Mega First Corp. Bhd. · MYX:MFCB
Mega First Corp. Bhd — Q3 2021 Earnings Presentation
38 slides from Mega First Corp. Bhd's earnings presentation, Nov 19, 2021
Slide 1: 3Q 2021 Results Briefing
MEGA FIRST CORPORATION BERHAD 3Q 2021 RESULTS BRIEFING 19 NOVEMBER 2021 Yeow See Yuen
Slide 2: Agenda
AGENDA 1. Results Overview 2. Results review and Prospects by Division A. Renewable Energy Division B. Resources Division C. Packaging Division 4. Balance Sheet Analysis 5. Cash Flow Analysis 6. Gearing Position 7. Plantation update 8. Budget 2022 – Discussion on Impact to MFCB 9. Update on acquisit
Slide 3: Results Overview
RESULTS OVERVIEW Revenue - 3Q2021 (RM232.5 million) Revenue – 9M2021 (RM634.1 million) Investment Holding Investment Holding Packaging 2% 1% 19% Packaging 27% Renewable Energy Resources Renewable Energy 58% 18% 61% Resources 14% MEGA FIRST CORPORATION BERHAD - NOV 2021 2
Slide 4: Results Overview (Cont'd) - PBT
RESULTS OVERVIEW (CONT’D) PBT – 3Q2021 (RM108.1 million) PBT – 9M2021 (RM298.8 million) [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [CATEGORY NAME] [CATEGORY NAME] [PERCENTAGE] [PERCENTAGE] [PERCENTAGE] [CATEGORY NAME] [CATEGORY NAME] [PERCENTAGE] [PERCENTAGE] [CATEGORY NAME] [CATEGORY NAME] [PERCE
Slide 5: Results Overview (Cont'd)
RESULTS OVERVIEW (CONT’D) 3Q2021 3Q2020 % change 9M2021 9M2020 % change RM'000 RM'000 RM'000 RM'000 Continuing Operations Revenue Renewable Energy 134,835 137,518 -2% 387,223 371,206 4% Resources 31,509 41,066 -23% 111,551 102,159 9% Packaging 63,418 28,113 126% 124,112 68,970 80% Sub-total 229,762
Slide 6: Renewable Energy Division
RENEWABLE ENERGY DIVISION Renewable Energy Division 2021 2020 YoY Change (RM million) 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M Revenue 114.2 138.2 134.8 387.2 103.3 130.4 137.5 371.2 10.6% 5.9% -2.0% 4.3% PBT 78.2 98.7 98.8 275.7 64.7 93.7 102.3 260.7 20.9% 5.3% -3.4% 5.8% EAF (%) 81.2 95.2 90.1 88.8 70.
Slide 7: Renewable Energy Division (Cont'd) - 9M2021 vs 9M2020
RENEWABLE ENERGY DIVISION (CONT’D) 9M2021 vs 9M2020 • Revenue +4.3% to RM387.2 million due to 0.5% increase in EAF to 88.8%. • Solar revenue was RM2.6 million (9M2020: RM0.1 million). PBT contribution was RM0.6 million. • Higher rainfall and water level during the dry season, earlier onset of wet se
Slide 8: Don Sahong: Pakse Water Level and EAF
RENEWABLE ENERGY DIVISION (CONT’D) Don Sahong: 2021 Year to date Pakse Water Level and EAF Pakse Water Level - 2021 vs 2020 Capacity Factor/EAF - 2021 vs 2020 9.00 105% 8.00 100% 7.00 95% 6.00 90% 5.00 85% 4.00 80% 3.00 75% 2.00 70% 1.00 65% 0.00 60% 1-Jan 16-Jan 31-Jan 15-Feb 2-Mar 17-Mar 1-Apr 16-
Slide 9: Renewable Energy Division: C&I Solar Investment Achievements
RENEWABLE ENERGY DIVISION (CONT’D) Commissioned 12MWp solar photovoltaic plant, C&I Solar including 9MW solar carport which is the Investment largest under Net Energy Received LOA from a local university for the Metering Scheme in Achievements Malaysia installation of a 3.7MWp solar system. in 9M 20
Slide 10: Renewable Energy Division: Prospects
RENEWABLE ENERGY DIVISION (CONT’D) Prospects • 4Q2021 EAF should rebound sequentially to levels similar to 4Q2020 (95,5%). • Overall 2021 EAF will be higher than 86.4% in 2020. • Construction of 5th turbine will likely commence by end 2021 and is expected to complete by 3Q2024. • Solar energy sales
Slide 11: Renewable Energy Division (Cont'd)
RENEWABLE ENERGY DIVISION (CONT’D) MEGA FIRST CORPORATION BERHAD - NOV 2021 10
Slide 12: Renewable Energy Division (Cont'd)
RENEWABLE ENERGY DIVISION (CONT’D) MEGA FIRST CORPORATION BERHAD - NOV 2021 11
Slide 13: Resources Division
RESOURCES DIVISION Resource Division 2021 2020 YoY Change (RM million) 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M Revenue 44.6 35.5 31.5 111.6 34.5 26.6 41.1 102.2 29.3% 33.3% -23.4% 9.2% PBT 6.0 4.4 2.00 12.4 4.3 2.0 7.1 13.4 39.6% 122% -71.8% -7.5% 3Q2021 vs 3Q2020 • Revenue fell 23.3% mainly due to a 40
Slide 14: Resources Division (Cont'd) - 9M2021 vs 9M2020
RESOURCES DIVISION (CONT’D) 9M2021 vs 9M2020 • Revenue grew 9.2% due to 19.7% increase in domestic sales while export sales declined 1%. • The impact of MCO measures on domestic sales was less severe in the current period compared to last year. • Export sales were adversely affected by escalating fr
Slide 15: Resources Division: Prospects
RESOURCES DIVISION (CONT’D) Prospects • Sales volume is expected to improve sequentially in 4Q. • With the resumption of economic activities in Malaysia, domestic sales will register a gradual recovery. • Export sales are expected to stage a strong recovery following the completion of maintenance wo
Slide 16: Resources Division (Cont'd)
RESOURCES DIVISION (CONT’D) MEGA FIRST CORPORATION BERHAD – NOV 2021 15
Slide 17: Packaging Division
PACKAGING DIVISION Packaging Division 2021 2020 YoY Change (RM million) 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M Revenue 30.7 30.0 63.4 124.1 19.2 21.6 28.1 68.9 59.9% 38.9% 125.6% 80.1% PBT 2.6 1.4 7.6 11.6 0.5 1.7 3.5 5.7 420.0% -17.6% 117.1% 103.5% 3Q2021 vs 3Q2020 • Revenue +126% due to 2-month contr
Slide 18: Packaging Division: Prospects
PACKAGING DIVISION (CONT’D) Prospects • Performance in 4Q will be lifted by full-quarter contribution from Stenta (versus two months in 3Q2021; nil in 4Q2020). • Domestic sales of existing packaging products to improve with resumption of economic activities in Malaysia. • Export sales to continue to
Slide 19: Packaging Division (Cont'd)
PACKAGING DIVISION (CONT’D) MEGA FIRST CORPORATION BERHAD - NOV 2021 18
Slide 20: Packaging Division (Cont'd)
PACKAGING DIVISION (CONT’D) MEGA FIRST CORPORATION BERHAD - NOV 2021 19
Slide 21: Packaging Division (Cont'd)
PACKAGING DIVISION (CONT’D) MEGA FIRST CORPORATION BERHAD - NOV 2021 20
Slide 22: Packaging Division (Cont'd)
PACKAGING DIVISION (CONT’D) MEGA FIRST CORPORATION BERHAD - NOV 2021 21
Slide 23: Packaging Division (Cont'd)
PACKAGING DIVISION (CONT’D) MEGA FIRST CORPORATION BERHAD - NOV 2021 22
Slide 24: Packaging Division (Cont'd)
PACKAGING DIVISION (CONT’D) MEGA FIRST CORPORATION BERHAD - NOV 2021 23
Slide 25: Balance Sheet Review
BALANCE SHEET REVIEW Changes in Key Balance Sheet Items As at 30.9.2021 As at 31.12.2020 Change Explanation (RM million) (RM million) RM'000 Intangible asset 1,953 1,932 21 RM80.9 MIL translation gain, less RM60.2 MIL amortisation PPE & ROU assets 531 355 176 Consolidation of Stenta (RM110.5 MIL), C
Slide 26: Cash Flow Analysis
CASH FLOW ANALYSIS Cash Flow Analysis 9-month ended 9-month ended Change 30-Sep-21 30-Sep-20 (RM million) (RM million) (RM million) After-tax cash from Operating Activities 422.7 250.3 172.4 New capital raised - ESOS and Warrants conversion - 124.0 (124.0) -Share Issued to minority of subsidiaries 3
Slide 27: Gearing Position
GEARING POSITION MFCB Group Net Gearing As at 30.9.2021 As at 31.12.2020 Change (RM million) (RM million) (RM million) Total Cash 241.7 93.6 148.1 Total Debt (753.1) (657.9) (95.2) Net Debt (511.5) (564.3) 52.8 Equity 2,540.1 2,165.6 374.5 Net Debt / Equity Ratio 20.1% 26.1% MEGA FIRST CORPORATION B
Slide 28: Plantation Update
PLANTATION UPDATE 1) Background 2) Land 3) Plans • Main crops: coconuts & • 50-year concession on 6,428 • Planned planting in 2022: 500 macadamia hectares hectares • Est. plantable area: 4,500 • Target to complete planting by • Cumulative investment as at hectares end of 2025. 30 Sep 2021: RM90.6 mi
Slide 29: Plantation Update
PLANTATION UPDATE MFCB obtained approval from the Royal Government of Cambodia for the concession of a plot of land measuring 6,420 hectares situated in the Namlear Wildlife Sanctuary Zone, Mondulkiri Province, Kingdom of Cambodia for agricultural development. The term of the concession is 50 years,
Slide 30: Plantation Update
PLANTATION UPDATE MEGA FIRST CORPORATION BERHAD – NOV 2021 29
Slide 31: Plantation Update
PLANTATION UPDATE MEGA FIRST CORPORATION BERHAD – NOV 2021 30
Slide 32: Plantation Update
PLANTATION UPDATE MEGA FIRST CORPORATION BERHAD – NOV 2021 31
Slide 33: Plantation Update
PLANTATION UPDATE MEGA FIRST CORPORATION BERHAD – NOV 2021 32
Slide 34: Plantation Update
PLANTATION UPDATE MEGA FIRST CORPORATION BERHAD – NOV 2021 33
Slide 35: Budget 2022 – Discussion on Impact to MFCB
BUDGET 2022 – DISCUSSION ON IMPACT TO MFCB A. “Cukai Makmur” This is a special one-off tax for Malaysian companies for YA2022. The first RM100 million of taxable earnings will be taxed at 24% while the remainder will be taxed at 33%. Preliminary impact assessment: None. B. “Foreign Source Income (FS
Slide 36: Investment in Edenor Technology Sdn Bhd
INVESTMENT IN EDENOR TECHNOLOGY SDN BHD Acquisition of Emery Asia Pacific business by 50:50 JV Company, Edenor Technology 1. Acquisition was completed on 1 November 2021 at an Initial Purchase Price of RM38 million. 2. No utilisation of MFCB’s RM255 million standby credit facilities after existing l
Slide 37: Investment in Edenor Technology Sdn Bhd: Plant Overview
INVESTMENT INPlant EDENOR TECHNOLOGY SDN BHD Key Performance Indicators Overview Products Capacity (MT per year) Fatty Acid 80,000 Fatty Alcohol 80,000 Basics Glycerin 15,000 Methyl Ester 12,000 Methyl Ester 73,000 Hydrogenation & Fractionation Home & Personal Wellness 12,000 (Sodium Lauryl Sulfate)
Slide 38: Thank You
THANK YOU MEGA FIRST CORPORATION BERHAD – NOV 2021 37
Mega First Corporation Berhad — Q3 2021 Earnings Presentation on 6ix