Wct Holdings Bhd. · MYX:WCT
Wct Holdings Bhd — Q2 2023 Earnings Presentation
55 slides from Wct Holdings Bhd's earnings presentation, August 2023
Slide 1: WCT Holdings Berhad Investor Briefing – 2nd Quarter 2023
WCT Holdings Berhad INVESTOR BRIEFING – 2nd Quarter 2023 Strictly Private & Confidential
Slide 2: Key Shareholding as at 15 Aug 2023
Key Shareholding as at 15 Aug 2023 25.6% 11.1% 6.6% 56.7% Tan Sri Lim Amanah Foreign Others Siew Choon Saham Shareholders Strictly Private & Confidential Page 1
Slide 3: Financial Highlights
Financial Highlights Strictly Private & Confidential
Slide 4: Segmental Results Q2 2023 (3 months)
Segmental Results Q2 2023 (3 months) E&C PD PI&M Consolidated RM’mil RM’mil RM’mil RM’mil Revenue 274.3 97.5 52.7 424.5 Profit from operations 13.5 9.7 23.3 46.5 Share of results of associates 4.4 Share of results of joint ventures 0.3 (1.6) 4.5 3.2 Finance costs (31.1) Taxation (10.8) Profit for th
Slide 5: Segmental Results YTD 2Q 2023 (6 months)
Segmental Results YTD 2Q 2023 (6 months) E&C PD PI&M Consolidated RM’mil RM’mil RM’mil RM’mil Revenue 578.6 145.9 104.6 829.1 Profit from operations 22.6 16.0 50.6 89.2 Share of results of associates 6.2 Share of results of joint ventures 0.5 (3.3) 10.4 7.6 Finance costs (60.4) Taxation (15.1) Profi
Slide 6: Debt to Equity (DE) Ratio
Debt to Equity (DE) Ratio As at As at 30 Jun 2023 31 Dec 2022 RM’mil RM’mil Total bank borrowings 3,030 2,798 Cash & bank balances & fixed deposits (340) (234) Net borrowings 2,690 2,564 Shareholders equity (including Perpetual 3,926 3,907 Sukuk & non-controlling interest) Gross DE ratio 0.77 0.72 N
Slide 7: Engineering & Construction
Engineering & Construction Strictly Private & Confidential
Slide 8: Business At A Glance
Business At A Glance People Plants & Machineries 1,352 knowledgeable & experienced employees Owned 26,578 heavy machinery and construction equipment Annual Turnover Registration RM 1.47Bil (2022) Licensed Class G7 Contractor RM 1.2 Bil (2021) Over RM100 Billions in past 40 years Portfolio Rail F1 Ci
Slide 9: Ongoing Projects / Outstanding Order Book as at 30 Jun 2023
Ongoing Projects/ Outstanding Order Book as at 30 Jun 2023 Expected Outstanding Completion RM’mil TRX, Kuala Lumpur (infra & roadway works) 2023 49 Pan Borneo Highway (66km highway from Sungai Arip Bridge to Bintulu Airport Junction) 2023 257 West Coast Expressway (Shah Alam Expressway Interchange t
Slide 10: List of Tenders Submitted/Pending Submission
List of Tenders Submitted/Pending Submission (28 Aug 2023) RM’ mil Local - Civil & Infrastructure > 6,000 Local – Building Works > 4,600 Total > 10,600 Strictly Private & Confidential Page 9
Slide 11: Growth Projection and Pipelines
Growth Projection and Pipelines 2022 2023 30% 35% 65% RM1.47Bil 70% +10% CAGR Buildings infrastructure building Infrastructure Revenue Projection by Regions 2020 2022 2023 Qatar 1% Malaysia Overseas Qatar 65% 15% 23% Malaysia Malaysia Borneo 77% 99% Island 20% Strictly Private & Confidential Page 10
Slide 12: Property Development
Property Development Strictly Private & Confidential
Slide 13: Property Development - Snapshot
Property Development - Snapshot Q1 : RM 48 mil 2023 Revenue Q2 : RM 98 mil YTD : RM 146 mil Q1 : (RM1.9 mil) 2023 Q2 Profit Before Tax Q2 : RM 3.5 mil YTD : RM 1.6 mil Q1 : RM 103 mil 2023 Property Sales Q2 : RM 108 mil YTD : RM 211 mil Total Unbilled Sales RM 332 mil (as at 30 Jun 2023) Unsold Comp
Slide 14: Property Development – 2023 Cumulative Sales & Take-up Performance
Property Development – 2023 Cumulative Sales & Take-up Performance TARGET SALES TAKE-UP (SPA Signed) (SPA Signed) (Bookings) 800 mil 750 mil 700 mil 600 mil 570 mil 500 mil 400 mil 345 mil 320 mil 300 mil 211 mil 200 mil 178 mil Cumulative Target Cumulative Target Cumulative Target 101 mil 103 mil 1
Slide 15: Property Development – Q-O-Q Cumulative Sales Performance
Property Development – Q-O-Q Cumulative Sales Performance 2022 2023 (based on SPA Signed) RM500 mil 421 mil + 50% RM400 mil 382 mil RM300 mil 266 mil 211 mil RM200 mil 94 mil 103 mil RM100 mil RM0 mil 1Q 2Q 3Q 4Q Strictly Private & Confidential Page 14
Slide 16: Property Development – Clearing of Inventories (GDV)
Property Development – Clearing of Inventories (GDV) RM Inventory Reduction Y2023 + Paradigm Res, JB 400 mil (8m) 368 mil 358 mil 350 mil -109 mil 305 mil 300 mil -29% 267 mil As at 31 Dec 2022 250 mil 200 mil As at 6 Aug 2023 150 mil 100 mil 50 mil 0 mil 4Q22 1Q23 2Q23 3Q23 Strictly Private & Confi
Slide 17: Property Development – Clearing of Inventories (GDV)
Property Development – Clearing of Inventories (GDV) Inventory Reduction 2019 – 2023 RM 1,600 mil As at Jan 2019 1,400 mil 1,342 mil 1,200 mil -1,204 mil + Waltz (117m) -80% 1,000 mil 956 mil + Aronia (42m) 800 mil 708 mil 600 mil + Paradigm Res, JB (8m) 368 mil As at Jun 2023 400 mil 305 mil 200 mi
Slide 18: Completed Inventories (as at 30 Jun 2023)
Completed Inventories (as at 30 Jun 2023) TYPE LOCATION BAL UNIT(S) BAL GDV (RM’ mil) 1 Offices Klang 12 33 2 Affordable Apartments (RSKu) Klang 26 6 3 Service Apartments Shah Alam 51 34 4 Service Apartments Kelana Jaya 39 52 5 Condominiums OUG 42 62 6 Service Apartments Medini 145 113 7 Service Apa
Slide 19: Sales & Marketing Strategies
Sales & Marketing Strategies 1. Continuous opening and expansion of new sales channels (local & overseas). 2. Continuous exposure on Digital Platforms/Social Media for brand presence/awareness and leads generation. 3. Promote Buyer-Get-Buyer, Buyer-Repeat-Purchase and Staff Purchase programs to enco
Slide 20: On-going Property Projects
On-going Property Projects Adenia Apartment, Bandar Parklands, Klang Description 181 units of Apartment Estimated GDV RM68 million Launch Date Aug 2022 Sales Take-up 69% Exp. Completion Aug 2025 TC Maple Residences, W City OUG @ KL TB Description 940 units of Condominium Estimated GDV RM870 million
Slide 21: Future Property Projects
Future Property Projects FUTURE LAUNCHES W City Pavilion W City PROJECT JGCC TOTAL Mont Kiara JGCC (Plot 1A – Resi) (Condo) (Plot 1A - Comm) (T1 – T2) UNITS 341 512 37 890 ESTIMATED GDV RM808 mil RM204 mil RM60 mil RM1.07 bil Strictly Private & Confidential Page 20
Slide 22: Land Bank
Land Bank (future development and for sale as at 30 Jun 2023) LOCATION DEVELOPMENT TYPE LAND AREA (ac.) 1 W City OUG @ KL Mixed 61 2 W City JGCC @ JB Mixed 10 3 Mont Kiara, KL Residential 3 4 Bukit Tinggi 1,2 & 3, Klang Mixed 79 5 Medini Iskandar, Johor Mixed 39 6 Inanam, Kota Kinabalu Residential 2
Slide 23: Property Investment & Management
Property Investment & Management Strictly Private & Confidential
Slide 24: Malls
Retail Malls Strictly Private & Confidential
Slide 25: Malls
Retail Malls Bandar Bukit Tinggi, Paradigm Mall, Petaling Jaya gateway@klia2, Sepang Paradigm Mall, Johor Bahru Subang Skypark Klang Occupancy rate 100% 97% 93% 95% 85% Opening Year 2007 2012 2014 2017 Acquired Apr18 WCT Ownership 100.0% 70.0% 70.0% 100.0% 60.0% Retail Lettable 1,000,950 sq ft 672,0
Slide 26: Malls – Overall Financial Performance YTD June 2023 vs 2019
Retail Malls – Overall Financial Performance YTD June 2023 Vs YTD June 2019 RETAIL MALLS FINANCIAL PERFORMANCE YTD June 2023 Vs YTD June 2019 Profit After Tax Profit Before Tax Profit from Operation Revenue - 20 40 60 80 100 120 140 160 180 200 Millions 2023 2019 KEY INDICATORS 1. Lower rental incom
Slide 27: Hospitality
Hospitality Strictly Private & Confidential
Slide 28: Hospitality – Le Meridien Petaling Jaya Overview of Performance
Hospitality – Le Meridien Petaling Jaya Overview of Performance LBT (RM) Q2 2023 result came in solid with revenue outperforming Q2 2022 result by 50%, GOP by 89% and LBT by 25% : • Revenue from both Room and F&B are comparable and in favorable figures despite softer sentiment during Ramadan in Apri
Slide 29: Hospitality – Le Meridien Petaling Jaya Overview of Performance
Hospitality – Le Meridien Petaling Jaya Overview of Performance LBT (RM) On YTD June 2023 basis, revenue outperforming June 2022 result by 92%, GOP by 667% and LBT by 47% : • Room occupancy and average daily rate increased significantly from the beginning of the year and continue to recover with str
Slide 30: Hospitality – Premiere Hotel, Klang Overview of Performance
Hospitality – Premiere Hotel, Klang Overview of Performance Q2 2023 revenue has slightly improved comparing with Q2 2022’s by 9% • GOP & LBT did not meet Q2 2022 result due to extra ordinary expenses such as air conditioning, electrical equipment, fire and safety repair, furniture and fittings, mech
Slide 31: Hospitality – Premiere Hotel, Klang Overview of Performance
Hospitality – Premiere Hotel, Klang Overview of Performance On YTD June 2023 basis, revenue outperforming June 2022 result by 38%, GOP by 400% and LBT by 13% : • Room occupancy & average daily rate has increased gradually and foresee to improve continuously towards the end of the year • F&B is antic
Slide 32: Malls 2nd Quarter Outlook & Business and Marketing Strategies
Retail Malls 2nd Quarter Outlook & Business and Marketing Strategies Strictly Private & Confidential
Slide 33: Malls – Paradigm Mall PJ – 2nd Quarter Retail Economy Analysis
Retail Malls – Paradigm Mall PJ – 2nd Quarter Retail Economy Analysis The current situation of the retail economy & external factors:- • The re-emergence of Influenza and Hand Foot and Mouth Disease (HFMD) have caused slight concerns among the younger children and their parents. • Dates of festive s
Slide 34: Malls – Paradigm Mall PJ – 2nd Quarter Business Outlook
Retail Malls – Paradigm Mall PJ – 2nd Quarter Business Outlook 1. Our occupancy rate as at 30 June 2023 is at 97.1%. Compared to Q1 2023, we have increased the occupancy rate by 0.27%. Total footfall recorded in Q2 2023 (3,082,227) vs. Q2 2019 (3,579,438) reflected a variance of - 13.9%. 2. Despite
Slide 35: Malls – Paradigm Mall PJ New Tenants
Retail Malls – Paradigm Mall PJ New Tenants DECHRONOS THE GREEN PARTY 3CCAT.COM REFASH MONTIGO MANJOE TAIWANESE DUMPLING Strictly Private & Confidential Page 34
Slide 36: Malls – Paradigm Mall PJ New Tenants
Retail Malls – Paradigm Mall PJ New Tenants COCOLICIOUS ONE PIECE ONIGIRAZU 520 BEAUTE LAB REFASH ANTA Strictly Private & Confidential Page 35
Slide 37: Malls – Paradigm Mall JB Overview for The Second Quarter of 2023
Retail Malls – Paradigm Mall JB Overview for The Second Quarter of 2023 THE CURRENT SITUATION OF THE RETAIL INDUSTRY AND RELEVANT FACTORS AFFECTING: - i. For the past few months, the Exchange Rate of the Ringgit to other currencies, especially against the Singapore Dollar had dropped quite badly. Th
Slide 38: Malls – Paradigm Mall JB Second Quarter 2023 Outlook
Retail Malls – Paradigm Mall JB Second Quarter 2023 Outlook THE RETAIL OUTLOOK FOR 2023 • Comparing the 1st 2 quarters of the year for 2022 and 2023, the total footfall for 2022 was 3.43 mil while the footfall for the 1st 2 quarters 2023 was 3.42 mil, resulting in a drop of 0.44%. The higher footfal
Slide 39: Malls – PMJB New Tenants
Retail Malls – PMJB New Tenants Strictly Private & Confidential Page 38
Slide 40: Malls – 2nd Quarter Outlook Gateway@KLIA
Retail Malls – 2nd Quarter Outlook Gateway@KLIA 2 1. Flights increased by 15.1% compared to the 1st quarter of 2023. Total Q2 2023 Variance VS Q1 2023 Variance VS Q2 2019 37,666 15.1% (27.76%) 2. Traffic increased by 9.15% compared to the 1st quarter of 2023. Total Q2 2023 Variance VS Q1 2023 Varian
Slide 41: Malls – 2nd Quarter Outlook Gateway@KLIA
Retail Malls – 2nd Quarter Outlook Gateway@KLIA 2 4. Sales for tenants increased by 14.95% compared to the 1st quarter of 2023. Total Q2 2023 Variance VS Q1 2023 Variance VS Q2 2019 RM87,494,176.31 14.95% (21.82%) 5. Food Court collections increased by 14.42% compared to the 1st quarter of 2023. Tot
Slide 42: KLIA 2 - New Tenants – Level 1
KLIA 2 - New Tenants – LEVEL 1 ZAITOUN MIXUE HEINEMANN OFFICE Strictly Private & Confidential
Slide 43: KLIA 2 - New Tenants – Level 2
KLIA 2 - New Tenants – LEVEL 2 ZAITOUN FIPPER BURGER & NYONYA ANTA POLO HAUS GPR SUNFLOWER Strictly Private & Confidential
Slide 44: Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 1. Continued to engage in partnerships with local radio stations and media during celebrations and promotional initiatives. Example • Collaboration with Tourism Malaysia for Warnai Raya Campaign (17 March – 7 May 2023) • Kraftangan Malaysia bazaar at
Slide 45: Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 2. Organized international competitions in airport malls to bring in footfall and encourage spending Example • Word Wizard Scrabble Challeng @ gateway@klia2 (6 & 7 May 2023) • International Chess Competition @ gateway@klia2 (13 May 2023) • Chinese Ches
Slide 46: Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 3. Organized campaigns and events featuring Thai, Korean and Japanese culture to promote diversity in the malls. Example • Borneo Festival @ PMPJ (12 – 16 July 2023) • Fantastic Asia @ PMJB (5 – 16 July 2023) • Malay Thai Food Fair @ PMPJ (21 – 30 July
Slide 47: Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 4. Launched the new WCT Buddy Kids app across WCT Malls, collaborating with famous toy brands and petting zoo to assist in recruitment of new members. Example • WCT Buddy Kids Playland @ PMPJ (26 May – 11 June 2023) • WCT Buddy Kids Playland @ PMJB (2
Slide 48: Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 5. Leveraged on famous artists and brands that have large number of following to bring in footfall to the mall. Example • Star Wars Festival of The Force @ PMPJ (17 & 18 June 2023) • Meet & Greet High Council actors by Haus Boom @ PMJB (23 June 2023)
Slide 49: Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 6. Submitted for awards to get recognition for WCT Malls campaigns and events. Example • Retail Asia Awards – Winner of Marketing Initiative of The Year (Malaysia) – Voucher Bonanza Sale Upcoming Submissions • Marketing Excellence Awards • Excellence
Slide 50: Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 7. Curated campaigns based on tenant mix (Sports tenants in PMJB) Example; - • Let’s Get Fit Campaign @ PMJB (5 – 25 June 2023) • Fitness Challenge • 10,000 steps challenge • Body Combat & Playground by CF • Wall Climbing Challenge by Camp5 • Aerobikt
Slide 51: Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 8. Activated sales driven campaign to 9. Rewarded loyal shoppers online via encourage spending and footfall to tenant WCT Buddy. Continue to create outlets. campaigns to reward shoppers by partnering with banks, credit cards, Example: shopping apps an
Slide 52: Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 10. Continued to engage strategic partners partner such as credit cards, shopping apps and e-wallets to drive membership, leverage on their database, encourage spending, create brand loyalty and reward shoppers. Strictly Private & Confidential Page 51
Slide 53: Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 11. Value added service to tenants by 12. To maintain strong landlord & tenant offering marketing insights, fit-out design relationship. guidance & merchandise mix. Strictly Private & Confidential Page 52
Slide 54: WCT MALLS – Retail Asia Awards
WCT MALLS – Retail Asia Awards WCT Malls is awarded the prestigious Marketing Initiative of the Year at the Retail Asia Awards 2023. Presented by Retail Asia Magazine, the award recognizes WCT Malls’ effort in launching a groundbreaking initiative – Voucher Bonanza Sale (VBS) that helped sustain its
Slide 55: Thank You
Thank You Strictly Private & Confidential