KSH HOLDINGS LIMITED Corporate Presentation May 27, 2014
KSH Corporate Presentation OVERVIEW KSH Holdings Limited RESULTS FY2014 UPDATES Corporate Developments OUTLOOK Strategies Moving Forward CONCLUSION Q&A 2 of 26
KSH Corporate Presentation OVERVIEW KSH Holdings Limited RESULTS FY2014 UPDATES Corporate Developments OUTLOOK Strategies Moving Forward CONCLUSION Q&A 3 of 26
OVERVIEW KSH HOLDINGS LIMITED KSH is a well-established Construction, Property Development and Property Management group that was incorporated in 1979 and listed on the Mainboard of SGX-ST on February 8, 2007. As at May 23, 2014, KSH has a market capitalisation of S$230.31 million Singapore A main contractor for both public and private construction sector Proven capability in handling projects across various categories: residential, commercial, industrial, hotel, institutions, infrastructure etc An A1-graded contractor under BCA CW01 Able to tender for Public Sector construction projects of unlimited value Projects performed well in CONQUAS, a standard assessment system on the quality of building projects Won two BCA Construction Excellence Awards for the construction of Fullerton Bay Hotel and NUS University Town s Educational Resource Centre in May 2013 Entered Property Development and Property Management in Singapore in 2008 PRC MALAYSIA SINGAPORE Peoples Republic of China Entered Property Development and Property Management in PRC in 2001 Won first construction project in Beijing in April 2013 Erect 3 blocks of 11-13 storey residential building with office and commercial units as well as 2 levels of basement for Liang Jing Ming Ju Phase Four - Sequoia Mansion Malaysia A main contractor for the Private Sector Acquisition of property in Klang, Negeri Selangor for development 4 of 26
OVERVIEW KSH HOLDINGS LIMITED REBALANCING AND DIVERSIFICATION Corporate Developments Acquisition of 92.8% interest in Prudential Tower for S$512 million through Joint Venture - KSH Commercial Investment Pte Ltd holds 28% stake in Joint Venture May 15, 2014 Joint Venture for investment purposes in Cambodia - KSH Asia Investment Pte Ltd hold 17% in the Joint Venture March 26, 2014 Joint Venture for property development in People s Republic of China - KSH s associate company, Beijing Jin Hua Tong Da Real Estate Development Co., Ltd. ( BJJHTD ), and KAP Holdings (China) Pte. Ltd. ( KAP ) for the incorporation of joint venture company, named Sino-Singapore KAP Construction Co., Ltd. ( SSKAP ) Acquisition of property in Klang, Negeri Selangor, Malaysia - KSH Asia Investment Pte Ltd hold 40% in the Joint Venture through associate company, Klang City Development Pte Ltd, ( KCD") March 24, 2014 January 15, 2014 5 of 26
KSH Corporate Presentation OVERVIEW KSH Holdings Limited RESULTS FY2014 UPDATES Corporate Developments OUTLOOK Strategies Moving Forward CONCLUSION Q&A 6 of 26
RESULTS HIGHLIGHTS Achieved record earnings of S$44.5 million in FY2014 Revenue jumped 40.1% to S$324.5 million, lifted by higher construction revenue and sales of development property in Singapore Share of results of associates leaped 66.2% to S$27.7 million Low gearing of 0.01 times Strong construction order book of more than S$410.0 million, as at March 31, 2014 Proposed Final Dividend of 1.75 SGD cents per ordinary share, bringing total dividend to 3.0 SGD cents per ordinary share, equivalent to a yield of 5.4%, as at May 23, 2014 7 of 26
RESULTS HIGHLIGHTS REVENUE HIGHLIGHTS S$ m 350 300 250 200 150 100 50 5.5 285.4 290.9 5.5 257.3 262.8 5.5 19.7 145.4 170.6 5.5 20.0 206.1 231.6 6.3 32.5 285.7 324.5 0 FY2010 FY2011 FY2012 FY2013 FY2014 Project Revenue Sales of development property Rental income from investment properties Revenue jumped 40.1% to S$324.5 million in FY2014 from S$231.6 million in FY2013 Lifted by higher construction revenue and sales of development property in Singapore and PRC 8 of 26
RESULTS HIGHLIGHTS EARNINGS HIGHLIGHTS Profit from operations before share of results of associates (S$ m) Profit Attributable to Shareholders (S$ m) 22.8 29.8 25.7 25.3 22.7 50 40 30 20 18.0 21.7 18.3 36.3 44.5 10 FY2010 FY2011 FY2012 FY2013 FY2014 Share of results of associates (S$ m) 0 FY2010 FY2011 FY2012 FY2013 FY2014 Net Profit Margin (%) 35 27.7 16.24% 25 15 5 0.2 16.6 6.30% 8.63% 12.00% 14.10% -5-0.5-0.1 FY2010 FY2011 FY2012 FY2013 FY2014 FY2010 FY2011 FY2012 FY2013 FY2014 Earnings grew 22.8% to S$44.5 million Share of results of associates leaped 66.2% to S$27.7 million 9 of 26
RESULTS HIGHLIGHTS HEALTHY BALANCE SHEET March 31, 2010 (S$ M) March 31, 2011 (S$ M) March 31, 2012 (S$ M) March 31, 2013 (S$ M) March 31, 2014 (S$ M) Current Assets 194.3 191.4 142.8 163.5 229.8 Current Liabilities 150.0 144.5 107.0 130.8 152.3 Net Current Assets 44.4 46.9 35.8 32.7 77.5 Total Assets 356.8 359.7 332.3 392.2 502.5 Total Liabilities 229.1 215.6 172.0 189.9 264.0 Shareholders Equity 108.4 125.0 139.1 180.4 217.0 Net tangible assets 127.6 144.2 160.3 202.3 238.5 Increasing Shareholders Equity to S$217.0 million as at March 31, 2014 10 of 26
RESULTS HIGHLIGHTS HEALTHY DEBT COVERAGE AND LOW GEARING March 31, 2010 (S$ M) March 31, 2011 (S$ M) March 31, 2012 (S$ M) March 31, 2013 (S$ M) March 31, 2014 (S$ M) Total Borrowing & Debts 103.0 94.5 75.5 87.9 145.3 Total Cash & Cash Equivalents 94.2 91.5 57.5 81.4 142.4 Net Borrowing & Debt 8.8 3.0 18.0 6.5 2.9 Net Debt to Equity 0.08 0.02 0.13 0.04 0.01 Established a S$300 million multicurrency medium term note programme Priced a S$75 million bond issue, due 2016, with coupon of 5.25% per annum High cash & cash equivalents of S$142.4 million Low gearing of 0.01 times 11 of 26
RESULTS HIGHLIGHTS DIVIDENDS SINCE LISTING 2007 (S$) 0.06 30.4% 0.05 3.0% 7.5% 8.2% 6.4% 5.3% 5.4% 0.04 0.035 0.030 0.03 0.010 0.025 0.02 0.01 0.011 0.010 0.015 0.020 0.020 0.015 0.010 0.010 0.005 0.010 0.010 0.010 0.0115 0.0175 0.0135 0.0125 0 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY2014 Interim Dividend Final Dividend Special Dividend Dividend Yield Proposed Final Dividend of 1.75 SGD cents per ordinary share, bringing total dividend to 3.0 SGD cents per ordinary share, equivalent to a yield of 5.4%, as at May 23, 2014 12 of 26
RESULTS HIGHLIGHTS STRONG CONSTRUCTION ORDER BOOK VISIBILITY (S$ m) 400 467 446 410 314 245 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Strong construction order book of more than S$410.0 million, as at March 31, 2014 13 of 26
KSH Corporate Presentation OVERVIEW KSH Holdings Limited RESULTS FY2014 UPDATES Corporate Developments OUTLOOK Strategies Moving Forward CONCLUSION Q&A 14 of 26
CONSTRUCTION NEW PROJECTS CONSTRUCTION ORDERBOOK IN SINGAPORE AS AT 31 MARCH 2014 MORE THAN S$410 MILLION CONSTRUCTION CONTRACTS AWARDED IN FY2014 Singapore: Project Name Value Project Type Expected Completion KAP and KAP Residences at King Albert Park S$76.9 million Mixed-use development August 2016 United World College of South East Asia at Dover Road S$42.5 million Construction of an additional school block August 2015 NEWest at West Coast Drive S$98.9 million Mixed-use development March 2016 15 of 26
Singapore PROPERTY DEVELOPMENT Name of Development Lincoln Suites Name of Development Cityscape@ Farrer Park Name of Development The Boutiq Type Residential Type Residential Type Residential Location Novena Launch Oct 2009 Tenure Freehold GFA (sq m) 15,603 Residential Units 175 % Sold* More than 90.9% Group s Stake 25% Target Completion TOP granted on April 1, 2014 Location Mergui Road Launch Oct 2010 Tenure Freehold GFA (sq m) 23,547 Residential Units 250 units % Sold* More than 88.8% Group s Stake 35% Target Completion Dec 2015 * As at May 26, 2014 16 of 26 Location 125 Killiney Road Launch Apr 2011 Tenure Freehold GFA (sq m) 10,397 Residential Units 130 units % Sold* More than 88.5% Group s Stake 35% Target Completion Dec 2014
Singapore PROPERTY DEVELOPMENT Name of Development Rezi 26 Name of Development The Palacio Name of Development Sky Green Type Residential Type Residential Type Residential Location Lorong 26, Geylang Location Lorong M, Telok Kurau Road Location MacPherson Road Launch Oct 2011 Launch Aug 2012 Launch Oct 2012 Tenure Freehold Tenure Freehold Tenure Freehold GFA (sq m) 6,925 Residential Units 106 % Sold* 100% Group s Stake 45% GFA (sq m) 4,152 Residential Units 21 % Sold* 100% Group s Stake 32% GFA (sq m) 13,907 Residential Units 176 % Sold* More than 97.7% Group s Stake 25% Target Completion Dec 2014 Target Completion * As at May 26, 2014 17 of 26 Dec 2015 Target Completion Dec 2016
Singapore PROPERTY DEVELOPMENT Name of Development Type Location NEWest Mixed Residential and Commercial West Coast Way Launch May 2013 Tenure GFA (sq m) 25,148 Shop Units 141 Residential Units 136 956 years from 27 May 1928 % Sold* (Commercial) More than 64.5% % Sold* (Residential) 100% Group s Stake 12.25% Target Completion * As at May 26, 2014 Dec 2018 Name of Development Type Location KAP/KAP Residences Mixed Residential and Commercial King Albert Park Launch May 2013 Tenure Freehold GFA (sq m) 17,178 Shop Units 107 Residential Units 142 % Sold* (Commercial) 100% % Sold* (Residential) 100% Group s Stake 12.6% Target Completion 18 of 26 Dec 2018 Name of Development Type Location FloraVille, Flora Vista & Floraview Mixed Residential and Commercial Yio Chu Kang Launch January 2014 Tenure Freehold GFA (sq m) 8,021 Shop Units 28 Residential Units 140 % Sold* (Commercial) More than 7.1% % Sold* (Residential) More than 18.6% Group s Stake 12.25% Target Completion Dec 2018
Singapore PROPERTY DEVELOPMENT Name of Development Rezi 3TWO Name of Development Hexacube Name of Development Trio Type Residential Type Commercial Type Commercial Location Lorong 32, Geylang Location 160 Changi Road Location Sam Leong Road Launch March 2014 (Preview) Launch March 2014 Launch March 2014 Tenure Freehold Tenure Freehold Tenure Freehold GFA (sq m) 3,456 Shop Units - Residential Units 65 % Sold* More than 27.7% Group s Stake 45% GFA (sq m) 5,009 Shop Units 65 Residential Units - % Sold* More than 49.2% Group s Stake 30% GFA (sq m) 3,445 Shop Units 43 Residential Units - % Sold* More than 23.3% Group s Stake 35% Target Completion March 2016 Target Completion Dec 2016 Target Completion June 2019 19 of 26
China PROPERTY DEVELOPMENT Liang Jing Ming Ju 4th phase Sequoia Mansion ( 靓景明居 - 红杉公馆 ) Property Name Location Tenure Approximate/ Estimated Net saleable area (sq m) Number of Residential Units* Number of Shop Units* Launch Group s Stake Target Completion Sequoia Mansion Beijing Residential: 70 years from 15 Jan 2003 Commercial: 40 years from 15 Jan 2003 39,420 373 53 Jan 2014 45.00% May 2015 * Estimated Figures 20 of 26
China PROPERTY INVESTMENT PORTFOLIO People s Republic of China A 36-storey Retail and Office Complex located at heart of business district of Tianjin, PRC KSH has a 69.0% equity interest in the property developer and manager of Tianxing Riverfront Square The remaining equity interest is held by Tianjin Commercial Construction Development Co., Ltd Approximately about 44% of the offices have been sold. The remaining 56% of the offices and the shopping podium have been leased out with an average occupancy of more than 90% Address: No. 81, Shi Yi Jing Road, Hedong District, Tianjin, 300171 Property Developer: Tianjin TianXing Real Estate Development Co., Ltd Property Manager: Tianjin TianXing Property Management Co., Ltd Total Lettable Floor Area: 37,033 sqm Tenure: Approximately 50 years from 29 Nov1993 Latest Valuation: S$104.1 million * * Based on the valuation performed by DTZ Debenham Tie Leung Property Advisory (Tianjin) Co Ltd carried out in March 2014 21 of 26
KSH Corporate Presentation OVERVIEW KSH Holdings Limited RESULTS FY2014 UPDATES Corporate Developments OUTLOOK Strategies Moving Forward CONCLUSION Q&A 22 of 26
OUTLOOK AND STRATEGIES Sector Construction Sector Property Development Outlook Stronger construction demand in the year 2014 is expected to be between S$31.0 billion and S$38.0 billion buoyed by public sector demand,. Private sector construction may moderate to S$12.0 and S$16.0 billion in 2014 Outlook According to Urban Redevelopment Authority ( URA ) statistics, prices of private residential properties decreased by 1.3% in 1st quarter 2014. Strategy Focus on Construction Business in Singapore Continue to tender for projects, in line with general Construction climate Greater emphasis on 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 certified A1 grading under CW01 category for general building by the BCA to tender for Public construction projects of unlimited value Strategy Maintain Property Development Business in Singapore and Overseas Adopt well-calculated approach for property development Form JVs with reputable partners Acquire Prudential Tower in Singapore Development of Gaobeidian New Town in PRC A Mixed Development via JV in Klang, Malaysia Redevelop Imperial Garden Villa & Hotel via JV in Cambodia 23 of 26
OUTLOOK AND STRATEGIES Construction Focus on Construction Business in Singapore Property Development Maintain Property Development Business in Singapore and Overseas Explore other overseas opportunities in Southeast Asia - Malaysia - Cambodia 24 of 26
KSH Corporate Presentation OVERVIEW KSH Holdings Limited RESULTS FY2014 UPDATES Corporate Developments OUTLOOK Strategies Moving Forward CONCLUSION Q&A 25 of 26
Q&A