Hiap Teck Venture Bhd. · MYX:HIAPTEK

Hiap Teck Venture Bhd — Q1 FY2024 Earnings Presentation

11 slides from Hiap Teck Venture Bhd's earnings presentation, Dec 15, 2023

  1. Slide 1: Analysts' Briefing Q1 / FY 2024 Performance Review

    ANALYSTS’ BRIEFING Q1 / FY 2024 PERFORMANCE REVIEW 15 DECEMBER 2023

  2. Slide 2: Corporate Structure (31 October 2023)

    CORPORATE STRUCTURE (31 OCTOBER 2023) Key Operating Units 2

  3. Slide 3: The Macro Environment

    THE MACRO ENVIRONMENT MALAYSIA REAL GDP GROWTH 20.00 16.10 15.00 14.20 The Malaysian economy remained sluggish with 8.90 10.00 7.00 5.60 growth of 3.3% in 3Q 2023 after expanding of 3.60 5.00 2.90 5.00 3.30 2.9% in 2Q, as resilient domestic demand offset 0.00 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3

  4. Slide 4: HTVB Group Performance Review - 1Q FY24 vs 1Q FY23

    HTVB GROUP PERFORMANCE REVIEW - 1Q FY24 vs 1Q FY23 (corresponding quarter) (RM’M) 1Q FY24 1Q FY23 Variance ➢ Revenue rose by 2%, driven mainly by an 11% increase in sales volumes despite a drop in average Revenue 407.5 397.8 2% selling prices. Gross Profit 20.4 (37.1) 155% ➢ Gross profit showed a po

  5. Slide 5: HTVB Group Performance Review - 1Q FY2024 vs 4Q FY2023

    HTVB GROUP PERFORMANCE REVIEW - 1Q FY2024 vs 4Q FY2023 (preceding quarter) ➢ Revenue dropped by 10% due to weak demand (RM’M) 1Q FY24 4Q FY23 Variance for steel products, leading to lower sales. Revenue 407.5 453.8 -10% Gross Profit 20.4 41.4 -51% ➢ Gross profit declined because of both reduced GPM

  6. Slide 6: Performance Chart – FY2022 to 1Q FY2024

    PERFORMANCE CHART – FY2022 to 1Q FY2024 HTVB GROUP : GPM & OPERATING MARGIN ➢ Negative GPM in 1Q FY2023 was due to higher cost of 11.8% inventory and RM27.3m write- 10.0% down of inventories to NRV. 8.7% 9.2% 5.9% 3.5% 5.2% 5.0% ➢ After 3 consecutive quarters of 0.1% 2.0% upward trend for GPM, the F

  7. Slide 7: Eastern Steel Sdn. Bhd.

    EE eastern Steel Sdn. Bhd. HTVB

  8. Slide 8: ESSB Performance Review – 1Q FY2024 vs 4Q FY2023

    ESSB PERFORMANCE REVIEW – 1Q FY2024 vs 4Q FY2023 (preceding quarter) (RM’M) 1Q FY24 4Q FY23 Variance ➢ 9% revenue drop linked to lower average Volume (kMT) 237.5 219.9 8% selling prices. Revenue 611.6 673.4 -9% ➢ Gross Profit Margin (GPM) decline due to an Gross Profit overall reduction in the avera

  9. Slide 9: ESSB Performance Review – Product Mix and Market Distribution

    ESSB PERFORMANCE REVIEW – 1Q FY234 Q1FY2024 PRODUCT MIX Billet, 20% Slab, 80% MARKET DISTRIBUTION Q1FY2024 Indonesia 5% Japan 8% Thailand Turkey 12% 46% Malaysia 29% 9

  10. Slide 10: Outlook – Cautious but Optimistic

    OUTLOOK – CAUTIOUS BUT OPTIMISTIC ❑ THE GROUP REPORTED A NET LOSS OF RM 9.4 MILLION IN 1Q FY2024, ATTRIBUTED TO SHARING JV ENTITY ESSB'S LOSSES, PRIMARILY DUE TO SIGNIFICANT ADVERSE IMPACT ON FOREX TRANSLATION, DESPITE A REMARKABLE OPERATING PROFIT. ❑ ESSB REACHED A SIGNIFICANT MILESTONE, SUCCESSFUL

  11. Slide 11: Thank You

    THANK YOU 11

Hiap Teck Venture Berhad — Q1 FY2024 Earnings Presentation on 6ix