WCT Holdings Bhd. · MYX:WCT
WCT Holdings Bhd — Q3 2023 Earnings Presentation
61 slides from WCT Holdings Bhd's earnings presentation, November 2023
Slide 1: WCT Holdings Berhad Investor Briefing – 3rd Quarter 2023
WCT Holdings Berhad INVESTOR BRIEFING – 3rd Quarter 2023 Strictly Private & Confidential
Slide 2: Key Shareholding as at 15 Nov 2023
Key Shareholding as at 15 Nov 2023 25.6% 11.1% 6.4% 56.9% 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 Q3 2023 (3 months)
Segmental Results Q3 2023 (3 months) E&C PD PI&M Consolidated RM’mil RM’mil RM’mil RM’mil Revenue 349.4 93.7 53.5 496.6 Profit from operations (5.0) 8.5 25.3 28.8 Share of results of associates 4.1 Share of results of joint ventures (2.0) 9.7 7.7 Finance costs (34.6) Taxation 4.0 Profit for the peri
Slide 5: Segmental Results YTD 3Q 2023 (9 months)
Segmental Results YTD 3Q 2023 (9 months) E&C PD PI&M Consolidated RM’mil RM’mil RM’mil RM’mil Revenue 928.0 239.6 158.1 1,325.7 Profit from operations 17.6 24.5 75.9 118.0 Share of results of associates 10.3 Share of results of joint ventures 0.5 (5.3) 20.1 15.3 Finance costs (95.0) Taxation (11.0)
Slide 6: Debt to Equity (DE) Ratio
Debt to Equity (DE) Ratio As at As at 30 Sep 2023 31 Dec 2022 RM’mil RM’mil Total bank borrowings 2,993 2,798 Cash & bank balances & fixed deposits (241) (234) Net borrowings 2,752 2,564 Shareholders equity (including Perpetual 3,905 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 More than 1,400 knowledgeable & experienced employees Owned more than 25,000 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
Slide 9: Ongoing Projects / Outstanding Order Book as at 30 September 2023
Ongoing Projects/ Outstanding Order Book as at 30 September 2023 Expected Outstanding Completion RM’mil TRX, Kuala Lumpur (infra & roadway works) 2023 41 Pan Borneo Highway (66km highway from Sungai Arip Bridge to Bintulu Airport Junction) 2024 223 West Coast Expressway (Shah Alam Expressway Interch
Slide 10: List of Tenders Submitted/Pending Submission
List of Tenders Submitted/Pending Submission (21 Nov 2023) RM’ mil Civil & Infrastructure > 7,000 Building Works > 5,000 Total > 12,000 Strictly Private & Confidential Page 9
Slide 11: Growth Projection and Pipelines
Growth Projection and Pipelines 2022 2023 30% 35% 65% RM1.47Bil 70% I infrastructure infrastructure building building Revenue Projection by Regions 2020 2022 2023 Qatar 1% Malaysia Qatar 100% 23% Malaysia Malaysia 77% 99% 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 Q2 : RM 98 mil 2023 Revenue Q3 : RM 94 mil YTD : RM 240 mil Q1 : (RM 1.9 mil) Q2 : RM 3.5 mil 2023 Profit Before Tax Q3 : (RM 1.9 mil) YTD : (RM 0.3 mil) Q1 : RM 103 mil Q2 : RM 108 mil 2023 Property Sales Q3 : RM 327 mil YTD : RM 538 mil Total Unbilled
Slide 14: 2023 Cumulative Sales & Take-up Performance
Property Development – 2023 Cumulative Sales & Take-up Performance SALES TAKE-UP (SPA Signed) (Bookings) 900 818 mil 800 Sales Target = RM750mil 700 600 538 mil 500 72% 400 345 mil 300 211 mil 200 178 mil 103 mil 100 0 1Q23 2Q23 3Q23 Strictly Private & Confidential Page 13
Slide 15: Q-O-Q Cumulative Sales Performance
Property Development – Q-O-Q Cumulative Sales Performance 2022 2023 (based on SPA Signed) RM600 mil 538 mil RM500 mil +41% + 50% 421 mil RM400 mil 382 mil RM300 mil 266 mil 211 mil RM200 mil -21% 94 mil 103 mil RM100 mil +10% RM0 mil 1Q 2Q 3Q 4Q Strictly Private & Confidential Page 14
Slide 16: Clearing of Inventories (GDV) – 2023
Property Development – Clearing of Inventories (GDV) Inventory Reduction Y2023 RM + Paradigm Resi, Johor 400 mil (8m) 368 mil 358 mil 350 mil 305 mil 300 mil As at 31 Dec 2022 250 mil 215 mil 200 mil -165 mil -43% 150 mil 100 mil 50 mil 0 mil 4Q22 1Q23 2Q23 3Q23 YEAR Note: Added old stock One Medini
Slide 17: Clearing of Inventories (GDV) 2019–2023
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 + Waltz (117m) -1,298 mil 1,000 mil 956 mil -86% + Aronia (42m) 800 mil 708 mil 600 mil 34% As at 3Q, 2023 400 mil 368 mil 29% + Paradigm Resi, Johor (8m) 21
Slide 18: Completed Inventories (as at 30 Sep 2023)
Completed Inventories (as at 30 Sep 2023) TYPE LOCATION BAL UNIT(S) BAL GDV (RM’ mil) 1 Offices Klang 7 20 2 Affordable Apartments (RSKu) Klang 12 3 3 Service Apartments Shah Alam 51 34 4 Service Apartments Kelana Jaya 10 15 5 Condominiums OUG 42 62 6 Service Apartments Medini 92 76 7 Service Apartm
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 Pavilion Mont Kiara, Kuala Lumpur Description 341 units Estimated GDV RM808 million Launch Date Aug 2023 Sales Take-up 47% Exp. Completion Q3 2027 Strictly Private & Confidential Page 19
Slide 21: 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 78% Exp. Completion Q3 2025 TC Maple Residences, W City OUG @ KL TB Description 940 units of Condominium Estimated GDV RM870 million T
Slide 22: Future Property Projects
Future Property Projects FUTURE LAUNCHES W City W City PROJECT Johor Bahru Johor Bahru TOTAL (Plot 1A – Resi) (Plot 1A - Comm) (T1 – T2) UNITS 512 37 549 ESTIMATED GDV RM204 mil RM60 mil RM264 mil Strictly Private & Confidential Page 21
Slide 23: Land Bank
Land Bank (future development and for sale as at 30 Sep 2023) LOCATION DEVELOPMENT TYPE LAND AREA (ac.) 1 W City OUG @ KL Mixed 41 2 W City JGCC @ JB Mixed 9 3 Bukit Tinggi 1,2 & 3, Klang Mixed 69 4 Medini Iskandar, Johor Mixed 39 5 Inanam, Kota Kinabalu Residential 29 6 Sungai Buloh Commercial 2 TO
Slide 24: Property Investment & Management
Property Investment & Management Strictly Private & Confidential
Slide 25: Retail Malls
Retail Malls Strictly Private & Confidential
Slide 26: Retail 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 27: Retail Malls – Overall Financial Performance YTD Sep 2023 vs 2019
Retail Malls – Overall Financial Performance YTD September 2023 Vs YTD September 2019 RETAIL MALLS FINANCIAL PERFORMANCE YTD September 2023 Vs YTD September 2019 Profit After Tax Profit Before Tax Profit from Operation Revenue - 50 100 150 200 250 300 Millions 2023 2019 # Monthly fixed chilled water
Slide 28: Hospitality
Hospitality Strictly Private & Confidential
Slide 29: Hospitality – Le Meridien Petaling Jaya Overview of Performance
Hospitality – Le Meridien Petaling Jaya Overview of Performance EBITDA (RM) Q3 2023 result came in solid with revenue outperforming Q2 2022 result by 26%, GOP by 41% and EBITDA by 84% : • Revenue from both Room and F&B are comparable and in favorable figures. • Highest record of Room revenue was rec
Slide 30: Hospitality – Le Meridien Petaling Jaya Overview of Performance
Hospitality – Le Meridien Petaling Jaya Overview of Performance EBITDA (RM) On YTD September 2023 basis, revenue outperforming September 2022 result by 58%, GOP by 155% and EBITDA by 562% : • Room occupancy and average daily rate increased significantly from the beginning of the year and continue to
Slide 31: Hospitality – Premiere Hotel, Klang Overview of Performance
Hospitality – Premiere Hotel, Klang Overview of Performance EBITDA (RM) Q3 2023 result came in weak with revenue fall behind Q3 2022 result by 6%, GOP by 200% & except EBITDA outperformed by 99% • Increment in operating cost (higher electricity tariff and shortage of labour) resulting in lower margi
Slide 32: Hospitality – Premiere Hotel, Klang Overview of Performance
Hospitality – Premiere Hotel, Klang Overview of Performance EBITDA (RM) On YTD September 2023 basis, revenue outperforming YTD September 2022 result by 22% & EBITDA by 11%, • GOP is weaker than last year performance by 75% • Average daily rate has improved and foresee to improve continuously towards
Slide 33: Outlook & Business and Marketing Strategies
Retail Malls 2nd Quarter Outlook & Business and Marketing Strategies Strictly Private & Confidential
Slide 34: Paradigm Mall PJ – Business Outlook
Retail Malls – Paradigm Mall PJ – Business Outlook RETAIL OVERVIEW FOR PMPJ 1. Footfall Q2 2023 VS Q3 2023 Total 2Q of 2023 Total 3Q of 2023 Variance Variance in % 3,082,227 3,183,636 +101,409 +4.6% • Total footfall in 3Q2023 increased by 4.6% as compared to 2Q2023. 2. Footfall 3rd Quarter 2022 VS 3
Slide 35: Paradigm Mall PJ – Business Outlook
Retail Malls – Paradigm Mall PJ – Business Outlook RETAIL OVERVIEW FOR PMPJ 4. Total per person spending 3rd Quarter 2019 VS 3rd Quarter 2023 Total 3Q of 2019 Total 3Q of 2023 Variance Variance in % RM86.11 RM93.52 +RM7.41 +8.6% • Although footfall has yet to recover to the peak in 2019, the average
Slide 36: Paradigm Mall PJ – Business Outlook
Retail Malls – Paradigm Mall PJ – Business Outlook Ongoing/In the pipeline • Engagement Initiatives including Corporate Social Responsibility (CSR) events - Notable events and campaigns held or planned for 4Q 2023 include Sparkling Diwali, Deepavali Charity Bazaar, Beautiful Gate 30th Anniversary Ca
Slide 37: Paradigm Mall PJ New Tenants
Retail Malls – Paradigm Mall PJ New Tenants KAKI CROISSANT PANGOI HAPPINESS WHEEL CAKE JACK STUDIO Strictly Private & Confidential Page 36
Slide 38: Paradigm Mall PJ New Tenants
Retail Malls – Paradigm Mall PJ New Tenants MR. DAKGALBI AVENYS REALME MOTO GUZZI Strictly Private & Confidential Page 37
Slide 39: Paradigm Mall JB – Business Outlook
Retail Malls – Paradigm Mall JB – Business Outlook RETAIL OVERVIEW FOR PMJB 1. Footfall 2nd Quarter VS 3rd Quarter 2023 Total 2Q of 2023 Total 3Q of 2023 Variance Variance in % 3,419,365 3,337,708 (81,657) -2.4% • Comparing the 2nd quarter of 2023 and 3rd quarter of 2023, the total footfall dropped
Slide 40: Paradigm Mall JB – Business Outlook
Retail Malls – Paradigm Mall JB – Business Outlook RETAIL OVERVIEW FOR PMJB 4. Total per person spending 3rd Quarter 2019 VS 3rd Quarter 2023 Total 3Q of 2019 Total 3Q of 2023 Variance Variance in % RM101.68 RM180.85 +RM79.17 +77.8% • Comparing 3rd quarter 2023 and 2019, it is noted that the person
Slide 41: Paradigm Mall JB – Business Outlook
Retail Malls – Paradigm Mall JB – Business Outlook THE CURRENT SITUATION OF THE RETAIL INDUSTRY AND RELEVANT FACTORS AFFECTING: - • It was highlighted that the Retail Industry in Johor Bahru itself may be growing upward. This is mainly due to the fact that the primary catchment population of 1.08 mi
Slide 42: PMJB New Tenants
Retail Malls – PMJB New Tenants Bath & Body Works LC Waikiki Home HWC Coffee King House Apparel Shell EV Charging Station New Era Strictly Private & Confidential Page 41
Slide 43: PMJB New Tenants
Retail Malls – PMJB New Tenants Manzanita Assalam The Kedai Mamak Aura Kasih GUOMA Steamboat Baby Shark MyEureka Strictly Private & Confidential Page 42
Slide 44: Gateway@KLIA2 – Business Outlook
Retail Malls – Gateway@KLIA 2 – Business Outlook RETAIL OVERVIEW FOR GATEWAY@KLIA2 1. No. of Flights slightly increased by 4.79% compared to the 2nd quarter of 2023. Average Q3 2023 Average Q2 2023 Variance Vs Q2 2023 Variance Vs Q3 2019 39,471 37,666 +4.79% (20.91%) 2. Traffic slightly increased by
Slide 45: Gateway@KLIA2 – Business Outlook
Retail Malls – Gateway@KLIA 2 – Business Outlook RETAIL OVERVIEW FOR GATEWAY@KLIA2 4. Sales for tenants slightly increased by 7.31% compared to the 2nd quarter of 2023. Average Q3 2023 Variance Vs Q2 2023 Variance Vs Q3 2019 RM93,891,690.25 7.31% (15.91%) 5. Food Court collections increased by 11.37
Slide 46: Gateway@KLIA2 – Business Outlook
Retail Malls – Gateway@KLIA 2 – Business Outlook THE CURRENT SITUATION OF THE AIR TRAVEL AND RELEVANT FACTORS AFFECTING:- • The widely expected wave of Chinese visitors has turned out to be a trickle in the face of high travel costs and insufficient flights. • Malaysia is actively considering the po
Slide 47: KLIA 2 - New Tenants – Level 1
KLIA 2 - New Tenants – LEVEL 1 XBACE Strictly Private & Confidential
Slide 48: KLIA 2 - New Tenants – Level 2
KLIA 2 - New Tenants – LEVEL 2 MAMA MEE YAH TORII EXPRESS COCOLICIOUS TUNE TALK CONSTANT PHARMACY BARNSBERRY Strictly Private & Confidential
Slide 49: KLIA 2 - New Tenants – Level 3
KLIA 2 - New Tenants – LEVEL 3 YOUNG SANNA MEE ORIENTAL KOPI GAJETO THE TASTE OF TIME Strictly Private & Confidential
Slide 50: Retail Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 1. 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 51: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 2. Continued to work with local government and museums to feature pop up exhibitions to educate shoppers and bring in footfall to the mall. Example • Pameran Warna-Warni Busana Malaysia at PMPJ (16 August – 17 September 2023) • Majlis Pelancaran Inisi
Slide 52: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 3. Organized festive and cultural campaigns that included workshops and performances to engage local communities and drive traffic to the mall. Example • Season of Reunion - Mooncake festival at PMPJ & PMJB, 1 Sept – 29 Sept 2023) Strictly Private & C
Slide 53: Retail Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 4. Organized WCT Malls inaugural tenant get together to foster good tenant and landlord relationship. Example • Dusun in the City • PMPJ @ 18 August 2023 • PMJB @ 24 August 2023 Strictly Private & Confidential Page 52
Slide 54: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 5. 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 55: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 6. Initiated ‘Retailer Radar’ a quarterly e-newsletter for tenants to keep them updated On the on-goings of the malls First issue : July 2023 Second issue : October 2023 Upcoming issue : January 2024 Link to latest Retailer Radar (October Issue) https
Slide 56: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 7. Activated group wide sales driven campaigns to encourage spending and footfall to tenant outlets. Example: 1. Voucher Bonanza Sale 10.0 (7 April – 6 July 2023) 2. Voucher Bonanza Sale 11.0 (15 Sept – 31 Oct 2023) 3. Eat More Save More (1 July – 31
Slide 57: Retail Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 8. 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 56
Slide 58: Retail Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 9. Value added service to tenants by offering 10. To maintain strong landlord & tenant marketing insights, fit-out design guidance & relationship. merchandise mix. Strictly Private & Confidential Page 57
Slide 59: Retail Malls Age Group Distribution and Member Base
Retail Malls As at 30 Sept 2023 Age Group Distribution 55,591 35% 30% 31% 25% Portfolio Member Base 25% 19% 20% 16,817 15% 14% 10% 7% New Members 5% 3% 1% 0% Total New Signup in 2023 4044 3376 54% 2088 1,695 1,571 1,262 1026 954 46% 801 JAN FEB MAR APR MAY JUN JUL AUG SEP Strictly Private & Confiden
Slide 60: Q&A
Q&A Strictly Private & Confidential
Slide 61: Thank You
Thank You Strictly Private & Confidential