Hong Lai Huat Group Limited · SGX:CTO
Hong Lai Huat — Investor Presentation (2021)
27 slides from Hong Lai Huat's investor presentation, Oct 24, 2021
Slide 1: Hong Lai Huat Group Limited Investor Presentation
HONG LAI HUAT GROUP LIMITED INVESTOR PRESENTATION
Slide 2: Disclaimer
HONG LAI HUAT 2 This presentation prepared by Hong Lai Huat Group representations contained in this presentation, and Limited (the "Company") does not constitute, or form they do not accept any liability whatsoever (including part of, an offer to sell or the solicitation of an offer to in negligence
Slide 3: Contents
HONG LAI HUAT CONTENTS OVERVIEW AGRI-HUB ONGOING PROJECTS FINANCIALS INVESTMENT MERITS Investor Presentation
Slide 4: Business Segments
HONG LAI HUAT 4 Business Segments Ong Family Agriculture SGX:CTO ~45%* 46.5% One of the largest cassava plantation operators and starch Stock Code Free Float Major Shareholders manufacturers in Cambodia. *Based on company estimates Previously 26% before the completion of rights issue in March 2021 ~
Slide 5: Board of Directors
BOARD OF DIRECTORS Dr Wang Kai Yuen Dato’ Dr Ong Bee Huat Prof Wong Wen-Young, Winston Chairman and Non-Executive Deputy Chairman and Vice Chairman and Independent Director Chief Executive Officer Non-Executive Director Dr. Wang was appointed to the Board on 1 May Dato’ Dr. Ong is the founder of the
Slide 6: Key Management
KEY MANAGEMENT Dato’ Dr Ong Bee Huat Deputy Chairman and Chief Executive Officer Mr Ong Jia Ming, Ryan Dato’ Dr. Ong is the founder of the Group. He is responsible for Mr Ong Jia Jing, Dylan Executive Director the Group’s overall strategic direction and planning as well as Group GM and Executive Dir
Slide 7: Milestones
MILESTONES Milestones 1988 1997 2000 2001 2007/2008 Hong Lai Huat Construction Received G8 ranking Listed on SGX Launched first freehold Opening of D’Kranji Farm Resort was founded from BCA mainboard with 38 construction property development projects completed across project in Singapore – Expanded
Slide 8: Track Record of Completed Projects in Singapore and Cambodia
HONG LAI HUAT SOME TRACK RECORD OF COMPLETED PROJECTS IN SINGAPORE AND CAMBODIA Investor Presentation
Slide 9: Strategic Roadmap
HONG LAI HUAT 1988-2014 2008-2020 2021 and beyond Strategic Construction and property Expansion into Cambodia with Development of Cambodia’s first and Roadmap development in Singapore agricultural business and property largest Agricultural Hub development; • One of the largest privately owned Proper
Slide 10: Agri-Hub
HONG LAI HUAT AGRI-HUB Setting the foundation for Hong Lai Huat for the next 20 years
Slide 11: About Agri-Hub
About Agri-Hub Location • ~60 mins drive away from Capital City, Phnom Penh (~100km away) • Accessible by either National Road 4 or National Road 44 • Highest peak of Cambodia (130m above sea level) • Surrounded by various large scale industrial and agricultural farms Land Parcel Size • 100,000,000
Slide 12: Agri-Hub Development Roadmap
AGRI-HUB DEVELOPMENT ROADMAP Development Phase 1 Phase 2 Phase 3 4Q2021-2024 2025- 2035 2036 – beyond Roadmap Upgrading Infrastructure Development of Community Living (Roads, Electricity & Water) Agriculture Hub Commercial and living facilities e.g. hotels, residential housing, Lightweight concrete
Slide 13: Business Model
Business Model 2. Leasing of and or completed properties Recurring income and cashflow to Hong Lai Huat 1. Sale of land use rights or 3. Joint Venture its completed properties • Hong Lai Huat will contribute in the form of land, Immediate cashflow and income while JV partner will contribute expertis
Slide 14: Phase 1 Potential Partnerships: Light-Weight Concrete Panels
HONG LAI HUAT 14 Phase 1 Potential Partnerships Development of Light-Weight Concrete Panel Manufacturing Plant About Joe Green Pte Ltd • A manufacturer of environmental-friendly light Type of agreement Joint cooperation agreement signed on April 2021 weight precast concrete hollow core wall panels f
Slide 15: Phase 1 Potential Partnerships: Solar Farm
HONG LAI HUAT 15 Phase 1 Potential Partnerships Development of the largest Solar Farm in Cambodia About China Machinery Engineering Corporation MOU to establish a SPV for proposed collaboration of at least • The comprehensive power solutions supplier for the Type of agreement 20 years, with right of
Slide 16: Phase 1 Potential Partnerships: Mineral Mining
HONG LAI HUAT 16 Phase 1 Potential Partnerships Mining of Mineral Resources (Exquisite Marble & Granite) About Cambodia Hei Shi Mineral Co, Ltd • One of the leading companies in the granite Type of agreement MOU to establish a JV for a period of 10 years with an option to be renewed industry since 2
Slide 17: Ongoing Projects
HONG LAI HUAT ONGOING PROJECTS
Slide 18: Cambodia Housing Market
HONG LAI HUAT 18 Cambodia Housing Market • Steady increase to suit the local demand for better modern housing equipped with full condo facilities compared to traditional shop-houses. Investor Presentation • Rental rates recovering vs the initial stages of the pandemic.
Slide 19: Property Development Projects
Property Development Projects Projects D’Seaview Royal Platinum D’Clover Hong Lai Huat’s % Stake 100% 50% 100% Sihanoukville (Cambodia’s top Tuol Kork District Phnom Penh, Tuol Kork District Phnom Penh, Location tourist destination) Cambodia Cambodia Mid-range mixed development Affordable mixed 737
Slide 20: D'Seaview
20 D’Seaview Project Details Hong Lai Huat’s 100% Stake Location Sihanoukville (Cambodia’s top tourist destination) Mixed Use (737 residential units; 67 commercial units which Development includes a 10-storey boutique hotel) • Avg selling price USD 55,000 – 167,000 for 1-3Br Land 9,818sqm (Freehold)
Slide 21: Royal Platinum
21 Royal Platinum Project Details Hong Lai Huat’s 50% JV with Royal Group of companies Stake Tuol Kork District Phnom Penh, Cambodia Location • 10min from Aeon Mall 2 in Phnom Penh • 15min to Phnom Penh International Airport Mixed Use (851 residential units; 50 commercial units) • Avg selling price
Slide 22: D'Clover
22 D’Clover Project Details Hong Lai Huat’s Stake 100% Location Tuol Kork District Phnom Penh Mixed Use (1,898 residential units; 47 commercial units) Development • Target selling price USD 990 – 1500 psm Land ~11,851 sqm (Freehold) Net Saleable Area ~100,423 sqm % Sold N/A Target Customers More tha
Slide 23: Financials
FINANCIALS Vactor Presentation
Slide 24: Financial Highlights
Financial Highlights Revenue (S$ million) Net Profit (S$ million) 7.6 30.4 1.8 1.8 26.6 FY2017 FY2018 FY2019 FY2020 8.8 4.4 -8.5 3.8 4.0 2.8 3.6 FY2017 FY2018 FY2019 FY2020 FY2020 was severely FY2020 was severely Agriculture Property Development impacted by the Covid-19 impacted by the Covid-19 pand
Slide 25: Financial Highlights: Balance Sheet
Financial Highlights Balance Sheet Highlights SGD million As at 31 Dec 2020 Comments Cash 9.5 Borrowings (22.3) 14.5 million from controlling shareholder for purchase of freehold land Net (debt)/ cash (12.8)* Post 31 Dec 2020 Net proceeds from rights 26.3 4 rights for every 3 existing shares; comple
Slide 26: Investment Merits
28 Investment Merits Attractive Valuation of 0.4x P/B Strong net cash position and strengthened balance sheet Backed by mainly hard assets of cash, properties and land Following rights issue, sale of HLH Agri R&D and D’Seaview hotel Significant uplift in agricultural Potential profit growth from lan
Slide 27: Thank You
Investor/Media THANK YOU Enquiries: emily@gem-comm.com