Kumpulan Perangsang Selangor Bhd. · MYX:KPS
Kumpulan Perangsang Selangor Bhd — Q3 2018 Earnings Presentation
32 slides from Kumpulan Perangsang Selangor Bhd's earnings presentation, Dec 10, 2018
Slide 1: Investor Briefing 3rd Quarter 2018 Results
KUMPULAN PERANGSANG SELANGOR BERHAD INVESTOR BRIEFING 3RD QUARTER 2018 RESULTS 10 December 2018
Slide 2: Table of Contents
TABLE OF CONTENTS SECTION 1 KPS 101 - Who We Are 4 - What We REALLY Do 5 - Our Investment Strategy 6 Q3 2018 Group Financial Results 8 - Key Highlights 9 SECTION 2 - Revenue by Sector 10 - Results Summary 12 - 22 - Sectoral Performance Review YTD September 2018 Group Financial Results SECTION 3 - Re
Slide 3: Section 1: KPS 101
SECTION 1 I KPS 101
Slide 4: Who We Are
Who We Are Selangor’s Flagship Investment Holding Company with Regional and Global Presence Public KDEB PKNS LTH 32.4% 57.9% 5.5% 4.2% 60% King Koil 100% 60% 100% KKLC KKMW 98.9% 100% 60% 51% 51% CBB CPI Smartpipe Aqua-Flo KPS-HCM 20% 40% As at 30 September 2018 SPRINT NGC Energy 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 Financial Investment Performance Strategy Potential for Expansion 5
Slide 6: What We REALLY Do
What We REALLY Do We Invest in Varied Portfolio of Assets with Concentration in Manufacturing Sector CORE ASSETS CPI (PENANG) (100%) AQUA-FLO SDN BHD (51%) Engineering Thermoplastic IM & Trading of potable water chemicals Electronic Manufacturing Service Provider CENTURY BOND BHD (98.9%) SMARTPIPE T
Slide 7: Section 2: Q3 2018 Group Financial Results
SECTION 2 I Q3 2018 GROUP FINANCIAL RESULTS
Slide 8: Key Highlights
Key Highlights Fundamentals Fortified, but Performance Shadowed by One-off Share of Loss 01 Revenue Up RM68 million 02 Operating Profit Strong Turnaround 03 Streamlining Focus Manufacturing Sector 04 Extraordinary Item One-off Share of Loss from Associate Extraordinary Item 8
Slide 9: Revenue by Sector
Revenue by Sector Higher Revenue of RM68mil Contributed Mainly by Manufacturing (CBB, CPI & KK) and Trading (Aqua-Flo) Licensing, 8.0 Sector Q3 2018 Q3 2017 5% 2% Investment Manufacturing 101.5 44.9 Holding, 2.2 Trading 28.2 26.3 9% Infrastructure 13.7 2.5 Infrastructure, 13.7 Licensing 8.0 8.4 3Q18
Slide 10: Results Summary
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 10
Slide 11: Sectoral Performance Review
I SECTORAL PERFORMANCE REVIEW
Slide 12: Manufacturing
I Manufacturing
Slide 13: 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-paper bags: Emix, Jimei, M
Slide 14: 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 15: 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 16: Licensing
I Licensing
Slide 17: 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 18: Trading
I Trading
Slide 19: 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 20: Infrastructure
I Infrastructure
Slide 21: KPS-HCM Sdn Bhd
KPS-HCM Sdn Bhd Riding the growth in infrastructure works and road maintenance 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 oper
Slide 22: 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 23: Section 3: YTD September 2018 Group Financial Results
SECTION 3 I YTD SEPTEMBER 2018 GROUP FINANCIAL RESULTS
Slide 24: Revenue by Sector
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 Manufacturing
Slide 25: Results Summary
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 25
Slide 26: Section 4: Business Outlook
SECTION 4 I BUSINESS OUTLOOK
Slide 27: 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 28: 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 29: Section 5: Why KPS?
SECTION 5 I WHY KPS?
Slide 30: What's In It for Investors?
What’s In It for Investors? Value & Growth Generating from a More Concentrated Core Assets Streamlining Focus & Synergy VALUE GROWTH Steady Dividend Driven by Profile Arising Expansion and from Steady Continuous Value Cashflow from Creation Plans at Subsidiaries Subsidiaries Level Value Growth 30
Slide 31: Thank You
Thank You
Slide 32: 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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