Gamuda Berhad. KVMRT2 Slight Delay in Roll- Out. Q INVESTORS BRIEFING 26 March 2015

Transcription

1 Gamuda Berhad KVMRT2 Slight Delay in Roll- Out Q INVESTORS BRIEFING 26 March

2 INCOME STATEMENT SUMMARY (RMmil) HYE Jan 15 HYE Jan 14 Change (%) Revenue 1, , Profit from operations (EBIT) Finance Costs (55.7) (33.4) +67 Share of JVs (net of tax) Share of associates (net of tax) Profit before tax Tax (65.4) (50.6) +29 Minority Interests (25.2) (6.0) +>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 proporeonate consolidaeon, reported gross of tax Share of associates reported as previously, net of tax Key impacts - substaneal group revenue is `lost as significant amount of aceviees 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) HYE Jan 15 HYE Jan 14 Change (%) Revenue 2, , Profit from operations (EBIT) Finance Costs (60.3) (39.5) +53 Share of JVs (net of tax) Share of associates (net of tax) Profit before tax Tax (90.1) (90.4) - Minority Interests (25.2) (6.0) +>100 Net profit attributable to equity holders Fully diluted EPS (sen) Dividend per share (sen) EBIT margins (%) PBT margins (%)

5 BALANCE SHEET SUMMARY (RMmil) As at 31 Jan 15 As at 31 Oct 14 Current Assets 6, ,578.2 Current Liabilities 2, ,797.6 Current Ratio 3.4x 3.7x Total borrowings 3, ,079.7 Cash and marketable securities 1, ,579.3 Net cash (1,909.2) (1,500.4) Share capital 2, ,324.3 Reserves 3, ,370.6 Equity attributable to equity holders 5, ,694.9 Net gearing (overall) 32% 26% Net assets per share (RM)

6 QUARTERLY SEGMENTAL PROFITS (before FRS 11, one- offs) (RMmil) Q214 Q314 Q414 Q115 Q2 `15 Q2 `14 +/- Construction & Eng Properties Concessions Group Pretax Profit Group Net Profit YTD Segmental PBT (RMmil) 6M `15 6M `14 +/- Construction Properties Concessions Group PBT YTD PBT Margins % 6M `15 6M `14 Construction Properties Concessions n.m. n.m. Group PBT

7 KEY HIGHLIGHTS Slowing momentum in Q2 pretax grew 7% q- o- q and 12% y- o- y, due largely to consolidaeon of Kesas; HY net profit up 10%, but both construceon, properees losing momentum, declining q- o- q and y- o- y KVMRT2 approved to proceed PDP appointment secured; expect tender- calling towards end 2015, major awards from mid onwards, line compleeon in 1HY 2022 KVMRT2 to be structured like KVMRT1 dual roles for Gamuda JVs PDP for elevated works and only local contractor qualified to tender for underground works package 3-6 month delay in roll- out of KVMRT2 largely due to changes in southern corridor alignment (now incorporaeng new Bandar Malaysia staeon) Splash negooaoons are ongoing sell expect a saesfactory resolueon in coming months, negoeaeons with both Fed and State ongoing Subdued property outlook likely to persist through 2015/6, focus now on further build- up of landbank, presales projeceons cut 34% 7

8 KEY CORPORATE UPDATES KVMRT2 PDP appointment secured; project design, land acquisieon have commenced; public display to commence towards mid- 2015; key targeted milestones tender calling (Q4 2015), major civil packages awards (from mid- 2016), line compleeon (early 2022) 3-6 month delay in KVMRT2 roll- out new Bandar Malaysia staeon to be incorporated into Line 2 (originally in Line 3); changes to alignment ongoing; will result in slightly longer underground but slightly shorter elevated stretches in the south; PDP agreement signing now expected in mid KVMRT1 - cumulaeve financial progress on underground works and PDP scope at 61% (+3%) and 50% (+8%) respecevely at end Q2; on track to meeeng cost and Eme KPIs UG tunnelling works fully compleeng in 3 weeks; all TBMs being refurbished for upcoming Line 2; underground staeons construceon works are ongoing and progressing on schedule PDP progress foundaeons 99%, pier construceon 85%; elevated guideways 65%; SBG produceon (90%), track- laying (45%), other systems works gathering momentum Penang Transport Masterplan RFP for PDP has closed; total of 6 bidders including 2 foreign groups; outcome now expected earlier between May and July 2015 Property presales RM535m in HY (- 45%); RM1.5bn unbilled sales at end Q2; full year projeceons cut by 34%; focus to conenue on land- banking 8

9 CONSTRUCTION ORDER BOOK Current unbilled order book about RM1.6 billion (end Q2FY15) Major Projects Balance works (RMbn) Completion Status % now completion date Comments Major Ongoing KVMRT Line 1 (SBK Line) Underground (50% share) Mid-2017 Tunnelling works almost fully completed, stations construction progress range between 50-75% Full Completion Northern Electrified Double Track Railway (50% share) Fully completed; Both spine and spur lines handed over 9

10 CONSTRUCTION OUTLOOK Slightly slower Q2 billings as pace of civil works start to taper off at the more advanced packages; HY revenues decline 18% to RM1.55bn; Q2 PBT earnings surge 40% to RM75m y- o- y; unbilled order book at RM1.6bn PBT margin improves to 9.4% in Q2 compared to 7.1% in Q1 KVMRT1 tunnelling works compleeng in 3 weeks; track and systems works are progressing on schedule KVMRT2 3-6 month delay in roll- out; design works progressing, land acquisieon exercises have started, public display by mid- 2015; target to call tenders in Q with major civil contract awards by mid onwards PDP agreement expected to be signed in mid- 2015; negoeaeons progressing smoothly and almost fully concluded Penang Transport Master Plan eyeing the PDP role, outcome expected in mid (between May to July) 10

11 PROPERTIES OUTLOOK Weakening Q2 performance; Q2 revenue slipped 7% to RM289m whilst PBT slipped 9% to RM65m; PBT margin slides to ~25% Group achieved new presales of RM535m (- 45%) in HY as market weakness persists; unbilled sales stands at RM1.5bn; Q2 presales came in at RM290m (- 28%) Market weakness likely to persist through 2015/6, more so in Iskandar; FY15 presales projeceons cut by 34% for group; now targeeng RM1.2bn presales Recently acquired a small parcel of freehold land in Melbourne for AUD40m; located at Chapel Street in South Yarra, plan to develop 150 units of apartments; GDV esemated at RM390m; targeeng launch in late Landbanking efforts to conenue; recently acquired 257- acre parcel at RM35psf; located just 2 km from Kota Kemuning, and will be posieoned as an extension to Kota Kemuning 11

12 CHAPEL STREET KEY HIGHLIGHTS Size: 1435 square metres (0.35 acres) Purchase price: AUD 40 million or AUD27,875 psm GDV: Tenure: Freehold Land status: RM380m (AUD130m) over 3 years Mixed- use development land LocaEon: In South Yarra, Melbourne, about 4 km from CBD Accessibility: Highways, Train, Tram Target Market: Business ExecuEves, Professionals, Investors, Inter- state and InternaEonal Migrants, Urban families 12

13 CHAPEL STREET - LOCATION MAP TO UPFIELD TO CRAIGIEBURN MACAULAY NORTH MELBOURNE NORTH MELBOURNE SOUTH KENSINGTON TO SUNBURY, WERIBEE, WILLIAMSTOWN UNIVERSITY OF MELBOURNE PARKVILLE YARRA BEND VICTORIA CARLTON COLLINGWOOD CARLTON FITZROY GARDENS VICTORIA ABBOTFORD KEW WEST MELBOURNE FITZROY GARDENS FLINDERS ST SOUTHERN CROSS DOCKLANDS MELBOURNE CBD VICTORIA HARBOUR YARRA RIVER CITIZEN SOUTHBANK OLYMPIC PORT MELBOURNE ST JAMES RICHMOND RICHMOND SOUTH MELBOURNE BURNLEY BURNLEY GLENFERRIE HAWTHORN ABERDEEN ST HAWTHORN EAST THE SITE SOUTH YARRA FAWKNER HEYINGTON COMO KOOYONG TO ALAMEIN, LILYDALE & BELGRAVE CAMBERWELL SOUTH YARRA HAWKSBURN TOORAK ALBERT LAKE TOORAK WINDSOR AUBURN CENTRAL BURNLEY GOLF ROYAL BOTANIC GARDEN MELBOURNE EDWARDS ST VINCENT GARDENS LAGOON RESERVE GASWORK ART EAST RICHMOND HAWTHORN VICTORIA GARDENS ORRONG ARMADALE TO FRANKSTON, STONY POINT, CRANBOURNE, PAKENHAM TO GLEN WAVERLY TOORONGA 13

14 KK257 KEY HIGHLIGHTS Size: 257 acres Purchase price: RM392m or RM35psf GDV: RM3bn over 6-8 years Tenure: Leasehold expiring 2111 Land status: Agricultural land LocaEon: Mukim Tanjong 12, 2km from Kota Kemuning township Highway access: KESAS, LKSA Key catchment areas: 10km radius around Kota Kemuning; to be posieoned as an extension to the highly matured Kota Kemuning Distances: KL City Centre (34km), PJ Town (26km) 14

15 TANJONG 12 KEY HIGHLIGHTS Size: 1530 acres Purchase price: RM784m or RM11.80psf GDV: RM19bn over years Tenure: Leasehold expiring 2093 Land status: Agricultural land LocaEon: Mukim Tanjong 12, Kuala Langat district, 8km SW of Cyberjaya/Putrajaya Highway access: ELITE (via new interchange) Highways nearby: Putrajaya Link, Maju Expressway, KESAS Key catchment areas: Cyberjaya (12km), Putrajaya (15km), Puchong, Kota Kemuning (25km), Subang Jaya (21km) Distances: KL City Centre (37km), PJ Town (34km) 15

16 KK257 LOCATION MAP 16

17 TANJONG 12 AND KK257 LOCATION MAP 17

18 CONCESSIONS OUTLOOK Stable concession earnings in Q1 Kesas now a 70%- subsidiary and is fully consolidated; NegoEaEons on Splash disposal have resumed following resolueon of State MB issue; likely to be saesfactorily resolved in the next few months 18

19 Thank You 19