Kumpulan Perangsang Selangor Bhd. · MYX:KPS
Kumpulan Perangsang Selangor Bhd — CIMB Corporate Day 2019
33 slides from Kumpulan Perangsang Selangor Bhd's conference presentation, Jan 3, 2019
Slide 1: Kumpulan Perangsang Selangor Berhad Investor Briefing
KUMPULAN PERANGSANG SELANGOR BERHAD INVESTOR BRIEFING CIMB CORPORATE DAY 3 January 2019
Slide 2: Table of Contents
TABLE OF CONTENTS SECTION 1 KPS 101 - Who We Are 4 - Our Investment Strategy 5 - What We Really Do 6 Financial Results - Key Highlights 8 SECTION 2 - 3Q18 Results 10 -11 - 3Q18 Sectoral Performance Review 13 - 23 - YTD Results 25 - 26 SECTION 3 Business Outlook 28 - 29 SECTION 4 Why KPS? 31
Slide 3: Section 1: KPS 101
SECTION 1 I KPS 101
Slide 4: Who We Are
Who We Are Investment Holding Company with Regional and Global Presence Public KDEB PKNS LTH 32.4% 57.9% 5.5% 4.2% 98.9% 100% 60% 51% 51% CBB CPI Smartpipe Aqua-Flo KPS-HCM 60% Kaiserkorp 20% 40% 100% 60% Post SPLASH disposal SPRINT NGC Energy KKLC KKMW 4
Slide 5: Investment Strategy
Investment Strategy 1. Sector Trend and Dynamics 2. Earnings Accretive with Positive Cashflow 3. High Regional and Global Growth Potential Control & Monitoring Proven Performance Investment Potential Criteria for Expansion 5
Slide 6: What We Really Do
What We REALLY Do Focused Investment in 4 Core Assets with Concentration in Manufacturing CORE ASSETS CPI (PENANG) (100%) AQUA-FLO SDN BHD (51%) Engineering Thermoplastic & Trading of potable water chemicals Electronic Manufacturing Service Provider CENTURY BOND BHD (98.9%) SMARTPIPE TECHNOLOGY (60%
Slide 7: Section 2: Financial Results
SECTION 2 I FINANCIAL RESULTS
Slide 8: Key Highlights
Key Highlights Fundamentals Fortified as per Business Transformation Plan, but Performance Shadowed by One-off Share of Loss 01 Revenue Healthy Growth 02 Operating Profit Strong Turnaround 03 Streamlining Focus Manufacturing Sector 04 Extraordinary Item One-off Share of Loss from Associate Extraordi
Slide 9: 3Q18 Results
I 3Q18 RESULTS
Slide 10: 3Q18 Revenue by Sector
3Q18 Revenue by Sector Higher Revenue of RM68mil Contributed Mainly by Manufacturing (CBB, CPI & KK) and Trading (Aqua-Flo) Licensing, 30.3 Sector 2018 2017 5% 2% Others, 10.1 Manufacturing 357.1 174.1 Trading 111.1 101.3 13% Infrastructure 73.1 40.8 Infra, 73.1 Licensing 30.3 35.8 Revenue 61% Other
Slide 11: 3Q18 Results Summary
3Q18 Results Summary Results Impacted by One-off RM305.3 Million Share of Losses From SPLASH Holdings Revenue 85.6 153.6 RM68.0M Operating -1.5 Profit 10.7 RM12.2M PAT 13.5 RM286.0M -272.5 RM M Q3 2017 Q3 2018 11
Slide 12: Sectoral Performance Review
I SECTORAL PERFORMANCE REVIEW
Slide 13: Manufacturing
I Manufacturing
Slide 14: Century Bond Bhd
Century Bond Bhd Regional Player in Packaging Solutions 1. Plants (70% Utilisation) Century Bond Bhd Manufacturing Plant: • Senai, Ipoh and Medan for paper bags • Senai & Nilai for carton boxes and plastics 2. Key Clients • Paper bags: Lafarge, YTL, CIMA, Hume, Tasek • Non-cement bags: Emix, Jimei,
Slide 15: CPI (Penang) Sdn Bhd
CPI (PENANG) SDN BHD Engineering Thermoplastic Injection Moulding (ETP) and Electronic Manufacturing Services (EMS) Provider 1. Plants (80% Utilisation) Example of Products: • Bayan Lepas 2. Key Clients • Over 90 clients worldwide • Sector: automotive, medical, communications & electronics Automotiv
Slide 16: King Koil - Manufacturing
King Koil - Manufacturing Capitalising on Larger Market Share in US Domestic Wholesale Mattress Industry King Koil Manufacturing Facility, Arizona USA: Q3 2018 FINANCIAL PERFORMANCE (RM M) 12.7 Q3 2018 (1.3) (1.7) Revenue EBITDA PBT 1. Intro 3. Q3 2018 Highlights • In-house manufacturing and direct
Slide 17: Licensing
I Licensing
Slide 18: King Koil - Licensing
King Koil - Licensing KPS’ First Foray into International Markets via King Koil Brand Global Licensing Business RM M Q3 2018 Q3 2017 1. Number of Licenses 8.4 8.0 • 30 (2 in the US, 28 in other countries) 2. Retailers • Key Retailers: The Dump, Denver Mattress 3. Contract Manufacturer 2.1 • Blue Bel
Slide 19: Trading
I Trading
Slide 20: Aqua-Flo Sdn Bhd
Aqua-Flo Sdn Bhd Main Provider of Water Chemical Products to Water Industry 1. Current Orderbook Fully Equipped Research and • Estimated at RM162.5 million, for 2+1 years Development Laboratory: 2. Key Clients • Pengurusan Air Selangor • 5 other state water companies Project & 6% Contract, 1.6 Equip
Slide 21: Infrastructure
I Infrastructure
Slide 22: KPS-HCM Sdn Bhd
KPS-HCM Sdn Bhd Trailing the Prospect of the Infrastructure Sector Infrastrucure Works at Phase 3C, Pulau Indah Industrial Park: Q3 2018 FINANCIAL PERFORMANCE (RM M) 13.6 Q3 2018 Q3 2017 2.5 0.8 1. Main Business • Road and highway construction, rehabilitation, upgrading, -0.1 operations and maintena
Slide 23: Smartpipe Technology Sdn Bhd
Smartpipe Technology Sdn Bhd Integrated Solutions Provider to Water and Other Utility Companies for Pipe Rehabilitation and Pipe Replacement. Compact Pipe Installation Pilot Projects: Q3 2018 FINANCIAL PERFORMANCE (RM M) 3.1 Q3 2018 Q3 2017 Taman Bukit Anggerik, Jalan Dato Haji Ahmad Said, Cheras fo
Slide 24: YTD Results
I YTD RESULTS
Slide 25: YTD Revenue by Sector
YTD Revenue by Sector Higher Revenue of RM172mil Contributed Mainly by Manufacturing and Trading Licensing 5% 6% 2% 2% Investment Holding 12% 9% Infrastructure Sector YTD 9 2018 YTD 9 2017 Manufacturing 248.4 124.1 YTD RM124.4M 20% 18% Revenue 60% 66% Trading 82.2 76.2 410.8 RM5.9M Trading Manufactu
Slide 26: YTD Results Summary
YTD Results Summary Financial Performance Muted by One-off RM305.3 Million Share of Loss from SPLASH Holdings Revenue 410.7 RM172.4M 238.3 Operating 13.8 RM13.7M Profit 0.1 -218.8 RM289.1M PAT 70.3 RM M YTD September 2018 YTD September 2017 26
Slide 27: Section 3: Business Outlook
SECTION 3 I BUSINESS OUTLOOK
Slide 28: Addressing Earnings Gap from SPLASH Disposal
Addressing Earnings Gap from SPLASH Disposal Acquisition of Earnings-Accretive Growth Companies Earnings Profile Enhanced Companies that Companies that Companies with Target Completion: 2019 can integrate with have potential strong dividend our core assets to grow to be paying capability for focus a
Slide 29: Catalysts for Subsidiaries
Catalysts for Subsidiaries Growth and Expansion Plan Laid Out 1. Enlarging footprint in non-cement bags. 1. New contract estimated at 2. Moving towards higher margin products. RM162.5 mil. 3. Securing new regional customers. 2. New source of income: sales of 4. CAPEX ~ RM7 million. water meter. 1. E
Slide 30: Section 4: Why KPS?
SECTION 4 I WHY KPS?
Slide 31: What's In It for Investors?
What’s In It for Investors? Growth Generating from a More Concentrated Core Assets Streamlining Focus & Synergy GROWTH VALUE Driven by Sustainable Expansion and Dividend Profile Continuous Value Arising from Creation Plans at Steady Cashflow Subsidiaries Level from Subsidiaries Growth Value 31
Slide 32: Thank You
Thank You
Slide 33: Disclaimer
Disclaimer Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or “the Group”) makes no representation or warranty, whether expressed or implied, as to the accuracy or completeness of the facts highlighted in this presentation, disclaiming responsibility from any liability arising from the re
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