LEONG HUP INTERNATIONAL BERHAD RESULTS PRESENTATION FOR 3 rd QUARTER 2019 (3Q19) 27 November 2019 1 PRESENTATION DECK
DISCLAIMER This presentation is for information purposes only. The past performance of Leong Hup International Berhad (“LHI” or the “Company”) and its subsidiaries (the “Group”) is not indicative of the future performance of LHI and/or the Group. Reliance should not be placed on the information and opinion contained herein or on its completeness. Such information may be subject to change without prior notice, its accuracy is not guaranteed and it may not contain all material information concerning the Group. This presentation may contain projections and “forward-looking statements” relating to the Group’s business and the sectors in which the Group operates. These forward-looking statements include statements relating to the Group’s performance. These statements reflect the current views of the Group with respect to future events and are subject to certain risks, uncertainties and assumptions. It is important to note that actual results could differ materially from those anticipated in these forward-looking statements. Actual results may differ materially from those projected and there can be no assurance on the occurrence of certain events, achievability of projections or accuracy of assumptions made by the Group. Accordingly, neither the Group nor its directors or officers make any representation regarding, and assume no responsibility or liability for, the accuracy or completeness of, any errors or omissions in, any information contained herein. Note: Unless otherwise stated, all figures stated herein are for the third (3 rd ) quarter ended 30 September 2019, i.e. between 1 July 2019 and 30 September 2019 (“3Q19”) and the third (3 rd ) quarter ended 30 September 2018, i.e. between 1 July 2018 and 30 September 2018 (“3Q18”), as extracted from LHI's unaudited consolidated financial results for the financial period ended 30 September 2019. Issued by: Leong Hup International Berhad (Investor Relations Office) Address: 3rd Floor, Wisma Westcourt, No.126, Jalan Klang Lama, 58000 Kuala Lumpur, Malaysia. Tel: +603-7980 8086 / +603-7980 3817 Email: ir@lhhb.com Website: https://www.leonghupinternational.com 2 PRESENTATION DECK
Market Outlook Healthy economic growth expected, supported by resiliency in private consumption growth • Medium term outlook for LHI’s markets remain broadly positive , but may moderate arising from headwinds fueled by • global uncertainties, as well as persistent downside risks of trade tension and seasonally-weaker livestock prices in Q4 Real GDP Private consumption growth rate % growth rate % 2018 2019e 2020f 2018 2019e 2020f Malaysia 4.7 4.6 4.6 8.0 7.1 6.6 Robust growth in private consumption Singapore ^3.1 ^0.5 ^1.0 *3.1 N/A N/A in 4 out of 5 markets augers well for LHI Vietnam 7.1 6.6 6.5 7.3 7.3 7.3 Group and will continue to underpin Indonesia 5.2 5.0 5.1 5.1 5.2 5.1 the group’s volume growth. Philippines 6.2 5.8 6.1 5.6 5.9 5.9 Note: N/A means not available. Sources: (unless otherwise stated) World Bank East Asia and Pacific Economic Update, October 2019 by The World Bank; 3 ^ Regional Economic Outlook: Asia and Pacific, October 2019 by the International Monetary Fund; ^ Department of Statistics Singapore. PRESENTATION DECK
Financial Highlights: Revenue Overall group revenue increased during 3Q19 • Malaysia, Vietnam and Indonesia recorded higher revenue whilst revenue fell in Singapore • Revenue (1) by Country Revenue (1) by Segment (RM million) (RM million) Revenue (1) 3Q18 (RM 3Q19 (RM Variance by Country million) million) 1,524.0 1,420.2 Malaysia 390.6 426.3 +9.1% 426.3 28.0% 42.6% 43.7% 27.5% 390.6 Singapore 230.0 201.8 -12.3% 665.8 605.3 201.8 13.2% 16.2% 230.0 Vietnam 288.1 344.4 +19.5% 22.6% 344.4 20.3% 288.1 57.4% Indonesia 495.3 532.1 +7.4% 56.3% 858.2 814.9 34.9% 532.1 34.9% 495.3 Philippines 16.2 19.4 +19.6% 1.1% 1.3% 16.2 19.4 3Q18 3Q19 3Q18 3Q19 LHI Group 1,420.2 1,524.0 +7.3% Philippines Indonesia Vietnam Livestock and poultry related Feedmill Singapore Malaysia Note: 4 1) Excluding revenue from other sources. PRESENTATION DECK
Operating Highlights: Feedmill Group Production Capacity Group Feed Sales (1) (‘000 MT) (‘000 MT) Sales Split Utilisation 71% 67% Avg. Rate 56% 588.5 59% 548.0 882.4 780.9 44% 41% 3Q18 3Q19 3Q18 3Q19 Internal Sales External Sales 3Q18 3Q19 Note: 5 1) Feed sales include both internal and external sales. PRESENTATION DECK
Operating Highlights: Livestock Group Eggs Sales (2) Group Broiler DOC Sales (1) Group Broiler Sales (1) (million eggs) (million chicks) (million birds) 123.1 429.6 420.7 119.8 33.6 32.0 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 Note: 1) Broiler DOC and broiler chickens sales include both internal and external sales. 6 2) All eggs are sold to third parties. PRESENTATION DECK
Financial Highlights: EBITDA EBITDA improved by 11.9% year-on-year , as feedmill’s contribution came in higher, which more than offset weakness • in livestock Malaysia led the increase in EBITDA, due to improved prices of broiler chickens and eggs in 3Q19 • Stronger feedmill contribution in VN and ID, supported by favourable pricing and continued volume growth. • EBITDA (1) by Segment(RM million) EBITDA by Country (RM million) 173.7 155.2 38.6% 66.7 29.4 40.6% 19.9% 70.6 133.5 76.2% 18.6% 28.9 12.8% 22.3 16.3% 25.2 17.4% 61.4% 30.2 105.8 45.1% 70.0 23.8% 41.8 27.0% 47.0 ‐1.5 ‐17.3 2.1% 1.6 3.7 1.0% 3Q18 3Q19 3Q18 3Q19 Livestock and poultry related Philippines Indonesia Vietnam Feedmill Singapore Malaysia Inter‐segment elimination 7 Note: 1) EBITDA contribution by segment (in percentages) are computed based on gross EBITDA only. PRESENTATION DECK
Financial Highlights: Earnings Profit After Tax and Minority Profit Before Tax (RM million) Profit After Tax (RM million) Interest (PATMI) (RM million) 5.5% 5.5% 4.1% 3.9% 2.9% 2.5% 83.8 77.9 62.3 55.7 44.4 35.2 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 PBT PBT Margin PAT PAT Margin PATMI PATMI Margin 8 PRESENTATION DECK
Operating Expenses Group operating costs (“OPEX”) remain relatively stable group-wide • Continuous focus on cost optimization allowed the Group to maintain fairly stable OPEX in 3Q19 • 1,322.2 1,419.2 (1) COGS refer to cost of goods sold (RM million) which is inclusive of purchases and net changes of inventories and 12.7% 13.7% biological assets. 3.9% 3.7% 9.5% 9.7% (2) Others inclusive of below components: (a)Gain/(loss) on disposal of assets & liabilities (b)Utilities costs (c) Repair and maintenance 73.9% 73.0% (d)Transportation expenses (e)Other operating expenses (f) Upkeep of motor vehicle (g)Packaging material (h)Foreign worker levy 3Q18 3Q19 (1) (2) COGS Staff Benefit Depreciation & Amortisation Others 9 PRESENTATION DECK
Income Statement: Summary 3Q19 3Q18 Financial quarter ended (RM million) (RM million) Variance Revenue 1,527.1 1,422.5 +7.4% EBITDA 173.7 155.2 +12.0% Depreciation and amortisation 55.4 48.8 +13.6% Finance cost 34.6 28.7 +20.7% Profit before tax 83.8 77.9 +7.6% Profit after tax and minority interest 44.4 35.2 +26.1% Earnings per share (sen) 1.22 1.04 +0.18 sen EBITDA margin 11.4% 10.9% +50 bps 10 PRESENTATION DECK
Balance Sheet: Summary As at As at 30 September 2019 31 December 2018 (RM million) (RM million) Assets Non-current assets 2,834.2 2,576.1 Biological assets and inventories 1,026.5 925.2 Trade receivables 597.7 649.2 Other receivables 244.0 224.6 Cash and bank balances 567.8 458.9 Total Assets 5,270.2 4,834.0 Equity and Liabilities Total equity 2,159.7 1,765.5 Trade payables 240.9 248.9 Other payables and liabilities 426.3 448.7 Short term borrowings (including leases (1) ) 1,455.7 1,326.6 Long term borrowings (including leases (1) ) 987.6 1,044.3 Total Equity and Liabilities 5,270.2 4,834.0 Note: 11 (1) Including finance lease and lease liabilities for MFRS 16. PRESENTATION DECK
Working Capital Management Stable cash conversion cycle and gearing levels through effective working capital management.. • Cash Conversion Cycle Key Ratios 2.8x 2.6x 93.0 86.3 (days) 1.3x 1.2x 1.2x (4) 1.1x 1.1x 74.0 67.3 (4) 0.8x 37.3 36.0 -17.0 -18.3 (3) Net debt / EBITDA Gross Gearing Net Gearing Current ratio (2) (1) FPE 30 Sep 2018 FPE 30 Sep 2019 (2) FPE 30 Sep 2018 FPE 30 Sep 2019 Average biological assets / inventory turnover Average trade payable turnover Average trade receivable turnover Cash conversion cycle Notes: (1) For the 9-month financial period ended 30 September 2018, included for comparison purposes. (2) For the 9-month financial period ended 30 September 2019 (3) EBITDA annualized based on 9-month financial period ended 30 September 2018 and 30 September 2019’s results 12 (4) Computed based on group borrowings excluding the effect of MFRS 16 on lease liabilities PRESENTATION DECK
Recommend
More recommend
