Road King Infrastructure Limited · HKEX:1098
Road King Infrastructure — H1 2013 Earnings Presentation
17 slides from Road King Infrastructure's earnings presentation, Aug 16, 2013
Slide 1: 2013 Interim Results Presentation
2013 Interim Results Presentation 16 AUGUST 2013
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and may not be copied, published, distributed or transmitted to any person, in whole or in part, by any medium or in any form for any purpose. The information in this presentation is being provided by Road King Infrastructure Limited (the “Compan
Slide 3: A Property Developer with Stable Growth and Sustainable Profit Potential
A Property Developer with Stable Growth and Sustainable Profit Potential Business overview and update Financial review Q&A 2
Slide 4: Business overview
Business overview Property development business1 Stable Record contracted sales in 2012 and 1H2013 growth and Sustainable Mature projects with attractive profit margins profit Focus in Yangtze River Delta and Bohai Rim regions, potential covering over 20 projects Total attributable land reserve of o
Slide 5: Sustainable growth in property development business
Sustainable growth in property development business High growth in sales and visible pipeline - Achieved record high contracted sales in 2012 and 1H2013 Bohai Rim - A total of one million sqm is available for sale in 2H2013 Projects: 8 GFA: 1,125,000 sqm Sufficient and strategically located land res
Slide 6: Achieved record high contracted sales in 2012 and 1H2013
Achieved record high contracted sales in 2012 and 1H2013 Contracted Contracted sales sales (HK$ (HK$ mm mm1)) 1 (RMB mm in parentheses as reported number) 2 Record high in 1H2013 of 17.4% 2010 – 2012 CAGR 2 f 42.0% (9,563) Growth o (6,944) 11,864 (6,930) (5,633) (4,880) 8,018 8,663 6,836 6,015 2010
Slide 7: Continue to replenish land reserve to support future development
Continue to replenish land reserve to support future development ■ Acquired five pieces of land with a total GFA of 1.4 million sqm in 2013 at an average cost of RMB1,500/sqm Location Nature Land area (sqm) Attributable interest Planned GFA (sqm) Luoyang Residential 147,000 100% 392,000 Zhenjiang Re
Slide 8: Focus on residential projects and concentrate on areas with high growth potential
Focus on residential projects and concentrate on areas with high growth potential ■ Focus on residential projects and target first-time home buyers and upgraders ■ Concentrate on Yangtze River Delta and Bohai Rim regions at easily accessible sites and established town centers ■ Maintain gross margin
Slide 9: Established and further optimized toll road business
Established and further optimized toll road business Long established toll road business served as stable cash flow contributor - 20 years of industry experiences - A portfolio of 4 expressways and 6 Class I/II highway projects spanning across 6 provinces in the PRC - “Cash cow” with no major capex
Slide 10: Toll road business remains a reliable cash flow contributor
Toll road business remains a reliable cash flow contributor ■ Cash flow from toll roads remains unencumbered (except for the new Longcheng Expressway) and is available to service offshore debt ■ Predictable and recurring cash flow of HK$500 – 600 million per annum from toll road projects ■ Expresswa
Slide 11: A Property Developer with Stable Growth and Sustainable Profit Potential
A Property Developer with Stable Growth and Sustainable Profit Potential Business overview and update Financial review Q&A 10
Slide 12: Proven track record of strong business performance
Proven track record of strong business performance Revenue Revenue (HK$ (HK$ mm) mm) Profit Profit for for the the year year (HK$ (HK$ mm) mm) % 37.5 R of 12 CAG 9,344 –20 853 2010 6,833 743 of 14.3% 633 4,942 Growth rate 2,321 2,654 226 262 2010 2011 2012 1H2012 1H2013 2010 2011 2012 1H2012 1H2013
Slide 13: Proven track record of strong business performance
Proven track record of strong business performance ■ Property development business – achieved record high contracted sales, increasing 42% over 1H2012 Contracted Contracted sales sales (HK$ (HK$ mm mm1)) 1 (RMB mm in parentheses as reported number) 2 Record high in 1H2013 of 17.4% 2010 – 2012 CAGR 2
Slide 14: Significantly solidified liquidity position and steadily reduced leverage position
Significantly solidified liquidity position and steadily reduced leverage position Total 1 2 Total cash cash // short-term short-term debt debt1 (HK$ (HK$ mm) mm) Total Total debt debt2 // EBITDA EBITDA Total cash / short-term debt now 1.2x Total debt / EBITDA remains below 5.0x Cash Short-term debt
Slide 15: Strengthening financial profile
Strengthening financial profile Financial Financial snapshot snapshot (HK$ (HK$ mm) mm) 20111 2012 1H2012 1H2013 Key observations Contracted sales 6,836 11,864 6,015 8,663 Contracted sales (GSA ’000 sqm) 580 1,019 540 646 Outstanding property business performance Property revenue 6,833 9,344 2,321 2
Slide 16: Key notes
Key notes Record Recordhigh highcontracted contractedsales salesinin1H2013, 1H2013,reaching reachingHK$8.7 HK$8.7billion billion(RMB6.9 (RMB6.9 billion), billion),an anincrease increaseofof42% 42%comparing comparingwithwith1H2012 1H2012despite despitecontinuing continuing austerity austeritymeasures
Slide 17: Questions & Answers
A Property Developer with Stable Growth and Sustainable Profit Potential Questions & Answers
Road King Infrastructure — H1 2013 Earnings Presentation on 6ix