2Q FY2013 Result Commentary

Transcription

1 2Q FY2013 Result Commentary 29 August

2 Table of Contents 2QFY2013 Financial Highlights Plantation Division Performance Healthcare Division Performance Investment Merits 2

3 2QFY2013 Financial Highlights 3

4 Key Messages Plantation Division Healthcare Division Improvement in productivity Higher CPO yield (FFB yield X OER) Lower production of CPO and PK due to replanting of old trees Lower average selling prices of CPO and PK in line with industry trend Higher revenue per patient Increase in the hospital case-mix of patients Better control of overhead costs Affected by higher expenses replanting expenses, manuring activities and losses at Indonesia operations 4

5 Income Statement Summary RM 000 2QFY2013 2QFY2012 y-o-y change 1HFY2013 1HFY2012 y-o-y change 1QFY2013 q-o-q change Revenue 81,143 96,693-16% 171, ,364-12% 90,084-10% Gross Profit 22,369 32,793-32% 60,524 78,559-23% 38,155-41% Profit before tax (4,133) 13,806 >-100% 15,185 39,567-62% 19,318 >-100% Tax expense (1,499) (5,248) 71% (6,482) (13,062) 50% (4,983) 70% PATAMI (5,421) 9,400 >-100% 8,775 27,068-68% 14,196 >-100% EPS (sen) (0.37) 3.88 >-100% % 5.75 >-100% GP margins 28% 34% 35% 40% 42% PBT margins n.m. 14% 9% 20% 21% PATAMI margins n.m. 10% 5% 14% 16% Effective tax rate^ Note 1 38% 43% 33% 26% ^Higher than statutory tax rate due to certain expenses not deductible for tax purposes. Note 1 : Tax expense of RM1.5 million is due to under provision of tax expense 1Q2013 5

6 Strong Financial Position (RM 000) As at 31 June 2013 (Unaudited) As at 31 Dec 2012 (Audited) Non-Current Assets 1,256,514 1,197,752 Current Assets 195, ,428 Current Liabilities 120, ,581 Non-Current Liabilities 132, ,141 Shareholders' Equity 1,186,197 1,234,267 Minority Interest 12,403 25,191 Borrowings (ST + LT) 43,010 30,413 Cash & Bank Balances 115, ,554 Gearing (times) Net Gearing Net Cash Net Cash Net Assets/Share (RM)* Drawdown of borrowings for capital expansion of plantation and healthcare division Ample room to gear up due to negligible gearing level Net Tangible Assets/ Share (RM)* *Exclude minority interest 6

7 Plantation Division Performance 7

8 Plantation Performance Revenue and PBT are impacted by : 1 Average CPO Price RM/mt Average PK Price RM/mt Lower Average Selling Price Q Q % change 1H H 2013 % change 3,419 2,358-31% 3,236 2,306-29% 1,946 1,219-37% 1,927 1,192-38% 69,626 Revenue (RM 000) (24%) 51, ,827 (19%) 114,069 2 Lower production of CPO and PK by 4% Q Q % change 1H H 2013 % change 2Q2012 2Q2013 1H2012 1H2013 CPO Production mt 20,386 19,626-4% 41,042 41,274 +1% PK Production mt 5,075 4,866-4% 11,022 10,845-2% PBT (RM 000) 3 Higher expenses 34,446 2Q Q Q2013 1Q2013 Immature area expenses (RM'000) ,338 2,248 Start-up losses at Indonesia operation (RM'000) 1,705 1,219 2,223 1,857 Manuring activities (RM'000) 19,245 6,424 17,166 8,581 11,208 (>100%) (78%) 7,430 Total 21,337 7,968 22,727 12,686 Total 29, % Total 35,413 2Q2012 2Q2013 1H2012 1H2013 (7,417) 8

9 Higher CPO yield (mt/ha) CPO Yield = FFB yield x OER Increase in CPO yield resulting from improvement in productivity Despite increase in CPO yield, production decreased due to lower mature area resulting from replanting of old trees +5% H2012 1H2013 9

10 Landbank Expansion Malaysia and Indonesia Total Planted Area (Ha) For 1H2013 we have planted 3,074 ha, bringing our total planted area there to 11,155 ha. +6,919 * +22,563 * 70,000 The size of our planted area in Indonesia is now equivalent to 30% of our planted area in Terengganu, and growing. 47,437 39,034 40,518 32,710 33,222 33, f 1H f * New planted areas are from Kalimantan, Indonesia 10

11 Plantation - Expansion into Indonesia Target to fully complete plantation of Indonesian landbank by

12 Healthcare Division Performance 12

13 Healthcare Performance Higher revenue and PBT mainly due to: 1 Revenue (RM 000) 53,537 +7% 57,157 Improved case-mix of patients 27,067 +8% 29,257 2 Better control of overhead costs 2Q2012 2Q2013 1H2012 1H2013 PBT (RM 000) +32% 5,372 7,708 2, % 3,239 2Q2012 2Q2013 1H2012 1H

14 Bottom-line improvement across 4 hospitals Profit Before Tax 1H2012 1H2013 change RM 000 RM 000 RM 000 % Kuantan Medical Centre 5,862 6, % Kelana Jaya Medical Centre % Kuala Terengganu Specialist Hospital % Taman Desa Medical Centre (910) (323) % 14

15 Increase in Average Revenue Per Patient Average revenue per patient (RM) % +11% Q2012 2Q2013 1H2012 1H

16 Investment Merits 16

17 Peer Comparison No Company Market cap (RM mil) Trailing 12- months PE (x) Forward PE (x) P/BV (x) Dividend yield (FY2012) TDM 1, NA % Plantation (similar landbank size) 1 IJM Plantations 2, % 2 Sarawak Oil Palms 2, % 3 Hap Seng Plantations 1, % 4 TSH Resources 1, % 5 TH Plantations 1, % Average % Healthcare 1 IHH Healthcare 31, n/a 2 KPJ 4, % Average % Source: Bloomberg as at 29 August

18 Summary Investment Highlights Well-Positioned for Future Growth, Poised to Deliver Long-Term Value Supported by strong management team Established track record in strategically transforming and growing core businesses Committed to rewarding shareholders Dividend policy to payout at least 30% of net profit Track record of growing annual dividends Strong financial standing Healthy balance sheet ability to raise borrowings to finance future expansion Substantial financial strength to pay good dividends Expansion plans underway On-track to double beds capacity (to reach 450 beds) by 2016 and to double plantation landbank size (to reach 70,000 ha) in

19 Thank You 19