Megroup Ltd. · SGX:SJY
Megroup — Investor Presentation (November 2022)
23 slides from Megroup's investor presentation, November 2022
Slide 1: MeGroup Enhancing Capabilities Developing Potential
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Slide 2: About Us
About Us Trusted Component Manufacturer and Dealer in the Automotive Industry • Malaysian-based automotive company involved in the manufacturing of noise, vibration and harshness (NVH) and non-NVH components for the automotive industry, and the operation of automobile dealerships in Malaysia • Liste
Slide 3: Company milestones timeline
2020 • Awarded 1st Mitsubishi dealership • Collaboration with Flux 2000 2011 2015 • Completed R&D lab – Sound test lab • Approved Supplier to • Enrolled into Kaizen • Launched 1st Peugeot dealership • Began trial supply to mattress industry Perodua; began supplying programme to further • Accredited
Slide 4: An Experienced Management Team
An Experienced Management Team Mr Wong Cheong Chee Mr Abdul Razak Bin Montel Ms Carol Wong Keat Yee Executive Chairman and CEO Head of Sales, Manufacturing Executive Director and ▪ >40 years’ experience in the ▪ >30 years’ experience in the Head of Operations, Manufacturing manufacturing industry ma
Slide 5: Our Manufacturing Business
Our Manufacturing Business 5
Slide 6: Manufacturing: High Margin Business
Manufacturing: High Margin Business Manufactures ⁻ NVH components for Automobiles ⁻ Non-NVH components for Automobiles ⁻ NVH components for machineries Operates ⁻ Main Manufacturing Plant Approved Supplier to ⁻ Thermobonded Felt Plant ⁻ Assembly Line at Kulim Hi-tech Park for Mazda 9 components car
Slide 7: Our Manufacturing Capabilities
Our Manufacturing Capabilities FELT MANUFACTURING FELT RECYCLING HEAT ROLLER MACHINE STAMPING MACHINE FELT PRESS MACHINE HIGH PRESSURE WATER JET CUTTING MACHINE DIE CUTTING MACHINE CATIA DESIGN EXPERTISE FINISHING TOUCHES
Slide 8: Examples of NVH and non-NVH Products
Examples of NVH and non-NVH Products INSULATOR HOOD INSULATOR DASH OUTER INSULATOR DASH INNER LID TRUNK TOP CEILING PAD ROOF SILENCER BOARD ASSEMBLY DECK COVER FRONT FLOOR
Slide 9: Manufacturing R&D Capabilities
Manufacturing R&D Capabilities MeGroup is currently the only NVH supplier in Malaysia to build its own R&D lab for product quality control and enhancement • Testing Lab – Tensile Strength – Bending Strength – Flame/Fire Test TESTING LAB FLAMMABILITY TEST HEAT TEST – Cold Resistance (up to -20°C) – H
Slide 10: Our Dealership Business
a —— Our a Dealership Business
Slide 11: Our Business – Dealership
Our Business – Dealership Dealership Standards - 1S: Sale of new automobiles - 2S: Provision of after-sales services - 3S: Sale of automobile parts and accessories - 4S: Automobile body paintwork and collision repair services 7 11 Car Brands Dealership Outlets Continued Business ⁻ Continued collabor
Slide 12: Dealership Outlet Locality
Dealership Outlet Locality Honda Kuala Selangor Mitsubishi Kuala Mazda 4S Sungai Besi Ford 3S Shah Alam Selangor Honda Cheras Mitsubishi Bandar Peugeot 4S Setia Alam Bukit Raja Peugeot 4S Kajang Proton 4S Telok Panglima Garang 3 Peugeot Seremban Hyundai 3S Klang
Slide 13: 1H2023 Highlights
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Slide 14: 1H2023 Highlights
1H2023 Highlights REVENUE: RM 204.1 million BALANCE SHEET Breakdown by segment Net Current Assets Manufacturing Dealership RM 19.1 mil RM 22.3 mil RM 181.8 mil Net Tangible Assets (approx. 11%) (approx. 89%) RM 41.4 mil GROSS PROFIT: RM 17.9 million Gearing EBITDA: RM 10.1 million 0.63 (FY2022: 0.65
Slide 15: 1H2023 Highlights - Manufacturing
1H2023 Highlights - Manufacturing Revenue – Manufacturing RM 22.3 mil 6% Automotive Non-Automotive 94% Current order book: 183 parts in production
Slide 16: 1H2023 Highlights - Dealership
1H2023 Highlights - Dealership Revenue – Dealership Number of Automobile Sales Units RM 181.8 mil and After-Sales Intake 0% 1% 18,000 16,000 5% 14,000 12,000 10,000 8,000 94% 6,000 4,000 2,000 Automobiles sales & incentives - Aftersales - Aftersales automobile services Automobile New Car Renew After
Slide 17: 1H2023 Highlights – Revenue (RM million)
1H2023 Highlights – Revenue (‘RM million) 250 200 150 181.8 100 154.7 50 70.8 20.4 22.3 0 9.5 1H2022 2H2022 1H2023 Manufacturing Dealership
Slide 18: 1H2023 Highlights – Gross Profit
1H2023 Highlights Gross Profit (‘RM million) 1H2023 Gross Profit by Segment (‘RM million) 20 17.9 18 16 15.4 14 4.4 12 10 8 13.5 5.7 6 4 2 Dealership Manufacturing 0 1H2022 2H2022 1H2023
Slide 19: 1H2023 Highlights – Net Profit
1H2023 Highlights Net Profit (‘RM million) 4.0 3.0 2.7 2.0 1.8 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -5.1 -6.0 1H2022 2H2022 1H2023
Slide 20: ESG Initiatives
ESG Initiatives Environmental ⁻ Installed solar panels in our main manufacturing facility to reduce carbon footprint and overhead expenses by tapping on solar energy ⁻ Installation works of the solar panels on the roof of the Main Manufacturing Plant was completed in December 2021 and utilisation of
Slide 21: Industry Outlook
Industry Outlook 21
Slide 22: Outlook
Outlook • The Malaysia government has entered the “Transition to Endemic” phase from 1 April 2022, with all restrictions on business operating hours removed and the easing of its Covid-19 safety measures starting from 1 May 2022 • The Malaysian Automotive Association (“MAA”) reported in its press re
Slide 23: Thank you
Thank you 23