P.1 1H2008 Results Announcement 26 August 2008
FORWARD-LOOKI NG STATEMENTS Certain statements contained in this presentation maybe viewed as forward-looking statements. Such forward-looking statements represent the Company’s expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. P.2
1H2008 FI NANCI AL PERFORMANCE HK$’M June 2008 June 2007 % Change (Unaudited) (Audited) Group turnover 9,519 6,989 + 36.2% Profit from operations 443 297 + 49.2% Profit attributable to 289 210 + 37.6% shareholders Basic earnings per share 16.06 HK cents 12.95 HK cents + 24.0% Declared interim dividend per share 6.43 HK cents n/a Shareholders’ funds per share HK$2.57 HK$2.38 + 8.0% (Dec 2007 Audited) P.5
GROWTH MOMENTUM CONTI NUES Group Turnover Turnover of Motor & + 48.1% Motor Related Business HK$9,519M +36.2% Turnover of Food & + 16.9% Consumer Products HK$6,989M Business Turnover of Logistics + 8.2% Business 1H2007 1H2008 P.6
GROWTH MOMENTUM CONTI NUES Segment Profit Segment profit of Motor & + 77.7% HK$488M Motor Related Business +57.4% Segment profit of Food & + 39.7% Consumer Products HK$310M Business 1H2007 1H2008 P.7
REVENUE MI X - BY BUSI NESS GROUPS 1H2008 1H2007 Logistics & Logistics & Food & Food & Others Others Consumer Consumer 1.4% 1.6% Products Products 31.5% 36.7% Motor & Motor Motor & Motor Related Related 61.7% 67.1% P.8
REVENUE MI X - BY MARKETS 1H2008 1H2007 Overseas Overseas 11.8% Mainland 9.6% China 46.0% Mainland China 49.9% Hong Kong & Hong Kong & Macao Macao 42.2% 40.5% P.9
1H 2008 GROUP PERFORMANCE HK$'m 1H2008 1H2007 Change % (Unaudited) (Audited) Turnover 9,519 6,989 36.2% Cost of sales (8,216) (5,934) 38.5% Gross profit 1,303 1,055 23.5% GP margin 13.7% 15.1% Profit from operations 443 297 49.2% Operating profit margin 4.7% 4.2% Profit attributable to shareholders 289 210 37.6% NPAT margin 3.0% 3.0% Basic earnings per share (HK cents) 16.06 12.95 24.0% I nterim dividend per share (HK cents) 6.43 n/ a P.11
CONSOLI DATED BALANCE SHEET ANALYSI S HK$'M Jun-08 Dec-07 (Unaudited) (Audited) Current Asset 6,967 6,477 Current Liabilities 3,994 3,672 Net Current Assets 2,973 2,805 Current Ratio 1.74 1.76 Shareholders' funds 4,630 4,282 Shareholders' funds per share (HK$) 2.57 2.38 NAV per share (HK$) 2.65 2.44 P.12
CASH FLOW STATEMENT HI GHLI GHTS HK$'M Jun-08 Jun-07 (Unaudited) (Audited) Net cash generated from operating 90 131 activities Net cash used in investing activities (155) (68) Net cash generated from/ (used in) 28 (188) financing activities Net decrease in cash and cash equivalents (37) (125) P.13
LI QUI DI TY ANALYSI S HK$'M Jun-08 Dec-07 (Unaudited) (Audited) Cash on hand 1,674 1,653 Total debt 2,142 1,947 Net debt 468 294 Shareholders' funds 4,630 4,282 Total capital 5,098 4,576 Gearing ratio 9.2% 6.4% P.14
P.15 Strategic Moves in 1H2008
STRATEGI C MOVES I N 1H2008 Motor & Motor Related • Forged strategic partnership with Denker Business Investment to jointly develop Lexus and FAW Toyota dealership projects • LOI signed with UMW Holdings to establish a lube oil blending plant in Xinhui Food & Consumer Products • Acquired Polyfood to enter into upstream Business business of food • Acquired Guangdong Victory Electrical Appliance to enter into home appliance manufacturing Logistics Business • Yuen Long Logistics centre, with cold storage, is scheduled to commence operation by 4Q2008 • Cold Chain storage in Xinhui was being constructed and is scheduled to commence operation by 1Q2009 P.16
STRATEGI C MOVES I N 1H2008 – continues Strategic Partnership with Denker Investment • Jointly develop Lexus and FAW Toyota dealerships • Denker is a sizeable city dealership operator in Mainland China • Rationale • Speed up the Group’s expansion in Mainland China • Allow DCH to have greater leverage in expanding our network and acquiring dealership of new quality brands P.17
STRATEGI C MOVES I N 1H2008 – continues Acquired Polyfood Food Services • A food manufacturing and processing company specializes in niche market in Hong Kong • Rationale • Vehicle to strengthen upstream food processing capability • To synergize with our existing distribution and retail businesses • Building DCH as a fully integrated food supply chain service provider P.18
STRATEGI C MOVES I N 1H2008 – continues Acquired Guangdong Victory Electrical Appliance Manufacturing • Specialized in manufacturing small premium electrical appliances • Captures about 20% world electrical kettle market through OEM • Customers including renowned brands such as Kenwood, Braun, Siemens, Meyer and SEB • Rationale • Enable DCH to achieve higher margin by going upstream • Allow DCH to capture the overseas market and the vast business potential of small home electrical appliance market in China P.19
P.20 Review on Operations
MOTOR AND MOTOR RELATED BUSI NESS HK$’M HK$’M 6,387 3,601 1H2008 1H2008 1H2007 1H2007 4,313 2,269 2,216 1,557 359 202 Mainland China Hong Kong & Macao Turnover Segment Profit % of % of HK$'M 1H2008 1H2007 Change % total total Mainland China 3,601 56.4% 2,269 52.6% 58.7% Hong Kong & Macao 2,216 34.7% 1,557 36.1% 42.4% Others 570 8.9% 487 11.3% 17.0% Turnover 6,387 100.0% 4,313 100.0% 48.1% Segment profit 359 202 77.7% P.21 Segment profit margin 5.6% 4.7%
MOTOR AND MOTOR RELATED BUSI NESS – 1H 2008 Operations Review and Outlook Mainland China Hong Kong & Macao • Vigorous demand for commercial vehicles and • Achieved growth of 46% in the total number of luxury cars vehicles sold for the first six months, while Hong Kong motor market size increased 30% • Market size of Mainland China in 1H2008 • Market share of DCH in all vehicles improved from � Up 19% for the whole market last year’s 27% to 30% � 17% growth in passenger car • Strong demand for environmental-friendly private � 22% growth in commercial vehicle vehicles such as Honda Stepwagn 2.0SR and � DCH achieved a 90.7% growth in total number Nissan Serena of commercial vehicles sold • Robust growth in premium brand � Three 4S shops were added making the total at • Provide transportation solutions for 2008 Olympic 33 4S shops for 19 brands Equestrian and 2008 Paralympics Equestrian � Added Mercedes Benz and Lexus (under construction) to the portfolio OUTLOOK • Expected to add about 10 4S projects by the end of 2008, making a total of 43 • Continue to expand the network and portfolio of dealership by adding about 6-10 4S shops per year in the next two to three years • Working on improving the quality of dealership portfolio to further enhance profitability • Expansion of our leasing network in China • As for Hong Kong, growth in the second half will be continuously driven by environmental friendly P.22 vehicles, premium brands and new models of various brands • Explore opportunities for upstream businesses
FOOD & CONSUMER PRODUCTS BUSI NESS HK$’M HK$’M 1H2008 1,534 1H2008 1H2007 3,001 1,307 1H2007 2,567 1,148 938 88 63 Mainland China Hong Kong & Macao Turnover Segment Profit % of % of HK$'M 1H2008 1H2007 Change % total total Mainland China 1,148 38.3% 938 36.5% 22.4% Hong Kong & Macao 1,534 51.1% 1,307 50.9% 17.4% Others 319 10.6% 322 12.5% -0.9% Turnover 3,001 2,567 16.9% 100.0% 100.0% Segment profit 88 63 39.7% P.23 Segment profit margin 2.9% 2.5%
FOOD & CONSUMER PRODUCTS BUSI NESS – 1H2008 Operations Review and Outlook Mainland China Hong Kong & Macao Commodities Commodities • Strong demand for frozen foods and • Significant growth in Edible oil edible oils • Strong demand for beef, poultry and seafood during • Encouraging sales of poultry and the period FMCG beef • Production line for fractionated oil • Strong growth in key brands such as Barilla, Fibe-Mini, will commence operation in Xinhui in Ovaltine and Tulip 3Q 2008, revenues of edible oil could • Encouraging performance of catering segment Food Retail be further enhanced FMCG • DCH Food Marts increased to 59 and expected to • Strong performance of key FMCG reach 65 by the end of the year Consumer Products brands like Almond Roca, Ferrero, Pocari Sweat and UHA • Outlet points of Shiseido increased 28% to about 1,500 OUTLOOK • Continue to explore opportunities in M&A in upstream food business to build itself as a fully integrated food supply chain services provider in Hong Kong and Macao • Enhancing infrastructure for building the Group as a fully integrated food supply chain services provider • Yuen Long food processing centre is expected to start operation in 2009 • A food processing centre will be built in Xinhui P.24 • Enhance small electrical appliance business
Recommend
More recommend
