Scientex Bhd. · MYX:SCIENTX
Scientex Bhd — Q3 FY2019 Earnings Presentation
23 slides from Scientex Bhd's earnings presentation, Jun 26, 2019
Slide 1: Powered by Twin Engines: 3Q19 Corporate Update & Financial Results
(Company No.: 7867-P) Powered by Twin Engines Corporate Presentation 3Q19 Corporate Update & Financial Results 26 June 2019 IR Adviser
Slide 2: Financial Performance
Powered by Twin Engines FINANCIAL PERFORMANCE
Slide 3: Revenue Performance
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix 9M19 revenue growth riding on strong double-digit expansion in 3Q19… outpacing past 2 quarters on strong execution prowess Revenue by segment 9M19 revenue increased 23% on higher contribution Manufacturing from man
Slide 4: Profit Performance
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix 9M19 operating profit growth driven by manufacturing and property development segments… 9M19 operating profit increased 10.3% due to: Operating profit by segment Better sales performance at the manufacturing segm
Slide 5: Cash Flow
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Annual 0perating cash flow of more than RM300 million… expecting to maintain uptrend Net cash used Net cash from operations in investing activities RM’m 9M18 9M19 380 392 323 309 331 192 154 FY14 FY15 FY16 FY17 FY18
Slide 6: Income Statement Summary
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix 3Q19 results beating quarterly topline records… Group on track to achieve best- ever revenue performance in FY2019 3Q19 3Q18 Change RM'mil 9M19 9M18 Change Remarks 828.5 596.4 38.9% Revenue 2,308.7 1,882.1 22.7% 103.
Slide 7: Balance Sheet (Highlights)
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Strong operational cashflow to contribute towards reduced gearing and fund future plans… As at As at Balance Sheet (RM ‘000) Remarks 30.04.2019 31.7.2018 Property, Plant & Equipment 1,255,122 1,150,608 Investment Pro
Slide 8: Manufacturing Review
Powered by Twin Engines MANUFACTURING REVIEW
Slide 9: Segment Performance: Manufacturing
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix 9M19 manufacturing boost from higher sales at existing and newly-acquired businesses… Revenue Operating Revenue Operating Profit Profit (by geography) RM’m +25.4% RM’m Operating Profit yoy Margin Overseas Malaysia 8.
Slide 10: Growth Plans: Manufacturing
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Long term growth supported by expanded manufacturing capacity… Revenue Operating Profit (Quarterly) (Quarterly) 379.7 411.9 442.8 435.3 469.1 456.4 452.1 527.0 575.8 549.0 602.8 23.8 30.2 25.2 18.8
Slide 11: Growth Plans: Manufacturing
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Scientex continues to grow as a prominent FPP manufacturer in the F&B and FMCG sectors… On 19 February 2019, Scientex completed the acquisition of a 42.4% controlling stake in Daibochi On 1 Apri
Slide 12: Daibochi's proposed acquisition of MPP
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Daibochi’s proposed acquisition of MPP set to enhance Group’s product portfolio and provide operating synergies… Daibochi had on 3 May 2019 proposed to acquire 100% of Mega Printing & Packaging (M
Slide 13: MPP expands Daibochi's clientele
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix MPP expands Daibochi’s clientele to cover two distinct market segments… • Value-added packaging • Cost-effective packaging • High performance solutions • Price sensitive solutions • Premium quality
Slide 14: Growth Strategies: Manufacturing
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Synergistic production capabilities and continued innovation through R&D… increasing utilization rate and pursuing sustainability goals • Growth supported by 19 manufacturing • Adopting robotic auto
Slide 15: Property Development Review
Powered by Twin Engines PROPERTY DEVELOPMENT REVIEW
Slide 16: Segment Performance: Property Development
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Group continues to see resilient demand for affordable homes… Revenue Operating Profit Operating Profit (Annual) RM’m (Annual) Operating Margin RM548m GDV RM’m 9M19 new property launches 15.2% 12.1% yoy yoy • 1,175 u
Slide 17: Growth Plans: Property Development
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Scientex continues cross-border growth strategy with first Penang land purchase... sufficient landbank to last for more than 10 years Land acquisitions in 2019 Enlarged development profile Location:
Slide 18: Operations Review: Property Development
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Scientex’s affordable homes support the home ownership initiatives in various state across Malaysia… Rumah Belia Melaka (RBM) >80% • Launched RBM Scheme on 22 March 2019 in Scientex Durian Tunggal, Melaka; taken up t
Slide 19: Growth Strategies: Property Development
Operations Review Growth Strategies Growth Strategies Financial Highlights Investment Merits Appendix Property segment aims to capture vast demand for affordable homes in Malaysia… Vision 2028 Growth Strategies To deliver 50,000 affordable Focused on affordable housing homes to the public by 202
Slide 20: Investment Merits
Powered by Twin Engines INVESTMENT MERITS
Slide 21: Investment Merits
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix A high-growth proposition all-round... attractive proxy to the burgeoning packaging sector and Malaysia’s affordable property market Regional leader in total solutions for packaging Valuations @ 21 June 2019 •Among t
Slide 22: Dividend History
Operations Review Growth Strategies Financial Highlights Investment Merits Appendix Proposed interim dividend of 10 sen per share in respect of FY2019… RM’mil 74.0% Dividend History 49.2%48.0% 49.8% 52.1% 36.6% 36.1% 33.4%35.9% 31.4% 28.7% 28.8%32.1% 31.7% 30.7%30.2%33.7% 26.6% 25.7% 5.9 14.2 17.2 1
Slide 23: Thank You
Powered by Twin Engines Thank You Contacts: • Ms. Choo Pooi Luen plchoo@scientex.com.my T: 03-5524 8888/03-5519 1325 • Ms. Julia Pong julia@aquilas.com.my T: 03-2711 1391