Sri Trang Agro-Industry Public Co. Ltd. · SET:STA
Sri Trang Agro-Industry Public — Q1 2017 Earnings Presentation
19 slides from Sri Trang Agro-Industry Public's earnings presentation, May 16, 2017
Slide 1: 1Q17 Analyst Presentation
SRI TRANG AGRO-INDUSTRY PUBLIC COMPANY LIMITED 1Q17 ANALYST PRESENTATION 1
Slide 2: Content
CONTENT 1. 1Q17 Results 2. Business Updates 3. Natural Rubber Industry 2
Slide 3: 1. 1Q17 Results
1.1Q17 RESULTS reert * 2015 Sri Trang Agro-Industry Plc.
Slide 4: Financial Highlights
Financial Highlights (THB million) Q1’17 Q1’16 %YoY Q4’16 %QoQ Revenue 28,519.2 16,694.5 ▲70.8% 22,510.4 ▲26.7% Sale volume 388,294 363,105 ▲6.9% 399,615 ▼2.8% (tons) Avg. selling price 68,305 40,465 ▲68.8% 51,567 ▲32.5% (Baht per ton) Gross profit 1,898.8 817.3 ▲132.3% 1621.3 ▲17.1% Adj. gross prof
Slide 5: SICOM – Oil Price - FX
SICOM – Oil Price - FX 1Q16 2Q16 3Q16 4Q16 1Q17 300 Avg. = 115.57 Avg. = 137.52 (+18.99%) Avg. = 131.87 (-4.11%) Avg. = 167.02 (+26.66%) Avg. = 209.37 (+25.36%) SICOM Price (US cent : Kg.) 250 RSS TSR 200 150 100 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan
Slide 6: Sale Volume by Product and by Geography
Sale Volume by Product and by Geography Revenue by Product (THB million) Sale Volume by Geography (tons) PRC Asia (Ex PRC) USA Europe Others +70.8% +6.9% +26.7% -2.8% 1,997 399,615 388,294 370,467 1,410 2,322 363,105 360,906 12,858 698 880 441 372 17,342 14,724 11,485 12,556 10,240 22,764 17,715 11,
Slide 7: Adjusted Gross Profit
Adjusted Gross Profit Gross Profit Adjusted Gross Profit THB mm Margin % THB mm Margin % 12.0% 12.0% 2,600 2,600 10.7% 2,400 10.3% 2,400 2,200 10.0% 2,200 9.0% 10.0% 2,000 2,000 7.1% 1,800 6.7% 8.0% 1,800 8.0% 6.6% 1,600 1,600 1,400 5.4% 6.0% 1,400 6.0% 1,200 4.9% 1,200 1,000 1,000 4.5% 4.0% 2.9% 4.
Slide 8: Net Profit
Net Profit EBIT (THB million) Net Profit (THB million) Net profit Net profit margin % Share of profits from associates & a Joint Venture Operating profits 1,400 8.0% 1,200 1,000 6.0% 907 800 92 4.8% -91 4.0% 600 394 802 400 2.0% 815 104 58 336 200 97 112 101 (8) 0 -166 -0.5% 8 0.0% (193) -200 0.03%
Slide 9: Reclassification Compensation Demerger Impact
Demerger Impact 1200 Adjustment 1000 115.1 + Legal Compensation 223.6 + Write-off Investment in 800 132.7 STGT 532.2 600 - Gain on Investment 400 Reclassification 685.4 200 394.4 - Gain on Fair Value from Disposals Investment 0 EBIT Compensation Investment in Adjusted EBIT Gain on Fair value Reclass
Slide 10: 2. Business Updates
* 2015 Sri Trang Agro-Industry Plc.
Slide 11: Upstream Operations - Rubber Plantations
Upstream Operations - Rubber Plantations Area of Rubber Plantations Tapping Under 2% development 11% Under Approx. gestation 50,000 rai 87% 8,000 HA Estimated Mature Plantations 19 Provinces in Thailand Lampang (rai) 50,000 40,000 Mature plantation Accum. mature plantation 35,940 42,013 43,679 44,26
Slide 12: Midstream Operations – NR Processing
Midstream Operations – NR Processing Production Capacity (mil. tons) 35 processing facilities Optimum capacity (LHS) Engineering capacity (LHS) % engineering capacity to global NR production (RHS) Technically Specified Rubber 3.2 22% 24% Type of No. of Total engineering 2.8 19% 21% Product plants ca
Slide 13: 3. Natural Rubber Industry
3. NATURAL RUBBER INDUSTRY 13
Slide 14: Fewer new planting activities tightens NR supply
Fewer new planting activities tightens NR supply New planting and replanting area (000’HA) New planting (LHS) Replanting (LHS) Total area (RHS) 600 12,500 500 11,500 400 300 10,500 200 9,500 100 0 8,500 2024f 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016f 2017f 2018f 2019f 2020f 2
Slide 15: The World's Major NR Consuming and Producing Countries
The World’s Major NR Consuming and Producing Countries 2016 Major suppliers of Natural Rubber 2016 Major consumers of Natural Rubber Others 12% Others 26% Indonesia China India 5% 26% 39% Vietnam 9% 12.5 12.4 Thailand mil. tons Malaysia mil. tons 5% 5% Japan 5% China 7% Thailand 36% India 8% Europe
Slide 16: Natural Rubber Inventory at Qingdao
50,000 0 100,000 150,000 200,000 250,000 300,000 350,000 Jan-11 400,000 Source : Bloomberg Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Natural Rubber Stock at Qingdao (Ton) Mar
Slide 17: Double Digit Growth for New-Vehicle Sales in China
Double Digit Growth for New-Vehicle Sales in China China’s new vehicle sales (unit) Passenger car (LHS) Truck (LHS) % Growth (RHS) 26,000,000 157,538 60% 23,000,000 52% 129,253 50% 198,010 20,000,000 219,805 40% 17,000,000 34% 201,344 269,707 30% 245,581 24,292,239 14,000,000 21,108,678 19,699,956 2
Slide 18: 2017 Natural Rubber Industry Outlook
2017 Natural Rubber Industry Outlook Bull Bear • US Economic outlook Fund • Over capacity management in Movement • Uncertain US Policy China • China Economic concern • EU political uncertainty • Commodity Price movement Macro • Potential economic crisis • NR Supply situation Fundamental • High Volat
Slide 19: Member of Sri Trang Group
member of SRI TRANG GROUP
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