HPMT Holdings Bhd. · MYX:HPMT
HPMT Holdings Bhd — FY2021 Earnings Presentation
30 slides from HPMT Holdings Bhd's earnings presentation, Mar 1, 2022
Slide 1: FY2021 and Q4FY2021 Financial Results Presentation
HPMT Holdings Berhad FY2021 and Q4FY2021 Financial Results Presentation 1 March 2022 in collaboration with
Slide 2: Table of Contents
Table of Contents 4 Company and Business Overview 12 Financial Overview 24 Key Investment Highlights 26 Moving Forward 29 Stock Information Strictly Private & Confidential 2
Slide 3: Disclaimer
Disclaimer The material that follows is a presentation of general background information about the activities of HPMT Holdings Berhad (“HPMT”) (including any other affiliates) as at the date of this Presentation. The information contained herein is given in summary form solely to provide an understa
Slide 4: Company and Business Overview
The Future of Precision Machining COMPANY AND BUSINESS OVERVIEW
Slide 5: Company Overview
Company Overview Snapshot of HPMT Holdings Berhad Listed on the Main Market of Bursa Malaysia Securities Berhad in June 2019, HPMT Holdings Berhad (“HPMT”) is principally engaged in: a) Manufacturing and distribution of cutting tools b) Trading of third-party cutting tools, supporting equipment and
Slide 6: Business Overview: Business Model
Business Overview Business Model DISTRIBUTION CHANNELS Cutting tools under the HPMT brand and private labels are distributed in the following manner: HPMT Brand “HPMT brand contributed to approximately half of its • HPMT Brand • Private Label manufacturing revenue” HPMT Distributor 89% End-users 11%
Slide 7: Products Widely Used Across Various Industries
Business Overview Products Widely Used Across Various Industries MOULD AND DIE SEMI-CONDUCTOR AUTOMOTIVE AEROSPACE MEDICAL CONSUMER ELECTRONICS Strictly Private & Confidential 7
Slide 8: Global Cutting Tools Consumption by Country
Business Overview Global Cutting Tools Consumption by Country ($ MM): 2019 - 2025 Country 2019 2020 2021 2022 2023 2024 2025 CAGR 20-25 China 5,394.7 4,312.2 4,720.4 5,075.7 5,388.9 5,757.5 6,124.6 7.3% United States 3,766.6 3,002.3 3,401.3 3,545.3 3,706.9 3,884.8 4,070.3 6.3% Germany 2,831.4 2,277.
Slide 9: Global Cutting Tools Consumption by End-User Industries
Business Overview Global Cutting Tools Consumption by End-User Industries ($ MM): 2019 - 2025 End-User Industry 2019 2020 2021 2022 2023 2024 2025 CAGR 20-25 Aerospace 1,657.8 1,290.0 1,490.9 1,564.4 1,627.4 1,698.3 1,769.3 6.5% Automation & Machinery 1,345.8 956.2 1,146.2 1,233.7 1,319.5 1,417.3 1,
Slide 10: Trailing Months Sales and Sales Orders Trend
Business Overview Trailing 12 Months Sales and Sales Orders Trend Trailing 12 months Sales vs Sales Orders (HPMT Industries Sdn. Bhd.) Mar-21 Apr-20 Nov-20 Apr-21 Nov-21 Feb-20 Mar-20 Sep-20 Feb-21 Sep-21 Jan-20 Jul-20 Aug-20 Jan-21 Jul-21 Aug-21 Dec-19 May-20 Dec-20 May-21 Dec-21 Jun-20 Oct-20 Jun-
Slide 11: The Future of Precision Machining
ZXHPMT THE FUTURE OF PRECISION MACHINING 11
Slide 12: Manufacturing Output
Business Overview Manufacturing Output 1,220 COVID-19 Pandemic 1,154 (Unprecedented event) 933 • Manufacturing output reduced 23.5% in 892 FY2020 concurrent with the 6 weeks of MCO 843 where manufacturing activities were halted. 627 • FY2021 manufacturing plant is running at 60% capacity and output
Slide 13: Financial Overview
The Future of Precision Machining FINANCIAL OVERVIEW
Slide 14: Annual Performance
Financial Overview Annual Performance Revenue (RM ‘000) Gross Profit (RM ‘000) 18,664 , 40,379 90,560 10,091 78,682 26.0% 34,015 71,896 30,288 33.3% 43.2% 42.1% 44.6% FY2019 FY2020 FY2021 FY2019 FY2020 FY2021 GP GP Margin PATAMI (RM ‘000) Operating Expense Ratio * (%) 13,836 30.5% 5,514 28.7% 66.3%
Slide 15: Annual Segmental Performance - FY2020 vs FY2021
Financial Overview Annual Segmental Performance - FY2020 vs FY2021 FY2020 Revenue Contribution FY2021 Revenue Contribution Coating 3.1% Coating 2.8% Trading 5.6% Trading 6.9% Manufacturing 90.0% Manufacturing 91.6% Business Segmental FY2020 (RM ‘000) FY2021 (RM ‘000) % Change Manufacturing 64,709 82
Slide 16: FY2021 vs FY2020 Contribution by Location
Financial Overview FY2021 vs FY2020 Contribution by Location GEOGRAPHICAL REVENUE CONTRIBUTION – TOP 5 COUNTRIES Revenue Breakdown for FY2020 (By region) Revenue Breakdown for FY2021 (By region) Others Others 2.2% 1.7% Malaysia Malaysia 18.0% 20.4% Asia excluding Asia excluding Malaysia Malaysia 30.
Slide 17: FY2021 Performance Summary
Financial Overview FY2021 Performance Summary KEY RATIOS & STATISTICS Revenue 26.0% Gross profit 33.3% Gross profit margin 44.6% Profit before tax 85.1% Profit before tax margin 19.7% Earnings per share 4.21 sen Dividend payout (FY2021) 41.5% Return on equity 10.5% Cash & short-term cash RM57.8 m in
Slide 18: Quarterly Performance: Revenue
Financial Overview Quarterly Performance Revenue (RM ‘000) 3,658 20.2% Q4FY2021 vs Q4FY2020 24,382 20.2% 22,107 22,265 21,806 ❑ The higher revenue was attributed to higher revenue generated within all the business 18,148 segments, particularly the manufacturing segment. Q4FY2020 Q1FY2021 Q2FY2021 Q3
Slide 19: Quarterly Performance: Gross Profit
Financial Overview Quarterly Performance Gross Profit (RM ‘000) GROSS PROFIT MARGIN REMAINED ABOVE 40% 665 8.2% 11,624 Q4FY2021 vs Q4FY2020 8.2% 10,174 9,788 8,793 ❑ The higher gross profit was due to the higher 8,128 revenue. 47.7% 44.8% 46.0% 44.0% 40.3% Q4FY2020 Q1FY2021 Q2FY2021 Q3FY2021 Q4FY202
Slide 20: Quarterly Performance: PATAMI
Financial Overview Quarterly Performance PATAMI (RM ‘000) (312) Q4FY2021 vs Q4FY2020 (8.8%) 4,220 8.8% 3,556 ❑ The marginal dip in PATAMI was mainly due to the wage subsidies of RM311k received in 3,239 3,244 3,133 Q4FY2020. 19.6% 17.3% 14.7% 14.9% 14.1% Q4FY2020 Q1FY2021 Q2FY2021 Q3FY2021 Q4FY2021
Slide 21: Balance Sheet
Balance Sheet As at 31 December 2021 RM 131.2 m RM 176.5 m Total Equity Total Assets Attributable to Owners RM 24.2 m of the Company Total Borrowings FY2020: RM166.7 m FY2020: 27.7 m FY2020: 123.5 m RM 57.8 m RM 44.9 m Cash and Bank Balances Total Liabilities (including Short-Term Cash Investments)
Slide 22: Dividend Performance
Dividend Performance Higher Total Dividends At 1.75 Sen Per Share For FY2021 Total dividend payout since listing : 4.38 SEN per share Dividend Per Share (Sen) Dividend Payout Ratio 1.75 FY2019 FY2020 FY2021 1.38 0.35 1.25 52.3% 54.5% 41.5% 0.5 0.5 0.375 Dividends are subjected to Board approval and
Slide 23: Key Investment Highlights
The Future of Precision Machining KEY INVESTMENT HIGHLIGHTS
Slide 24: Key Investment Highlights
Key Investment Highlights Extensive portfolio of Global network of more products that cater to than 30 countries broad range of end-user industries 1 3 5 2 4 Proven track records in the Strong margins industrial Competent and skilled cutting tools industry consumable products workforce with in-house
Slide 25: Moving Forward
The Future of Precision Machining MOVING FORWARD
Slide 26: Short-Term Plans in the Pipeline
Moving Forward Short-Term Plans in the Pipeline 1. Capital Expenditure Plan • Due to lack of business visibility caused by the COVID-19 pandemic, the Group is cautious in its capital expenditure, where investment in machineries will be phased according to prevailing market sentiments and capacity ut
Slide 27: Short-Term Plans in the Pipeline: Product Development
Moving Forward Short-Term Plans in the Pipeline 3. Product Development • The EZ Line, composed of both endmills and drills, was launched in Q4FY2021 to replace selected tools in the general and more price-competitive market segment. • Product extensions of the DR-S drill series and NiTiCo 30 endmill
Slide 28: Stock Information
The Future of Precision Machining STOCK INFORMATION
Slide 29: Stock Information
Stock Information Bloomberg Ticker HPMT:MK 52-Week Range (High) (RM) 0.76 52-Week Range (Low) (RM) 0.45 30 Day Avg Volume 2,425,253 Market Cap (MYR) (mil) 198.7 Issued and Paid-up Shares (Million) 328.49 Date Major Announcements made through Bursa Securities • Q4FY2021 Results Announcement 28/2/22 •
Slide 30: Thank You
THANK YOU For Investor Relations related queries, please contact the following: 5, Jalan Sungai Kayu Ara 32/39, Taman Berjaya, Seksyen 32, +603 5740 2218 www.hpmt-industries.com info@hpmt-industries.com 40460, Shah Alam, Selangor Darul Ehsan, Malaysia