Kelington Group Bhd. · MYX:KGB
Kelington Group Bhd — Q3 2023 Earnings Presentation
22 slides from Kelington Group Bhd's earnings presentation, Nov 29, 2023
Slide 1: 3Q FY2023 Presentation
KELINGTON GROUP BERHAD KELINGTON GROUP BERHAD 3Q FY2023 PRESENTATION 29 November 2023 1
Slide 2: On Track for Another Record Year
FINANCIAL PERFORMANCE ON TRACK FOR ANOTHER RECORD YEAR Revenue (RM mil) Shareholder’s Equity (RM mil) 1,278.8 1,135.7 301.1 514.6 239.3 379.8 394.6 191.7 155.3 168.0 FY 2019 FY 2020 FY 2021 FY 2022 9M 2023 FY 2019 FY 2020 FY 2021 FY 2022 9M FY23 Net Profit (RM mil) Total Dividend Declared and Paid (
Slide 3: Income Statement Highlights
3Q FY23 FINANCIAL PERFORMANCE INCOME STATEMENT HIGHLIGHTS INCOME STATEMENT % 3Q FY23 3Q FY22 9M FY23 9M FY22 % CHANGE (RM MIL) CHANGE Revenue 401.8 366.4 +10% 1,135.7 852.1 +33% Gross profit 59.3 40.7 +46% 143.3 97.0 +48% Gross profit margin 14.8% 11.1% 12.6% 11.4% Other income 1.8 0.3 6.7 1.7 Admin
Slide 4: Growth Across All Geographical Regions
3QFY23 REVENUE BREAKDOWN GROWTH ACROSS ALL GEOGRAPHICAL REGIONS Process Engineering Others* Equipment and RM30.3 m RM19.7 m Industrial materials 8% 5% Gases RM0.1 m China RM30.1 m +114.2% YoY 1% +14% YoY RM64.5m 7% Malaysia 16% +46.8% YoY RM183.6 m +26.4% YoY 46% +6.0% YoY General Contracting RM102.
Slide 5: Continue to Win Contracts
CONTINUE TO WIN CONTRACTS ORDERBOOK REPLENISHMENT REMAINS HEALTHY NEW ORDERS SECURED (RM’ mil) 1,848 RM 1.51 billion Total orderbook 1,190 858 424 386 490 RM 2.17 billion Total tenderbook FY2018 FY2019 FY2020 FY2021 FY2022 9MFY23 Total orders secured in October & November 2023 : RM157 million 5
Slide 6: Outstanding Orderbook of RM1.51 Billion
68% OF OUTSTANDING ORDEBOOK IS FROM UHP SEGMENT OUTSTANDING ORDERBOOK OF RM1.51 BILLION (as at 30 September 2023) Process Engineering Taiwan RM111 mil RM13 mil 7% China 1% RM340 mil 22% General Malaysia Contracting RM591 mil RM372 mil 39% 25% Business Geographical Segment Markets Ultra-High Singapor
Slide 7: Completion of Notable Project
COMPLETION OF NOTABLE PROJECT Our Scope : Turnkey construction of new manufacturing facility for data storage devices and solutions specialist 7
Slide 8: Industrial Gas Segment: Growth in Financial Performance
INDUSTRIAL GAS SEGMENT GROWTH IN FINANCIAL PERFORMANCE INDUSTRIAL GAS REVENUE STREAMS REVENUE (RM MIL) 82.9 62.4 34.5 Manufacturing of Rental income from liquid CO2 and dry ice on-site gas generator 22.1 8 FY 2019 FY 2020 FY 2021 FY 2022 9M FY23 Trading of various industrial 8 and electronic special
Slide 9: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS 31.09.2023 31.12.2022 RM MIL (Unaudited) (Audited) Total Assets 1,065.9 1,055.6 Total Liabilities 758.8 812.5 Total Borrowings 222.8 245.0 Short-term 162.3 209.6 Long-term 60.5 35.5 Total Cash 220.9 260.0 Total Equity 307.1 243.1 Net Asset/Share 48 sen 38 sen Gearing (times)
Slide 10: Future Plans and Outlook
KELINGTON GROUP BERHAD FUTURE PLANS AND OUTLOOK 10
Slide 11: Enhancing Shareholder Value Through Focused Growth Strategies
ENHANCING SHAREHODER VALUE THROUGH FOCUSED GROWTH STRATEGIES Engineering Industrial Gas business business Cash earned from engineering business is allocated into recurring income generating assets • Project based • Recurring income • Services oriented • Manufacturing oriented • Asset light • Asset h
Slide 12: 2024: Recovery, 2025: Growth
UHP ORDERBOOK TO GROW IN-LINE WITH RECOVERY OF SEMICON INDUSTRY 2024 : RECOVERY, 2025 : GROWTH Strong demand for high-performance computing, automotive applications and improved demand for memory will fuel double-digit spending in equipment investments over the three-year period. Source : https://ww
Slide 13: Semicon Manufacturers Continue to Expand
ON-GOING OPPORTUNITIES FOR BASE-BUILD AND HOOK-UP PROJECTS SEMICON MANUFACTURERS CONTINUE TO EXPAND CXMT Changxin Xinqiao Storage Technology By the end of 2024, around 2 billion Euro will have been invested into this greenfield project. This will be followed by further investments on a smaller scale
Slide 14: Expansion of Geographical Reach
ENTERING NEW MARKETS EXPANSION OF GEOGRAPHICAL REACH Hong Kong Germany Taiwan China Philippines Malaysia Indonesia Engineering Singapore Fiji Industrial Gas Potential new market New Zealand Australia 14
Slide 15: Closure of Petrochemical Plants Led to Global Shortage of CO2
CLOSURE OF PETROCHEMICAL PLANTS HAVE LED TO GLOBAL SHORAGE OF CO2 Environmental Transition to renewable concerns energy Closure of Global petrochemical shortage of plants CO2 Government policies - Stricter regulations 15
Slide 16: Second LCO2 Plant Will More Than Double Existing Capacity
WELL-POISED TO CAPITALISE ON GLOBAL SHORTAGE COMMENCEMENT OF SECOND LCO2 PLANT WILL MORE THAN DOUBLE EXISTING CAPACITY Capacity 120,000 mt/year 74% of LCO2 is exported overseas as at September 2023. Markets include Singapore (largest), Malaysia, Australia, New Zealand, Fiji, Capacity 70,000 Indonesi
Slide 17: Progress of Second LCO2 Plant
ON TRACK TO COMMENCE OPERATIONS BY DECEMBER 2023 PROGRESS OF SECOND LCO2 PLANT 17
Slide 18: 10-Year On-Site Gas Supply Scheme
NEW RECURRING REVENUE STREAM 10-YEAR ON-SITE GAS SUPPLY SCHEME • 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 April/May 2024. • Expected to generate cumulative revenue of approxi
Slide 19: Exploring Expansion of Industrial Gas Manufacturing Facilities in New Countries
EXPLORING EXPANSION OF INDUSTRIAL GAS MANUFACTURING FACILTIES IN NEW COUNTRIES New Zealand Indonesia 19
Slide 20: ESG Achievements
ESG ACHIEVEMENTS FTSE4Good Edge ESG Awards Maintained 3-star ESG Inclusion in Won award for rating, as assessed by FTSE4Good Bursa “Most improved FTSE Russell in June Malaysia Index since performance” over 2023 review. December 2021. three years in 2022. 20
Slide 21: ESG Achievements (Cont'd)
ESG ACHIEVEMENTS (CONT’D) Occupational Safety & Health Training Hours Maintained zero fatalities as a Average training result of work-related injuries hours per employee increased by 6% Corruption Electricity Zero incident of Electricity corruption and intensity bribery case reduced by 27% CO2 Risk
Slide 22: Thank You
KELINGTON GROUP BERHAD THANK YOU For investor relations queries, kindly contact meichee@capitalfront.biz 22
Kelington Group Berhad — Q3 2023 Earnings Presentation on 6ix