KSH HOLDINGS LIMITED - listed...

KSH HOLDINGS LIMITED

Corporate Presentation

May 27, 2014

KSH Corporate Presentation

OVERVIEW KSH Holdings Limited

UPDATES

RESULTS FY2014

OUTLOOK Strategies Moving Forward

CONCLUSION Q&A Corporate Developments

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UPDATES

RESULTS FY2014



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OVERVIEW KSH HOLDINGS LIMITED

KSH is a well-established Construction, Property Development and Property Management group that was

incorporated in 1979 and listed on the Mainboard of SGX-ST on February 8, 2007. As at May 23, 2014, KSH has a

market capitalisation of S$230.31 million

PRC

SINGAPORE

MALAYSIA

Singapore

• A main contractor for both public and private

construction sector

˗ Proven capability in handling projects across

various categories: residential, commercial,

industrial, hotel, institutions, infrastructure etc

• An A1-graded contractor under BCA CW01

˗ Able to tender for Public Sector construction

projects of unlimited value

• Projects performed well in CONQUAS, a standard

assessment system on the quality of building

projects

• Won two BCA Construction Excellence Awards for

the construction of Fullerton Bay Hotel and NUS

University Town’s Educational Resource Centre in

May 2013

• Entered Property Development and Property

Management in Singapore in 2008

Peoples’ Republic of China

• Entered Property Development and

Property Management in PRC in

2001

• Won first construction project in

Beijing in April 2013

˗ Erect 3 blocks of 11-13 storey

residential building with office

and commercial units as well as

2 levels of basement for Liang

Jing Ming Ju Phase Four -

Sequoia Mansion

Malaysia

• A main contractor for the Private

Sector

• Acquisition of property in Klang,

Negeri Selangor for development

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REBALANCING AND DIVERSIFICATION

Corporate Developments Date

Acquisition of 92.8% interest in Prudential Tower for S$512 million through Joint Venture

- KSH Commercial Investment Pte Ltd holds 28% stake in Joint Venture May 15, 2014

Joint Venture for investment purposes in Cambodia

- KSH Asia Investment Pte Ltd hold 17% in the Joint Venture March 26, 2014

Joint Venture for property development in People’s Republic of China

- KSH’s associate company, Beijing Jin Hua Tong Da Real Estate Development Co., Ltd. (“BJJHTD”),

and KAP Holdings (China) Pte. Ltd. (“KAP”) for the incorporation of joint venture company, named

Sino-Singapore KAP Construction Co., Ltd. (“SSKAP”)

March 24, 2014

Acquisition of property in Klang, Negeri Selangor, Malaysia

- KSH Asia Investment Pte Ltd hold 40% in the Joint Venture through associate company, Klang City

Development Pte Ltd, (“KCD")

January 15, 2014

OVERVIEW KSH HOLDINGS LIMITED

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UPDATES

RESULTS FY2014



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RESULTS HIGHLIGHTS

Achieved record earnings of S$44.5 million in FY2014

Revenue jumped 40.1% to S$324.5 million, lifted by higher construction revenue and sales of

development property in Singapore

Share of results of associates leaped 66.2% to S$27.7 million

Low gearing of 0.01 times

Strong construction order book of more than S$410.0 million, as at March 31, 2014

Proposed Final Dividend of 1.75 SGD cents per ordinary share, bringing total dividend to 3.0 SGD cents

per ordinary share, equivalent to a yield of 5.4%, as at May 23, 2014

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RESULTS HIGHLIGHTS

• Revenue jumped 40.1% to S$324.5 million in FY2014 from S$231.6 million in FY2013

˗ Lifted by higher construction revenue and sales of development property in Singapore and PRC

285.4 257.3

145.4

206.1

285.7 19.7

20.0

32.5 5.5

5.5

5.5

5.5

6.3

0

50

100

150

200

250

300

350

FY2010 FY2011 FY2012 FY2013 FY2014

Project Revenue Sales of development property Rental income from investment properties

S$’m

290.9 262.8

170.6

231.6

324.5

REVENUE HIGHLIGHTS

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RESULTS HIGHLIGHTS

Profit from operations before share of results of associates (S$’m)

22.8

29.8 25.7 25.3

22.7

FY2010 FY2011 FY2012 FY2013 FY2014

-0.5

0.2

-0.1

16.6

27.7

FY2010 FY2011 FY2012 FY2013 FY2014 -5

5

15

25

35

Share of results of associates (S$’m)

Profit Attributable to Shareholders (S$’m)

Net Profit Margin (%)

6.30%

8.63%

12.00%

16.24%

14.10%

FY2010 FY2011 FY2012 FY2013 FY2014

• Earnings grew 22.8% to S$44.5 million

• Share of results of associates leaped 66.2% to S$27.7 million

18.0 21.7

18.3

36.3

44.5

0

10

20

30

40

50

FY2010 FY2011 FY2012 FY2013 FY2014

EARNINGS HIGHLIGHTS

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RESULTS HIGHLIGHTS

HEALTHY BALANCE SHEET

March 31, 2010

(S$’M)

March 31, 2011

(S$’M)

March 31, 2012

(S$’M)

March 31, 2013

(S$’M)

March 31, 2014

(S$’M)

Current Assets 194.3 191.4 142.8 163.5 229.8

Current Liabilities 150.0 144.5 107.0 130.8 152.3

Net Current Assets 44.4 46.9 35.8 32.7 77.5

Total Assets 356.8 359.7 332.3 392.2 502.5

Total Liabilities 229.1 215.6 172.0 189.9 264.0

Shareholders’ Equity 108.4 125.0 139.1 180.4 217.0

Net tangible assets 127.6 144.2 160.3 202.3 238.5

• Increasing Shareholders’ Equity to S$217.0 million as at March 31, 2014

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RESULTS HIGHLIGHTS

HEALTHY DEBT COVERAGE AND LOW GEARING

March 31, 2010

(S$’M)

March 31, 2011

(S$’M)

March 31, 2012

(S$’M)

March 31, 2013

(S$’M)

March 31, 2014

(S$’M)

Total Borrowing & Debts 103.0 94.5 75.5 87.9 145.3

Total Cash & Cash

Equivalents 94.2 91.5 57.5 81.4 142.4

Net Borrowing & Debt 8.8 3.0 18.0 6.5 2.9

Net Debt to Equity 0.08 0.02 0.13 0.04 0.01

• Established a S$300 million multicurrency medium term note programme

• Priced a S$75 million bond issue, due 2016, with coupon of 5.25% per annum

• High cash & cash equivalents of S$142.4 million

• Low gearing of 0.01 times

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RESULTS HIGHLIGHTS

DIVIDENDS SINCE LISTING 2007

• Proposed Final Dividend of 1.75 SGD cents per ordinary share, bringing total dividend to 3.0 SGD cents

per ordinary share, equivalent to a yield of 5.4%, as at May 23, 2014

0.015 0.010 0.010 0.010

0.0135 0.0125 0.011

0.010

0.010 0.010 0.005

0.0115 0.0175

0.010

0

0.01

0.02

0.03

0.04

0.05

0.06

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY2014

Interim Dividend Final Dividend Special Dividend

3.0%

30.4%

7.5% 8.2% 6.4% 5.3% 5.4%

Dividend Yield

(S$)

0.035

0.020 0.020

0.015

0.025

0.030

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RESULTS HIGHLIGHTS

• Strong construction order book of more than S$410.0 million, as at March 31, 2014

400

314

245

467 446

410

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

STRONG CONSTRUCTION ORDER BOOK VISIBILITY

(S$’m)

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UPDATES

RESULTS FY2014



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CONSTRUCTION NEW PROJECTS

CONSTRUCTION CONTRACTS AWARDED IN FY2014

Project Name Value Project Type Expected

Completion Date

Singapore:

KAP and KAP Residences at King Albert

Park S$76.9 million Mixed-use development August 2016

United World College of South East Asia

at Dover Road S$42.5 million

Construction of an

additional school block August 2015

NEWest at West Coast Drive S$98.9 million Mixed-use development March 2016

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CONSTRUCTION ORDERBOOK IN SINGAPORE AS AT 31 MARCH 2014 – MORE THAN S$410 MILLION

PROPERTY DEVELOPMENT

Name of

Development Lincoln Suites

Type Residential

Location Novena

Launch Date Oct 2009

Tenure Freehold

GFA (sq m) 15,603

Residential

Units 175

% Sold* More than 90.9%

Group’s Stake 25%

Target

Completion

Date

TOP granted on April 1, 2014

Singapore

Name of

Development Cityscape@ Farrer Park

Type Residential

Location Mergui Road


Tenure Freehold

GFA (sq m) 23,547

Residential

Units 250 units


Group’s Stake 35%

Target

Completion

Date

Dec 2015

Name of

Development The Boutiq

Type Residential

Location 125 Killiney Road

Launch Date Apr 2011

Tenure Freehold

GFA (sq m) 10,397

Residential Units 130 units


Group’s Stake 35%

Target Completion

Date Dec 2014

* As at May 26, 2014 16 of 26


Singapore

Name of

Development Rezi 26

Type Residential

Location Lorong 26, Geylang


Tenure Freehold

GFA (sq m) 6,925

Residential Units 106

% Sold* 100%

Group’s Stake 45%

Target Completion

Date Dec 2014

Name of

Development The Palacio

Type Residential

Location Lorong M, Telok Kurau

Road

Launch Date Aug 2012

Tenure Freehold

GFA (sq m) 4,152


% Sold* 100%

Group’s Stake 32%

Target Completion

Date Dec 2015

Name of

Development Sky Green

Type Residential

Location MacPherson Road


Tenure Freehold

GFA (sq m) 13,907



Group’s Stake 25%

Target Completion

Date Dec 2016

* As at May 26, 2014 17 of 26

Name of Development NEWest

Type Mixed Residential

and Commercial

Location West Coast Way

Launch Date May 2013

Tenure 956 years from 27

May 1928

GFA (sq m) 25,148

Shop Units 141


% Sold* (Commercial) More than 64.5%

% Sold* (Residential) 100%

Group’s Stake 12.25%

Target Completion

Date Dec 2018


Singapore

Name of Development KAP/KAP Residences

Type Mixed Residential and

Commercial

Location King Albert Park

Launch Date May 2013

Tenure Freehold

GFA (sq m) 17,178

Shop Units 107


% Sold* (Commercial) 100%

% Sold* (Residential) 100%


Target Completion

Date Dec 2018

* As at May 26, 2014

Name of Development FloraVille, Flora Vista &

Floraview

Type Mixed Residential and

Commercial

Location Yio Chu Kang

Launch Date January 2014

Tenure Freehold

GFA (sq m) 8,021

Shop Units 28


% Sold* (Commercial) More than 7.1%

% Sold* (Residential) More than 18.6%


Target Completion

Date Dec 2018

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Singapore

Name of Development Rezi 3TWO

Type Residential

Location Lorong 32, Geylang

Launch Date March 2014 (Preview)

Tenure Freehold

GFA (sq m) 3,456

Shop Units -



Group’s Stake 45%

Target Completion

Date March 2016

Name of Development Hexacube

Type Commercial

Location 160 Changi Road

Launch Date March 2014

Tenure Freehold

GFA (sq m) 5,009

Shop Units 65

Residential Units -


Group’s Stake 30%

Target Completion

Date Dec 2016

Name of Development Trio

Type Commercial

Location Sam Leong Road

Launch Date March 2014

Tenure Freehold

GFA (sq m) 3,445

Shop Units 43

Residential Units -


Group’s Stake 35%

Target Completion

Date June 2019

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Liang Jing Ming Ju 4th phase – Sequoia Mansion (靓景明居 - 红杉公馆）

Property

Name Location Tenure

Approximate/

Estimated Net

saleable area

(sq m)

Number of

Residential

Units*

Number

of Shop

Units*

Launch

Date

Group’s

Stake

Target

Completion

Date

Sequoia

Mansion Beijing

Residential:

70 years from

15 Jan 2003

Commercial:

40 years from

15 Jan 2003

39,420 373 53 Jan 2014 45.00% May 2015

China

* Estimated Figures

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PROPERTY INVESTMENT PORTFOLIO

People’s Republic of China

Address: No. 81, Shi Yi Jing Road, Hedong District, Tianjin,

300171

Property Developer: Tianjin TianXing Real Estate Development Co., Ltd

Property Manager: Tianjin TianXing Property Management Co., Ltd

Total Lettable Floor Area: 37,033 sqm

Tenure: Approximately 50 years from 29 Nov1993

Latest Valuation: S$104.1 million*

• A 36-storey Retail and Office Complex located at heart of business district of Tianjin, PRC

• KSH has a 69.0% equity interest in the property developer and manager of Tianxing

Riverfront Square

• The remaining equity interest is held by Tianjin Commercial Construction Development Co.,

Ltd

• Approximately about 44% of the offices have been sold. The remaining 56% of the offices

and the shopping podium have been leased out with an average occupancy of more than

90%

China

* Based on the valuation performed by DTZ Debenham Tie Leung Property Advisory (Tianjin) Co Ltd carried out

in March 2014

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UPDATES

RESULTS FY2014



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OUTLOOK AND STRATEGIES

Sector Construction

Outlook • Stronger construction demand in the year

2014 is expected to be between S$31.0

billion and S$38.0 billion buoyed by public

sector demand,.

• Private sector construction may moderate

to S$12.0 and S$16.0 billion in 2014

Strategy

Focus on

Construction

Business in

Singapore

• Continue to tender for projects, in line with

general Construction climate

• Greater emphasis on public sector

construction activities

• Leverage on Group’s strong track record in

public sector projects, healthy balance

sheet and low receivables risk

• Capitalise on Group’s certified A1 grading

under CW01 category for general building

by the BCA to tender for Public

construction projects of unlimited value

Sector Property Development

Outlook • According to Urban Redevelopment

Authority (“URA”) statistics, prices of private

residential properties decreased by 1.3% in

1st quarter 2014.

Strategy

Maintain

Property

Development

Business in

Singapore

and Overseas

• Adopt well-calculated approach for property

development

• Form JVs with reputable partners

• Acquire Prudential Tower in Singapore

• Development of Gaobeidian New Town in

PRC

• A Mixed Development via JV in Klang,

Malaysia

• Redevelop Imperial Garden Villa & Hotel

via JV in Cambodia

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OUTLOOK AND STRATEGIES

Focus on Construction

Business in Singapore

Construction Property

Development

Maintain Property

Development Business in

Singapore and Overseas

Explore other overseas

opportunities in

Southeast Asia

- Malaysia

- Cambodia

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UPDATES

RESULTS FY2014



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