WCT Holdings Bhd. · MYX:WCT
WCT Holdings Bhd — Q4 2022 Earnings Presentation
55 slides from WCT Holdings Bhd's earnings presentation, Feb 28, 2023
Slide 1: WCT Holdings Berhad Investor Briefing – 4th Quarter 2022
WCT Holdings Berhad INVESTOR BRIEFING – 4th Quarter 2022 Updated: 28/02/2023 Strictly Private & Confidential
Slide 2: Key Shareholding as at February 2023
Key Shareholding as at 15 February 2023 25.6% 11.1% 6.2% 57.1% Tan Sri Lim Amanah Foreign Others Siew Choon Saham Shareholders Strictly Private & Confidential Page 1
Slide 3: Financial Highlights
Financial Highlights Strictly Private & Confidential
Slide 4: Segmental Results Q4 2022 (3 months)
Segmental Results Q4 2022 (3 months) E&C PD PI&M Consolidated RM’mil RM’mil RM’mil RM’mil Revenue 365.8 55.0 45.7 466.5 Profit/(Loss) from operations (33.9) (17.2) 84.0 32.9 Share of results of associates 3.8 Share of results of joint ventures (0.2) (2.2) 26.6 24.2 Finance costs (29.1) Taxation (7.3
Slide 5: Segmental Results YTD 4Q 2022 (12 months)
Segmental Results YTD 4Q 2022 (12 months) E&C PD PI&M Consolidated RM’mil RM’mil RM’mil RM’mil Revenue 1,466.4 451.5 184.5 2,102.4 Profit from operations 42.0 23.9 157.4 223.3 Share of results of associates 12.6 Share of results of joint ventures 2.1 (8.2) 20.0 13.9 Finance costs (110.1) Taxation 31
Slide 6: Debt to Equity (DE) Ratio
Debt to Equity (DE) Ratio As at As at 31 Dec 2022 31 Dec 2021 RM’mil RM’mil Total bank borrowings 2,798 2,838 Cash & bank balances & fixed deposits (235) (284) Net borrowings 2,563 2,554 Shareholders equity (including Perpetual 3,905 3,761 Sukuk & non-controlling interest) Gross DE ratio 0.72 0.75 N
Slide 7: Engineering & Construction
Engineering & Construction Strictly Private & Confidential
Slide 8: Business At A Glance
Business At A Glance People Plants & Machineries 1,352 knowledgeable & experienced employees Owned 26,578 heavy machinery and construction equipment Annual Turnover Registration RM 1.47Bil (2022 Unaudited) Licensed Class G7 Contractor RM 1.2 Bil (2021) Over RM100 Billions in past 40 years Portfolio
Slide 9: Engineering & Construction 2022 Annual Result
Engineering & Construction 2022 Annual Result Summary: Total 2022 Revenue = RM1.47Billion Gross Profit = RM 60mil Gross Profit Margin = 4.1% Top Line to Group Contribution = 70% 500,000 RM457,299.00 RM439,170.00 RM365,769.00 RM393,810.00 400,000 RM351,110.00 RM303,337.00 RM292,226.00 300,000 RM270,0
Slide 10: Ongoing Projects / Outstanding Order Book as at 31 December 2022
Ongoing Projects/ Outstanding Order Book as at 31 December 2022 Expected Outstanding Completion RM’mil TRX, Kuala Lumpur (infra & roadway works) 2023 64 Pan Borneo Highway (66km highway from Sungai Arip Bridge to Bintulu Airport Junction) 2023 287 West Coast Expressway (Shah Alam Expressway Intercha
Slide 11: List of Tenders Submitted/Pending Submission
List of Tenders Submitted/Pending Submission (23 Feb 2023) RM’ mil Local - Civil & Infrastructure > 5,000 Local – Building Works > 4,000 Total > 9,000 Strictly Private & Confidential Page 10
Slide 12: Growth Projection and Pipelines
Growth Projection and Pipelines (23 Feb 2023) 2022 35% 2023 30% 65% RM1.47Bil 70% +10% CAGR Buildings infrastructure building Infrastructure Revenue Projection by Regions 2020 2022 2023 Qatar 1% Malaysia Overseas Qatar 65% 15% 23% Malaysia Malaysia Borneo 77% 99% Island 20% Strictly Private & Confid
Slide 13: Property Development
Property Development Strictly Private & Confidential
Slide 14: Property Development - Snapshot
Property Development - Snapshot Q1 : RM269 mil * Q2 : RM 55 mil 2022 Revenue Q3 : RM 73 mil Q4 : RM 55 mil YTD : RM452 mil Q1 : RM 45 mil * Q2 : (RM19 mil) 2022 Q4 Profit Before Tax Q3 : (RM 9 mil) Q4 : (RM24 mil) YTD : (RM 7 mil) Q1 : RM 94 mil Q2 : RM172 mil Q3 : RM116 mil 2022 Property Sales Q4 :
Slide 15: Property Development – 2022 Cumulative Sales & Take-up Performance
Property Development – 2022 Cumulative Sales & Take-up Performance TARGET SALES TAKE-UP (SPA Signed) (SPA Signed) (Bookings) 600 mil RM600 mil 523 mil 454 mil 445 mil 421 mil RM400 mil 382 mil 325 mil 266 mil 254 mil RM200 mil 151 mil Cumulative Target Cumulative Target Cumulative Target 91 mil 94 m
Slide 16: Property Development – Q-O-Q Cumulative Sales Performance
Property Development – Q-O-Q Cumulative Sales Performance 2021 2022 (based on SPA Signed) RM600 mil 525 mil RM500 mil + 50% 421 mil RM400 mil 386 mil 382 mil 362 mil RM300 mil 266 mil RM200 mil 100 mil 94 mil RM100 mil RM0 mil 1Q 2Q 3Q 4Q Strictly Private & Confidential Page 15
Slide 17: Property Development – Clearing of Inventories (GDV)
Property Development – Clearing of Inventories (GDV) RM 600 mil 506 mil 500 mil -138mil 430 mil -27% 400 mil 365 mil 368 mil 300 mil 200 mil 100 mil 0 mil 1Q22 2Q22 3Q22 4Q22 Strictly Private & Confidential Page 16
Slide 18: Property Development – Clearing of Inventories (GDV)
Property Development – Clearing of Inventories (GDV) Inventory Reduction 2019 - 2022 RM 1,600 mil As at Jan 2019 1,400 mil 1,342 mil 1,200 mil + Waltz (117m) 1,000 mil 956 mil -1,133 mil -75% + Aronia (42m) 800 mil 708 mil 600 mil As at Dec 2022 400 mil 368 mil 200 mil 0 mil 2019 2020 2021 2022 YEAR
Slide 19: Completed Inventories (as at 31 Dec 2022)
Completed Inventories (as at 31 Dec 2022) TYPE LOCATION BAL UNIT(S) BAL GDV (RM’ mil) 1 Offices Klang 19 52 2 Affordable Apartments (RSKu) Klang 100 25 3 Service Apartments Shah Alam 43 28 4 Service Apartments Kelana Jaya 59 77 5 Condominiums OUG 43 69 6 Service Apartments Medini 152 117 TOTAL = 416
Slide 20: Sales & Marketing Strategies
Sales & Marketing Strategies 1. Continuous opening and expansion of new sales channels (local & overseas). 2. Continuous exposure on Digital Platforms/Social Media for brand presence/awareness and leads generation. 3. Promote Buyer-Get-Buyer and Buyer-Repeat-Purchase programs to encourage re- invest
Slide 21: On-going Property Projects
On-going Property Projects Adenia Apartment, Bandar Parklands, Klang Description 181 units of Apartment Estimated GDV RM68 million Launch Date Aug 2022 Sales Take-up 58% Exp. Completion Aug 2025 TC Maple Residences, W City OUG @ KL TB Description 940 units of Condominium TA Estimated GDV RM940 milli
Slide 22: Future Property Projects
Future Property Projects FUTURE LAUNCHES Pavilion W City W City W City PROJECT TOTAL Mont Kiara JGCC JGCC OUG (Condo) (Plot 1 - Resi) (Plot 1 - Comm) (K1-6 – Resi) UNITS 341 2,048 69 1,060 3,518 ESTIMATED RM804 mil RM899 mil RM119 mil RM927 mil RM2.75bil GDV Strictly Private & Confidential Page 21
Slide 23: Land Bank
Land Bank (future development and for sale as at 31 Dec 2022) LOCATION DEVELOPMENT TYPE LAND AREA (ac.) 1 W City OUG @ KL Mixed 61 2 W City JGCC @ JB Mixed 10 3 Mont Kiara, KL Residential 3 4 Bukit Tinggi 1,2 & 3, Klang Mixed 79 5 Medini Iskandar, Johor Mixed 39 6 Inanam, Kota Kinabalu Residential 2
Slide 24: Property Investment & Management
Property Investment & Management Strictly Private & Confidential
Slide 25: Retail Malls
Retail Malls Bandar Bukit Tinggi, Paradigm Mall, Petaling Jaya gateway@klia2, Sepang Paradigm Mall, Johor Bahru Subang Skypark Klang Occupancy rate 100% 97% 80% 90% 76% Opening Year 2007 2012 2014 2017 Acquired Apr18 WCT Ownership 100.0% 70.0% 70.0% 100.0% 60.0% Retail Lettable 1,000,950 sq ft 672,0
Slide 26: Retail Malls – Overall Financial Performance 2022 Vs 2019
Retail Malls – Overall Financial Performance 2022 Vs 2019 RETAIL MALLS FINANCIAL PERFORMANCE 2022 Vs 2019 Profit After Tax Profit Before Tax Profit from Operation Revenue - 50 100 150 200 250 300 350 Millions 2022 2019 KEY INDICATORS 1. Lower rental income mainly due to rental rebates (amortisation
Slide 27: Retail Malls – Budget 2023 Vs Actual 2022
Retail Malls – Budget 2023 Vs Actual 2022 INCREASE % IN BUDGET 2023 VS 2022 250.00% 200.00% 150.00% 100.00% 50.00% 0.00% REVENUE PROFIT FROM PROFIT BEFORE TAX PROFIT AFTER TAX OPERATION KEY INDICATORS TO IMPROVEMENT OF RETAIL MALLS FINANCIAL PERFORMANCE 1. Progressive improvement of occupancy rates
Slide 28: Retail Malls – Paradigm Mall PJ - 4th Quarter Outlook
Retail Malls – Paradigm Mall PJ - 4th Quarter Outlook The retail economy is improving and mall footfall is also increasing:- • All trade categories in the mall have normalised their outlet operational hours. • More PMEBs from The Ascent Tower are physically back to work. • Increase in hotel events d
Slide 29: Paradigm Mall PJ New Tenants
Retail Malls – Paradigm Mall PJ New Tenants PANDA EYES PETSCO SUBWAY FIPPER Strictly Private & Confidential Page 28
Slide 30: Paradigm Mall PJ New Tenants
Retail Malls – Paradigm Mall PJ New Tenants VENUS COFFEE HUSH PUPPIES BFBW BANANA BRO VNI MODA YOLE Strictly Private & Confidential Page 29
Slide 31: Paradigm Mall PJ New Tenants
Retail Malls – Paradigm Mall PJ New Tenants TOYS SPOT FANTAZIA OUTLET 360 VTORY Strictly Private & Confidential Page 30
Slide 32: Paradigm Mall JB – 4th Quarter Outlook
Retail Malls – Paradigm Mall JB – 4th Quarter Outlook THE OUTCOME FOR LAST QUARTER OF 2022 The last quarter of 2022 also coincided with the school holidays of both Singapore and Malaysia. The school holidays had enabled and encouraged more visitors and shoppers to patronize the tourists attractions
Slide 33: Paradigm Mall JB New Tenants
Retail Malls – Paradigm Mall JB New Tenants SKECHERS ANTA ELIANTO SHIMMER G Strictly Private & Confidential Page 32
Slide 34: Paradigm Mall JB New Tenants
Retail Malls – Paradigm Mall JB New Tenants IMPULSE HIJANAH HAZUKIDO NASI KUKUS RASA LAUT Strictly Private & Confidential Page 33
Slide 35: Paradigm Mall JB New Tenants
Retail Malls – Paradigm Mall JB New Tenants SIAM OASIS VERN’S ZIBO MOODY COW Strictly Private & Confidential Page 34
Slide 36: Paradigm Mall JB New Tenants
Retail Malls – Paradigm Mall JB New Tenants CHATERAISE LOVISA FAT BAKER BUSANA HERITAGE BUSANA HERITAGE Strictly Private & Confidential Page 35
Slide 37: Gateway @ KLIA 2 – 4th Quarter Outlook
Retail Malls – Gateway @ KLIA 2 – 4th Quarter Outlook 1. Flights increased slightly by 17.2% compared to the 3rd Quarter Total Q4 2022 Variance VS Q3 2022 Variance VS Q4 2019 26,841 +17.2% (49.4%) 2. Traffic also increased by 27.7% compared to the 3rd Quarter. Total Q4 2022 Variance VS Q3 2022 Varia
Slide 38: Gateway @ KLIA 2 – 4th Quarter Outlook
Retail Malls – Gateway @ KLIA 2 – 4th Quarter Outlook 4. Sales for tenants have increased by 29% more than the 3rd Quarter. Total Q4 2022 Variance VS Q3 2022 Variance VS Q4 2019 RM63,266,129.61 +29% (43.9%) 5. Food Court collections have slightly increased by 21.2% compared to the 3rd Quarter. Total
Slide 39: Gateway @ KLIA 2 - New Tenants – Level 2
Gateway @ KLIA 2 - New Tenants – LEVEL 2 CHUN YANG CHRIS & CO TRAVEL FOR ALL ORIENTAL KOPI Strictly Private & Confidential
Slide 40: Gateway @ KLIA 2 - New Tenants – Level 2 & Level 3
Gateway @ KLIA 2 - New Tenants – LEVEL 2 & LEVEL 3 GAJETO (LEVEL 2) ZIRCONIA (LEVEL 2) LAYD TAIPEI (LEVEL 3) 153 KOREAN STREET (LEVEL 3) Strictly Private & Confidential
Slide 41: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 1. To continue to organize community-driven events to connect with local communities and shoppers. Example • Malaysia VEGFEST @ PMPJ (7-9 October) • Deepavali Kolam Competition (Gateway@klia2 & PMJB) – October Deepavali Campaign • Kids Pushbike Mini T
Slide 42: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 2. To organize events that cater to the younger generation to attract new target group and to remain trendy to the younger crowd. Example • International Scrabble Competition @ Gateway@klia2 ( 8 – 9 October 2022) • Muzik Muzik @ Gateway@klia2 (15, 22
Slide 43: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 3. To continue to create iconic festive campaigns featuring activities / event highlights to increase footfall in the malls Example Deepavali Kolam Competition @ all Gateway@klia2 & PMJB (October 2022) Elf Village Christmas Campaign Snow fall at PMJB
Slide 44: Retail Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 4. To collaborate with media houses like local radio stations for festive events and campaigns. Example 1. Collaboration with 988 radio station for 2023 CNY Campaign for all malls (31 Dec – 5 Feb 2023) 2. Nick Chung & Stella Chung artist appearance (15
Slide 45: Retail Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 5. To reward loyal shoppers with online sales of vouchers via WCT Buddy. Continue to engage new partners such as banks, credit cards, shopping apps and e-wallets to drive membership and create brand loyalty. Strictly Private & Confidential Page 44
Slide 46: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 6. To activate sales driven campaign to 7. To activate WCT Buddy recruitment encourage spending and footfall to campaigns to encourage user sign ups. tenant outlets. Example: Example: • JOM, Sign Up! @ PMJB (1 Sept – 30 • WOW Deal @Gateway@klia2 (1 Oc
Slide 47: Retail Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 8. Value added service to tenants by offering 9. To maintain strong landlord & tenant marketing insights, fit-out design guidance & relationship. merchandise mix. Strictly Private & Confidential Page 46
Slide 48: Hospitality
Hospitality Strictly Private & Confidential
Slide 49: Hospitality – Le Meridien Petaling Jaya Performance (Q4 2022)
Hospitality – Le Meridien Petaling Jaya Overview of Performance (Q4 2022) REVENUE (RM) GOP (RM) PBT (RM) 13.3 Revaluation gain Of RM 15mil Revaluation gain Of RM 6mil OCCUPANCY % AVG DAILY RATE (RM) MARGIN (%) Q4 2022 was the best performing quarter for LMPJ since its opening in 2018 due largely to
Slide 50: Hospitality – Le Meridien Petaling Jaya Performance (YTD 2022)
Hospitality – Le Meridien Petaling Jaya Overview of Performance (YTD 2022) REVENUE (RM) GOP (RM) PBT (RM) Revaluation gain 3.7 Of RM 15mil Revaluation gain Of RM 6mil OCCUPANCY % AVG DAILY RATE (RM) MARGIN (%) • On YTD Dec 2022 basis, LMPJ’s performance recorded positive growth and recovered to 98%
Slide 51: Le Meridien Petaling Jaya: Improvement in Key Metrics Post Rebranding
Hospitality – Le Meridien Petaling Jaya Improvement in key performance metrics post rebranding Rebranded to Le Meridien PJ Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 22 22 22 22 22 22 22 22 22 22 22 22 Rev (RM mil) 1.9 1.0 1.8 2.6 1.6 3.2 3.2 3.8 4.6 3.9 4.5 4.6 GOP (RM’000) 86 -425 66 283 -1
Slide 52: Hospitality – Premiere Hotel, Klang Performance (Q4 2022)
Hospitality – Premiere Hotel, Klang Overview of Performance (Q4 2022) Q4 2022 REVENUE (RM) GOP (RM) PBT (RM) 4 3.7 0 3.1 RM (mil) RM (mil) 1.0 0.7 RM (mil) 1.9 0.46 -0.3 2 0.2 -0.7 0.0 -1 -0.9 0 Actual Budget 2021 Actual Budget 2021 Actual Budget 2021 OCCUPANCY % AVGAVG DAILY DAILY RATE (RM) REVENUE
Slide 53: Hospitality – Premiere Hotel, Klang Performance (YTD 2022)
Hospitality – Premiere Hotel, Klang Overview of Performance (YTD 2022) AVG DAILY RATE (RM) MARGIN (%) • On YTD Dec 2022 basis, while Premiere Hotel has met its budget for revenue but it is still trailing behind vs budget for other KPIs due to the revenue mix with higher F&B revenue achieved vs rooms
Slide 54: Q&A
Q&A Strictly Private & Confidential
Slide 55: Thank You
Thank You Strictly Private & Confidential