Gamuda Berhad. PTMP Nearing the Finishing Line. Q INVESTORS BRIEFING 23 June 2015

Transcription

1 Gamuda Berhad PTMP Nearing the Finishing Line Q INVESTORS BRIEFING 23 June

2 INCOME STATEMENT SUMMARY (RMmil) 9 mths to Apr 15 9 mths to Apr 14 Change (%) Revenue 1, , Profit from operations (EBIT) Finance Costs (80.2) (55.7) +44 Share of JVs (net of tax) Share of associates (net of tax) Profit before tax Tax (97.2) (93.4) +4 Minority Interests (42.0) (9.0) +>100 Net profit attributable to equity holders Fully diluted EPS (sen) Dividend per share (sen) EBIT margins (%) PBT margins (%)

3 FRS 11 JOINT ARRANGEMENTS FRS 11 adopted since Q114 statements Joint ventures (incorporated) now treated using equity method (share of JVs), reported net of tax Joint ventures (unincorporated) treated as previously, using proportionate consolidation, reported gross of tax Share of associates reported as previously, net of tax Key impacts - substantial group revenue is `lost as significant amount of activities are carried out by incorporated JVs - group and divisional margins are distorted by the mixing up of pretax and net profits above the `Group PBT line - no impact on net profit, but generally understates PBT - performance analyses becomes more difficult and tricky 3

4 INCOME STATEMENT (before FRS 11) (RMmil) 9 mths to Apr 15 9 mths to Apr 14 Change (%) Revenue 3, , Profit from operations (EBIT) Finance Costs (86.9) (63.7) Share of associates (net of tax) Profit before tax Tax (136.4) (149.9) -9 Minority Interests (42.0) (9.0) +>100 Net profit attributable to equity holders Fully diluted EPS (sen) Dividend per share (sen) EBIT margins (%) PBT margins (%) Share of JVs (net of tax) 4

5 BALANCE SHEET SUMMARY (RMmil) As at 30 Apr 15 As at 31 Jan 15 Current Assets 6, ,874.4 Current Liabilities 1, , x 3.4x Total borrowings 3, ,559.1 Cash and marketable securities 1, ,649.9 (2,218.6) (1,902.2) Share capital 2, ,348.3 Reserves 3, ,623.1 Equity attributable to equity holders 6, ,971.5 Net gearing (overall) 36% 32% Net assets per share (RM) Current Ratio Net cash 5

6 QUARTERLY SEGMENTAL PROFITS (before FRS 11, one-offs) (RMmil) Q314 Q414 Q115 Q215 Q3 `15 Q3 `14 +/- Construction & Eng Properties Concessions Group Pretax Profit Group Net Profit YTD Segmental PBT (RMmil) YTD PBT Margins 9M `15 9M `14 +/- % 9M `15 9M `14 Construction Construction Properties Properties Concessions Concessions n.m. n.m. Group PBT Group PBT

7 KEY HIGHLIGHTS Earnings slowdown continues in Q3 ytd, revenue fell 10%, PBT rose 5% and net profit rose a marginal 3%; slowing earnings growth a reflection of rapidlycompleting civil works on KVMRT1, and 2-year property slowdown KVMRT2 roll-out making good progress public display completing without issues; PDP signing likely in 2 months; preq for civil works ongoing; tender-calling by end 2015, major civil awards from mid-2016 onwards, line completion in 2022 KVMRT2 mostly similar to KVMRT1 dual roles for Gamuda JVs PDP for elevated works and only local contractor fully qualified to tender for underground works Penang Transport Master Plan (PTMP) making good progress; PDP outcome expected soon; significant financial impact if successful Splash negotiations to resume soon awaiting resolution of master agreement between Federal and State; negotiations will resume thereafter Property sector likely bottomed out looking for gradual recovery in 2016, wellpositioned to ride upturn, on track for RM1.2bn presales target for FY15 7

8 KEY CORPORATE UPDATES KVMRT2 prequalification of civil contractors ongoing with fast-track option; key targeted milestones tender calling (Q4 2015), major civil packages awards (from mid-2016), line completion (2022); PDP agreement signing in 2 months KVMRT1 - cumulative financial progress on underground works at 68% (+7%) and PDP scope 55% (+5%) respectively at end Q3; on track to meeting cost and time KPIs PDP progress foundations (100%), pier construction (98%); elevated guideways (92%); SBG production (100%), tracklaying (60%), train testing underway, other systems, M&E works progressing at full momentum Penang Transport Master Plan (PTMP) 2 groups shortlisted; intensive negotiations ongoing, PDP terms, scope being fine-tuned; PDP outcome expected soon, with appointment shortly thereafter; another long-term income stream if successful New land parcel acquired 18-acre leasehold parcel for Bukit Bantayan project in Kota Kinabalu, Sabah for RM100m Three upcoming property launches in FY16 (total RM1.7bn GDV) HighPark Suites (Kelana Jaya), Chapel Street (Melbourne), Bukit Bantayan (Sabah) Celadon City project now wholly-owned purchased 40% stake from Sacomreal for USD46.5m (RM168m); buyout will facilitate more aggressive marketing, stronger branding, and improved sales New Singapore project likely cycle now appears favourable; a 50% Gamuda-led JV emerges highest bidder for SGD650m Toa Payoh project; SGD345.9m bid price translates into SGD755 psf; matured neighbourhood with strong demand for private residences; excellent location Property presales RM810m in 9 months (-46% y-o-y); RM280m in Q3 (-44% y-o-y); RM1.3bn unbilled sales at end Q3; full year projections maintained at RM1.2bn; growing evidence that sector has bottomed-out 8

9 CONSTRUCTION ORDER BOOK Current unbilled order book about RM1.3 billion (end Q3FY15) Major Projects Major Ongoing KVMRT Line 1 (SBK Line) Underground (50% share) Full Completion Northern Electrified Double Track Railway (50% share) Balance works (RMbn) Completion Status Comments % now completion date Mid-2017 Tunnelling works fully completed, stations construction progress range between 60-80% Fully completed; Both spine and spur lines handed over 9

10 CONSTRUCTION OUTLOOK Slightly slower Q3 billings as pace of civil works start to taper off; ytd, revenues decline 20% to RM2.24bn whilst PBT fell 16% to RM192m y-o-y; unbilled order book at RM1.3bn PBT margin holds steady at 9.2% in Q3 compared to 9.4% in Q2 KVMRT1 tunnelling works fully completed; tracks, systems, electrification, signalling, train testing works are all progressing on schedule KVMRT2 all progressing smoothly; public display completing soon; civil tenders to be called in Q4 2015; major civil awards by mid-2016; PDP agreement expected to be signed within 2 months; Penang Transport Master Plan (PTMP) in final shortlist; PDP outcome expected within 2 months; PDP appointment shortly thereafter; significant long-term financial impact if successful New project opportunities Gemas-JB double track, Pan Borneo Highway 10

11 PROPERTIES OUTLOOK Steady Q3 performance; ytd, revenue slipped 2% to RM887m whilst PBT slipped 4% to RM228m; PBT margin remained stable at 26% Group achieved new presales of RM810m (-46%) ytd; unbilled sales stands at RM1.3bn; Q3 presales came in at RM280m (-44%) Market appears to have bottomed-out; recovery may be more evident from 2016 onwards; group now well-positioned for the next upcycle Acquired a 19-acre leasehold parcel in Kota Kinabalu for RM100m (Bukit Bantayan); plan to develop 1500 apartments; RM710m GDV over 8 years; launch in 2016 Equity stake in Celadon City increased to 100% after buyout of 40% stake from Sacomreal for USD46.5m (RM168m) A 50% Gamuda-led JV emerged the highest bidder for a 12,154 sq m piece of leasehold land in Toa Payoh, Singapore; very tight bids with the top 5 bidders prices within a 4% range 11

12 BUKIT BANTAYAN KEY HIGHLIGHTS Size: 18 acres Purchase price: RM100m or RM125psf GDV: RM710m over 8 years Tenure: Leasehold Location: 7km east of Kota Kinabalu, Sabah Road access: Jalan Bantayan-Minintod, Inanam No of units: 1,500 - with average built-ups of 1,000 sq ft each Features: Likely among the earliest earthquake-resistant developments in Sabah 12

13 BUKIT BANTAYAN SITE LOCATION MAP Jalan Linta s Tu City Mall Ja lan Ko lam a Jal ena np Queen Elizabeth Hosp mp Sabah Golf & Country Club Sabah Int. School 5K M Ra di us ua r an om SJK(C) Yik Nam KK19 SITE View C View B: View towards Likas Town with ridge at background Sayfol Int. School KM 10 Jala n Duta an g Kota Kinabalu Airport KK Specialist Center View A Tshung Tshin School View A: View towards Likas Town kia ns -Mini ntod Ja lan Sutera Harbor Resort Tu ar an Town Center View B Ja lan Jalan Bant ayan Jal an Kian Kok School Inanam Town Jal an T F ua Tun Jala n nr a za k 10K M 5K M Rad ius Ra di u s d St ep h en Jal an By Tua p a ra ss n Site Location s diu Ra View C: View towards project site 13

14 CHAPEL STREET KEY HIGHLIGHTS Size: 1435 square metres (0.35 acres) Purchase price: AUD 40 million or AUD27,875 psm GDV: RM400m (AUD130m) over 3 years Tenure: Freehold Land status: Mixed-use development land Location: CBD In South Yarra, Melbourne, about 4 km from Accessibility: Highways, Train, Tram Target Market: Business Executives, Professionals, Investors, Inter-state and International Migrants, Urban families 14

15 CHAPEL STREET - LOCATION MAP TO UPFIELD TO CRAIGIEBURN UNIVERSITY OF MELBOURNE VILLE MACAULAY NORTH MELBOURNE SOUTH KENSINGTON TO SUNBURY, WERIBEE, WILLIAMSTOWN CARLTON CARLTON GARDENS NORTH MELBOURNE COLLINGWOOD FITZROY VICTORIA ABBOTFORD KEW WEST MELBOURNE FITZROY GARDENS SOUTHERN CROSS DOCKLANDS FLINDERS ST MELBOURNE CBD CITIZEN VICTORIA HARBOUR YARRA YARRA BEND VICTORIA ST JAMES RICHMOND RICHMOND RIVER BURNLEY SOUTHBANK OLYMPIC PORT MELBOURNE SOUTH MELBOURNE GLENFERRIE CENTRAL ABERDEEN ST HAWTHORN EAST THE SITE SOUTH YARRA AUBURN HAWTHORN BURNLEY BURNLEY GOLF ROYAL BOTANIC GARDEN MELBOURNE EDWARDS ST VINCENT GARDENS LAGOON RESERVE GASWORK ART EAST RICHMOND HAWTHORN HEYINGTON COMO KOOYONG TO ALAMEIN, LILYDALE & BELGRAVE CAMBERWELL SOUTH YARRA FAWKNER HAWKSBURN TOORAK ALBERT LAKE ARMADALE TOORAK WINDSOR VICTORIA GARDENS ORRONG TO FRANKSTON, STONY POINT, CRANBOURNE, PAKENHAM TO GLEN WAVERLY TOORONGA 15

16 CONCESSIONS OUTLOOK Stable concession earnings in Q3 Kesas now a 70%-subsidiary and is fully consolidated; Water restructuring awaiting resolution of master agreement between Federal and State governments Splash disposal negotiations expected to resume after water restructuring issues resolved 16

17 Thank You 17