Malaysian Resources Corp. Bhd. · MYX:MRCB
Malaysian Resources Corp. Bhd — Q1 2019 Earnings Presentation
18 slides from Malaysian Resources Corp. Bhd's earnings presentation, Mar 31, 2019
Slide 1: Analyst Briefing - Quarter ended 31 March 2019
ANALYST BRIEFING Quarter ended 31 March 2019 www.mrcb.com
Slide 2: Table of Contents
Table of Contents MRCB Group Overview 3 Financial Performance 8 Business Model 4 Segmental Reporting: Overview 12 MRCB Financial Summary 6 Segmental Reporting: Property Development 13 YTD 2019 Highlights 7 & Investment Segmental Reporting: Engineering, Construction 16 & Environment
Slide 3: MRCB Group Overview
1. MRCB Group Overview 2 core activities: Property Development & Investment Engineering, Construction & Environment Other activities: Facilities Management & Parking Pioneered Transport Oriented Development (“TOD”) in Malaysia Property investment is conducted through 27.94% owned MRCB-Quill REIT 3
Slide 4: Business Model – Property Development & Investment
2. Business Model – Property Development & Investment Bespoke Buildings Pre-let on Long Term Leases • Purpose built buildings • Carries more value due to customisation • Profits from lease income and possible disposal in the future Bespoke Buildings for Sale • Pre-sell to owner occupiers or other pu
Slide 5: Business Model – Engineering, Construction & Environment
2. Business Model – Engineering, Construction & Environment Infrastructure Commercial Environment Transmission and Residential Lines ▪ Largest Bumiputera construction company ▪ Full service and autonomous construction company ▪ Strong track record and extensive engineering skillsets which allow us t
Slide 6: MRCB Financial Summary
3. MRCB Financial Summary MRCB 1Q FY2019 Overview MRCB Segment Overview Property Engineering & Others Revenue PBT Development Construction RM 234 mil. RM 8 mil. 45% y-o-y 72% y-o-y Revenue 85 133 16 RM mil. 37% y-o-y PAT Net Gearing RM 2 mil. Revenue 0.23 x Contribution 36% 57% 7% 94% y-o-y Operatin
Slide 7: YTD 2019 Highlights
4. YTD 2019 Highlights Revenue (RM mil.) Operating Profit (RM mil.) PBT (RM mil.) EPS (sen) 45% 22% 72% 82% 428 31 24 0.49 19 234 8 0.09 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Key Highlights • Lower revenue recognised in 1QFY2019 mainly due to (i) newer property development
Slide 8: Financial Performance – Profit & Loss
5. Financial Performance – Profit & Loss Y-o-Y Y-o-Y RM' Million 1QFY19 1QFY18 3M 2019 3M 2018 Growth % Growth % Revenue 234 428 (45.3)% 234 428 (45.3)% Other Operating Income 12 16 (27.4)% 12 16 (27.4)% Total Revenue 246 443 (44.6)% 246 443 (44.6)% Operating Expenses (227) (419) (45.9)% (227) (419)
Slide 9: Financial Performance – Quarterly Analysis
5. Financial Performance – Quarterly Analysis Revenue Operating Profit and Margin 664 54 13.3% 43 428 405 19 374 24 6.3% 234 19 8.1% 5.6% 5.1% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 PBT and Margin EPS (sen) 43 0.76 40 31 10.6% 0.60 6.1% 0.49 7.1% 0.45 8 8 3.6% 2.1% 0.09 Q1'18 Q2
Slide 10: Financial Performance – Balance Sheet
5. Financial Performance – Balance Sheet NAV Per Share (sen) RM' Million 1QFY2019 4QFY2018 111.1 Total Assets 110.3 Current Assets 3,079 3,223 110.0 110.0 Non-Current Assets 5,180 5,119 109.3 Total Assets 8,259 8,342 Total Liabilities Current Liabilities 1,789 1,965 Non-Current Liabilities 1,566 1,4
Slide 11: Financial Performance – Borrowings
5. Financial Performance – Borrowings Leverage Profile (RM mil.) 1QFY2019 4QFY2018 Net Debt and Gearing Debt Short Term Borrowings 640 726 Long Term Borrowings 780 765 3,439 3,479 HP creditors 1 2 2,882 1.10x 1.10x Total Debt 1,421 1,493 941 1,106 Less: Cash and Cash Equivalents 315 552 0.58x 0.19x
Slide 12: Segmental Reporting: Overview
6. Segmental Reporting: Overview Revenue Trend – RM234 mil. Revenue Contribution Analysis 428 7% E&C 234 220 191 Property 133 Development 85 36% 16 16 57% Others** Q1’19 Q1’18 Q1’19 Q1’18 Q1’19 Q1’18 Q1’19 Q1’18 Group E&C Property Others** Development Segmental Profit Trend – RM21 mil. Profit Contri
Slide 13: Segmental Reporting: Property Development & Investment
7. Segmental Reporting: Property Development & Investment Y-o-Y Y-o-Y RM' Million 1QFY19 1QFY18 3M 2019 3M 2018 Growth % Growth % Revenue 85 220 (61.4)% 85 220 (61.4)% Segmental Profit 3 24 (87.6)% 3 24 (87.6)% Margin (%) 3.5% 11.0% 3.5% 11.0% Segmental Profit and Margin Performance Discussion Contr
Slide 14: Segmental Reporting: Property Development Projects
7. Segmental Reporting: Property Development Projects Total sales of RM75 mil. in 1QFY2019 Property Sales YTD 2019 – RM75 mil. Unbilled Sales – RM1,626 mil. % Sales Revenue Total Sales Project Unbilled Achieved Project / Sales (RM' mil.) Recognised Project / Sales (RM' mil.) Project Recorded Complet
Slide 15: Segmental Reporting: Property Development Projects
7. Segmental Reporting: Property Development Projects Land Size GDV Start Completion % Stake (Acres) RM' mil. Date Date Transport Oriented Developments KL Sentral: Lot F 5.70 2,993 100% 2018 2025 PJ Sentral Garden City 11.91 2,700 100% 2013 2026 Penang Sentral 22.65 2,865 100% 2015 2027 Cyberjaya Ci
Slide 16: Segmental Reporting: Engineering, Construction & Environment
8. Segmental Reporting: Engineering, Construction & Environment Y-o-Y Y-o-Y RM' Million 1QFY19 1QFY18 3M 2019 3M 2018 Growth % Growth % Revenue 133 191 (30.5)% 133 191 (30.5)% Segmental Profit 17 16 4.4% 17 16 4.4% Margin (%) 12.6% 8.4% 12.6% 8.4% Segmental Profit and Margin Performance Discussion C
Slide 17: Segmental Reporting: Engineering, Construction & Environment
8. Segmental Reporting: Engineering, Construction & Environment Unbilled External Order Book – RM21,374 mil. Contract External Order Book Analysis External Contracts (RM’mil) Completion Value Buildings: Fee-based Desaru Convention Centre 61 92% 5% Desa Desaru 223 96% Westin Desaru Resort 206 97% Bui
Slide 18: Malaysian Resources Corporation Berhad
MALAYSIAN RESOURCES CORPORATION BERHAD Level 30, Menara Allianz Sentral, No. 203, Jalan Tun Sambanthan, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia www.mrcb.com 18
Malaysian Resources Corporation Berhad — Q1 2019 Earnings Presentation on 6ix