集永成机构有限公司 CHIP ENG SENG CORPORATION LTD. FY2009 RESULTS PRESENTATION 11 February 2010

Transcription

1 集永成机构有限公司 CHIP ENG SENG CORPORATION LTD FY2009 RESULTS PRESENTATION 11 February 2010

2 Disclaimer 2 This presentation and pertaining discussions may contain statements that are forward looking concerning the business and future performance of Chip Eng Seng Corporation Ltd. and its subsidiaries. These statements are based on current conditions and information and involve assumptions, risks and uncertainties of the future. As such, these statements are not to be regarded as projections of the company's future performance. You are cautioned not to put undue reliance on this presentation as actual performance and results could differ materially from what is represented in its content.

3 Content 3 FY2009 Financial Review Operations Update Outlook Questions and Answers

4 FY2009 Financial Review

5 FY2009 Financial Performance 5 4Q2009 $'000 4Q2008 $'000 Change % FY2009 $'000 FY2008 $'000 Change % Revenue 124,404 96, , , Gross Profit -1,999 2, ,149 14, Other income 2,189 2, ,964 6, Marketing & Distribution 1, ,056 1, Administrative Expenses 4,485 8, ,161 16, Finance Cost ,768 3, Share of Associate's Results 38,262 18, ,209 49, Profit Before Tax 32,078 12, ,337 48, Profit After Tax 31,170 10, ,325 43,

6 Revenue by Segment 6 Property Development 12% Property Investment 0% Property Development 15% Property Investment 0% Construction 88% FY2009 Construction 85% FY2008

7 FY2009 Balance Sheet Highlights 7 FY2009 $'000 FY2008 $'000 Net Assets 257, ,462 Current Liabilities: Loan and Borrowings * 24, ,517 Non-Current Liabilities: Loan and Borrowings * 89,048 85,600 Cash and Cash Equivalents 76,104 47,891 * The overall net decrease was mainly due to the repayment of bank loan

8 FY2009 Key Financial Ratios 8 Basic / Fully 4Q2009 4Q2008 FY2009 FY2008 EPS (cents) FY2009 FY2008 NAV / Ordinary Share (cents) Net Debt Ratio (times) EPS computed based on weighted average of 659,515,161 shares (FY2008: 659,515,161 shares) NAVPS computed based on 659,515,161 shares after excluding Treasury shares of 8,000,000 shares (31 Dec 2008: 659,515,161 shares)

9 Highlights - 4QFY2009 vs 4QFY Q FY2009 revenue increased by 28.5% to $124.4 million due to:- 25.2% increased in construction revenue to $112.2 million Mainly due to contribution from on-going projects The Parc Condo, CityVista Residences and 3 HDB projects at Queenstown, Sengkang and Punggol West. 73.3% increased in propertydevelopment revenue to $11.8 million Due to revenue recognised from sale of units from a wholly-owned project, Oasis@Elias

10 Highlights - 4QFY2009 vs 4QFY Q FY2009 pre-tax and post-tax profit rose 153.4% to $32.1 million and 189.2% to $31.2 million respectively due to:- Decreased in gross margin by 190.7% to -$2.0 million mainly due to additional provision of foreseeable losses for construction projects Increased in marketing & distribution cost by48.7% to $1.4 million due to the launch of Oasis@Elias Decreased in administrative expenses by45.5% to $4.5 million mainlydue to:- No impairment loss on trade receivables compared to $2.5 million provided in 4Q FY2008 Fair value gain of $0.4 million on investment properties compared to loss of $0.9 million in 4Q FY2008 Marginal decreased in finance costto $0.53 million or by 45.8% due to repaymentof bank borrowing Increased share of associates results by108.8% to $38.3 million due to:- Progressive recognition of profit from joint development projects Recognition of share of results from The Suites@Central as the an en-bloc buyer for 51 units did not default on payment upon expiry of the extension of time

11 Highlights - FY2009 vs FY FY2009 cumulative revenue increased by 6.2% to $376.4 Million:- 10.0% increased in construction revenue to $331.3 million Driven by our HDB projects in Sengkang and Punggol West which commenced construction during 2H FY2008 and 2H FY2009 respectively, in addition to other active on-going contributing projects Offset by the completion of 4 projects The Pinnacle@Duxton, Sembawang N4C15, Woodlands Driving Centre and The Suites@Central 16.3% decreased in propertydevelopment revenue to $43.5 million Contributed by sale of properties in Australia, repossessed units from Ventuno Balmoral and sale of units from Oasis@Elias Decreased due to lower revenue contribution from newly launch wholly-owned project, Oasis@Elias in Q3 FY2009 compared to Ventuno Balmoral

12 Highlights - FY2009 vs FY FY2009 cumulative pre-tax and post-tax profit rose 61.5% to $78.3 million and 71.7% to $75.3 million respectively due to:- Decreased in gross margin by49.4% to $7.1 million due to:- No significant contribution from a wholly-owned project, Ventuno Balmoral, which TOP in November 2008 Reduction of $6.0 million profit for The Pinnacle@Duxton due to additional cost incurred Increased in other income by 50.9% to $10.0 million mainly due to the reversal of provision of impairment loss for default buyers, deposits forfeited from buyers and job credits granted Increased in marketing & distribution cost by 148.7% to $3.1 million due to marketing expenses incurred for Oasis@Elias Increased share of associates results by 73.2% to $85.2 million due to progressive recognition of profit from 4 joint venture development projects

13 FY2009 Dividend (Tax-Exempt One Tier) 13 FY2009 FY2008 First & Final Cents per ordinary share * * Sub ject to shareholders approval at AGM

14 Operations Update

15 Update on Property Development TOP Project 15 The Freehold TOP obtained in Q % owned 100% profit recognised

16 Update on Property Development Current Projects 16 The Parc Condominium Freehold Saleable area 900,000 sq ft, 659 units Launched in July 2007 Target completion in % owned 97% sold (10 February 2010) 85% of profit recognised (31 Dec 2009) CityVista Residences Freehold Saleable area 188,000 sq ft, 70 units 54% sold Target completion in % owned 70% of profit recognised (31 Dec 2009)

17 Update on Property Development Current Projects 17 Grange Infinite Freehold Saleable area 185,000 sq ft, 68 units 99% (10 February 2010) Target completion in 1Q % owned 35% of profit recognised (31 Dec 2009) 99 years leasehold Saleable area 485,000 sq ft, 388 units Launched in early July 2009 Target completion in % owned 51% sold (10 February 2010) 25% of profit recognised (31 Dec 2009) 25% of profit recognised (31 Dec 2009)

18 Update on Construction Projects Completed 18 HDB Contract at Sembawang 471 units The 1,848 units in seven 50-storey residential blocks Driving Centre Multi-storey driving centre at Admiralty Road The 157 units

19 Update on Construction Projects HDB 19 HDB Contract at Queenstown 1,394 units w/facilities HDB Contract at Sengkang 698 units with facilities HDB Design & Build Contract at Punggol West 729 units with facilities

20 Update on Construction Projects Private 20 The Parc Condominium 659 units Grange Infinite 68 units CityVista Residences 70 units 388 units

21 Outlook

22 Outlook 22 Property Development Expects to obtain TOP for The Parc Condo and CityVista Residences in 2010 Construction CES outstanding order-book of $391 million at 31 December 2009 Going Forward The Group will continue to pursue opportunities to expand its portfolio for residential development projects, whilst actively tendering projects for its construction segment

23 Thank You Chip Eng Seng Corporation Ltd, 69 Ubi Crescent, #06-01, Singapore Tel: , Fax: ,