New Hoong Fatt Holdings Bhd. · MYX:NHFATT
New Hoong Fatt Holdings Bhd — Investor Presentation (June 2019)
43 slides from New Hoong Fatt Holdings Bhd's investor presentation, June 2019
Slide 1: Embracing Challenge - New Hoong Fatt Holdings Berhad Corporate Presentation
EMBRACING CHALLENGE NEW HOONG FATT HOLDINGS BERHAD Corporate Presentation June 2019
Slide 2: Brief Overview
Brief Overview One of the Largest Replacement >40 years of experience Equipment Manufacturers in the REM market (REM) in Malaysia Manufactures Exports to >50 >3,300 automotive countries parts in-house worldwide 2
Slide 3: Table of Content
Table of Content 01 Corporate Profile & Structure 02 Business Overview 03 Financial Highlights c 04 Strategy & Growth Plans 05 Investment Merits 06 Appendix Private & Confidential 3
Slide 4: 1. Corporate Profile & Structure
1. Corporate Profile & Structure
Slide 5: Stock Information
Stock Information Stock Code : NHFATT/7060 Shariah Status : Shariah-compliant Share Price : RM2.78 (@ 14/6/19) Market Cap. : RM223.2 mln Listing : Main Market of Bursa Issued Cap. : 82.7 mln shares Malaysia Sector : Consumer Products & 52w Hi-Low : RM2.50-RM3.29 Services (Automotive) Shareholdings (
Slide 6: A Brief History On NHF: >40 years & counting
A Brief History On NHF: >40 years & counting Founded as a trading Listed on the Established trading • Achieved best-ever company in 1977 & (then) Second branches in Jakarta revenue in FY18. carved a niche in the Board of Bursa. & Shanghai • Completed 1-for-10 REM market. bonus issue in June 2018. 19
Slide 7: Corporate Structure
Corporate Structure NEW HOONG FATT HOLDINGS BERHAD 100% owned subsidiaries Operating Divisions Investment Holding Marketing / Distribution/ Trading/ Export Manufacturing AG Auto Global Advanced International Tech SB SB New Hoong Auto Global MJ NJ Jhi Soon Fatt Auto Parts Manufacturing Manufacturing
Slide 8: 2. Business Overview
2. Business Overview
Slide 9: Business Overview
Business Overview Trading / Manufacturing Marketing Metal Plastic Parts Parts Private & Confidential 9
Slide 10: Key REM Segments NHF Specialises In
Key REM Segments NHF Specialises In Tyres, Wheels, Rims, Valve Tyres Parts & Components Air Conditioning Parts Hood, Door, Compressor, Fender, Grille, Expansion Valve, Bumper, Trunk Lid, Condenser, Tail Gate Evaporator Key REM Segments Accessories & Customising Repair, Maintenance & Service Fan Moto
Slide 11: Our Product Groups
Our Product Groups Metal Group Plastic Group Door Tailgate Fender Bumper & Grille Hood Trunk Lid Head Lamp Panel Head & Tail Lamps Automotive Accessories Ignition Switch Fan Blade Radiator Door Mirror Windscreen Private & Confidential 11
Slide 12: Our House Brands
Our House Brands Our House Brands Fit A Wide Range of Cars Private & Confidential 12
Slide 13: Our Manufacturing Capabilities
Our Manufacturing Capabilities Capacity to manufacture up to 6 mln automotive body parts per annum Manufactures more than 3,300 items in-house (1,200 metal & 2,100 plastics) 3D Imaging Scanner In-House Tooling Metal Stamping MIG Robot Plastic Injection Machine 3D Laser Welding & Cutting Machine Plas
Slide 14: Local & Overseas Trading Branches
Local & Overseas Trading Branches Physical presence in 3 countries Private & Confidential 14
Slide 15: Our Extensive Distribution Network
Our Extensive Distribution Network Malaysia Distributors in > 1,000 Malaysia Stock keeping > 15,000 units (SKUs) being distributed Overseas Export countries across Asia, > 50 Central & South America, Europe and Africa Overseas > 100 distributors Private & Confidential 15
Slide 16: Our Distribution Flow
Our Distribution Flow LOCAL EXPORT Trading Companies • Wholesalers Importers fr. overseas • Retailers Distributors Car Workshops Car workshops End Users Private & Confidential 16
Slide 17: 3. Financial Highlights
3. Financial Highlights
Slide 18: 5-Year Group Financial Summary
5-Year Group Financial Summary RM mln (FYE Dec) 2018 2017 2016 2015 2014 Revenue 257.0 250.6 231.9 207.2 200.6 Gross Profit 58.4 66.2 68.0 58.9 50.6 EBITDA 53.0 54.8 65.6 52.7 43.7 PBT 19.3 24.4 36.8 26.6 17.9 Net Profit* 14.0 20.3 30.0 19.3 12.0 Total Assets 570.6 537.2 453.3 397.9 369.3 Net Debt (
Slide 19: Hitting Record High Revenue for the 4th Consecutive Year
Hitting Record High Revenue for the 4th Consecutive Year FY14-FY18 Revenue (RM mln) 4-yr CAGR: +6.4% ACHIEVED RECORD HIGH REVENUE IN FY18 FY14-FY18 Net Profit (RM mln) 4-yr CAGR: +4.0% Private & Confidential 19
Slide 20: Full Year Revenue Breakdown by Geographical Segments
Full Year Revenue Breakdown by Geographical Segments FY18 Revenue RM257.0 mln FY17 Revenue RM250.6 mln Private & Confidential 20
Slide 21: Record Revenue in FY18
Record Revenue in FY18 FYE Dec (RM mln) FY18 FY17 Change 1 Record high FY18 revenue driven by the increase in demand from Revenue 1 257.0 250.6 +2.6% the local market. Gross Profit 58.4 66.2 -11.8% EBITDA 53.0 54.8 -3.3% 2 Profitability affected by – Forex loss (2.3) (6.5) I. Higher raw material and
Slide 22: Solid Asset Backing
Solid Asset Backing @ 1QFY19 4-yr CAGR: +11.5% Price/BV: 0.5x* Net Gearing : 0.1x 4-yr CAGR: +9.7% Cash/Share: 29.4sen NA/Share: RM5.54 *Based on the closing price of RM2.78 as of 14.6.2019 Private & Confidential 22
Slide 23: 20th Consecutive Year of Paying Dividends
20th Consecutive Year of Paying Dividends Dividend payout every year since our listing in 1998 2x dividend payout a year in 3Q & 4Q #Adjusted for 1-for-10 bonus issue effective 28 June 2018. *Based on the closing price of RM2.78 as of 14.6.2019. Private & Confidential 23
Slide 24: 4. Corporate Strategy & Growth Plans
4. Corporate Strategy & Growth Plans Private & Confidential 24
Slide 25: Strategic Roadmap
Strategic Roadmap FY2015 - 2016 FY2017 - 2018 FY2019 - 2021 Fix the issues and Build new business Consolidate and Strengthen the to diversify Accelerate Growth Core Business • Drive Sales Execution Excellence in Malaysia and Indonesia Thrust 1: • Explore and penetrate into new markets Strengthen and
Slide 26: Growth Plans
Further Growing The ASEAN Market Growth Plans Human Product Coverage Capital Expansion Development Private & Confidential 26
Slide 27: Product Range Coverage Expansion
Product Range Coverage Expansion Successful product range expansion has been fuelling NHF’s top- line growth. Build on the momentum gained and continue to increase product offerings. • Gradually expanding the manufacturing capacity to facilitate growth. • Enhancing the trading operations to grow NHF
Slide 28: Emphasising On The ASEAN Market Potential
Emphasising On The ASEAN Market Potential ASEAN Huge Potential Population: 650 mln Tremendous Potential In ASEAN GDP: USD 2,500 bln TIV: 3.2 mln ASEAN will be No. of NHF’s Home Market Registered MV on the road: 51.4 mln AFTA Trade Liberalization Source: World Bank data 2016; ASEAN Stats Data Portal
Slide 29: 51.4 Mln Registered Motor Vehicles on the Road & Growing
51.4 Mln Registered Motor Vehicles on the Road & Growing Total No. of Registered Motor Vehicles in ASEAN as at 2017 Indonesia, 13.6 mln Malaysia, 13.6 mln Philippines, 4.2 mln Vietnam, 2.9 mln 51.4 mln Registered Motor Singapore, 0.6 mln Vehicles in ASEAN Myanmar, 0.5 mln Brunei , 0.3 mln Cambodia,
Slide 30: Human Capital Development
Human Capital Development Places huge emphasis on Human Capital Development to ensure Sustainable Business Growth Total Workforce: 1,000 Malaysians: 70% Target:~85% Reduce dependence on foreign workers Create sustainable jobs for Malaysians Malaysian Meister Program Auto Global Manufacturing Skill P
Slide 31: 5. Investment Merits
5. Investment Merits Private & Confidential 31
Slide 32: Leading Replacement Equipment Manufacturer
Leading Replacement Equipment Manufacturer Capable & Largest REM in Healthy Macro Consistent Dividend Experienced Malaysia Fundamentals Payout Management 2nd generation REM market Specialises in leadership; aided growth not tied to automotive by professionals. new vehicle sales replacement parts. De
Slide 33: Disclaimer
Disclaimer • This presentation may contain forward-looking statements. All statements other than statements of historical facts contained in this presentation including, without limitation, those regarding our financial position, business strategies, plans and objectives of our Group for future oper
Slide 34: Thank You
Thank You For queries, please contact Kai at kai@capitalfront.biz Private & Confidential 34
Slide 35: 6. Appendix
6. Appendix Private & Confidential 35
Slide 36: Market Outlook: Global Auto Industry
Market Outlook: Global Auto Industry While the total vehicle growth from mature economies are projected to be relatively stable, emerging markets are forecasted to grow at a much higher pace Number of Cars (mln) Source: IHS Markit, http://fealautomotive.com/wp-content/uploads/2018/07/feal-presentati
Slide 37: Market Outlook: ASEAN Car Sales Forecast
Market Outlook: ASEAN 5 Car Sales Forecast ASEAN 5 Car Sales Forecast (mln units) Source: LMC Automotive, http://data.thaiauto.or.th/iu3/images/popup/TAI_20170621.pdf Private & Confidential 37
Slide 38: Market Outlook: ASEAN Car Density Forecast
Market Outlook: ASEAN Car Density Forecast ASEAN Car Density Forecast Source: Ipsos, http://gmrt.de/wp-content/uploads/2016/06/ASEAN-Automotive-Roadmap-2020-2.pdf Private & Confidential 38
Slide 39: Market Outlook: PV Sales in China, Thailand & Indonesia
Market Outlook: PV Sales in China, Thailand & Indonesia PV Sales in China, Thailand & Indonesia (mln units) 5-year CAGR: 5.7% 5.8% 4.5% PV=passenger vehicles Source: Ipsos, http://gmrt.de/wp-content/uploads/2016/06/ASEAN-Automotive-Roadmap-2020-2.pdf Private & Confidential 39
Slide 40: Market Outlook: PV Population in China, Thailand & Indonesia
Market Outlook: PV Population in China, Thailand & Indonesia PV Population in China, Thailand & Indonesia (mln units) 5-year CAGR: 9.9% 5.5% 7.7% PV=passenger vehicles Source: Ipsos, http://gmrt.de/wp-content/uploads/2016/06/ASEAN-Automotive-Roadmap-2020-2.pdf Private & Confidential 40
Slide 41: Market Outlook: Increasing Out of Warranty PV
Market Outlook: Increasing Out of Warranty PV No. of Passenger Vehicles (mln units) Out of Units in millions Warranty PV 5-year CAGR 12.3% 6.5% 10.5% Source: Ipsos, https://www.slideshare.net/Ipsosbc/automotive-aftermarket-opportunities-in-china-indonesia-and-thailand Private & Confidential 41
Slide 42: Malaysian Meister Program
Malaysian Meister Program Malaysian Meister Program by Selangor Human Resources Federation of Malaysian Malaysian-German HWK Aachen Development Centre Skills Development Centre Chamber of Commerce (Leading vocational training and Industry centre in Germany) • A 2-year Technical and Vocational Educat
Slide 43: Auto Global Manufacturing Skill Program
Auto Global Manufacturing Skill Program • An apprenticeship program initiated and sponsored by Auto Global Parts Industries Sdn. Bhd, a wholly-owned subsidiary of NHF • Offers an alternative education/career path for school leavers • Provides great opportunity to gain industrial qualifications and e
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