Kelington Group Bhd. · MYX:KGB

Kelington Group Bhd — Investor Presentation (December 2020)

17 slides from Kelington Group Bhd's investor presentation, December 2020

  1. Slide 1: Corporate Briefing December 2020

    WE ENGINEER SOLUTIONS KELINGTON GROUP BERHAD (501386-P) STOCK CODE : KGB / 0151 CORPORATE BRIEFING DECEMBER 2020

  2. Slide 2: Business Update: 3Q2020 Highlights

    BUSINESS UPDATE 3Q2020 Highlights Strong recovery : China & Malaysia back on track for growth • Operations in China, Malaysia and Taiwan remain on 100% level while Singapore is recovering at ~75%. • Growing workforce in China and Malaysia to cope with rising demand and expedite project delivery time

  3. Slide 3: Industrial Gases continues upward trajectory

    BUSINESS UPDATE Industrial Gases continues upward trajectory 9M2020 Capex spent to-date : RM35mil INDUSTRIAL GASES REVENUE (RM mil) 9M2019 Capacity : 50,000 metric tonne per year ~5x YoY Growth 15.3 Production commencement : Oct 2019 3.9 Signed a 15-year supply agreement with Petronas to purchase wa

  4. Slide 4: Financial Performance: 3Q Results Highlight

    FINANCIAL PERFORMANCE 3Q Results Highlight 12.5% 18.0% 6.7% 6.5% 5.0% 0.8% NP GP (%) (%) NET PROFIT 97.0 98.3 +27.1 REVENUE +1.3% 77.3 % QoQ -22% +687.3 YoY 6.3 (RM mil) (RM mil) YoY 4.9 % QoQ 0.6 3Q2019 3Q2020 2Q2020 3Q2019 3Q2020 2Q2020 3Q2020 Highlights • The commendable recovery was mainly drive

  5. Slide 5: 9M2020 Financial Performance

    9M2020 FINANCIAL PERFORMANCE Revenue (RM mil) Net Profit (RM mil) Gross Net 11.4% 16.0% 16.8% 16.7% 13.1% 2.6% 3.8% 5.3% 6.3% 3.7% Profit Profit margin margin Revenue (RM million) Net profit (RM million) 379.9 343.3 350 24.0 313.3 260.3 18.7 11.8 8.9 9.6 FY2016 FY2017 FY2018 FY2019 9M2020 FY2016 FY2

  6. Slide 6: Revenue Breakdown by Business Segments

    REVENUE BREAKDOWN BY BUSINESS SEGMENTS UHP division remains the key revenue contributor RM mil The drop was due to FYE DEC lower project completion in Singapore amidst the 196.3 lockdown measures 9M2019 9M2020 172.7 75.7 26.6 16.2 22.1 15.3 3.9 Ultra High Purity Process Engineering General Contracti

  7. Slide 7: Revenue Breakdown by Country

    REVENUE BREAKDOWN BY COUNTRY RM mil FYE DEC 9M2019 9M2020 117.0 94.9 76.7 80.0 66.4 70.2 6.8 11.1 1.6 4.1 Singapore China Malaysia Taiwan Other 31% 28% Singapore China 9M2019 9M2020 44% Malaysia Taiwan RM268.5 mil 36% RM260.3 mil Other 27% 25% 1% 2% 2% 4% 7

  8. Slide 8: Healthy Balance Sheet

    HEALTHY BALANCE SHEET Remained in strong net cash position 31.12.2018 31.12.2019 30.9.2020 (RM Mil) (AUDITED) (AUDITED) (UNAUDITED) TOTAL 17.1 38.7 50.1 Borrowings increased mainly due to the drawdown of term BORROWINGS loan for the liquid carbon SHORT-TERM 15.6 12.8 18.0 dioxide plant and dry ice p

  9. Slide 9: Orderbook Replenishment

    ORDERBOOK REPLENISHMENT New Orders Secured (RM mil) 424 374 386 372 323 YTD outstanding orderbook (RM mil) 287 -260 372 370 258 Orders brought New orders secured Revenue in 9M2020 Total oustanding FY2015 FY2016 FY2017 FY2018 FY2019 9M2020 forward from 2019 9M2020 orderbook Growing RM 370* RM 0.9 mil

  10. Slide 10: Outstanding Orderbook of RM370 Million

    OUTSTANDING ORDERBOOK OF RM370 MILLION Majority from UHP & PE projects which typically carry higher margins OUTSTANDING NO CLIENT COUNTRY SEGMENT O’BOOK (RM'MIL) 1 SM?C/SM?C China UHP 120 2 ?xyte (M???on) Singapore UHP 81 3 In??neon Melaka Malaysia UHP 10 4 Yi Xing ZhongHuan China UHP 8 UHP 5 Chengd

  11. Slide 11: Outstanding Orderbook of RM370 Million

    OUTSTANDING ORDERBOOK OF RM370 MILLION 28% 15% Business 70% Geographical segment 38% 15% 27% 6% 1% UHP PE GC China Malaysia Singapore Others Taiwan 11

  12. Slide 12: China Turbocharges Its Chip Development

    CHINA TURBOCHARGES ITS CHIP DEVELOPMENT CAPEX spending expected to continue as China aim for self-sufficiency “Chinese semiconductor companies have raised the equivalent of nearly USD38 bn so far this year (2020) through public offerings, private placements and asset sales, more than double last yea

  13. Slide 13: Outlook Ahead

    OUTLOOK AHEAD • China: Leverage on industry leaders’ (ie. S?IC) resumption on expansion plans UHP  • Singapore : Market remains robust however project rollout might be slower due to the lockdown and SOPs • Malaysia : Seeing increase in tender invitations from MNC PE  companies who are expanding he

  14. Slide 14: Thank You

    THANK YOU We engineer We engineer solutions solutions

  15. Slide 15: Appendix

    APPENDIX 15

  16. Slide 16: Dry Ice Plant in Bukit Jelutong, Shah Alam

    DRY ICE PLANT IN BUKIT JELUTONG, SHAH ALAM Dry Ice 16 16

  17. Slide 17: 5-Year Dividend Track Record

    5-YEAR DIVIDEND TRACK RECORD  Dividend payout now 2x a year  Policy to distribute 25% of net profit Financial Year Dividend Dividend declared (sen) FY2020 First Interim 0.5 FY2019 Second interim 1.0 First interim 1.0 FY2018 Second interim 0.8 First interim 1.0 FY2017 Final dividend 1.5 FY2016 Fina

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