Xmh Holdings Ltd. · SGX:BQF
Xmh — Q1 FY2014 Earnings Presentation
18 slides from Xmh's earnings presentation, Sep 20, 2013
Slide 1: Key Competitive Strengths
Key Competitive Strengths • Wide product range of reputable brand names – Currently have distributorship agency or dealership arrangements for mainly 13 brands of products, covering a range of over 4000 product items – Recognised by Mitsubishi as its largest worldwide distributor for marine diesel e
Slide 2: Key Competitive Strengths
Key Competitive Strengths • Developed strong customer and supplier relationships over the years – Strong customer loyalty with high repeat sales averaging over 70% in the last three financial years – Key distributor of Mitsubishi for 17 years and running • Experienced and committed management team –
Slide 3: Financial Highlights
Financial Financial Highlights Highlights 19
Slide 4: P&L Snapshot
P&L Snapshot Profit & Loss 1Q2014 1Q2013 Change S$’000 S$’000 % Marginal dip in revenue from Revenue 21,393 21,916 (2.4) “Distribution & Value-Added Product & Services Gross Profit 5,336 6,209 (14.1) In line with lower revenue Gross Profit Margin 24.9% 28.3% (3.4) pp Increased due to payroll and ben
Slide 5: Profitability Trend
Profitability Trend S$’ million Quarter Analysis 25.0 30.0% 28.3% 27.8% 27.8% 20.0 25.2% 24.9% 23.5% 25.0% 15.0 20.4% 22.9 10.0 20.7 19.5 15.7 20.0% 9.9 5.0 6.2 5.3 - 15.0% Gross Profit Gross Profit Margin 21
Slide 6: Profitability Trend
Profitability Trend S$’ million Quarter Analysis 20.0 30.0% 23.6% 15.0 20.0% 15.3% 10.0 17.6 12.8% 12.4% 11.7% 9.9% 8.1% 10.0% 11.4 5.0 9.0 9.5 5.3 2.7 2.2 - 0.0% Net Profit Net Profit Margin 22
Slide 7: Balance Sheet
Balance Sheet Balance Sheet 31 July 2013 30 April 2013 S$’000 S$’000 2,190 1,964 Property, plant and equipment Inventories 16,612 15,964 Trade and other receivables 7,601 6,638 Cash and cash equivalents 45,460 43,687 Total equity 47,852 44,200 Net gearing ratio Net cash Net cash Net asset value per
Slide 8: Financial Position
Financial Position Cash and Cash Equivalents (S$’ million) 53.9 43.7 45.5 39.2 33.1 30.3 30 Apr 09 30 Apr 10 30 Apr 11 30 Apr 12 30 Apr 13 31 Jul 13 24
Slide 9: Outlook & Strategies
Outlook Outlook&& Strategies Strategies 25
Slide 10: Outlook
Outlook 26 Source: Bloomberg
Slide 11: Outlook
Outlook • Potentially benefit from continual growth in oil & gas sector – Increased offshore oil & gas exploration activities – 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 – Increase in dema
Slide 12: Growth Strategies
Growth Strategies • Expand in-house range of products and services – Further develop and market range of power generating units under trademark and strengthen project management services – Establish assembly line for in-house range of power generating sets and exhaust silencers – Acquisition and dev
Slide 13: Growth Strategies
Growth Strategies • Exploration of new revenue streams – Focus on expansion of supplier base and secure new distributorships from other manufacturers – Received orders for new products XMH currently represents – Increase market share in relevant markets by forming strategic partnerships of joint ven
Slide 14: 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 2016 o To accommodate new assembly and production lines o Increase general warehousing capabilities • Developed i
Slide 15: Recent Developments
Recent Developments • Aug 2013 – Contract win of S$4.6 million from a return Indonesian customer o Order is to supply engines, gearboxes and ACEGEN marine power generating sets • Sept 2013 – Proposed acquisition of Mech-Power Generation Group o Acquisition is part of Group’s diversification plan o G
Slide 16: The MPG Acquisition
The MPG Acquisition • The rationale o Acquisition of a profitable entity at a reasonable valuation o Acquisition is immediately earnings accretive o Tap on MPG’s existing customer base to diversify into adjacent, non-marine industries o Gradually implement MPG’s technical knowledge and capabilities
Slide 17: The MPG Acquisition
The MPG Acquisition • The consideration o Acquisition of approximately S$17.4 million o To be paid in two equal tranches o Through internal resources and issuance of new shares to the vendors o MPG provides a profit warranty o Net profit after tax for FY2014 and FY2015 to be no less than S$6.9 milli
Slide 18: THANK YOU
THANK YOU Investor Relations | Financial PR Pte Ltd | Romil SINGH, Associate Director | Jonathan THEO, Associate T: +65 6438 2990 F: +65 6438 0064 | staff@financialpr.com.sg