Ly Corporation Limited · SGX:1H8
Ly — FY2018 Earnings Presentation
22 slides from Ly's earnings presentation, Mar 5, 2019
Slide 1: FY2018 Results Corporate Presentation
FY2018 RESULTS CORPORATE PRESENTATION 5 March 2019 LY CORPORATION LIMITED Company Registration Number: 201629154K Incorporated in the Republic of Singapore on 24 October 2016
Slide 2: Important Notice
IMPORTANT NOTICE LY Corporation Limited (the “Company”) was listed on the Catalist of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) on 31 January 2018. The initial public offering of the Company was sponsored by UOB Kay Hian Private Limited (the “Sponsor”). This presentation has b
Slide 3: Agenda
AGENDA 01 ABOUT US 02 FINANCIAL HIGHLIGHTS 03 BUSINESS UPDATES 04 GROWTH STRATEGY
Slide 4: About Us
ABOUT US • One of Malaysia’s leading manufacturers and exporters of wooden bedroom furniture. • Established track record of approximately 40 years as an original design manufacturer (“ODM”) and original equipment manufacturer (“OEM”). • Recent addition of original brand manufacturing (“OBM”) followi
Slide 5: Our Products
OUR PRODUCTS 5
Slide 6: Global Reach
GLOBAL REACH EXPORT SALES • Our Group’s products are sold mainly to overseas dealer such as furniture wholesalers and retailers who generally resell our products to end-users through their respective retail networks DOMESTIC SALES • Primarily third party agents who typically export and resell our Gr
Slide 7: Financial Highlights
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Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS (RM’000) FY2018 FY2017 % Change Revenue 263,136 345,993 (23.9) Gross Profit 43,893 76,350 (42.5) Profit Before Tax 24,083 62,378 (61.4) Profit After Tax 14,921 49,163 (69.6) Adjusted Profit After Tax (1) 21,715 49,163 (55.8) Gross Profit Margin 16.7% 22.1% Net Profit Margin 5.7%
Slide 9: Revenue
REVENUE Revenue decline mainly due to reduced demand and a decrease in average selling price: FY2018 FY2017 % Change Number of 40-ft containers sold (“Container”) 5,232 6,525 (19.8) Average Selling Price per Container RM50,000 RM53,000 (5.7) • Decrease in number of Containers sold from 6,525 to 5,23
Slide 10: Revenue by Geography
REVENUE BY GEOGRAPHY Revenue by Geography - FY2018 Country FY2018 FY2017 Others Malaysia 11.2% 11.7% USA 77.1% 80.2% Malaysia 11.7% 11.3% Others 11.2% 8.5% Total 100.0% 100.0% United States Of America 77.1% USA continues to be our largest market at 77.1% 10
Slide 11: Gross Profits
GROSS PROFITS (RM’000) FY2018 FY2017 % Change Gross Profit 43,893 76,350 (42.5) Gross Profit Margin 16.7% 22.1% Gross profit decreased by 42.5% to RM43.9 million; gross profit margin decreased from 22.1% to 16.7% mainly due to: • Decline in Average Selling Price arising from the strengthening of the
Slide 12: Malaysian Industry Peers
MALAYSIAN INDUSTRY PEERS Latitude Tree Holdings Poh Huat Resources LY Corporation Limited Lii Hen Industries Bhd (2) Berhad (2) Holdings Berhad (2) (RM’000) FY2018 FY2017 % FY2018 FY2017 % FY2018 FY2017 % FY2018 FY2017 % Revenue 263,136 345,993 (23.9) 801,219 717,535 11.7% 752,829 786,016 (4.2) 621,
Slide 13: Balance Sheet Position
BALANCE SHEET POSITION (RM’000) As at 31 Dec 2018 As at 31 Dec 2017 Non-current assets 133,178 127,846 Current assets 134,757 108,587 Cash and cash equivalents 64,709 31,103 Total Assets 267,935 236,433 Current liabilities 27,499 47,297 Loan and borrowings 2,601 8,321 Non-current liabilities 15,600
Slide 14: Liquidity and Capital Resources
LIQUIDITY AND CAPITAL RESOURCES (RM’000) As at 31 Dec 2018 As at 31 Dec 2017 Net cash generated from operating activities 22,919 46,126 Net cash used in investing activities (10,620) (16,566) Net cash from/(used in) financing activities 21,577 (47,481) Net increase/(decrease) in cash and cash 33,876
Slide 15: Dividend and Dividend Policy
DIVIDEND AND DIVIDEND POLICY • The Board recommends a first and final dividend of 0.41 Singapore cent per ordinary share for FY2018. • This represents a dividend payout of 40.2% of the profit after tax. • Intend to recommend and distribute ordinary dividends of not less than 40% of profit after tax
Slide 16: Business Updates
BUSINESS UPDATES 16
Slide 17: Business Updates: Acquisition of Cubo Sdn Bhd
BUSINESS UPDATES ACQUISITION OF CUBO SDN BHD • Completed the acquisition of the Original Brand Manufacturing (OBM) business and assets from Cubo Sdn Bhd, including the EZBO and CUBO brand names, in January 2019. • This is held by the Company via its 51%-owned subsidiary, Leyo Holdings Sdn Bhd. • EZB
Slide 18: EZBO Products
EZBO PRODUCTS EZBO manufactures easy-to-assemble furniture targeting markets like Japan 18
Slide 19: Growth Strategy
GROWTH STRATEGY 19
Slide 20: Growth Strategy
GROWTH STRATEGY + 01 • Hit by macro headwinds such as USA-China trade war and the strengthening of the RM against the US$ in 2018, which affected the wooden furniture companies that exports mainly to the USA. • Our initiatives to improve our sales for 2019 as follows: ‒ Increase our marketing effort
Slide 21: Growth Strategy
GROWTH STRATEGY + 02 • Focused on growing new Original Brand Manufacturing business via the establishment of the EZBO & CUBO brands to diversify beyond North American market, into Asia Pacific region. + 03 • Growing the e-commerce business in China via an exclusive distribution agreement with Hangzh
Slide 22: Thank You
THANK YOU Sponsor Investor relations UOB KayHian Private Limited WATERBROOKS CONSULTANTS PTE LTD Tel: (65) 6100 2228