Financial Statements and Related Announcement::Half Yearly Results
FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT::HALF YEARLY RESULTS
Issuer & Securities
Issuer/ Manager
THAKRAL CORPORATION LTD
Securities
THAKRAL CORPORATION LTD - SG1AJ2000005 - AWI
Stapled Security
No
Announcement Details
Announcement Title
Financial Statements and Related Announcement
Date &Time of Broadcast
07-Aug-2024 19:16:44
Status
New
Announcement Sub Title
Half Yearly Results
Announcement Reference
SG240807OTHRFRL0
Submitted By (Co./ Ind. Name)
Anil Daryanani
Designation
Chief Financial Offcer
Description (Please provide a detailed description of the event in the box below - Refer to the Online help for the format)
Please refer to attached Press Release, Results Presentation and Unaudited Results for the half year ended 30 June 2024.
Additional Details
For Financial Period Ended
30/06/2024
Attachments
Thakral_PR_1H2024_20240807.pdf
Thakral_PPT_1H2024Results_20240807.pdf
ThakralCorp_Results_1HFY2024_20240807.pdf
THAKRAL CORPORATION LTD
(Incorporated in the Republic of Singapore on 7 October 1993) (Company Registration No. 199306606E)
FOR IMMEDIATE RELEASE
Thakral reports S$10.8 million attributable profit - 45% increase
in 1H2024
- Revenue is up 23.2% on stronger demand for beauty and fragrance products as well as an expanded product range for drones and related accessories
- Declared an interim dividend of 2 cents
- Net positive impact with a 45.1% increase in attributable profit despite a decline in share of profit from associates of 15.5%
- Positive outlook with robust order pipeline for over-50s lifestyle resorts in Australia and expanded range of drone products in the enterprise space
FINANCIAL SNAPSHOT
S$'000 | 1H2024 | 1H2023 | Change (%) | ||||||||
Revenue | 128,392 | 104,196 | 23.2% | ||||||||
Investment1 | 4,114 | 6,764 | -39.2% | ||||||||
Lifestyle2 | 124,278 | 97,432 | 27.6% | ||||||||
Gross profit | 22,492 | 23,165 | -2.9% | ||||||||
Profit from operations | 6,692 | 6,597 | 1.4% | ||||||||
Share of profit of associates and joint | 8,495 | 10,052 | -15.5% | ||||||||
ventures | |||||||||||
Investment1 | 8,495 | 9,678 | -12.2% | ||||||||
Lifestyle2 | Not Applicable | 374 | Not Meaningful | ||||||||
Profit before tax | 15,000 | 15,307 | -2.0% | ||||||||
Profit attributable to equity holders ("net | 10,801 | 7,443 | 45.1% | ||||||||
profit") | |||||||||||
Singapore, 7 August 2024 - SGX Mainboard-listed Thakral Corporation Ltd ("Thakral" or the "Group") announced its unaudited financial results for the six months ended 30 June 2024 ("1H2024").
Top-line growth driven by Lifestyle business
1H2024 revenue rose 23.2% year-on-year ("yoy") due to higher contributions from the Lifestyle business. This was attributable to increased demand for beauty and fragrance products in the People's Republic of China ("PRC") including Hong Kong and Macau, as well
- Investment: Mainly derived from share of profit from associates/joint venture such as GemLife in Australia and commercial properties in Japan
- Lifestyle: Management and marketing of beauty, fragrance, and lifestyle brands and products via partnerships with L'Oreal and DJI
Page 1 of 4
Thakral Corporation Ltd
Company Registration No. 199306606E
Press Release - 1H2024 Results
as the expanded range of drones and related accessories under the Group's distribution in South Asia.
Gross profit came in 2.9% lower yoy at S$22.5 million for 1H2024 due to volume sales and margin normalisation for the Lifestyle business' products along with reduced income from the TCAP Australia operations which are no longer a focus for the Group, which reflect in the decline in gross margin from 22.2% to 17.5% over the same period.
Increased number of homes delivered under GemLife
The Group's interest in GemLife in the previous corresponding period was 49.9% compared to the 31.7% currently following the completion of the TCH restructuring exercise last year. This is primarily the reason for the Share of profit of associates and joint ventures declining by 15.5% to S$8.5 million for 1H2024; this includes contributions from the Japanese investments.
GemLife recorded higher development revenue from the delivery of 173 homes for 1H2024, 29% more than 1H2023. In addition, it also saw growth in recurring revenue due to the collection of site fees from a larger portfolio of homes. As of 30 June 2024, total occupied homes stood at 1,622, around 33% more than a year ago.
In addition, the Group also reported greater contribution from its commercial properties in Japan due to a valuation uplift for a building in Osaka helped by the higher occupancy rate.
The Group's 1H2024 attributable profit was 45.1% higher at S$10.8 million, versus S$7.4 million in the previous corresponding period.
Interim dividend
The Group declared an interim dividend of 2 Singapore cents per share, representing a dividend payout of 23.7% on 1H2024's attributable profit. The dividend declared translates to an annualised dividend yield of 6.5% based on the closing share price of S$0.615 on 7 August 2024.
Net Asset Value per share
The Group's net asset value ("NAV") per share stood at 118.75 cents as of 30 June 2024, slightly higher than 116.84 cents as of 31 December 2023. Based on Thakral's share price of S$0.615 as of 7 August 2024, the Group is trading at a price-to-book ratio of 0.52.
Outlook
Under the Investment business, GemLife is expected to maintain its growth trajectory given the rising ageing population and housing shortage in Australia. On top of that, the attraction of downsizing to buyers to release equity in their houses, along with structural benefits under the Manufactured Housing Estates policy (e.g. no stamp duty on purchase) continue to be a key
Page 2 of 4
Thakral Corporation Ltd
Company Registration No. 199306606E
Press Release - 1H2024 Results
driver. The order pipeline for over-50s resorts is robust over the mid- to long-term with GemLife targeting to grow its portfolio to 6,500 homes within a decade.
In Japan, the Group's commercial buildings in Osaka are anticipated to benefit from rental and occupancy growth as the industry enters a new cycle of office relocations and layout updates driven by higher corporate earnings across the board.
Commenting on the Investment business, Thakral's CEO and Executive Director, Mr. Inderbethal Singh Thakral ("Mr. Bethal") said, "We are optimistic about our business in Australia owing to the favourable structural trends driving demand, and we expect to record steady growth as GemLife's earnings increase."
For the Lifestyle business, demand for DJI in South Asia has steadily improved driven by an increasing adoption of drones across the enterprise, agriculture and consumer segments and further underpinned with an expanded portfolio of products. The fragrance business saw similar growth also adding a wider product selection and increased point of sales.
Commenting on the Lifestyle business, Mr. Bethal added, "Our decade-longpartnership with DJI continues to be a fruitful one with a wider range of products being entrusted to the Group. As industries become more data-driven,enterprises are integrating drone products for imaging needs to improve operational efficiencies and decision-making.
Meanwhile, the trajectory for our beauty and fragrance business remains positive."
END
About Thakral
Thakral Corporation Ltd is listed on the SGX Mainboard since December 1995. The Group's core business comprises a growing investment portfolio in Australia, Japan and Singapore. Investments in Australia include the development and management of over-50s lifestyle resorts under the GemLife brand. The Japanese investment portfolio consists of landmark commercial buildings in Osaka, the country's second largest city.
The Group also invests in the management and marketing of leading beauty, fragrance and lifestyle brands in Asia, serving customers directly through retail flagship stores, multi-brand specialty retailers and e-commerce platforms.
Furthermore, the Group makes strategic investments in new economy ventures that complement its existing business relationships and networks, including acting as a cornerstone investor or participating in early funding. These investments aim to harness potential synergies and explore new business opportunities.
Page 3 of 4
Thakral Corporation Ltd
Company Registration No. 199306606E
Press Release - 1H2024 Results
For more information, please visit www.thakralcorp.com.
Release issued on behalf of Thakral Corporation Ltd by Financial PR
For more information, please contact:
Kamal SAMUEL: | kamal@financialpr.com.sg |
Shivam SARAF: | shivam@financialpr.com.sg |
Hong Ee TANG: | hongee@financialpr.com.sg |
Tel: (65) 6438 2990 |
Page 4 of 4
BLUEPRINT FOR
SUSTAINABLE GROWTH
1H2024 RESULTS UPDATE
7 August 2024
DISCLAIMER
This is a presentation of general information relating to the current activities of Thakral Corporation Ltd (the "Company"). It is given in summary form and does not purport to be complete.
This presentation may contain forward-looking statements which are subject to risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in these forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies, shifts in customer demands, customers and partners, changes in operating expenses, governmental and public policy changes, and the continued availability of financing.
Accordingly, such statements are not and should not be construed as a representation as to the future of the Company, and are not intended to be profit forecasts, estimations or projections of future performance and should not be regarded as such.
No reliance should therefore be placed on these forward-looking statements, which are based on the current views of the management of the Company. The presentation is also not to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. The Company accepts no responsibility whatsoever with respect to the use of this document or any part thereof.
2
THAKRAL AT A GLANCE
SGX-listed since 1995 | Attractive Valuation | ||
S$0.615 | S$78.6m | 6.6% | S$1.19 |
Share Price* | Market Cap* | Dividend Yield^ | NAV/Share# |
Dual Growth Drivers
Over-50s Lifestyle | Strategic expansion in |
Resorts in Australia | beauty, |
fragrance and | |
where demand growth | |
outpaces supply | drone businesses |
*as of 7 August 2024
^Based on annualised dividend per share of 4.0 cents (1H2024 DPS x 2) and share price as of 30 June 2024
#as of 30 June 2024
3
1H2024 SNAPSHOT
Revenue | Share of profit | Profit before tax | Profit attributable |
from associates / | |||
joint ventures | to equity holders |
S$128.4m S$8.5m S$15.0m S$10.8m
+23.2% YoY | -15.5%YoY | -2.0%YoY | +45.1% YoY |
4
INVESTMENT: GEMLIFE UPDATES
DELIVERED 173 HOMES FOR 1H2024; OCCUPIED HOMES 33% HIGHER THAN JUN-23
Growing number of occupied homes
leading to higher recurring weekly site fees
173 new homes
in 6 months
1,622
Average of 290 new
homes per annum from1,449 Dec-2019 to Dec-2023
1,088
870
530
290
Dec 19 | Dec 20 | Dec 21 | Dec 22 | Dec 23 | Jun 24 |
Target of
6,500
homes within the decade based on current project pipeline
Supported by strong demand based
on ageing population trend and
government incentives
5