Mencast Holdings Ltd. · SGX:5NF
Mencast — H1 2011 Earnings Presentation
44 slides from Mencast's earnings presentation, Aug 17, 2011
Slide 1: Half Year 2011 Results Review
HALF YEAR 2011 RESULTS REVIEW 17 AUGUST 2011
Slide 2: Disclaimer
Disclaimer The information in this presentation does not constitute or form any part of an offer, invitation or recommendation to subscribe for, retain, or purchase any securities in Mencast Holdings Ltd. Information in this presentation, or anything contained in it, will not form the basis of any c
Slide 3: Disclaimer
Disclaimer This presentation and its contents have been reviewed by the Company’s sponsor, CIMB Bank Berhad, Singapore Branch (the “Sponsor”), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the “SGX-ST”), this being the SGX-ST Listing Manual Section B: R
Slide 4: Presentation Outline
Presentation Outline Group Overview Financial Review (HY2011) Business Overview
Slide 5: Group Overview
Slide 6: Share Information
Share Information 52-week range • S$ 0.330 – S$ 0.645 • S$ 94m Market Capitalization • Price@ 15/8/11 : S$0.530 P/E ratio • 9.8 x (1) (2) P/B ratio • 2.0 x (1) (3) Dividend yield FY2010 • 1.93% (1) No. of Shares • 170,572,600 • Sim Family (57.5%) Major Shareholders • Gay Chee Cheong (5.34%) Notes: 1
Slide 7: Group Organizational Structure
Group Organizational Structure Mencast Holdings Ltd. 100% 100% 100% 100% 100% 100% 100% Mencast Recon Mencast M.B.A. Heavy Top Great Unidive Mencast Marine Offshore Propeller & Engineering Industries Pte group of group of Pte Ltd & Marine Engineering Pte Ltd Ltd companies companies Pte Ltd Pte Ltd 5
Slide 8: Operating Locations
Operating Locations Operating Locations Descriptions Built-Up Area (sqm) No. 7 Tuas View Circuit Sterngear equipment manufacturing 6,698 (Picture 1) No. 12 Kwong Min Mainly staff accommodation and 2,946 Picture 1 Road (Picture 2) storage area Picture 2 No. 39 Tuas Avenue 13 Sterngear services (Under
Slide 9: Operating Locations
Operating Locations Operating Locations Descriptions Built-Up Area (sqm) No. 24 Loyang Crescent Offshore and Marine Structure 2,975 (Picture 4) Fabrication Picture 4 6 Tech Park Crescent Topside (Rope Access) and subsea 1,718 Singapore 638126 (diving) services for the offshore and (Picture 5) inshor
Slide 10: Operating Locations
Operating Locations Construction In Progress Descriptions Site Area (sqm) 42E Penjuru Road Manufacture heavy rudder assemblies and high- 35,466 end sterngear equipment for the marine and offshore industries Construction date: 2010 Commencement of full operations : 2011 Parcel B : 1.62 Ha Parcel A :
Slide 11: Top Great Group
TOP GREAT GROUP TOP GREAT ENGINEERING & MARINE PTE LTD (LOYANG, SINGAPORE) Area 2,975 sq. m Manpower 170 Business Activities Full turnkey Engineering, Procurement, Construction & Commissioning (EPCC) Services for Marine, Oil & Gas, & Environmental Industries including Projects Management. TOP GREAT
Slide 12: Group Profile
Group Profile Existing Facilities 100% • 9,944 sqm of built-up area for repair, manufacturing and staff accommodation Waterfront facilities 100% • 35,466 sqm of built-up area for high end manufacturing and repair for Oil & Gas and Marine industries from 2H MENCAST 2011. Established in 1981, Recon Pr
Slide 13: Board of Directors
BOARD OF DIRECTORS From left to right (*): Sunny Wong Fook Choy (Lead Independent Director) Mr Wong is Chairman of the Nominating Committee and a member of the Group's Audit and Remuneration Committees. A practicing advocate and solicitor of the Singapore Supreme Court, Mr Wong is currently the Mana
Slide 14: HY2011
HY2011
Slide 15: HY2011: Income Statement
HY2011: Income Statement S$’ 000 1H2011 1H2010 Change Remarks (%) • Maiden revenue contribution from newly- acquired subsidiaries, Top Great and Unidive • Lower revenue due to slow down in activities Revenue 24,401 15,161 60.9 in shipbuilding and ship repair industry • Revenue from stern gear servic
Slide 16: HY2011: Financial Position
HY2011: Financial Position S$’ 000 30 Jun 2011 31 Dec 2010 Cash and bank balances 14,802 11,604 Non-current assets 80,591 32,150 Total assets 123,232 62,141 Total debt 24,397 10,732 Total equity 44,107 40,517 Net gearing ratio 21.8% Net Cash NAV per share (cents) 25.9 23.8
Slide 17: Consistent Revenue Growth
Consistent Revenue Growth 32,031 (all in S$’000) 25,063 26,274 24,401 18,876 FY2006 - FY2010: 13,348 19% CAGR FY2006 FY2007 FY2008 FY2009 FY2010 1H2011 Topside & Subsea Services Offshore & Structure Fabrication 1,751 19,287 Sterngear Services 10,332 11,993 9,377 10,256 Sterngear 8,884 8,156 14,731 1
Slide 18: Consistent Profit Growth
Consistent Profit Growth 47.3% 49.8% 55.0% Gross Profit 45.9% 45.0% 43.8% 50.0% 45.0% (S$'000) 35.6% 40.0% Gross Profit 35.0% Margin 30.0% 25.0% 20.0% 4,748 8,663 11,285 12,439 15,958 10,682 15.0% 10.0% FY2006 FY2007 FY2008 FY2009 FY2010 1H2011 25.5% 26.8% 26.5% 30.0% Net Profit 23.2% 22.2% 25.0% (S
Slide 19: Business Overview
Slide 20: MMRO: Marine Maintenance Repair Overhaul
MMRO : Marine Maintenance Repair Overhaul Strong niche Excellent track Barriers to entry record • A market leader in • Services are time segments served • 2006-2010 CAGR sensitive, high Revenue : 19% precision and mission • No significant new NPAT : 31% critical competitors in last decade • Re
Slide 21: Triple Play Strategy
Triple Play Strategy Announced Strategy Progress To-date • Increase from 10,000sqm in 2008 to Capacity Expansion 40,000sqm in 2011 • Worldwide propeller services New Business Streams • Fleet maintenance program • Expanded product range • Acquisition of 100% of Recon Propeller • Strategic Alliance wi
Slide 22: M&A Strategy
M&A Strategy Exploring M&A meeting the following criteria: 1) Earnings accretive 2) Well managed with good track record 3) Complementary to our business strategy 4) High Margins and ROE
Slide 23: Business Highlights for 2010 & 2011
Business Highlights for 2010 & 2011 Services Manfacturing Corporate • Star performer with • Weathered slowdown • Successfully strong revenue in industry integrated Recon growth (M&A) • Expanded product • Construction began • Margins remained range (eg. new range on new waterfront robust of ste
Slide 24: Parcel A: Waterfront @ Penjuru Update
Parcel A: Waterfront @ Penjuru – Update on 16th Aug 2011
Slide 25: Waterfront @ Penjuru (Updates)
Waterfront @ Penjuru (Updates)
Slide 26: Waterfront @ Penjuru (Updates)
Waterfront @ Penjuru (Updates)
Slide 27: Strategic Cooperation with Becker Marine Systems
Strategic Cooperation with Becker Marine Systems
Slide 28: Loading Of Mewis Duct
Loading Of Mewis Duct ( Waterfront @ Mencast) On 15/8/2011
Slide 29: Loading Of Mewis Duct
Loading Of Mewis Duct ( Waterfront @ Mencast) On 15/8/2011
Slide 30: Loading Of Mewis Duct
Loading Of Mewis Duct ( Waterfront @ Mencast) on 20/11/2010
Slide 31: Capability Expansion
Capability Expansion
Slide 32: Capability Expansion - Divers Inspection and Other Works
Capability Expansion - Divers carrying out Inspection and Other Works: 10
Slide 33: Capability Expansion - Sterngear Services Expansion
Capability Expansion - Sterngear Services Expansion
Slide 34: Capability Expansion - Sterngear Services Expansion
Capability Expansion - Sterngear Services Expansion
Slide 35: Capability Expansion - Diving Operations
Capability Expansion - Diving Operations involving Removal and/or Installation of Thrusters on an offshore mobile platform (rig):
Slide 36: Capability Expansion - Rope Access Scope
Capability Expansion - Rope Access Scope
Slide 37: Capability Expansion - Rope Access Scope
Capability Expansion - Rope Access Scope
Slide 38: Capability Expansion - Marine & Offshore Projects
Capability Expansion - MARINE & OFFSHORE PROJECTS SS WINCHES TWIN TOWER DERRICK MUD TANK VIBRO CORER
Slide 39: Capability Expansion - Marine & Offshore Projects
Capability Expansion - MARINE & OFFSHORE PROJECTS DESIGN, FABRICATION & INSTALL 2 UNITS SUPPLY, FABRICATION & INSTALLATION FLOATING GATES AT DUQM PORT, OMAN OF WHEELHOUSES DRILLING DERRICK (Design, Fabricate & Install)
Slide 40: Capability Expansion - Water Treatment & Structural Projects
Capability Expansion-WATER TREATMENT & STRUCTURAL PROJECTS INDUCED GAS FLOTATION TANK CMF TANK TRAIN FUEL GAS PRE HEATER SYSTEM RO SYSTEM
Slide 41: Capability Expansion - Water Treatment & Structural Projects
Capability Expansion-WATER TREATMENT & STRUCTURAL PROJECTS PRESSURE VESSEL TANK WITH ASMI MECHANICAL & EQUIPMENT INSTALLATION, STANDARD ELECTRICAL & INSTRUMENTATION
Slide 42: 2011 Outlook
2011 Outlook Manufacturing Services Corporate S$13.5 million order Remain stable in Waterfront facility book as at 30 June 2011 phased in from 2H 2011 (S$8.3 million – 2011 sterngear New initiatives like manufacturing, fleet maintenance Exploring other M&A S$5.2 million – program provide s
Slide 43: Investment Merits
Investment Merits • 6th year of sustained profit growth • Well positioned to capture future growth opportunities • Waterfront land is prized asset to begin contributing to MMRO in 2011 • ROE of 21% in FY2010 • Dividend yield of 3.0% MENCAST GROWTH OPPORTUNITY DIVIDEND
Slide 44: Thank You!
THANK YOU! MENCAST HOLDINGS LTD. No. 7, Tuas View Circuit, Singapore 637642 www.mencast.com.sg Investor Relations Contact Financial PR Pte Ltd Romil Singh / Kathy Zhang 6438 2990/ [email protected]