Mencast Holdings Ltd. · SGX:5NF
Mencast — CIMB Securities Corporate FOCUS: Mencast Holdings Ltd. (June 2011)
33 slides from Mencast's conference presentation, Jun 28, 2011
Slide 1: Disclaimer
28/6/2011 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 basi
Slide 2: Disclaimer
28/6/2011 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 Se
Slide 3: Presentation Outline
28/6/2011 Presentation Outline Group Overview Financial Review (FY2010) Business Overview Group Overview Group Overview 3
Slide 4: Share Information and Group Organizational Structure
28/6/2011 Share Information 52--week range 52 • S$ 0.330 – S$ 0.470 • S$ 76m Market Capitalization • Price@ 24/6/11 : S$0.445 P/E ratio • 8.3 x (1) (2) P/B ratio • 1.9 x (1) (3) Dividend yield FY2010 • 3.0% (1) No. of Shares • 170,572,600 • Sim Family (57.5%) Major Shareholders • Gay Chee Cheong (5.
Slide 5: Operating Locations
28/6/2011 Operating Locations (*) Operating Locations Descriptions Built-Up Area (sqm) No. 7 Tuas View Circuit Sterngear equipment manufacturing 6,698 No. 12 Kwong Min Road Mainly staff accommodation and storage area 2,946 No. 39 Tuas Avenue 13 Sterngear services (Under Recon Propeller) 1,550 No. 24
Slide 6: Operating Locations
28/6/2011 Operating Locations Top Great- Singapore Headquarter at 24 Loyang Crescent Top Great- Malaysia office at No. 30, Jalan Masyhur 1, Taman Perindustrian Desa Cemerlang 81800 Ulu Tiram, Johor Bahru Operating Locations Top Great- Indonesia Office at Jln. Brig. Jend. Katamso Km 5, 5 Tanjung Unca
Slide 7: Group Profile
28/6/2011 Operating Locations Unidive – Singapore Office at 6 Tech Park Crescent Singapore 638126 Group Profile Established in 1981, Mencast is a marine service company and the leading sterngear manufacturer and repair MENCAST company in Singapore. 100% Existing facilities 9,944 sqm of built-up area
Slide 8: Board of Directors
28/6/2011 Board of Directors • Executive Chairman and Chief Executive Officer Glenndle Sim Glenndle is responsible for the overall management, strategic planning, operations and marketing of the Group. He graduated from the National University of Singapore with a Bachelor in Business Administration
Slide 9: Milestones and Another Record Year
28/6/2011 Milestones ($’000 Revenue) Acquired Penjuru Waterfront Land Acquired Recon Propeller and Engineering Pte Ltd Another Record Year FY2010 NPAT increased 21% over FY2009 FY2010 Revenue increased 22% over FY2009 FY2010 Dividend increased 10% to 1.1 cents per share over FY2009 FY2010 ROE o
Slide 10: FY2010 Income Statement
28/6/2011 Group Overview Group Financial Overview Review: FY2010 FY2010: Income Statement S$’ 000 2010 2009 Change Remarks (%) • Higher revenue from sterngear services with contributions from subsidiary, Recon Propeller & Engineering Pte Ltd. Revenue 32,031 26,274 21.9 • Lower revenue from sterngear
Slide 11: FY2010 Financial Position and Consistent Revenue Growth
28/6/2011 FY2010: Financial Position S$’ 000 2010 2009 Cash and bank balances 11,604 12,706 Non-current assets 32,150 27,164 Total assets 62,141 48,548 Total debt 10,732 10,753 Total Equity 40,517 28,136 Net gearing ratio Net Cash Net Cash NAV per share (cents) 23.8 18.1 Consistent Revenue Growth (a
Slide 12: Consistent Profit Growth
28/6/2011 Consistent Profit Growth FY2006 - FY2010: 27% CAGR FY2006 - FY2010: 31% CAGR Business Overview 5
Slide 13: MMRO and Triple Play Strategy
28/6/2011 MMRO : Marine Maintenance Repair Overhaul Strong niche Excellent track Barriers to entry record • 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 dec
Slide 14: M&A Strategy and Business Highlights for 2010 & 2011
28/6/2011 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 Business Highlights for 2010 & 2011 Services Manfacturing Corporate • Star performer with • Weat
Slide 15: Sterngear Equipment
28/6/2011 Sterngear Equipment 1
Slide 16: Sterngear Equipment Manufacturing
28/6/2011 Sterngear Equipment Manufacturing We manufacture and supply a full range of sterngear equipment either as an integrated package or individual components, as required by our customers. We are the leading local manufacturer in Singapore. Sterngear Equipment Manufacturing High-lift Rudder Ass
Slide 17: Sterngear Services
28/6/2011 Sterngear Services We recondition sterngear equipment, restore and repair worn out or damaged sterngear equipment to make it sea-worthy. We also refurbish or modify existing equipment to maximize its efficiency and to meet the vessel’s certification requirements. CPP Blades and Propeller F
Slide 18: Sterngear Services
28/6/2011 Sterngear Services Sterngear Services 4
Slide 19: Sterngear Services
28/6/2011 Sterngear Services Sterngear Services 5
Slide 20: Foundry Operation
28/6/2011 Foundry Operation Our foundry is designed and built specifically for the production of copper alloy castings of sterngear equipment. It has a melting capacity of approximately 6 tonnes of electric furnace which delivers high quality melt. Foundry Operation 1
Slide 21: Waterfront Facility: Update
28/6/2011 Waterfront Facility: Update Waterfront Facility: Update 2
Slide 22: Waterfront Facility: Update
28/6/2011 Waterfront Facility: Update Waterfront Facility: Update 3
Slide 23: Waterfront Facility: Update - Foundry Expansion
28/6/2011 Waterfront Facility: Update Foundry Expansion 4
Slide 24: Strategic Alliance with Becker Marine Systems
28/6/2011 Strategic Alliance with Becker Marine Systems Preferred Manufacturer of Becker Marine Systems •Becker is the global market leader for high-end performance rudder and manoeuvring solutions •To capture new customers from Korea, Japan and China • Mencast is the preferred manufacturer of heavy
Slide 25: Strategic Alliance with Becker Marine Systems
28/6/2011 Strategic Alliance with Becker Marine Systems Strategic Alliance with Becker Marine Systems 1
Slide 26: Loading of Mewis Duct (Waterfront @ Mencast)
28/6/2011 Loading Of Mewis Duct ( Waterfront @ Mencast) on 20/11/2010 Loading Of Mewis Duct ( Waterfront @ Mencast) on 20/11/2010 2
Slide 27: Sterngear Services Expansion
28/6/2011 Sterngear Services Expansion Sterngear Services Expansion 3
Slide 28: Sterngear Services Expansion / Capability Expansion
28/6/2011 Sterngear Services Expansion Capability Expansion 4
Slide 29: Capability Expansion
28/6/2011 Capability Expansion Capability Expansion 5
Slide 30: Capability Expansion
28/6/2011 Capability Expansion Mud System for National Oilwell Varco Capability Expansion DUQM Drydock Gates 6
Slide 31: Capability Expansion and 2011 Outlook
28/6/2011 Capability Expansion MARINE & OFFSHORE PROJECTS DESIGN, FABRICATION & INSTALL 2 UNITS FLOATING GATES AT DUQM PORT, OMAN DRILLING DERRICK (Design, Fabricate & Install) 2011 Outlook Manufacturing Services Corporate Waterfront facility Returning market Growing momentum phased in from 2H
Slide 32: Investment Merits
28/6/2011 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 Acquisition of local
Slide 33: Thank You!
28/6/2011 Acquisition of local marine inspections, repairs and overhaul (Marine MRO) company, Unidive group MENCAST HOLDINGS LTD. No. 7, Tuas View Circuit, Singapore 637642 www.mencast.com.sg THANK YOU! Investor Relations Contact Financial PR Pte Ltd Romil Singh / Kathy Zhang 6438 2990/ romil@financ
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