Kumpulan Perangsang Selangor Bhd. · MYX:KPS
Kumpulan Perangsang Selangor Bhd — Q2 2019 Earnings Presentation
24 slides from Kumpulan Perangsang Selangor Bhd's earnings presentation, Aug 30, 2019
Slide 1: 2nd Quarter 2019 Financial Results Analyst Briefing
2nd QUARTER 2019 FINANCIAL RESULTS ANALYST BRIEFING 30 August 2019
Slide 2: Table of Contents
Table of SECTION 1 : Key Highlights 5 Contents SECTION 2 : Financials a. Group Results 8–9 b. Sectoral Performance 11 c. Manufacturing Sectoral Review 13 - 15 SECTION 3 : New Acquisition: Toyoplas 17 - 22 SECTION 4 : Subsidiary Capex & Prospect 24 - 25
Slide 3: Cautionary Statement
Cautionary Statement Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or “the Group”) makes no representation or warranty, whether expressed or implied, as to the accuracy or completeness of the facts highlighted in this presentation, disclaiming responsibility from any liability arising f
Slide 4: Section 1: Key Highlights
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Slide 5: Results Driven by Stronger Fundamentals
Results Driven by Stronger Fundamentals Higher Operating Profits, Lower Finance Costs 01 Revenue Manufacturing Led Growth 02 EBIT Stronger Performance at CBB & CPI 03 Lower Finance Costs Repayment of Term Loans & RC’s 04 PAT: RM4.7 million Almost Doubled from 1Q19 5
Slide 6: Section 2: Financials
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Slide 7: Group Results
I Group Results
Slide 8: Higher Contribution from Manufacturing
Higher Contribution from Manufacturing Contributed Close to 70% to Group’s Revenue 2Q19 Revenue (RM million) SECTOR 2Q 2019 vs 1Q 2019 vs 2Q 2018 Manufacturing 109.6 105.6 102.9 Infrastructure , 12.5 Others 8% 2.6, 1% Trading 26.5 25.9 27.6 (i) Licensing, 8.0 5% Licensing 8.0 11.2 (ii) 7.4 Infrastru
Slide 9: Results Driven by Stronger Fundamentals
Results Driven by Stronger Fundamentals PAT Almost Doubled QoQ REVENUE EBIT PAT ▪ Increased YoY contribution ▪ Stronger YoY performance at CBB ▪ Finance costs lower due to repayment mainky from CBB, CPI & and CPI levels of RM80 mil KPS term loan, RM50 mil KKMW ▪ Also higher due to profit rate RC & P
Slide 10: Sectoral Performance
I Sectoral Performance
Slide 11: Bottomline by Subsidiaries
Bottomline by Subsidiaries Manufacturing Led Earnings, Complemented by Trading, Licensing & Infra CPI, 7 6.9 RM42.6m (1Q19 : RM45.6m) 6 5 KKLC, 4 RM8.0m (1Q19 : RM11.2m) CBB, 3.1 RM47.8m 3 1.6 (1Q19 : RM46.2m) KPS-HCM, AquaFlo, 2 RM12.2m RM26.5m 1.8 PAT (1Q19 : RM11.6m) (1Q19 : RM25.9m) (RM mil) 1 0
Slide 12: Manufacturing Sectoral Review
Manufacturing Sectoral Review
Slide 13: Century Bond Bhd: Revenue Growth Led by Carton Division
Century Bond Bhd Revenue Growth Led by Carton Division FINANCIAL PERFORMANCE 2Q19 Highlights AS AT 30 JUNE 2019 (RM’M) ▪ Steady revenue growth YoY, led by carton division on improved productivity from new machines 189.9 ▪ Higher GP QoQ due to more efficient procurement 3.6 practices, resulting lower
Slide 14: CPI (Penang) Sdn Bhd: ETP Remained Main Contributor
CPI (Penang) Sdn Bhd ETP Remained Main Contributor to Revenue FINANCIAL PERFORMANCE 2Q19 Highlights AS AT 30 JUNE 2019 (RM’M) ▪ ETP contributed 84% to revenue while EMS 16%. ▪ Revenue was up YoY due to the addition of a new customer, Apollo (Sales 2Q19: RM2.6 mil) but down 6.5% QoQ but only due 151.
Slide 15: King Koil Manufacturing West
King Koil Manufacturing West Better GP on Higher Capacity Utilisation of 28% FINANCIAL PERFORMANCE 2Q19 Highlights AS AT 30 JUNE 2019 (RM’M) ▪ Revenue was up driven mainly by Memorial Day sales and positive response from 2019 models ▪ Better GP due to higher ASP given higher sales of premium 40.3 li
Slide 16: Section 3: New Acquisition: Toyoplas
SECTION 3 I NEW ACQUISITION: TOYOPLAS
Slide 17: Why This Acquisition?
Why This Acquisition? Catapult Growth & Ensure Sustainable Earnings Diversified customer base in China, Malaysia and Indonesia across Consumer, Comms & Auto sectors Toyoplas’ historical revenue growth of between 8% and 10% with Solidify KPS’ core business expansion in profitability in the manufactur
Slide 18: Toyoplas Manufacturing (M) Sdn Bhd
Toyoplas Manufacturing (M) Sdn Bhd Attractively Priced Acquisition with Great Potential within ETP Space COST OF INVESTMENT OVERVIEW Valuation RM311.25 mil ▪ Toyoplas is involved in the plastic injection • PE = 8.7 moulding with an integrated capability from • EV / EBITDA = 5.2 mould fabrication, pr
Slide 19: Locations
Locations Geographic Diversity for Robust Operations CHINA 3 Plants: Shanghai< Dongguan, Nanning • 400,000 sqft manufacturing space • 1,062 workforce • 161 injection machines 56% MALAYSIA 3 Plants: Muar, Ulu Tiram, Senai • 375,000 sqft manufacturing space • 1,664 workforce • 102 moulding machines •
Slide 20: Product Slate
Product Slate Broad Customer Base from Key Industries Multimedia & Consumer Appliances Communications Printer Security camera Food-grade baby WiFi modem, product steriliser Cordless router, extender TV set-top box vacuum cleaner Automotive Car light panel Motorcycle handlebar control Car audio panel
Slide 21: Bolt-on Acquisition to CPI
Bolt-on Acquisition to CPI Horizontal Integration Providing Synergy within Group’s ETP Business Toyoplas Manufacturing (M) Sdn Bhd CPI (Penang) Sdn Bhd Location Location • Malaysia (Senai, Muar, Ulu Tiram) • China (Dongguan, Shanghai, Nanning) • Malaysia (Bayan Lepas, Penang) • Indonesia (Jakarta) I
Slide 22: Section 4: Subsidiary Capex & Prospect
SECTION 4 I SUBSIDIARY CAPEX & PROSPECT
Slide 23: 2019 Capital Outlay for Subsidiaries
2019 Capital Outlay for Subsidiaries Mainly for Capacity Expansion, Machinery & Process Improvement ~RM40 mil ~USD2 mil • Injection moulding & ancillary machines • Senai factory construction, • Land acquisition for new EMS facilities phase 2 • Hardwares & softwares ~RM8 mil ~RM2 mil • Bridge Auto Al
Slide 24: Thank You
THANK YOU
Kumpulan Perangsang Selangor Berhad — Q2 2019 Earnings Presentation on 6ix