Kelington Group Bhd. · MYX:KGB
Kelington Group Bhd — Q1 2023 Earnings Presentation
17 slides from Kelington Group Bhd's earnings presentation, May 31, 2023
Slide 1: Kelington Group Berhad 1Q 2023 Financial Review
KELINGTON GROUP BERHAD (501386-P) STOCK CODE : KGB / 0151 1Q 2023 Financial Review May 2023 WE ENGINEER SOLUTIONS
Slide 2: Disclaimer
Disclaimer • This presentation may contain forward-looking statements. All statements other than statements of historical facts contained in this presentation including, without limitation, those regarding our financial position, business strategies, plans and objectives of our Group for future oper
Slide 3: Financial Track Record
FINANCIAL TRACK RECORD Revenue (RM mil) 1,278.8 514.6 379.8 394.6 308.9 FY2019 FY2020 FY2021 FY2022 1QFY23 Net Profit (RM mil) 55.8 29.0 24.4 17.5 16.2 FY2019 FY2020 FY2021 FY2022 1QFY23 3
Slide 4: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS INCOME STATEMENT % 1Q 2023 1Q 2022 (RM MIL) CHANGE Revenue 308.9 173.3 +78% Lower GP margins 1 were mainly due to a Gross profit 37.9 23.7 +60% lower proportion of Gross profit margin 1 12.3% 13.7% Ultra High Purity segment. Other income 2 1.5 0.2 Administrative expenses
Slide 5: 1QFY23 Revenue by Business Segment
1QFY23 REVENUE BY BUSINESS SEGMENT Revenue growth across all segments Industrial Gases Industrial Gases, RM24.1m Others, RM9.9m 8% RM 2.6m Others, 1% 6% General RM0.5m, +145% 0% General Contracting Contracting, RM38.4m RM64.5m, 22% 21% 1QFY22 1QFY23 +68% Process Ultra High Engineering Ultra High Pro
Slide 6: 1QFY23 Revenue by Geographical Markets
1QFY23 REVENUE BY GEOGRAPHICAL MARKETS Better performance across all operating markets 173.3 +78.2% 308.9 Malaysia 9.4 Surge in revenue due to higher 7.4 recognition of one UHP project and 45.5 (+52.1%) one Process Engineering project (+68.9%) which both were awarded during 2HFY22. 104.1 RM mil (+67
Slide 7: Industrial Gases Segment Continue Growth Momentum
INDUSTRIAL GASES SEGMENT CONTINUE GROWTH MOMENTUM LCO2 plant almost reaching full capacity, second LCO2 plant to commence in 4Q 2023 ADDITIONAL INVESTMENT TO 91% 80% CONSTRUCT NEW LCO2 PLANT 60% Investment 40% RM45 million Value 20% Next to existing Location LCO2 plant in Utilisation rate of LCO2 pl
Slide 8: New On-Site Gas Supply Scheme
NEW ON-SITE GAS SUPPLY SCHEME On track to commence in 4Q 2023, a new recurring revenue stream • Secured 10-year contract to supply hydrogen, nitrogen and oxygen for an optoelectronics semiconductor giant in Kulim, Kedah. • Supply of gases expected to commence in 4Q 2023. • Expected to generate cumul
Slide 9: Consistent Order Flows
CONSISTENT ORDER FLOWS New orders secured (RM’ mil) Notable contract wins 1,848 • Jan 2023 - General Contracting contract for an integrated chips 1,190 manufacturing facility at Kuching, Sarawak worth RM170 million. 490 • April 2023 – UHP contract 424 467 386 for a global high-tech filtration, separ
Slide 10: UHP Segment Remains the Key Growth Driver
UHP SEGMENT REMAINS THE KEY GROWTH DRIVER Outstanding orderbook stood at RM1.83 billion as at 31 March 2023 8% 1% RM155 mil RM20 mil 16% 25% RM292 mil RM464 mil 47% RM864 mil RM1.83 Business billion outstanding Geographical segment markets orderbook as at 31 March 2023 66% RM1.2 bil 36% RM653 mil Ul
Slide 11: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Gearing up to execute our elevated orders in hand 1 The reduction in total borrowings is attributed to the repayment of loans in Malaysia. 2 The increase in shareholders' equity was mainly due to consecutive quarterly profits. 31.12.2021 31.12.2022 31.03.2023 RM mil (Audited
Slide 12: Dividend Payout Trending Upward
DIVIDEND PAYOUT TRENDING UPWARD 16.08 Dividend policy to distribute 25% of PATAMI as dividends. Save for FY2020 in which our 9.65 financial performance was impacted by the pandemic, the Group has consistently 6.22 sustained its uptrend in 5.00 dividend payout since FY2016. 4.72 3.66 2.26 2.5 1.8 2.0
Slide 13: ESG
ESG Maintained 3-star ESG rating, as assessed by FTSE Russell in Dec 2022 review ENVIRONMENTAL SOCIAL • Year-on-year • Maintained zero reduction in FY2022 fatalities as a result ✓ CO2 emissions intensity of work-related by 39% injuries. ✓ Water intensity by 37% ✓ Electricity intensity by • Occupatio
Slide 14: Industry Outlook: A Rebound Ahead?
INDUSTRY OUTLOOK A rebound ahead? According to SIA, the drop in semiconductor sales continued in first quarter of 2023 due to market cyclicality and macroeconomics headwinds. However, month-on-month sales were up in March 2023, providing optimism for a rebound in the months ahead(1) March’23 = +0.3%
Slide 15: Industry Outlook: Foreign Chip Makers Stay on Track in Singapore
INDUSTRY OUTLOOK Foreign chip makers stay on track with major projects in Singapore • Foreign chip makers are sticking to their expansion plan despite Washington’s efforts to keep cutting-edge chips out of China such as GlobalFoundries, Applied Materials, Taiwan Semiconductor Manufacturing Co and ot
Slide 16: Key Take-Aways
KEY TAKE-AWAYS • Engineering Projects • Outstanding orderbook of RM1.83 billion will keep Group busy in 2023. • Industrial Gases • New LC02 plant to commence in 4Q 2023. Capacity will more than double from current 50,000MT/year. • New on-site gas supply in Kulim to commence in 4Q 2023. Recurring inc
Slide 17: Thank You
THANK YOU We engineer We engineer solutions solutions 17
Kelington Group Berhad — Q1 2023 Earnings Presentation on 6ix