New Hoong Fatt Holdings Bhd. · MYX:NHFATT
New Hoong Fatt Holdings Bhd — Shareholder Meeting (May 2019)
30 slides from New Hoong Fatt Holdings Bhd's shareholder meeting presentation, May 31, 2019
Slide 1: New Hoong Fatt Holdings Berhad 22nd Annual General Meeting
NEW HOONG FATT HOLDINGS BERHAD 22ND ANNUAL GENERAL MEETING TPC KUALA LUMPUR 31 MAY 2019 EMBRACING CHALLENGE
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 Private & Confidential 2
Slide 3: Stock Information
Stock Information Stock Code: NHFATT/7060 Shariah Status: Shariah-Compliant Share Price: RM2.78 (@ 17/5/19) Market Cap.: RM229.8 mln Listing: Main Market Sector: Consumer Products of Bursa Malaysia & Services (Automotive) Shareholdings (as per 2018 Annual Report) Family, 49.6% Institutional Sharehol
Slide 4: A Brief History On NHF: >40 years & counting
A Brief History On NHF: >40 years & counting Founded as a Listed on the Established • Achieved best-ever trading company (then) Second trading revenue in FY18. & carved a niche Board of Bursa. branches in • Completed 1-for-10 in the REM Jakarta & bonus issue in June market. Shanghai. 2018. 1977 1989
Slide 5: Business Overview
Business Overview Trading / Manufacturing Marketing Metal Plastic Parts Parts Private & Confidential 5
Slide 6: Key REM Segments NHF Specialises In
Key REM Segments NHF Specialises In Tyres, Wheels, Rims Tyres Parts & Components Air Conditioning Parts Hood, Door, Compressor, Fender, Grille, Condenser, Bumper Evaporator Key REM Accessories & Segments Repair, Maintenance Customising & Service LED Lamps, Lubricants, Headlights, Spark Plugs, Tail L
Slide 7: Our Product Groups – Metal Products
Our Product Groups – Metal Products Door Tailgate Fender Hood Trunk Lid Head Lamp Panel Private & Confidential 7
Slide 8: Our Product Groups – Plastic Products & Accessories
Our Product Groups – Plastic Products & Accessories Plastic Products Plastic Products Bumper & Grille Head & Tail Lamps Automotive Accessories Ignition Switch Fan Blade Radiator Door Mirror Private & Confidential 8
Slide 9: Our House Brands
Our House Brands Our House Brands Fit A Wide Range of Cars Private & Confidential 9
Slide 10: 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) In-House Tooling MIG Robot Metal Stamping Private & Confidential 10
Slide 11: Our Manufacturing Capabilities (cont’d)
Our Manufacturing Capabilities (cont’d) Plastic Injection Machines 3D Laser Welding & Cutting Machine Plastic Chrome Plating Private & Confidential 11
Slide 12: Local & Overseas Trading Branches
Local & Overseas Trading Branches Physical presence in 3 countries Private & Confidential 12
Slide 13: Our Extensive Distribution Network
Our Extensive Distribution Network Malaysia Distributors > 1,000 in Malaysia Stock keeping > 15,000 units (SKUs) being distributed Overseas Export countries across Asia, Central > 50 & South America, Europe and Africa Overseas > 100 distributors Private & Confidential 13
Slide 14: Financial Highlights
Financial Highlights
Slide 15: 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 Private & Confidential 15
Slide 16: Bottom-Line Performance
Bottom-Line Performance FY14-FY18 Net Profit (RM mln) 4-yr CAGR: +4.0% Profitability affected by – I. Higher raw material and manufacturing costs. II. Unfavorable forex impact. III.Lower fair value gain on revaluation of investment properties Private & Confidential 16
Slide 17: 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 17
Slide 18: Solid Balance Sheet
Solid Balance Sheet Total Assets (RM mln) 4-yr CAGR: +11.5% NA/Share: RM5.52 Cash/Share: 26.0sen @FY18 @FY18 Private & Confidential 18
Slide 19: Solid Balance Sheet (cont’d)
Solid Balance Sheet (cont’d) Shareholders’ Equity (RM mln) 4-yr CAGR: +9.7% Price/BV: 0.5x* Net Gearing : 0.1x @FY18 @FY18 *Based on the closing price of RM2.78 as of 17.5.2019. Private & Confidential 19
Slide 20: 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 17.5.2019. Private & Confidential 20
Slide 21: Corporate Strategy & Growth Plans
Corporate Strategy & Growth Plans Private & Confidential 21
Slide 22: Growth Plans
Further Growing The ASEAN Market Growth Plans Human Product Coverage Capital Expansion Development 22
Slide 23: 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 24: 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 Vehicles NHF’s Home Market on the road: 220.2 mln AFTA Trade Liberalization Source: World Bank data 2016; ASEAN Stats Data Portal Priv
Slide 25: 220.2 Mln Vehicles on the Road & Growing
220.2 Mln Vehicles on the Road & Growing Total No. of Registered Motor Vehicles in ASEAN as at 2017 220.2 mln Motor Vehicles Registered in ASEAN All these vehicles would require replacement parts Source: ASEAN Stats Data Portal Private & Confidential 25
Slide 26: Human Capital Development
Human Capital Development Emphasise 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 Program Priv
Slide 27: Investment Merits
Investment Merits Private & Confidential 27
Slide 28: Leading Replacement Equipment Manufacturer
Leading Replacement Equipment Manufacturer Largest REM in Malaysia One of the few manufacturers in Malaysia specialising in replacement equipment. Capable & Experienced Management 2nd generation leadership; aided by professionals. Deep technical & industry knowledge; >40 years of history. Healthy Ma
Slide 29: 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 30: Thank You
Thank You For queries, please contact Kai at kai@capitalfront.biz Private & Confidential 30
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