Mega First Corp. Bhd. · MYX:MFCB
Mega First Corp. Bhd — Q4 2024 Earnings Presentation
98 slides from Mega First Corp. Bhd's earnings presentation, Feb 28, 2025
Slide 1: 4Q2024 Results Briefing
4Q2024 RESULTS BRIEFING 28 February 2025
Slide 2: Agenda
AGENDA 1. Financial Review For reference (updated) - 4Q2024 Earnings Review 4. Renewable Energy Division - Balance Sheet Review 5. Packaging Division - Cash Flow Review 6. Resources Division - Capital Deployed 7. Investment in Joint Venture - Gearing Position Edenor Technology - JV Edenor Technology
Slide 3: 4Q2024 Earnings Review
4Q2024 EARNINGS REVIEW ▪ Revenue +123% to RM724m: RM383m construction revenue and CSC (RM22.7m). Core revenue -2.3%. ▪ Core PBT +7.1% to RM145m. RE and Resources improved, Packaging weakened. ▪ Group PBT +5.5% to RM146m. RM36.6m construction profit offset higher losses in Investment Holding & Others
Slide 4: Normalised Profit Before Tax
NORMALISED PROFIT BEFORE TAX • Normalised PBT +19.2% in the fourth quarter and +5.7% for the full year, reaching RM149.0 mil and RM513.6, respectively, driven by strong core business performance.
Slide 5: Normalised 5-Year PBT Trend
NORMALISED 5-YEAR PBT TREND ➢ Normalised Group PBT grew at a 7.2% Cagr between 2020 and 2024. ➢ Renewable Energy PBT grew at a 5.6% Cagr in the same period.
Slide 6: Normalised Profit After Tax and Non-Controlling Interest (PATNCI)
NORMALISED PROFIT AFTER TAX AND NON-CONTROLLING INTEREST (PATNCI) • Normalised PATNCI +51.4% in the fourth quarter and +25.3% for the full year, reaching RM141.7 mil and RM480.8, respectively. • The growth reflected strong core earnings and the positive impact of the increase in the effective equity
Slide 7: Normalised 5-Year PATNCI Trend
NORMALISED 5-YEAR PATNCI TREND ➢ Normalised Group PATNCI grew at a 10.6% Cagr between 2020 and 2024. ➢ Renewable Energy PATNCI grew at a 9.5% Cagr in the same period.
Slide 8: Renewable Energy Division
RENEWABLE ENEGY DIVISION
Slide 9: Earnings Review - Renewable Energy Division
EARNINGS REVIEW - RENEWABLE ENERGY DIVISION 4Q2024 vs 4Q2023 • Revenue +1.7% to RM171.4 mil: ➢ Hydro revenue: Higher energy sales volume, largely offset by a 5.7% currency loss and a 1.9% tariff decline. ➢ Solar revenue: Slight decline to RM2.4 mil, with stable generation capacity. • Hydro energy sa
Slide 10: Renewable Energy Division - Don Sahong
RENEWABLE ENERGY DIVISION - DON SAHONG Don Sahong : January - December Pakse Water Level and Capacity Factor/EAF
Slide 11: Resources Division
RESOURCES DIVISION sae
Slide 12: Earnings Review - Resources Division
EARNINGS REVIEW - RESOURCES DIVISION 4Q2024 vs 4Q2023 • Revenue -7.5% to RM42.9 mil: Delay in two large export shipments from December 2024 to January 2025. • Without shipment delays, revenue would have shown double-digit growth, reflecting the continued firm demand for lime products in the region.
Slide 13: Packaging Division
PACKAGING DIVISION
Slide 14: Earnings Review - Packaging Division
EARNINGS REVIEW - PACKAGING DIVISION 4Q2024 vs 4Q2023 • Revenue -6.4% to RM93.9 mil: Weak consumer demand and intense competition. • PBT -49.4% to RM4.1 mil: Margin pressure from price competition, lower utilisation of new production capacity and decrease in sales volume.
Slide 15: Balance Sheet Review
BALANCE SHEET REVIEW At31 1024 At 31.12.2023 Changes (RMmillion) —(RMmillion) _ (RMmillion) [Service concession asset 2,175.7 1,940.0 235.7 |Mainly dueto 5th turbine addition, partly offset by RM88.9 mil amortisation charge| RM54.8 mil translation loss. PPE 775.8 531.9 243.9 |Mainly due to RM208.3 m
Slide 16: Cash Flow Review
CASH FLOW REVIEW 12-Month Period Ended 2024 2023 (RM mil) | (RM mil) After tax cash from operating activities 473.5 586.8 Insurance claims 278 - Net investment receipts 33.6 10.6 New capital from minority of subsidiaries 02 433 [Total Cash Made Available to the Group 535.1 640.7 Investing Activities
Slide 17: Expansionary Investment Capital Deployed
EXPANSIONARY INVESTMENT CAPITAL DEPLOYED 2023: RM683.1 mil 2024: RM857.7 mil
Slide 18: Gearing Position
1,000.0 900.0 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 00 GEARING POSITION 31.12.2020 31.12.2021 31.12.2022 mmm Net Debt (RM mil) 31.12.2023 Net Debt/Equity 06) 300% 250% 200% 150% 100% 0.0% 31.12.2024 At 31.12.2020 At 31.12.2021 At 31.12.2022 At 31.12.2023 At 31.12.2024 (RM mil) (RM mil) (RM
Slide 19: JV Edenor Technology
JV EDENOR TECHNOLOGY 2023 2024 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) Revenue 265.0 220.7 207.8 198.3 891.8 197.9 178.1 217.9 211.2 805.1 Depreciation 9.2 9.1 9.1 9.4 36.8 95 9.1 8.9 9.0 36.5 and amortisation PBT
Slide 20: Other Updates
OTHER UPDATES ➢ Supplementary Concession Agreement (“SCA”) and Power Purchase Agreement (“SPPA”) • Supplementary CA and PPA encompasses all 5 turbines of Don Sahong. • The new concession period and SPPA term will be for a period of 25 years commencing from final commercial operation date (“FCOD”) of
Slide 21: Prospects for the Year 2025
PROSPECTS FOR THE YEAR 2025 ➢ Normalised PATNCI (excluding contribution from joint ventures and associates, construction profit and one-off non- operational items) +25.3% YoY to RM480.8 mil (2023: RM383.8 mil). • Growth reflects underlying strength of the Group’s core businesses; and • Positive impa
Slide 22: Prospects for 2025: Capital Commitment as at December 2024
PROSPECTS FOR THE YEAR 2025 CAPITAL COMMITMENT AS AT 31 DECEMBER 2024 Maldives 11.4 MW CGPP 51.0 MW Factory construction RM30.6 mil Production machinery RM27.2 mil
Slide 23: Prospects 2025: Renewable Energy Division (Hydro)
PROSPECTS FOR THE YEAR 2025 Renewable Energy Division (Hydro) ➢ Earnings are expected to remain stable in 2025, with several offsetting factors at play. ➢ Positive factors: ❖ Full year benefit of 5th turbine addition. We expect about 3% increase in energy volume; ❖ Substantially lower net royalty ex
Slide 24: Prospects for the Year 2025
PROSPECTS FOR THE YEAR 2025
Slide 25: Turbine Overhaul
PROSPECTS FOR THE YEAR 2025 TURBINE OVERHAUL
Slide 26: Turbine Overhaul
PROSPECTS FOR THE YEAR 2025 TURBINE OVERHAUL
Slide 27: Prospects 2025: Renewable Energy Division (Solar)
PROSPECTS FOR THE YEAR 2025 Renewable Energy Division (Solar) ➢ Earnings are projected to grow with the addition of 63.2 MWp of capacity, bringing the total to 94.5 MWp upon full commercial operation. ➢ Management will pursue further opportunities under the National Energy Transition Roadmap (NETR)
Slide 28: MF Solar Tronoh
PROSPECTS FOR THE YEAR 2025 MF Solar Tronoh
Slide 29: MF Solar Tronoh
PROSPECTS FOR THE YEAR 2025 MF Solar Tronoh * 51MWp (30MWac) solar plant located in Tronoh * Connecting to PMU Seri Iskandar located 6km away * Expected COD is December 31, 2025 (earlier subject to Developer IF and SPP IF) * Receipts of Solar PV panels to complete by end of next week * Key site work
Slide 30: MF Solar Maldives Consortium
PROSPECTS FOR THE YEAR 2025 MF Solar Maldives Consortium * 11.4MWp solar project located across 9 sites on 6 atolls in the Maldives * Expected COD is June 30, 2025 ¢ First 3 sites (1.1, 1.2, 1.3 in Addu City) (>2MWp) ready for commissioning by end of March 2025 * C&S works have commenced on sites 2,
Slide 31: MF Solar (Maldives)
PROSPECTS FOR THE YEAR 2025 MF Solar (Maldives)
Slide 32: Prospects for the Year 2025
PROSPECTS FOR THE YEAR 2025
Slide 33: Portfolio Summary as at December 2024
PROSPECTS FOR THE YEAR 2025 PORTFOLIO SUMMARY AS AT 31 DECEMBER 2024
Slide 34: Prospects 2025: Packaging and Resources Divisions
PROSPECTS FOR THE YEAR 2025 Packaging Division ➢ A challenging environment with intense competition and cautious consumer spending. ➢ Efforts will focus on customer expansion, cost efficiency, and innovation. ➢ New production capacities may pressure margins in the short term but position the Packagi
Slide 35: Prospects 2025: Edenor Technology and Food Security
PROSPECTS FOR THE YEAR 2025 Edenor Technology ➢ Edenor faced significant capacity losses due to ongoing repairs and upgrades. Additional challenges included market weaknesses, excess global capacity, volatile commodity prices, and impairment charges. ➢ The key turnaround strategy is to stabilise the
Slide 36: Our Sustainability Strategy
OUR SUSTAINABILITY STRATEGY
Slide 37: Key Sustainability Highlights 2024
KEY SUSTAINABILITY HIGHLIGHTS 2024
Slide 38: Thank You
THANK YOU
Slide 39: Remaining Slides for Reference (Updated)
Remaining Slides for Reference (Updated)
Slide 40: Renewable Energy: Don Sahong
RENEWABLE ENERGY DON SAHONG
Slide 41: Renewable Energy Division: Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 42: Renewable Energy Division: Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG • 325 MW run-of-river hydropower project located on the mainstream of the Mekong River in Southern Laos. • High projected average Energy Availability Factor (EAF) of 81% compared to other large hydro of between 40-70%. • Projected average energy generation 2,300
Slide 43: Renewable Energy Division: Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 44: Renewable Energy Division: Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 45: Renewable Energy Division: Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 46: Renewable Energy Division: Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 47: Renewable Energy Division: Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 48: Renewable Energy Division: Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 49: Renewable Energy Division: Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 50: Renewable Energy Division: Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 51: Don Sahong: 2022-2024 Pakse Water Level and Capacity Factor/EAF
RENEWABLE ENERGY DIVISION DON SAHONG Don Sahong : 2022-2024 Pakse Water Level and Capacity Factor/EAF
Slide 52: Renewable Energy: C&I Solar
RENEWABLE ENERGY C&I SOLAR
Slide 53: Renewable Energy Division: C&I Solar
RENEWABLE ENERGY DIVISION C&I SOLAR
Slide 54: Renewable Energy Division: Financial Highlights
RENEWABLE ENERGY DIVISION FINANCIAL HIGHLIGHTS
Slide 55: Renewable Energy Division: Strategy & Strength
RENEWABLE ENERGY DIVISION STRATEGY & STRENGTH Strategy • Leveraging current strong and stable cashflow of approx. RM500 mil per annum from existing RE portfolio to pursue selective RE opportunities in the region. Strength • Strong project management/execution track record → Don Sahong completed sign
Slide 56: Renewable Energy Division: Investment Approach
RENEWABLE ENERGY DIVISION INVESTMENT APPROACH • New investments must fulfil the following criteria: 1) Attractive project IRR (varies between markets) 2) Project manageability 3) Project bankability 4) Project risk acceptability • Avoid herd instinct. • Strict investment discipline.
Slide 57: Packaging
PACKAGING
Slide 58: Packaging Division
PACKAGING DIVISION Mission statement “To become a leading provider of innovative, environmentally sustainable, safe and competitive packaging solutions” The division currently manufactures and sells paper bags, flexible packaging products, and stickers and labels. Global trends • Consumers and our c
Slide 59: Packaging Division: Differentiating Strategy
PACKAGING DIVISION DIFFERENTIATING STRATEGY • We develop packaging solutions that promote the use of ONLY fully recyclable materials (e.g. paper and mono-family plastic materials). • Malaysia’s first and only manufacturer that only uses 100% toluene-free print ink and solvent-free lamination process
Slide 60: Packaging Division: Bangi (Stenta)
PACKAGING DIVISION BANGI (STENTA)
Slide 61: Packaging Division: Melaka (Hexachase)
PACKAGING DIVISION MELAKA (HEXACHASE)
Slide 62: Packaging Division: State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Fuji Kikai Printing Machine Fuji Kikai 14 colours Rotogravure Printing Machine
Slide 63: Packaging Division: State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Super Combi 5000 Super Combi 5000 Lamination Machine
Slide 64: Packaging Division: State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Flat Handle Paper Bag Machine Twisted Handle Paper Bag Machine
Slide 65: Packaging Division: State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY SOS Machine Flat & Satchel Bag Machine
Slide 66: Packaging Division: State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Reifenhauser LLDPE Line Vacuum Metallizer Slitter for Metallized Film
Slide 67: Packaging Division: State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Reifenhauser LLDPE Line Vacuum Metallizer
Slide 68: Packaging Division: State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Bruckner OPP Line High Capacity Roll Slitting and Winding Machine
Slide 69: Packaging Division: Product Range
PACKAGING DIVISION PRODUCT RANGE
Slide 70: Packaging Division: Product Range
PACKAGING DIVISION PRODUCT RANGE
Slide 71: Packaging Division: Product Range
PACKAGING DIVISION PRODUCT RANGE
Slide 72: Packaging Division: Financial Highlights
PACKAGING DIVISION FINANCIAL HIGHLIGHTS
Slide 73: Resources
RESOURCES
Slide 74: Resources Division Profile
RESOURCES DIVISION PROFILE • Largest quicklime producer in Malaysia with 1,960 tonne per day installed kiln capacity. • Owned one of the largest limestone reserves, sufficient for more than 100 years supply. • Wide industrial applications: steel, mining, pulp and paper, agriculture, construction mat
Slide 75: Resources Division Success Factors
RESOURCES DIVISION SUCCESS FACTORS • Fully integrated facilities • Own high purity limestone reserves, on-site and at vicinity • High and consistent lime quality • Cost leadership • Diversified customer base
Slide 76: Resources Division Mission & Financial Highlights
RESOURCES DIVISION MISSION & FINANCIAL HIGHLIGHTS Mission • To be the leading lime producer in the region • 2015-2018: Completed massive expansion plan. +160% increase in kiln capacity 760 tonnes 1,960 tonnes per day • Current plant utilisation rate approx. 70% Financial Highlights
Slide 77: Investment in Joint Venture: Edenor Technology
INVESTMENT IN JOINT VENTURE EDENOR TECHNOLOGY
Slide 78: Investment in Joint Venture: Edenor Technology
INVESTMENT IN JOINT VENTURE EDENOR TECHNOLOGY • A 50:50 JV between MFCB and 9M Technology Sdn Bhd (RM40 million paid up capital). • Set up to acquire Emery’s Asia Pacific oleochemical business from Sime Darby Plantation Berhad and PTT GC International Limited (“Acquisition”). • The Acquisition was c
Slide 79: Emery's Asia Pacific Business
INVESTMENT IN JOINT VENTURE EDENOR TECHNOLOGY Emery’s Asia Pacific business • Integrated 300,000-tonne per annum capacity oleochemical complex on a 34-acre site at Telok Panglima Garang. • Original plant cost: > RM1.1 billion • Plant book value @ 31 Oct 2021: approx. RM430 million • Plant Acquisitio
Slide 80: Edenor Technology Plant Site
EDENOR TECHNOLOGY PLANT SITE
Slide 81: Edenor Technology Plant Layout
EDENOR TECHNOLOGY PLANT LAYOUT
Slide 82: Edenor Technology TPG Plant
EDENOR TECHNOLOGY TPG PLANT
Slide 83: Investment in Joint Venture: Turnaround Strategy
INVESTMENT IN JOINT VENTURE TURNAROUND STRATEGY • Full set of new management team in place. • Major cultural and operational transformation underway. Key turnaround strategies • Simplify management processes: leaner, and more responsive and effective. • Revamp purchasing, lower cost of goods/service
Slide 84: Food Security
FOOD SECURITY
Slide 85: Food Security Division
FOOD SECURITY DIVISION “RESPECT NATURE, WORK WITH NATURE” • Water and irrigation key to sustainable cultivation: 1) Protect and improve O’plai River catchment areas to collect and store rainwater; 2) Development wetland pockets, creation of mini lakes along extensive riparian corridors. • Developmen
Slide 86: Food Security Division
FOOD SECURITY DIVISION • MFCB obtained approval from the Royal Government of Cambodia for the concession of a plot of land measuring 6,428 hectares situated in Mondulkiri Province, Kingdom of Cambodia for agricultural development. • The term of the concession is 50 years, commencing from 29 April 20
Slide 87: Food Security Division: Cambodia
FOOD SECURITY DIVISION CAMBODIA
Slide 88: Food Security Division: Cambodia
FOOD SECURITY DIVISION CAMBODIA
Slide 89: Food Security Division: Cambodia
FOOD SECURITY DIVISION CAMBODIA
Slide 90: Food Security Division: Cambodia, Malaysia
FOODFOOD SECURITY SECURITY DIVISION CAMBODIA MALAYSIA
Slide 91: Food Security Division: Malaysia
FOOD SECURITY DIVISION MALAYSIA
Slide 92: Food Security Division: Malaysia
FOOD SECURITY DIVISION MALAYSIA
Slide 93: Food Security Division: Malaysia
FOOD SECURITY DIVISION MALAYSIA
Slide 94: Food Security Division: Malaysia
FOOD SECURITY DIVISION MALAYSIA
Slide 95: Food Security Division: Malaysia
FOOD SECURITY DIVISION MALAYSIA
Slide 96: Food Security Division: Malaysia
FOOD SECURITY DIVISION MALAYSIA
Slide 97: Food Security Division: Malaysia
FOOD SECURITY DIVISION MALAYSIA
Slide 98: Thank You!
THANK YOU!
Mega First Corporation Berhad — Q4 2024 Earnings Presentation on 6ix