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
2 of 26
KSH Corporate Presentation
OVERVIEW KSH Holdings Limited
UPDATES
RESULTS FY2014
OUTLOOK Strategies Moving Forward
CONCLUSION Q&A Corporate Developments
3 of 26
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
5 of 26
KSH Corporate Presentation
OVERVIEW KSH Holdings Limited
UPDATES
RESULTS FY2014
OUTLOOK Strategies Moving Forward
CONCLUSION Q&A Corporate Developments
6 of 26
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$27.7 million
18.0 21.7
18.3
36.3
44.5
0
10
20
30
40
50
FY2010 FY2011 FY2012 FY2013 FY2014
EARNINGS HIGHLIGHTS
9 of 26
RESULTS HIGHLIGHTS
HEALTHY BALANCE SHEET
March 31, 2010
(S$’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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KSH Corporate Presentation
OVERVIEW KSH Holdings Limited
UPDATES
RESULTS FY2014
OUTLOOK Strategies Moving Forward
CONCLUSION Q&A Corporate Developments
14 of 26
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
Launch Date Oct 2010
Tenure Freehold
GFA (sq m) 23,547
Residential
Units 250 units
% Sold* More than 88.8%
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
% Sold* More than 88.5%
Group’s Stake 35%
Target Completion
Date Dec 2014
* As at May 26, 2014 16 of 26
PROPERTY DEVELOPMENT
Singapore
Name of
Development Rezi 26
Type Residential
Location Lorong 26, Geylang
Launch Date Oct 2011
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
Residential Units 21
% Sold* 100%
Group’s Stake 32%
Target Completion
Date Dec 2015
Name of
Development Sky Green
Type Residential
Location MacPherson Road
Launch Date Oct 2012
Tenure Freehold
GFA (sq m) 13,907
Residential Units 176
% Sold* More than 97.7%
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
Residential Units 136
% Sold* (Commercial) More than 64.5%
% Sold* (Residential) 100%
Group’s Stake 12.25%
Target Completion
Date Dec 2018
PROPERTY DEVELOPMENT
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
Residential Units 142
% Sold* (Commercial) 100%
% Sold* (Residential) 100%
Group’s Stake 12.6%
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
Residential Units 140
% Sold* (Commercial) More than 7.1%
% Sold* (Residential) More than 18.6%
Group’s Stake 12.25%
Target Completion
Date Dec 2018
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PROPERTY DEVELOPMENT
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 -
Residential Units 65
% Sold* More than 27.7%
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 -
% Sold* More than 49.2%
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 -
% Sold* More than 23.3%
Group’s Stake 35%
Target Completion
Date June 2019
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PROPERTY DEVELOPMENT
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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KSH Corporate Presentation
OVERVIEW KSH Holdings Limited
UPDATES
RESULTS FY2014
OUTLOOK Strategies Moving Forward
CONCLUSION Q&A Corporate Developments
22 of 26
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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KSH Corporate Presentation
OVERVIEW KSH Holdings Limited
UPDATES
RESULTS FY2014
OUTLOOK Strategies Moving Forward
CONCLUSION Q&A Corporate Developments
25 of 26
Q&A
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