1hfy2008 results presentation august 15, 2008...2008/08/15 · marina bay sands integrated resort,...
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YONGNAM HOLDINGS LIMITED1HFY2008 Results Presentation
August 15, 2008
YONGNAM HOLDINGS LIMITED2
Our Business
Yongnam is
• A well-established structural steel contractor and specialist engineering solutions provider
• One of the largest steel fabrication facilities in South East Asia • nearest competitor is one-fifth the size of Yongnam
• S1 category accreditation from Singapore Structural Steel Society
• ISO9000 Quality Management System Certified
• OHSAS 18001 Occupational Health and Safety Management System Certified
Specialist CivilEngineering
StructuralSteelworks
YONGNAM HOLDINGS LIMITED3
Structural SteelworksCompetitive strengths:
Size of Fabrication FacilitiesDelivery on time and with qualityFew Competitors for S1 Classification
Track Record:Second International Airport, BangkokExpo MRT Station, SingaporeFusionpolis, SingaporeNational Library, SingaporeOne Raffles Quay, SingaporeChangi Airport Terminal 3, SingaporeSuntec City, SingaporeAircraft Hanger, BruneiCircle Line, SingaporeDubai Metro Rail, DubaiFormula One recreation cum commercial complex, SingaporeOrchard Turn, SingaporeMarina Bay Sands™ Integrated Resort, Singapore
YONGNAM HOLDINGS LIMITED4
Structural Steelworks
Marina Bay Sands Integrated Resort, Singapore
Formula One recreation cum commercial complex, Singapore
Orchard Turn, Singapore
Dubai Metro Rail, Dubai
YONGNAM HOLDINGS LIMITED5
Structural Steelworks
SuvarnabhumiInternational Airport, Bangkok
Expo MRT Station, Singapore
Fusionpolis, Singapore
National Library, Singapore
One Raffles Quay, Singapore
YONGNAM HOLDINGS LIMITED6
Competitors:
Structural Steelworks
TTJ Design & Engineering Pte Ltd
MCC Group
Victor Buyck Steel Construction Sdn Bhd
JFE Corporate Co. Ltd
Alfasi Construction (S) Pte Ltd
YONGNAM HOLDINGS LIMITED7
Specialist Civil Engineering
Competitive strengths:Modular Strutting System
Meets increasingly stringent design and project requirementsSize of Strutting Assets
Approximately 90k TonsHigh Replacement Cost of Struts
Track Record:Kallang Paya Lebar Expressway , SingaporeMRT Circle Line, SingaporeHong Kong MRT, Hong KongCentral Expressway, SingaporeNorth-East MRT Line, SingaporeDubai Metro Rail, Dubai
YONGNAM HOLDINGS LIMITED8
HarbourFront Station, North-East Line,Singapore
Kallang Paya Lebar Expressway, Singapore
Bartley Station, Circle Line, Singapore
Specialist Civil Engineering
YONGNAM HOLDINGS LIMITED9
Completed/Ongoing Works
PC
CD
ST
SS
SS
PC
PCPCPCPCPCPC
PC
CD
CD
CD
CD
SS SS
SS
STST
ST
ST
STSTST
ST
ST
ST
ST
PC Pre cast Projects
ST Civil Eng Works
ST
ST
STST
ST
ST
ST
ST
ST
ST
ST
ST
ST
ST
ST
ST
SS Structural Steelwork
CD Civil Defense Doors
YONGNAM HOLDINGS LIMITED10
Competitors:
Fuchi Company
“J” Steel
Specialist Civil Engineering
YONGNAM HOLDINGS LIMITED11
FacilitiesSingapore:
Total Land Area: Approximately 76,000 m2
Workshop Covered Area: 20,250 m2
Capacity (Normal Steel Structure): 3,000 Tons per monthAverage Utilisation: 3,100 Tons per month
Malaysia (Pontian):Total Land Area: Approximately 8070 m2
Workshop Covered Area: 3,000 m2
Capacity (Normal Steel Structure): 500 Tons per monthAverage Utilisation: 800 Tons per month
Malaysia (Nusajaya, Johor)*:Total Land Area: Approximately 109,103 m2
Workshop Covered Area: 28,900 m2
Expected Capacity (Normal Steel Structure): 3,500 Tons per month
*New fabrication factory commencing operations in August 2008
Combined Total Staff Strength: Approximately 1,350 (excluding sub-contractors)
YONGNAM HOLDINGS LIMITED12
Over 30 years of experience in steel fabrication
Long established relationships with major customers, who are reputable contractors, like:
Our Business
Takenaka Corporation
Taisei Corporation
Obayashi Corporation
Penta Ocean
Shimizu Corporation
Dragages Singapore
Samsung CorporationSsangyong Engineering &Construction Co LtdHyundai Engineering & Construction Ltd
Aker KvaernerSembawang Engineering &Construction Ltd
YONGNAM HOLDINGS LIMITED13
Singapore- Yongnam Engineering &Construction (Pte) Ltd
- YNE Project EngineeringPte Ltd
Malaysia- Yongnam Engineering Sdn
Bhd- Jiwa Harmoni Offshore SdnBhd
Hong Kong- Yongnam Engineering (HK) Ltd
ThailandYongnam Engineering & Construction (Thailand) Ltd
China- Yongnam Steel Work SystemEngineering (Shanghai) Co.,Ltd
Middle East- Yongnam Engineering & Construction (Pte) Ltd, Dubai Branch
India- Project Office (Delhi)
Regional Offices
Hong Kong
Malaysia
Singapore
China
ThailandIndia
Middle East
YONGNAM HOLDINGS LIMITED14
Hong Kong
BruneiMalaysia
Singapore
Thailand Philippines
Japan
India
Korea
Projects undertaken across the region:
Singapore
Malaysia
Middle East
China
Norway
Brunei
Philippines
Thailand
Japan
Korea
Hong Kong
Pakistan
India
Regional Projects
PakistanMiddle East
China
Norway
YONGNAM HOLDINGS LIMITED
Corporate Developments
YONGNAM HOLDINGS LIMITED16
Corporate DevelopmentsSuccessive wins of projects for Marina Bay Sands™ Integrated Resort (“IR”)
Sky Park Construction ProjectJoint venture with Japan-based JFE Engineering Corporation to undertake construction of Sky Park
1 ha park set atop the three hotel towers at the IRContract valued at S$50.3 million
South Podium Construction ProjectJoint venture with local-based KTC Civil Engineering & Construction to undertake contract for South Podium construction works
For temporary decking, steel waling, strutting and excavation worksContract valued at S$81.4 million
YONGNAM HOLDINGS LIMITED17
Corporate DevelopmentsSuccessive wins of projects for Marina Bay Sands™Integrated Resort (“IR”)
Sub-contracts from Penta-Ocean Construction and Sembawang Engineers & Constructors
From Penta-Ocean: structural steelworks for construction of the ArtScience Museum
Contract valued at S$41.4 millionFrom Sembawang Engineers: structural steelworks stanchion for construction of the Casino and Theatre Podium
Also includes specialist civil engineering expertise in the project for struts, walers, bracings, fittings and deckingsContract valued at S$42.0 million
Value of Total Contract Wins for the IR todate: S$261.1 million
YONGNAM HOLDINGS LIMITED18
Corporate Developments
Established strong foothold in the Middle East:
Total contracts awarded increased from an initial S$13.0 millionsecured in FY2006 to S$184.7 million as at end of 1HFY2008
Harvesting business development efforts in the Middle East
YONGNAM HOLDINGS LIMITED1HFY2008
Financial Performance
YONGNAM HOLDINGS LIMITED20
Financial Highlights
1HFY2008 Highlights:• 6th consecutive half-year record revenue
• Topline growth of 71.2% to S$133.8 million
• Net profit surges 191.3% to S$16.5 million
• Structural Steelworks remains as top revenue contributor and revenue gainer
• Shareholders’ equity improves to S$124.0 million as at end June 2008
• EPS increases 161.5% to 1.36 Singapore cents
• Order book strengthened to S$318 million as at end June 2008
Financial Period ended June 30
YONGNAM HOLDINGS LIMITED21
Financial Highlights
1.36
16.5
23.6
31.5
133.8
1HFY08
0.87
10.5
21.3
18.4
86.3
2QFY08
0.52 (1)
5.7 (1)
18.5
14.5
78.1
1HFY07
148.6
160.8
21.0
118.6
82.8
Change (%)
191.34.0 (1)Net Profit after MI (S$’m)
161.50.35 (1)EPS (Basic)(cents)
27.617.8Gross Profit Margin (%)
117.58.4Gross Profit (S$’m)
71.247.2Revenue (S$’m)
Change (%)2QFY07
(1) Excludes exceptional gain of S$12.7 million on write-back of impairment on an investment property
Financial Period ended June 30
YONGNAM HOLDINGS LIMITED22
Balance Sheet Highlights
102.1107.1Bank Borrowings (S$’m)
113.2124.0Shareholders’ Funds (S$’m)
16.810.0Debtors (S$’m)
277.0318.0Order Book (S$’m)
19.932.2Cash & Bank Balances (S$’m)
120.5127.3Work-in-progress (S$’m)
2008Mar 31
2008Jun 30
Financial Period ended June 30
YONGNAM HOLDINGS LIMITED23
Revenue
S$ million • 2QFY2008 Revenue 82.8%:Structural Steelworks jumped 103.0% toS$60.3 millionMainly due to:
Increased activities from projects suchas Orchard Turn, Marina Bay SandsTM
IR and the Dubai Metro Rail
Specialist Civil Engineering increased48.0% to S$25.9 millionMainly due to:
Commencement of projects at theMarina Bay SandsTM IR
47.2
78.1
133.8
0
20
40
60
80
100
120
140
2QFY2007 2QFY2008 1HFY2007 1HFY2008
86.3
Financial Period ended June 30
71.2%
82.8%
YONGNAM HOLDINGS LIMITED24
S$ million• 2QFY2008 Gross Profit 118.6%,due to:Higher revenue
Improved gross margins:
17.8% in 2QFY2007 to 21.3% in2QFY2008
Gross Profit
Financial Period ended June 30
8.4
18.4
14.5
31.5
0
5
10
15
20
25
30
35
2QFY2007 2QFY2008 1HFY2007 1HFY2008
118.6%
117.5%
YONGNAM HOLDINGS LIMITED25
S$ million • 2QFY2008 Net Profit 160.8%,mainly due to:Higher revenue
Higher margins
Net Profit Attributable to Shareholders
Financial Period ended June 30
4.0
10.5
5.7
16.5
0.02.04.06.08.0
10.012.014.016.018.0
2QFY2007 2QFY2008 1HFY2007 1HFY2008
160.8%
191.3%
(1) 2QFY2007 & 1HFY2007 net profits exclude S$12.7 million write-back of impairment on an investment property
(1) (1)
YONGNAM HOLDINGS LIMITED26
Revenue by Business Activity
2QFY2008
30.0%70.0%
StructuralSteelworks
S$60.3m
Specialist Civil EngineeringS$25.9m 2QFY2007
37.1% 62.9%
Specialist Civil EngineeringS$17.5m
Structural Steelworks
S$29.7m
Financial Period ended June 30
YONGNAM HOLDINGS LIMITED27
S$ millionIncreasing Order Book:
• Group’s order book as atJune 30, 2008 amounted to S$318 million
• Boosted by recent contractwins from the Marina BaySandsTM Integrated Resort
Order Book
Financial Period ended June 30
277
250
260
270
280
290
300
310
320
Mar 31 2008 June 30 2008
318
YONGNAM HOLDINGS LIMITEDProspects & Market Outlook
YONGNAM HOLDINGS LIMITED29
Prospects & Market OutlookPositive outlook for the local and regional markets:
Singapore:The Building and Construction Authority (BCA) estimates this year’s contracts to be awarded to hit S$23-S$27 billionOngoing infrastructure developments like Marina Coastal Expressway, MRT Downtown Line, Integrated Resorts, Singapore Sports Hub, Orchard Turn and other commercial developmentsAnnounced future developments such as North-South Expressway, MRT Thomson Line and MRT Eastern Line
Middle East and India:Rising budgets set by Governments to develop infrastructure to support growing economy and attract foreign investors
YONGNAM HOLDINGS LIMITED30
Estimated Contract Value
Structural Steelworks (Expected Commencement)2008 $369m2009 $444m
Specialist Civil Engineering(Expected Commencement)2008 $560m2009 $90m
Projects announced by Government (not included above):• MRT Thomson Line• MRT Eastern Line• North-South Expressway
Contracts for infrastructural and other developments such as:
Al Raha Beach ResortDubai Metro Rail
Singapore Sports HubMRT Downtown Line
Integrated ResortMarina Coastal Expressway
Prospects & Market OutlookPOTENTIAL PROJECTS IN THE MARKET
TOTAL $1,463m
YONGNAM HOLDINGS LIMITED31
Targeted MRT Projects
Yongnam’s Targeted New Projects
YONGNAM HOLDINGS LIMITEDGrowth Strategies & Plans
YONGNAM HOLDINGS LIMITED33
Growth Strategies & Plans
Continue to focus on the two core businesses – Structural Steel and Specialist Civil Engineering
Continue to explore opportunities in Middle East
Actively pursue opportunities in India
Laying groundwork in Malaysia to tap business opportunities coming on-stream in 2-3 years’ time
YONGNAM HOLDINGS LIMITEDKey Highlights
YONGNAM HOLDINGS LIMITED35
Key Highlights
• High-value projects secured by the Group in Singapore
• Build on strengths of Group’s two core businesses and continue to capitalise on the Group’s market leadership, both locally and overseas
• Increased spending on infrastructure developments by governments in Asia-Pacific and Middle East regions
• Well-positioned to tap on regional construction boom
• Concurrent efforts to pursue more business opportunities in the Middle East and India
YONGNAM HOLDINGS LIMITEDThank you