KSH HOLDINGS LIMITED. Corporate Presentation November 6, 2009

Transcription

1 KSH HOLDINGS LIMITED Corporate Presentation November 6, 2009

2 Presentation Outline Business Overview Financial Performance Corporate Developments Track Record Completed Projects Property Development Future Plans Outlook

3 Business Overview

4 Our Business A well-established Construction, Property Development and Property Management Group Extensive expertise and proven track record in multiple segments: residential, commercial, industrial, power plants, hospital, hotels, school campuses etc Primary focus: Construction (with 30 years of experience) Impressive track record, especially in Public Sector construction activities A1 grading under CW01 category for general building by the Building and Construction Authority (BCA) Highest grade for contractors (current number: 43) and allows KSH to tender for public sector construction projects of unlimited value A2 grading under BCA s CW02 category for civil engineering which allows KSH to tender for public sector civil engineering contracts of up to S$85 million in value Strong Construction Order Books Backed by strong order books of approx. S$383 million Substantial portion to be completed by the end of FY

5 Our Business Construction Property Development and Property Management in the PRC Property Development and Property Management in Singapore Public and Private sectors in Singapore Private sector in Malaysia Tianxing Riverfront Square in Tianjin* * Currently held as Investment Property Liang Jing Ming Ju in Beijing Via Joint Ventures: - Lincoln Suites - Mergui Road Development 5 5

6 Our Major Customers Public Sector*: CAAS Ministry of Home Affairs SAFRA Ministry of Education Private Sector*: Ho Bee Group Lippo Marina Collection Pte. Ltd Keppel Land Realty Pte Ltd Sino Land Limited SUTL * Not Exhaustive 6 6

7 Financial Performance

8 1HFY2010 Results Highlights Revenue of S$124.9 million and net profit after tax of S$10.1 million Average gross margin of core Construction segment up from 9.3% to 15.5% Strong balance sheet and working capital position with cash and cash equivalents of approximately S$48.6 million Low net gearing ratio of 0.52 times (as at September 30, 2009) Strong order book of approximately S$383 million Unfulfilled contract value for all existing contracts on hand expected to be substantially completed by March

9 Results Highlights S$ m 1HFY2010* 1HFY2009** % Change FY2009*** Revenue (30.5) Profit Before Tax (3.1) 17.3 Net Profit (Before MI) Attributable to Shareholders (6.5) 13.6 Net Profit Margin (%) EPS (cents) (24.8) HFY2010 FY2009 NAV/share (cents) (29.6) *Half year ended September 30, 2009 **Half year ended September 30, 2008 ***Full year ended March 31,

10 Revenue S$ m CAGR: 40.7% % Revenue decline in 1HFY2010 due mainly to the completion of 4 projects for Group s Construction business during period under review P2006 FY2007 FY2008 FY2009 1HFY2009 1HFY2010 P: Proforma results FY: Full year ended March 31 1HFY: First half year ended Sept 30 10

11 Revenue by Business Segment Property 1% S$4.7m Revenue (S$ m) Property 4% S$4.8m Construction 96% S$113.2m Property 7% S$9.0m Construction 93% S$124.3m Property 3% S$5.6m Construction 97% S$176.5m Construction 99% S$324.0m Property 1% S$1.8m Construction 99% S$177.9m Property 2% S$2.6m Construction 98% S$122.3m Property Development and Management Construction P: Proforma results FY: Full year ended March 31 1HFY: First half year ended Sept P2006 FY2007 FY2008 FY2009 1HFY2009 1HFY

12 Profit from Operations (Before Tax and Minority Interest) S$ m 24.0 Excluding fair value adjustments and items relating to convertible notes 19.0 P2006 to FY2009: 14.0 CAGR: 47.4% % CAGR = 47.4% 1HFY2009 to 1HFY2010: Profit from operations increased 28% P: Proforma results FY: Full year ended March 31 1H: First half year ended Sept P2006 FY2007 FY2008 FY2009 1HFY2009 1HFY

13 Profit from Operations Profit from Operations 1HFY2010 1HFY2009 FY2009 FY2008 FY2007 P2006 All in Thousands Profit from Operation before Tax and MI 12,745 13,067 17,323 54,285 8,245 6,968 Excluding items below:- Add back/(less):- - (Gain)/loss from fair value adjusment of investment properties ,766 (43,461) (2,480) (98) - Fair value gain of embedded derivative on convertible notes - (3,950) (4,759) (4,100) Amortisation of issuance costs on convertible notes Interest expenses - Imputed interest on convertible notes 729 1,315 5,501 1, (Gain)/loss on redemption on convertible notes (246) Adjusted Profit from Operations before tax and MI 14,143 11,035 22,136 8,421 5,765 6,

14 Net Profit (after MI) for the Period/Year Attributable to Owners of the Company S$ m 20.0 Excluding fair value adjustments and items relating to convertible notes CAGR: 49.9% % P2006 to FY2009: CAGR = 49.9% 1HFY2009 to 1HFY2010: P2006 FY2007 FY2008 FY2009 1HFY2009 1HFY2010 Net Profit (before MI) increased 32.6% P: Proforma results FY: Full Year ended March 31 1HFY: First half ended Sept 30 14

15 Net Profit (after MI) for the Period/Year Attributable to Owners of the Company Profit for the period/year attributable to owners of the Company 1HFY2010 1HFY2009 FY2009 FY2008 FY2007 P2006 All in Thousands Profit for the period/year attributable to owners of the Company 10,038 10,750 14,007 31,397 6,099 5,308 Excluding items below:- Add back/(less):- - (Gain)/loss from fair value adjusment of investment properties net of tax & minority interest ,448 (22,593) (1,954) (98) - Fair value gain of embedded derivative on convertible notes - (3,950) (4,759) (4,100) Amortisation of issuance costs on convertible notes Interest expenses - imputed interest on convertible notes 729 1,315 5,501 1, (Gain)/loss on redemption on convertible notes (246) Adjusted Profit for the period/year attributable to owners of the Company 11,436 8,633 17,502 6,401 4,145 5,

16 Balance Sheet Highlights S$ m 1HFY2010* FY2009** Change (%) Current Assets Current Liabilities (11.2) Net Current Assets Total Assets (0.7) Total Liabilities (6.9) Shareholders Equity Net Tangible Assets *First half ended Sept 30, 2009 **Full year ended March 31,

17 Debt Coverage S$ m 1HFY2010* FY2009** Total Borrowing Debts Total Cash Net Borrowings & Debt Net Debt to Equity *First half year ended Sept 30, 2009 **Full year ended March 31,

18 Corporate Developments

19 Ongoing Construction Projects Turquoise at Sentosa Cove Marina Collection at Sentosa Cove Clifford Pier Hotel The Orange Grove Seascape at Sentosa Cove NUS University Town

20 Ongoing Construction Projects Project Name Contract Value (S$ m) Commencement Date Estimated Completion Date in 2010 Singapore: Clifford Pier Hotel September 2007 October 2009 Orange Grove 52.3 January 2008 May 2010 Sentosa Cove (Turquoise) 64.8 January 2008 April 2010 Marina Collection at Sentosa Cove April 2008 June 2010 Seascape April 2008 July 2010 NUS University Town 83.4 June 2009 April 2011 Watten Residences 36.0 November, 2009 December

21 Estimated Project Timeline Ongoing Construction Projects Clifford Pier Hotel Orange Grove Sentosa Cove (Turquoise) Marina Collection at Sentosa Cove Seascape NUS University Town Watten Residences FY2008 FY2009 FY2010 FY2011 FY2012 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

22 Track Record Completed Projects

23 Completed Construction Projects Public Sector*: Air Traffic Control Tower at Biggin Hill Choa Chu Kang Sports Complex Jalan Bahar SCDF Rescue Training Centre Nanyang Polytechnic The Frontier Community Place Tampines One Tanah Merah Ferry Terminal Primary Schools at Sengkang Anchor Green Primary School North Vista Primary School Private Sector*: International Business Park Montview Mustafa Shopping Centre extension One o 15 Marina Club Restoration of Far East Square The Berth by the Cove The Coast The Spectrum *Not exhaustive 23 23

24 Notable Public Sector Projects (Completed) Choa Chu Kang Sports Complex Air Traffic Control Tower at Biggin Hill The Frontier Community Place Nanyang Polytechnic Jalan Bahar SCDF Rescue Training Centre Tanah Merah Ferry Terminal

25 Notable Private Sector Projects (Completed) The Berth by the Cove The Spectrum Montview One o 15 Marina Club Mustafa Shopping Centre Extension Restoration of Far East Square Illoura (Old Holland Road) International Business Park The Coast

26 Property Development

27 Ongoing Property Projects - Singapore Project Name Percentage Holdings Location Singapore: *JV Lincoln Suites 25% Khiang Guan, off Newton Rd **JV Freehold site at Mergui Road 35% Mergui Road * Joint venture with Koh Brothers Group, Heeton Holdings, and Lian Beng Group ** Joint venture with Multi Wealth (Singapore) Pte. Ltd. and LBH Pte. Ltd

28 Lincoln Suites Soft launch held on October 20, 2009 Official launch on October 31, 2009 Well-received

29 Property Development - China China: Tianxing Riverfront Square in Tianjin - 36-storey commercial complex in the heart of Tianjin s business district - Developed and managed by our subsidiaries in Tianjin - Completed in June 1998 Liang Jing Ming Ju Phase 4 of 19,800 sq m - To commence upon approval by relevant authorities - Target to sell RMB6,000/sq m

30 Future Plans

31 Corporate Strategies Focus on Construction Business in Singapore Continue to tender for projects, in line with general Construction climate Pay greater emphasis to public sector construction activities Leverage on Group s strong track record in public sector projects, healthy balance sheet and low receivables risk Capitalise on Group s eligibility to tender for: - Public construction projects of unlimited value (certified A1 grading under CW01 category for general building by the BCA) - Up to S$85 million value worth of civil engineering contracts (certified A2 grading under CW02 category for general building by the BCA) 31 31

32 Corporate Strategies Maintain Property Development Business in Singapore and PRC Adopt prudent approach for property development Form JVs with reputable partners In the PRC: development via JV on Phase 4 of Liang Jing Ming Ju 32 32

33 Outlook

34 Outlook Construction continues to demonstrate resilience According to the forecast published by the Building and Construction Authority ('BCA") on 1 July 2009, the total construction demand in 2009 would range from S$18 billion to S$24 billion Average annual demand for year 2010 to 2011 will range from S$20 billion to S$27 billion. Property receives positive sentiments URA statistics released in July 2009 show that developers sold 1,825 units of new homes in June this year This is up from 1,673 units in May, with monthly take-up rate surpassing the high of 1,731 units recorded in August

35 Commentary Cautiously optimistic on the outlook of the Group s Construction business Noted the recent improvement in sentiment of the residential Property market in Singapore Will continue to monitor market closely 35 35

36 Thank You