Hiap Teck Venture Bhd. · MYX:HIAPTEK

Hiap Teck Venture Bhd — Q1 FY2023 Earnings Presentation

11 slides from Hiap Teck Venture Bhd's earnings presentation, Dec 16, 2022

  1. Slide 1: Analysts' Briefing Q1 FY2023 Performance Review

    ANALYSTS’ BRIEFING Q1 FY2023 PERFORMANCE REVIEW 16 December 2022

  2. Slide 2: Corporate Structure

    CORPORATE STRUCTURE (31 October 2022) Key Operating Units 2

  3. Slide 3: The Macro Environment

    The Macro Environment MALAYSIA REAL GDP GROWTH 20.00 15.00 16.10 14.20 Coming from a low base y-o-y, the Malaysian 10.00 5.00 8.90 economy registered stronger growth of 14.2% in 5.00 3.60 0.70 -0.50 3Q 2022 after posting an expansion of 8.90% in 0.00 the previous quarter. Overall, the economy 1Q 202

  4. Slide 4: HTVB Group in 1Q FY23: Higher Sales Volumes but Declining ASP

    HTVB Group in 1Q FY23 (Aug 2022 – Oct 2022) HIGHER SALES VOLUMES BUT DECLINING AVERAGE SELLING PRICE (ASP)  Sales volumes is higher in 1Q 2023 vs same quarter last year in line with the resumption of economic activities post pandemic.  Downward trend of ASP coupled with higher cost of materials im

  5. Slide 5: 1Q FY23 vs 1Q FY22 (corresponding quarter)

    Performance Review – 1Q FY23 vs 1Q FY22 (corresponding quarter) The Group’s suffered a loss after tax of RM48.8m mainly due to low selling price, high costs of inventories, write-down of inventories to net realizable value and lower contribution from JV entity. (RM’M) 1Q FY22 1Q FY23 Variance Remark

  6. Slide 6: 1Q FY23 vs 4Q FY22 (preceding quarter)

    Performance Review – 1Q FY23 vs 4Q FY22 (preceding quarter) Higher revenue than preceding quarter due to higher sales volume though partly offset by lower selling price. Costs of goods sold was higher due to high costs of inventories and write-down of inventories to net realisable value. (RM’M) 4Q F

  7. Slide 7: Eastern Steel Sdn. Bhd.

    Eastern Steel Sdn. Bhd. 7

  8. Slide 8: ESSB Performance Review – 1Q FY23 vs 4Q FY22

    ESSB Performance Review – 1Q FY23 vs 4Q FY22 (preceding quarter) 4QFY22 1QFY23 (RM’M) May 22-Jul 22 Aug 22-Oct 22 Variance Remarks Volume (MT) 182.6 195.2 2% Higher demand from the market Revenue 609.2 491.9 -19% Lower ASP Gross Profit 25.2 9.7 -62% GPM 4% 2% Lower margin due to declining selling pr

  9. Slide 9: ESSB Performance Review – 1Q FY23

    ESSB Performance Review – 1Q FY23 PRODUCT MIX Billet, 27% Slab, 73% MARKET DISTRIBUTION YTD2023 Indonesia 37% Malaysia 50% Thailand India 11% 3% 9

  10. Slide 10: Outlook – Cautiously Optimistic

    OUTLOOK – CAUTIOUSLY OPTIMISTIC  GROUP INCURRED A LOSS AFTER TAX OF RM48.8 MILLION FOR 1Q FY2023, A FIRST LOSS SINCE 2Q FY 2020  THE GROUP TAKES COGNIZANCE OF THE CHALLENGES AND HEIGHTENED VOLATILITY IN STEEL PRICES AND FINANCIAL MARKETS.  THE GROUP WILL CONTINUE TO ADOPT PRUDENT PROCUREMENT STRA

  11. Slide 11: Thank You

    THANK YOU 11

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