Keong Hong Holdings Limited · SGX:5TT
Keong Hong — FY2017 Earnings Presentation
29 slides from Keong Hong's earnings presentation, December 2017
Slide 1: FY2017 Results Presentation
FY2017 RESULTS PRESENTATION rN an 4 Ww KEONG HONG HOLDINGS LIMITED
Slide 2: Disclaimer
This document has been prepared and furnished to you solely for the purpose of introducing the information set out herein. This document does not constitute or form part of any offer, solicitation, recommendation or invitation for or in relation to the securities of any company described herein, nor
Slide 3: Agenda
1. Group Overview 2. Operations Review 3. Financial Highlights 4. Outlook and Strategies 3
Slide 4: Group Overview
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Slide 5: Growth engines, dividend payout and market capitalisation
3 Growth Engines > 20% dividend payout ratio • Building Construction 32.6% 2 • Property Development and Investment • Hotel Development and Investment 26.8% Market capitalisation increased 22.7% 23.1% more than 3 times since IPO 4.50 > 99% revenue from building cents 3.50 construction, potential for
Slide 6: FY2017 key milestones
March September Acquired 30.6% of the Issued S$85 million 5.75% enlarged issued and paid-up Series 2 Notes due 2021 and share capital in Nuform August successfully redeemed all System Asia Pte. Ltd. outstanding Series 1 Notes. (“Nuform”), a supplier of Acquired 60.0% of the entire metal formworks to
Slide 7: Group structure
Keong Hong Holdings Limited 100% 100% 100% 100% 30.6% 60% Grandwood Hansin Timber Keong Hong Nuform System K.H. Land Pte Ltd (1) KH Capital Pte. Ltd. (2) Holdings Specialist and Construction Pte Ltd (1) Asia Pte. Ltd. (8) Pte. Ltd. (2) Trading Pte. Ltd. (9) 100% 20% 20% Sembawang KHA Resorts Punggol
Slide 8: Operations Review
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Slide 9: Healthy construction order book
• We have a healthy order book spread over the next three financial years. • S$344 million of construction order book includes unbilled revenue from Raffles Hospital Extension, Parc Life, Pullman Maldives Maamutaa Resort and Seaside Residences, to be recognised based on percentage of completion. Par
Slide 10: Joint venture residential development partnerships
• Our strategy to partner reputable property developers and owners to jointly undertake residential development projects enables the Group to share resources with business partners and manage any business risks associated with the property development projects. • We will continue to explore new oppo
Slide 11: Twin Waterfalls and SkyPark Residences
Twin Waterfalls SkyPark Residences Type Executive Condominium Type Executive Condominium Total Units 728 Total Units 506 Launch Date 18 February 2012 Launch Date 16 November 2013 Sales Status 100% Sales Status 100% Average Selling Price S$698 psf Average Selling Price S$793 psf Group’s Stake 20% Gro
Slide 12: Amore and Parc Life
Amore Parc Life Type Executive Condominium Type Executive Condominium Total Units 378 Total Units 628 Launch Date 17 January 2015 Launch Date 16 April 2016 Sales Status 100% Sales Status 79.0% Average Selling Price S$795 psf Average Selling Price S$770 – S$800 psf Group’s Stake 15% Group’s Stake 20%
Slide 13: Seaside Residences
Seaside Residences Type Private Condominium Total Units 841 Launch Date 22 April 2017 Sales Status 65.0% Average Selling Price S$1,700 psf Group’s Stake 20% Expected TOP 2020 13
Slide 14: Overseas property investments in Japan
• The Group continues to seek overseas property investment opportunities in mature and stable economies such as Japan and Australia as well as fast growing market like Vietnam. 1-2-6 Minamihorie, Osaka 4-4-10 Honmachi, Osaka Acquisition Date September 2017 February 2016 Property Type Commercial Comm
Slide 15: Expansion into hotel investment
• Expansion into hotel investment to provide the Group with a steady recurring income and an added engine of growth. • We will continue to seek hotel development and investment opportunities and grow our hospitality assets to form a more substantial portion of our earnings. • The Group has four hote
Slide 16: Hotel Indigo and Holiday Inn Express Singapore Katong
131-room Hotel Indigo 451-room Holiday Inn Express Singapore Katong Singapore Katong Katong Square - Food and beverage outlets and retail shops The two hotels are managed by InterContinental Hotels Group Group holds 20% interest in this joint development 16
Slide 17: Mercure Maldives Kooddoo Hotel
• Located in the south of Maldives, Kooddoo Island is just a short 55 minutes flight from Male • Mercure Maldives Kooddoo is the only Maldivian beach resort directly accessible by domestic plane • Managed by Accor, the 68-villa resort has commenced operations on 20 August 2017 Mercure Maldives Koodd
Slide 18: Pullman Maldives Maamutaa Resort
• 120-villa Pullman Maldives Maamutaa Resort • The resort is a 15-minute speed boat ride from Kooddoo Island • Managed by Accor, the resort is expected to commence operations in 2019 18
Slide 19: Kooddoo airport expansion
• Expansion of the Kooddoo domestic airport, located on Kooddoo Island in Gaafu Alifu Atoll, involving infrastructural work for the extension of its existing runway from 1.2km to 1.8km at both ends of the runway. • The extended runway was completed in July 2017 and the airport is able to accommodate
Slide 20: Financial Highlights
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Slide 21: Income statement highlights
FY2017 FY2016 S$ ‘000 / FYE 30 Sep Change (%) Remarks (Unaudited) (Audited) • Decrease in revenue was mainly due to lower recognition of construction revenue from SkyPark Residences, Amore and J Gateway, which had largely been completed in FY2016. • The decrease in revenue was partially offset by co
Slide 22: Revenue, EBITDA and NPAT trends
Revenue (S$’000) EBITDA (S$’000) 272,881 281,984 78,954 248,014 233,882 46,906 47,554 26,194 FY2014 FY2015 FY2016 FY2017 FY2014 FY2015 FY2016 FY2017 NPAT (S$’000) EBITDA Margin 64,202 33.8% 38,819 33,061 19.2% 16.6% 19,397 9.6% FY2014 FY2015 FY2016 FY2017 FY2014 FY2015 FY2016 FY2017 22
Slide 23: Leverage and net worth ratios
Debt to Tangible Net Worth Tangible Net Worth (S$’000s) 0.60 193,644 0.51 0.47 136,040 112,517 0.28 79,894 FY2014 FY2015 FY2016 FY2017 FY2014 FY2015 FY2016 FY2017 Debt to Total Asset EBITDA / Finance Costs 0.22 81.86 0.20 0.19 0.10 31.54 22.30 12.65 FY2014 FY2015 FY2016 FY2017 FY2014 FY2015 FY2016 F
Slide 24: Diversified earnings sources
• The Group has diversified its earnings sources from pure building construction to hotel and property development and investment. • Investments in hotel and property will provide the Group with a recurring income. Over time, the Group hopes to grow the contribution from hotel and property investmen
Slide 25: Outlook and Strategies
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Slide 26: Singapore construction industry
Singapore Construction Industry • Singapore’s economy grew by 5.2% on a year-on-year basis in the third quarter of 2017. However, the construction sector has not performed well, contracting 7.6% on a year-on-year basis in the third quarter of 2017. The latest economic statistics released by the Mini
Slide 27: Maldives tourism industry
Maldives Maldives Tourism Industry1 • Tourist arrivals to Maldives in 2016 registered a healthy 4.2% growth to 1.29 million. 1H 2017 tourist arrivals reached 657,540, registering an impressive growth of 6.1% compared with 1H 2016. • Europe has remained the top source of visitor arrivals, accounting
Slide 28: Growth strategies
Seek overseas Focus on investment Diversify building opportunities in portfolio construction Expansion mature and stable earnings to projects in through suitable economies such as include more commercial, joint ventures Japan and Australia hospitality assets industrial and and acquisitions as well a
Slide 29: Building a sustainable future
"ayN ‘A> BUILDING A SUSTAINABLE FUTURE