Hiap Teck Venture Bhd. · MYX:HIAPTEK
Hiap Teck Venture Bhd — Q2 FY2022 Earnings Presentation
11 slides from Hiap Teck Venture Bhd's earnings presentation, Mar 30, 2022
Slide 1: Analysts' Briefing 2Q FY2022 Performance Review
ANALYSTS’ BRIEFING 2Q FY2022 PERFORMANCE REVIEW 30 March 2022 1
Slide 2: Corporate Structure
Ø CORPORATE STRUCTURE (31 January 2022) Key Operating Units 2
Slide 3: The Macro Environment
The Macro Environment Malaysian economy recovered in 4Q2021 at a nominal growth rate of 3.6% to post a full year expansion of 3.1% in 2021. § Steel prices peaked in May 2021 at USD995 and thereafter started its downtrend to reach USD765 in January 2022. § Due to supply disruption caused by the Ukrai
Slide 4: HTVB Group in 2Q FY22: Declining Steel Prices and Lower Sales Volumes
HTVB Group in 2Q FY22 (Nov 2021 – Jan 2022) DECLINING STEEL PRICES AND LOWER SALES VOLUMES q Steel prices peaked in May 2021 and on downtrend during the quarter. q Downward steel prices impacted the margin for both the JV and downstream operating entities. q Sales volume stabilised in first two mont
Slide 5: 2Q FY22 vs 2Q FY21 (corresponding quarter)
Performance Review – 2Q FY22 vs 2Q FY21 (corresponding quarter) The Group’s NPAT is lower marginally at RM28.3m mainly due to lower sales volumes despite higher selling price. (RM’M) 2Q FY21 2Q FY22 Variance Remark Revenue 356.0 333.2 -6.4% lower volume Revenue -6.4% Gross Profit 46.3 44.5 GPM 13.0%
Slide 6: 2Q FY22 vs 1Q FY22 (preceding quarter)
Performance Review – 2Q FY22 vs 1Q FY22 (preceding quarter) Lower revenue and NPAT than preceding quarter due to declining selling price which impacted profit margin. (RM’M) 1Q FY22 2Q FY22 Variance Remark Revenue -18% Revenue 406.6 333.2 -18% Lower volume & price Gross Profit 74.5 44.5 GPM 18.3% 13
Slide 7: Eastern Steel Sdn. Bhd.
Eastern Steel Sdn. Bhd. 7
Slide 8: ESSB Performance Review – 2Q FY22 vs 1Q FY22
ESSB Performance Review – 2Q FY22 vs 1Q FY22 (preceding quarter) 1QFY22 2QFY22 (RM’M) Aug-Oct 21 Nov 21-Jan 22 Variance Remarks Volume (MT) 201.6 226.0 12% Higher volume Revenue 687.3 668.5 -3% Lower selling prices Gross Profit 109.2 65.0 -40% GPM 15.9% 9.7% Lower margin due to declining steel price
Slide 9: ESSB Performance Review – 2Q FY22 Product Mix
ESSB Performance Review – 2Q FY22 Product Mix Billets 24% Slabs 76% Slabs Billets 9
Slide 10: Outlook – Positive
Outlook – POSITIVE ü GROUP RECORDED A REMARKABLE 6 MONTHS PERFORMANCE TO DATE WITH A NPAT OF RM99.4 MILLION A 167% INCREASED OVER THE PRECEDING YEAR CORRESPONING PERIOD. ü OUTLOOK FOR COMING QUARTER REMAINS SUBDUED WITH MARGINS UNDER PRESSURE FROM THE DECLINE IN STEEL PRICES AND HIGHER INVENTORY COS
Slide 11: Thank You
THANK YOU 11