WCT Holdings Bhd. · MYX:WCT
WCT Holdings Bhd — Q1 2023 Earnings Presentation
47 slides from WCT Holdings Bhd's earnings presentation, May 24, 2023
Slide 1: WCT Holdings Berhad Investor Briefing – 1st Quarter 2023
WCT Holdings Berhad INVESTOR BRIEFING – 1st Quarter 2023 Updated: 24/05/2023 Strictly Private & Confidential
Slide 2: Key Shareholding as at 15 May 2023
Key Shareholding as at 15 May 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 Q1 2023 (3 months)
Segmental Results Q1 2023 (3 months) E&C PD PI&M Consolidated RM’mil RM’mil RM’mil RM’mil Revenue 304.3 48.4 51.9 404.6 Profit from operations 9.1 6.3 27.3 42.7 Share of results of associates 1.8 Share of results of joint ventures 0.2 (1.7) 5.9 4.4 Finance costs (29.2) Taxation (4.3) Profit for the
Slide 5: Debt to Equity (DE) Ratio
Debt to Equity (DE) Ratio As at As at 31 Mar 2023 31 Dec 2022 RM’mil RM’mil Total bank borrowings 2,828 2,798 Cash & bank balances & fixed deposits (204) (234) Net borrowings 2,624 2,564 Shareholders equity (including Perpetual 3,899 3,907 Sukuk & non-controlling interest) Gross DE ratio 0.73 0.72 N
Slide 6: Engineering & Construction
Engineering & Construction Strictly Private & Confidential
Slide 7: 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 8: Ongoing Projects / Outstanding Order Book as at March 2023
Ongoing Projects/ Outstanding Order Book as at 31 March 2023 Expected Outstanding Completion RM’mil TRX, Kuala Lumpur (infra & roadway works) 2023 54 Pan Borneo Highway (66km highway from Sungai Arip Bridge to Bintulu Airport Junction) 2023 267 West Coast Expressway (Shah Alam Expressway Interchange
Slide 9: List of Tenders Submitted/Pending Submission
List of Tenders Submitted/Pending Submission (23 Feb 2023) RM’ mil Local - Civil & Infrastructure > 6,000 Local – Building Works > 4,600 Total > 10,600 Strictly Private & Confidential Page 8
Slide 10: Growth Projection and Pipelines
Growth Projection and Pipelines (23 May 2023) 2022 35% 2023 30% 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 & Confid
Slide 11: Property Development
Property Development Strictly Private & Confidential
Slide 12: Property Development - Snapshot
Property Development - Snapshot 2023 Revenue Q1 : RM 48 mil 2023 Q1 Loss Before Tax Q1 : (RM 2 mil) 2023 Property Sales Q1 : RM 103 mil Total Unbilled Sales RM 323 mil Unsold Completed Inventories RM 358 mil (as at 31 Mar 2023) Strictly Private & Confidential Page 11
Slide 13: Property Development – 2023 Cumulative Sales & Take-up Performance
Property Development – 2023 Cumulative Sales & Take-up Performance TARGET SALES TAKE-UP 800 mil (SPA Signed) (SPA Signed) (Bookings) 750 mil 700 mil 600 mil 570 mil 500 mil 400 mil 320 mil 300 mil 200 mil 178 mil Cumulative Target Cumulative Target Cumulative Target 101 mil 103 mil 100 mil 0 mil 1Q2
Slide 14: 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 RM200 mil 94 mil 103 mil RM100 mil RM0 mil 1Q 2Q 3Q 4Q Strictly Private & Confidential Page 13
Slide 15: Property Development – Clearing of Inventories (GDV)
Property Development – Clearing of Inventories (GDV) RM Inventory Reduction 2Q2022 – 1Q2023 (12 months) 500 mil -72 mil 450 mil 430 mil -17% + Paradigm Res, JB 400 mil (8m) 365 mil 368 mil 358 mil 350 mil 300 mil 250 mil 200 mil 150 mil 100 mil 50 mil 0 mil 2Q22 3Q22 4Q22 1Q23 Strictly Private & Con
Slide 16: 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 -1,151 mil + Waltz (117m) -76% 1,000 mil 956 mil + Aronia (42m) 800 mil 708 mil + Paradigm Res, JB 600 mil (8m) As at Mar 2023 400 mil 368 mil 358 mil 200 mi
Slide 17: Completed Inventories (as at Mar 2023)
Completed Inventories (as at 31 Mar 2023) TYPE LOCATION BAL UNIT(S) BAL GDV (RM’ mil) 1 Offices Klang 19 52 2 Affordable Apartments (RSKu) Klang 92 23 3 Service Apartments Shah Alam 45 30 4 Service Apartments Kelana Jaya 50 66 5 Condominiums OUG 43 63 6 Service Apartments Medini 150 116 7 Service Ap
Slide 18: 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 and Buyer-Repeat-Purchase programs to encourage re- invest
Slide 19: 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 55% Exp. Completion Aug 2025 TC Maple Residences, W City OUG @ KL TB Description 940 units of Condominium TA Estimated GDV RM870 milli
Slide 20: 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 RM804 mil RM210 mil RM49 mil RM1.06 bil Strictly Private & Confidential Page 19
Slide 21: Land Bank (future development and for sale)
Land Bank (future development and for sale as at 31 Mar 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 22: Property Investment & Management
Property Investment & Management Strictly Private & Confidential
Slide 23: 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% 86% 92% 72% 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,
Slide 24: Retail Malls – Overall Financial Performance Q1 2023 Vs Q1 2019
Retail Malls – Overall Financial Performance Q1 2023 Vs Q1 2019 RETAIL MALLS FINANCIAL PERFORMANCE Q1 2023 Vs Q1 2019 Profit After Tax Profit Before Tax Profit from Operation Revenue - 10 20 30 40 50 60 70 80 90 100 Millions 2023 2019 KEY INDICATORS 1. Lower rental income mainly due to lower occupan
Slide 25: Paradigm Mall PJ – 1st Quarter Retail Economy Analysis
Retail Malls – Paradigm Mall PJ – 1st Quarter Retail Economy Analysis The current situation of the retail economy & external factors:- • Malaysia My 2nd Home Program has re-opened the doors for foreigners to invest with a minimum value of RM1mil. This move encourages foreign investment and stimulate
Slide 26: Paradigm Mall PJ – 1st Quarter Business Outlook
Retail Malls – Paradigm Mall PJ – 1st Quarter Business Outlook 1. Total footfall recorded in Q1 2023 (2,965,890) vs. Q1 2019 (3,686,025) reflected a variance of -19.5%. 2. Despite the variance on the footfall, the average basket/receipt size per shopper in Q1 2023 (RM103.36) vs. Q1 2019 (RM92.43) re
Slide 27: Paradigm Mall PJ New Tenants
Retail Malls – Paradigm Mall PJ New Tenants VIVO PIZZA CHILDHOOD CHAGEE EXPRESS CAULI & RICE Strictly Private & Confidential Page 26
Slide 28: Paradigm Mall PJ New Tenants
Retail Malls – Paradigm Mall PJ New Tenants AH YIP HERBAL SOUP TINY MOLLY FANTASY THE GREEN PARTY REFASH MANJOE TAIWANESE DUMPLINGS Strictly Private & Confidential Page 27
Slide 29: Paradigm Mall JB First Quarter 2023 Outlook
Retail Malls – Paradigm Mall JB First Quarter 2023 Outlook It is noted that from all the events and activities that are happening in the Malaysia Retail Industry, it could be seen that its future is bright and sustainable. The Government had been putting effort to encourage tourists trades and touri
Slide 30: Paradigm Mall JB New Tenants
Retail Malls – PMJB New Tenants Strictly Private & Confidential Page 29
Slide 31: Gateway @ KLIA2 – 1st Quarter Outlook
Retail Malls – Gateway @ KLIA 2 – 1st Quarter Outlook KLIA 2 1. Flights increased slightly by 22% compared to the 4th quarter of 2022. Total Q1 2023 Variance VS Q4 2022 Variance VS Q1 2019 32,740 +22% (20.53%) 2. Traffic also increased by 15.36% compared to the 4th quarter of 2022. Total Q1 2023 Var
Slide 32: Gateway @ KLIA2 – 1st Quarter Outlook
Retail Malls – 1st Quarter Outlook KLIA 2 4. Sales for tenants have increased by 20.31% compared to the 4th quarter of 2022 Total Q1 2023 Variance VS Q4 2022 Variance VS Q1 2019 RM76,113,711.29 +20.31% (25.49%) 5. Food Court collections have slightly increased by 8.91% compared to the 4th quarter of
Slide 33: Gateway @ KLIA2 - New Tenants – Level 1 & Level 3
Gateway @ KLIA 2 - New Tenants – LEVEL 1 & LEVEL 3 NELSON’S FAMOUS AMOS BAN HEANG BEENA’S Strictly Private & Confidential
Slide 34: Gateway @ KLIA2 - New Tenants – Level 2
Gateway @ KLIA 2 - New Tenants – LEVEL 2 RICHIAMO COFFEE SHIHLIN TAIWAN STREET SNACKS CHAGEE BEUTEA JIPINHE SCONES MR. PAN MEE Strictly Private & Confidential
Slide 35: Retail Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 1. To engage in partnerships with local and overseas radio stations and media during celebrations and promotional initiatives. Example 1. Collaboration with 988 radio station for 2023 CNY Campaign for all malls (31 Dec – 5 Feb 2023) 2. Nick Chung & Ste
Slide 36: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 2. To continue to work with local government bodies and tourism boards to collaborate on marketing campaigns and events. Example • Launching of Student Travel Rewards @ gateway@klia2 (12 Jan – 30 April 2023) • Collaboration with Tourism Malaysia for W
Slide 37: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 3. To maintain the creation of memorable festive campaigns showcasing event highlights and activities, with the goal of boosting visitor traffic to the malls Example; - Chinese New Year Campaign at all malls @ (30 December – 5 February 2023) Warnai Ra
Slide 38: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 4. To continue to organize community-driven events to connect with local communities and shoppers. Example Spirit of Olympism – Closing Ceremony at PMJB (13 February 2023) Special Children Education Sharing at PMJB (18 February 2023) Kids Lion Dance C
Slide 39: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 5. To host events specifically designed for the younger demographic in order to attract a fresh target audience and stay relevant to the younger crowd. Example • Bandai Hobby Pop Up at PMJB (3 – 12 March 2023) • Magic Card Gathering at PMPJ (10 – 12 M
Slide 40: Retail Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 6. To continue to engage strategic partners such as credit cards, shopping apps and e- wallets to drive membership, leverage on their database and create brand loyalty. Strictly Private & Confidential Page 39
Slide 41: Retail Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 7. To reward loyal shoppers with online via WCT Buddy. Continue to create campaigns to reward shoppers by partnering with banks, credit cards, shopping apps and e-wallets. Strictly Private & Confidential Page 40
Slide 42: Retail Malls - Business and Marketing Strategies
Retail Malls - Business and Marketing strategies 8. To activate sales driven campaign to 9. To activate WCT Buddy recruitment encourage spending and footfall to tenant campaigns to encourage user sign ups. outlets. Example: Example: • Love you 9999 tag & win (1 – 12 Feb 2023) • Top Spender with Suri
Slide 43: Retail Malls - Business and Marketing Strategies
Retail Malls- Business and Marketing strategies 10. Value added service to tenants by 11. To maintain strong landlord & tenant offering marketing insights, fit-out design relationship. guidance & merchandise mix. Strictly Private & Confidential Page 42
Slide 44: Hospitality
Hospitality Strictly Private & Confidential
Slide 45: Hospitality – Le Meridien Petaling Jaya Overview of Performance (Q1 2023)
Hospitality – Le Meridien Petaling Jaya Overview of Performance (Q1 2023) Q1 2023 / YTD Q1 2023 result came in strong with revenue outperforming last year result by 161%, GOP by 595% and LBT 74% : • hospitality industry continues to benefit from eased travel restrictions and also strong demand on co
Slide 46: Hospitality – Premiere Hotel, Klang Overview of Performance (Q1 2023)
Hospitality – Premiere Hotel, Klang Overview of Performance (Q1 2023) Q1 2023 / YTD REVENUE (RM) GOP (RM) LBT (RM) 0 3.7 0.3 RM (mil) 4 0.4 RM (mil) RM (mil) 0.2 3 2.0 0.0 2 -1 -0.8 -0.2 1 -0.4 -1.5 -0.4 0 -0.6 -2 Actual 2022 Actual 2022 Actual 2022 OCCUPANCY % AVG DAILY RATE (RM) MARGIN% 50% 218 90
Slide 47: Thank You
Thank You Strictly Private & Confidential