentation title in footer 7
Slide 8: Manufacturing Revenue More than Doubled
Manufacturing Revenue More than Doubled Contributing to More than 80% to Topline SECTOR 4Q19 vs 3Q19 vs 4Q18 4Q19 Revenue Breakdown by Sector Infrastructure Property Investment Manufacturing 240.1 196.0 109.2 Licensing 4% 3% 1% Trading 34.8 30.2 28.9 Trading 12% Licensing 8.7 8.3 7.1 RM297.9m Infras
Slide 9: Stronger Manufacturing Contribution
Stronger Manufacturing Contribution PATAMI Maintained but Grew 224% from Normalised YoY REVENUE EBIT YoY 73.7% ▪ Grew by 73.7% YoY YoY 26.1% ▪ Moderated by 26.1% YoY QoQ 17.8% ▪ Up by 17.8% QoQ ▪ Other income lower compared to that in 297.9 QoQ 51.9% 4Q18 which was aided primarily by a one- 252.9 ▪
Slide 10: Financials
Financials 01. 4Q19 Group Results 02. YTD Group Results 03. Subsidiary Performance on Group Results 04. Manufacturing Sector Review 05. Significant Mention Kumpulan Perangsang Selangor Berhad Presentation title in footer 10
Slide 11: Manufacturing Revenue Recorded 82% Growth
Manufacturing Revenue Recorded 82% Growth All Other Divisions but Infrastructure Steadied Momentum SECTOR 2019 2018 YTD Revenue Breakdown by Sector Infrastructure Property Investment Manufacturing 651.5 357.5 6% Licensing 1% 4% Trading 117.4 111.1 Trading 14% Licensing 36.3 30.3 RM867.5m Infrastruct
Slide 12: Results Proved Commitment to Improving Earnings Visibility
Results Proved Commitment to Improving Earnings Visibility PATAMI Benchmarking New Earnings Profile REVENUE EBIT 49.0% ▪ Increased manufacturing contribution to 41.2% ▪ Full 12-months’ results from CPI & KKMW 867.5 75% in 2019 from 61% in 2018 72.7 (2018 : CPI, 9 months & KKMW, 6 months) ▪ Stronger
Slide 13: Financials
Financials 01. 4Q19 Group Results 02. YTD Group Results 03. Subsidiary Performance on Group Results 04. Review on Manufacturing Business 05. Review on Other Businesses Kumpulan Perangsang Selangor Berhad Presentation title in footer 13
Slide 14: YTD: Manufacturing Business Led Group's PBT
YTD: Manufacturing Business Led Group’s PBT Costs at Holding Company Normalised Earnings at Group Level PBT from Subsidiaries Costs at Inv. Holding Co 16.4 53.9 = RM100.0m = RM62.5m KPS GROUP 35.0 34.7 Costs RM m NGC SPRINT CPI Toyoplas Investment Holding 8.6 7.8 - Acquisition Cost 18.3 (65.4) - Fin
Slide 15: Financials
Financials 01. 4Q1919 Group Results 02. YTD Group Results 03. Subsidiary Performance on Group Results 04. Review on Manufacturing Business 05. Review on Other Businesses Kumpulan Perangsang Selangor Berhad Presentation title in footer 15
Slide 16: Toyoplas Manufacturing (Malaysia) Sdn Bhd
Toyoplas Manufacturing (Malaysia) Sdn Bhd Contribution Led by Consumer Electronics Segment 4Q19 HIGHLIGHTS FINANCIAL PERFORMANCE AS AT 31 DECEMBER 2019 ▪ Revenue was lower YoY mainly due to lower sales at: Recent performance affected by vagaries of macroeconomic and i. China: slow down in orders and
Slide 17: CPI (Penang) Sdn Bhd
CPI (Penang) Sdn Bhd ETP Remained Main Contributor to Revenue 4Q19 HIGHLIGHTS FINANCIAL PERFORMANCE AS AT 31 DECEMBER 2019 Steady growth was supported by sectoral diversification and optimisation of ▪ Revenue: Improved YoY mainly due to higher ETP sales to Continental product mix and increase in EMS
Slide 18: Century Bond Bhd
Century Bond Bhd Carton Division Led Revenue Growth 4Q19 HIGHLIGHTS FINANCIAL PERFORMANCE AS AT 31 DECEMBER 2019 ▪ Revenue: 5.5% YoY due to stronger revenue from offset carton business Steady growth due to on-going optimisation of product mix and supported by higher sales from paper bags to non YTL/
Slide 19: King Koil Manufacturing West
King Koil Manufacturing West Revenue Strengthened on Higher Plant Utilisation Rate of 39.6% 4Q19 HIGHLIGHTS FINANCIAL PERFORMANCE AS AT 31 DECEMBER 2019 ▪ Revenue: grew by 64% YoY mainly due to higher sales supported by Growth was in line with higher capacity utilisation increased capacity utilisati
Slide 20: Financials
Financials 01. 4Q1919 Group Results 02. YTD Group Results 03. Subsidiary Performance on Group Results 04. Review on Manufacturing Business 05. Review on Other Businesses Kumpulan Perangsang Selangor Berhad Presentation title in footer 20
Slide 21: KKLC, Aqua-Flo & Smartpipe
KKLC, Aqua-Flo & Smartpipe Topline by KKLC and Aqua-Flo Increased YoY; Smartpipe’s Lagged KKLC YTD HIGHLIGHTS FINANCIAL PERFORMANCE AS AT 31 DECEMBER 2019 15.4% Up 19.8% Revenue (RM m) ▪ Revenue: Higher by 19.8% due to increased sales from international licensees. 35.8 36.3 30.3* ▪ 27 total licensee
Slide 22: Effective Tax Rate
TAX 03 Effective Tax Rate Kumpulan Perangsang Selangor Berhad 4Q19 Results Briefing 22
Slide 23: 2019 Effective Tax Rate: Deconstructed
2019 Effective Tax Rate: Deconstructed Operating Companies’ Tax Rate within Statutory Level Operating Companies Co & SPVs Associate Group KPS- RM million Toyoplas CPI CBB KKMW Aqua-Flo KKLC HCM SPT Effective Effective NGC SPRINT Effective Tax Expense 3.1* 9.2 6.0 - 2.2 1.0 1.0 - 22.5 - n.a n.a 22.5
Slide 24: Group Prospect
04 Group Prospect “If a business does well, the stock eventually follows.” Kumpulan Perangsang Selangor Berhad 4Q19 Results Briefing 24
Slide 25: Group Prospect
Group Prospect 01. CAPEX Plan for 2020 02. Prospect for Subsidiaries 03. Earnings Guidance Kumpulan Perangsang Selangor Berhad Presentation title in footer 25
Slide 26: 2020 CAPEX Plan
2020 CAPEX Plan RM71.8 million to Support Business Growth MANUFACTURING TOYOPLAS : RM27.3m CPI : RM25.5m RM66.6m, 93% • New metal stamping machine • New factory & renovation • Land purchase for new plant in • New machineries, new Vietnam, new plant set-up manufacturing system and • ERP software CBB
Slide 27: Group Prospect
Group Prospect 01. CAPEX Plan for 2020 02. Prospect for Subsidiaries 03. Earnings Guidance Kumpulan Perangsang Selangor Berhad Presentation title in footer 27
Slide 28: Prospect & Outlook for Subsidiaries
Prospect & Outlook for Subsidiaries Focusing on Product and Market Diversification MANUFACTURING OTHERS TOYOPLAS CPI CENTURY BOND KING KOIL SMARTPIPE AQUA-FLO ▪ Senai to expand ▪ Explore new sub- ▪ Diversify carton ▪ Strengthen ▪ JV with MBI Kedah ▪ Improve market customer, adopt EMS industries & pr
Slide 29: Group Prospect
Group Prospect 01. CAPEX Plan for 2020 02. Prospect for Subsidiaries 03. Earnings Guidance Kumpulan Perangsang Selangor Berhad Presentation title in footer 29
Slide 30: Earnings Guidance
Earnings Guidance Healthy Earnings Visibility with 2019 as Base REVENUE EBIT PATAMI 5-Year CAGR 5-Year CAGR 5-Year CAGR Kumpulan Perangsang Selangor Berhad 4Q19 Results Briefing 30
Slide 31: What's Next
05 What’s Next Kumpulan Perangsang Selangor Berhad 4Q19 Results Briefing 31
Slide 32: LEAP25
LEAP25 Strengthening Strategic Focus and Position for 2020 - 2024 KPS 2.0 ▪ Increase Awareness L Leading KPS to Strategic Position ▪ Improve Investor Profile ▪ ROE Benchmarking E Enhancing KPS’ Fundamentals ▪ Optimising TSR ▪ Value Creation A Accelerating Delivery of KPS’ Subsidiaries ▪ Improving Ef
Slide 33: Thank You
Thank You Investor Relations & Strategic Communication KUMPULAN PERANGSANG SELANGOR BERHAD 16th Floor, Plaza Perangsang, Persiaran Perbandaran 40000 Shah Alam, Selangor Darul Ehsan T : +603 – 5524 8400 F : +603 - 5524 8444 E : zul@kps.com.my W : www.perangsangselangor.com Kumpulan Perangsang Selango
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