Ly Corporation Limited · SGX:1H8
Ly — Investor Presentation (March 2018)
29 slides from Ly's investor presentation, Mar 10, 2018
Slide 1: Corporate Presentation
CORPORATE LY CORPORATION LIMITED PRESENTATION Company Registration Number: 201629154K (Incorporated in the Republic of Singapore on 24 October 2016) 10 March 2018
Slide 2: Important Notice
IMPORTANT NOTICE 01 This presentation includes forward-looking statements provided with respect to the anticipated future performance of LY Corporation Limited (“LY Corporation” or the “Company”). Such forward-looking statements reflect various assumptions concerning the future performance of LY Cor
Slide 3: Contents
CONTENTS 02 1. Belt & Road Initiative: Spearleading ASEAN’s Growth 2. First New Listco in SGX in 2018 3. Competitive Strengths 4. China: New Equation in Our Growth Strategy 5. Investment Highlights 6. Financial Highlights
Slide 4: Belt & Road Initiative: Spearleading ASEAN's Growth
BELT & ROAD INITIATIVE: SPEARLEADING ASEAN’S GROWTH
Slide 5: Belt & Road Initiative (BRI)
Belt & Road Initiative (BRI) 04 • President Xi’s most ambitious economic policy which catapults China into the global economic powerhouse in the 21st century Far-reaching impact comparable to Deng Xiaoping’s economic reforms in the 1980s • BRI seeks to place China at the centre of the global trade n
Slide 6: Spearleading Asean's Growth
05 Spearleading Asean’s Growth • From 2013 to 2016, Chinese investments related to the BRI reached US$60 billion. Asean is one of key beneficiaries of the massive investment flow for the infrastructural developments Singapore has been China's largest foreign investor since 2013 and was one of China'
Slide 7: First New Listco in SGX in 2018
FIRST NEW LISTCO in SGX in 2018
Slide 8: Established Furniture Manufacturer Listed on Catalist in 2018
ESTABLISHED FURNITURE 07 MANUFACTURER LISTED ON CATALIST in 2018 One of Malaysia’s leading manufacturers and exporters of wooden bedroom furniture Track record of approximately 40 years of experience in the furniture industry An established Original Design Manufacturer (“ODM”) and Original Equipment
Slide 9: Progressive Growth
PROGRESSIVE GROWTH 08 The Group was founded by Made its first foray into Identified opportunity to Began the construction Collaborated with a software Publicly-listed our Executive Chairman and the export market with enter into the U.S. market of a factory equipped company and began implementing on
Slide 10: Global Reach
9 GLOBAL REACH EXPORT SALES The Group’s products are sold mainly to overseas dealers such as furniture wholesalers and retailers who generally resell our products to end- users through their respective retail networks. DOMESTIC SALES Primarily third party agents who typically export and resell the G
Slide 11: Awards, Accreditations and Certifications
AWARDS, ACCREDITATIONS 10 AND CERTIFICATIONS Year of Award Award • Enterprise 50 Award (3rd Place ) 2002 • Asia Pacific International Honesty Enterprise – Keris Award 2002 • Global Top Enterprise Golden Rim Award 2003 • Golden Bull Award for Malaysia’s 100 Outstanding SMEs (2nd Place) • Enterprise 5
Slide 12: Competitive Strengths
COMPETITIVE STRENGTHS
Slide 13: Competitive Strengths
COMPETITIVE STRENGTHS 12 1. Established track record in the furniture industry and well recognised for the quality of our furniture products Long-standing Repeat Core Track record relationships with business competencies of approximately customers accounted for in customisation, 40 years in and agen
Slide 14: Competitive Strengths
COMPETITIVE STRENGTHS 13 3. Established subcontractor network As at 15 December 2017, we work with 19 subcontractors, some of which have worked with us for more than 10 years Reduces manpower reliance and costs Supports various production processes Established subcontractor Bulk purchases of raw mat
Slide 15: Competitive Strengths
COMPETITIVE STRENGTHS 14 4. Consistently strive to be cost-competitive, efficient and to turn around products quickly educes manpower reliance and costs Implementing Maintaining Incorporating a real-time integrated sufficient raw automation into process material production management inventories pro
Slide 16: China: New Equation in Our Growth Strategy
CHINA: NEW EQUATION IN OUR GROWTH STRATEGY
Slide 17: China: New Equation in Our Growth Strategy
China: New Equation in Our 16 Growth Strategy • BRI presents dynamic opportunity of expansion for wooden furniture players like LY Corporation because of : • Access to over 1 billion consumers based in China1 • Potential demand growth from PRC as PRC’s import of wooden furniture increased by 79.8% f
Slide 18: China: New Equation in Our Growth Strategy
China: New Equation in Our 17 Growth Strategy • We intend to increase our brand awareness and products in the PRC, including (but not limited to) the promotion of our products through established e-commerce websites in which customers in the PRC can order our products online. REVENUE BY GEOGRAPHY 13
Slide 19: Prospects
PROSPECTS 18 • Given Malaysia is the 8th largest player in the world’s furniture market, we expect the competitive advantage to be enhanced under BRI Asia’s 3rd largest furniture exporter and ranked 8th globally, exporting RM 7.5 billion worth of furniture to 169 countries in 2016 Strong manufacturi
Slide 20: Prospects
PROSPECTS 19 • Demand for wooden furniture manufactured in Malaysia is projected to grow at a CAGR of 5.0% annually from 2017 to 2021 Malaysia is being recognised as a producer of quality furniture With more than three decades of accumulated experience in furniture manufacturing, the furniture manuf
Slide 21: Our Future Plans
OUR FUTURE PLANS 20 • Expanding our sales network in the PRC The Group believes there is high demand for our products in the PRC due to the quality of our products and competitive prices we offer • Upgrading our machinery and equipment and acquiring new technology To increase productivity and achiev
Slide 22: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 23: Investment Highlights
INVESTMENT HIGHLIGHTS 22 • One of the leading Malaysian wooden furniture manufacturers. Among the major Malaysian wooden bedroom furniture manufacturing: 1st in the net profit margin for FY2015 to FY2016 2nd in CAGR of after tax profit for FY2014 to FY2016 3rd in CAGR of revenue for FY2014 to FY2016
Slide 24: Dividend Policy
23 DIVIDEND POLICY • Intend to recommend and distribute a special dividend for FY2017, representing a payout per share equivalent to 3.0% of the Placement Price, to be approved at a general meeting to be held within 3 months after Listing • Subject to the above, our Directors intend to recommend and
Slide 25: Financial Highlights
errrry aattases ss eaaana i +3 FINANCIAL HIGHLIGHTS
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS 25 Audited Unaudited (RM’000) FY2014 FY2015 FY2016 1H2016 1H2017 Revenue 216,036 313,569 287,379 141,597 166,007 Gross profit 35,731 88,085 74,876 37,902 39,582 Gross profit margin 16.5% 28.1% 26.1% 26.8% 23.8% Profit before tax 22,327 67,464 56,314 23,620 28,477 Profit for the
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS 26 Audited Unaudited Audited Unaudited (RM’000) FY2014 FY2015 FY2016 1H2016 1H2017 FY2014 FY2015 FY2016 1H2016 1H2017 Malaysia 32,099 47,255 38,410 20,695 21,886 Number of 40-ft 4,905 5,923 5,637 2,746 3,146 containers sold United States 181,104 249,743 221,897 107,279 131,095 A
Slide 28: Financial Highlights
FINANCIAL HIGHLIGHTS 27 Audited Unaudited Audited Unaudited (RM’000) FY2014 FY2015 FY2016 1H2016 1H2017 (RM’000) FY2014 FY2015 FY2016 1H2016 1H2017 Gross Profit 35,731 88,085 74,876 37,902 39,582 Profit After Tax 17,336 52,656 43,446 17,749 21,588 Gross Profit Profit After Tax 16.5% 28.1% 26.1% 26.8
Slide 29: Thank You
THANK YOU LY CORPORATION LIMITED Sponsor Investor Relations Contact Company Registration No.: 201629154K (Incorporated in the Republic of Singapore on UOB KayHian Private Limited Waterbrooks Consultants Pte Ltd 24 October 2016) Tel: (65) 6100 2228