Investor Presentation Investor Presentation
14 August 2013 14 August 2013
HIAP HOE LIMITED HIAP HOE LIMITED
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HIAP HOE LIMITED HIAP HOE LIMITED Investor Presentation Investor - - PowerPoint PPT Presentation
HIAP HOE LIMITED HIAP HOE LIMITED Investor Presentation Investor Presentation 14 August 2013 14 August 2013 1 Importance Notice This presentation and the information contained herein does not constitute or form any part of any offer or invitation
14 August 2013 14 August 2013
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This presentation and the information contained herein does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities of Hiap Hoe Limited (the “Company”) or any of its subsidiaries, associated companies or joint ventures (collectively with the Company, the “Group”) in any jurisdiction or an inducement to enter into investment activity and nothing contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person or published, in whole or in part, for any purpose. No representation or warranty, express or implied, of any nature is given as to, and no reliance should be placed on, the fairness, correctness, accuracy or completeness of the information or opinions contained herein. This presentation is being communicated only to persons who have professional experience in matters relating to investments and to persons to whom it may be lawful to communicate it to (all such persons being referred to as "relevant persons"). This presentation is
persons should not rely or act upon this presentation or any of its contents. The information and opinions in this presentation are provided as at the date of this presentation and are subject to change without notice. No assurance is made as to the accuracy of this presentation and it may be incomplete or condensed and it may not contain all material information concerning the Company or the Group. The information in this presentation is not financial product advice and does not take into consideration the investment objectives, financial situation or particular needs of any particular person. Any forward‐ looking statement in this presentation is accurate only as of the date hereof, and there is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinions, assumptions, projections, forecasts or estimates set forth therein, changes or subsequently becomes inaccurate. None of the Company, or any member of the Group, or any of their respective affiliates, officers, employees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of or reliance on the information or opinions contained in this presentation. No offering of the Company’s securities will be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States. Subject to certain exceptions, the Company’s securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, any U.S. person (as defined in Regulation S under the U.S. Securities Act). Neither this presentation nor any copy of such presentation may be taken or transmitted into the United States or distributed, directly or indirectly, in the United States. The information presented here is not an offer for sale within the United States of any securities of the Company. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. By attending this presentation or by accepting this document, you will be taken to have represented, warranted and undertaken that: (i) you are a relevant person (as defined above); (ii) you are not a person located in the United States
person; (iii) you are bound by the foregoing limitations; and (iv) that any investment in any securities of the Company will be made solely on the basis of the disclosure document prepared by the Company and not on the basis of this presentation. Any failure to comply with these restrictions may constitute a limitation of applicable securities law.
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Focused on residential properties in prime and strategic location residential properties in prime and strategic location
Over 30 years of track record in developing signature homes
Established reputation for high quality developments
managed by Wyndham Hotel Mgmt under Ramada and Days brands
Portfolio comprises two quality assets in Balestier, Singapore, managed by Wyndham Hotel Mgmt under Ramada and Days brands managed by Wyndham Hotel Mgmt under Ramada and Days brands
Focused on expanding portfolio to grow recurring income stream
greater control over cost, quality and delivery
Over 30 years of experience in construction
In‐ ‐house construction expertise and market knowledge allow for house construction expertise and market knowledge allow for greater control over cost, quality and delivery greater control over cost, quality and delivery
attractive valuations with good potential for capital appreciation
Growing investment activities to enlarge and diversify revenue streams treams
Focused on investments with strong fundamentals, acquired at attractive valuations with good potential for capital appreciati attractive valuations with good potential for capital appreciation
Development Projects: ‐Residential ‐Industrial ‐Commercial
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Listed on SGX‐ST Six‐month average daily traded volume: 400,298 shares Estimated Free Float: 28.7% Substantial Shareholder: Hiap Hoe Holdings Pte Ltd , 69.85% Market Cap as at 12 Aug 2013: SGD 347.6 million Source: Bloomberg LLP
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Integrated Capabilities Integrated Capabilities Solid Track Record Strong Reputation Solid Track Record Strong Reputation Discipline & Commitment Discipline & Commitment Strong Financials Strong Financials
control over cost and quality
In‐ ‐house construction capability and expertise allow for greater house construction capability and expertise allow for greater control over cost and quality control over cost and quality
In‐ ‐house sales/leasing team house sales/leasing team
Renown for developing signature properties
Strong reputation for quality products
Experienced management team
Disciplined approach in land acquisitions
Committed to growing portfolio of quality assets for recurring income ncome
Healthy balance sheet with low gearing
Prudent capital management
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Teo Ho Beng Teo Ho Beng
Executive Chairman & CEO Executive Chairman & CEO
industry
management
Teo Ho Kang, Roland Teo Ho Kang, Roland
Managing Director Managing Director
Tracy Wun Tracy Wun
Executive Director Executive Director
Commercial Lending business with industry specialization in Real Estate & Construction as well as Logistics, Shipping and Oil & Gas industry
Directors and KPMG Singapore, supported by Singapore Exchange.
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Chan Wah Tiong Chan Wah Tiong
Lead Independent, Non Lead Independent, Non‐ ‐Executive Director Executive Director
Director and CFO of several companies (both local and multinational) in semiconductor, manufacturing, trading, construction and non profit organization
Chan Boon Hui Chan Boon Hui
Independent, Non Independent, Non‐ ‐Executive Director Executive Director
York
Kwok Chui Lian Kwok Chui Lian
Independent, Non Independent, Non‐ ‐Executive Director Executive Director
Wharton‐SMU University (General Management Programme in 2004) and The Wharton School at the University of Pennsylvania (The Leadership Journey‐Creating and Developing your leadership in 2006)
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Aw Hui Mien, Jenny
finance and accounting
the Group
Teo Poh Sim, Agnes
resource and administration
administration policies of the Group
development as well as administration
College (USA)
Chew Char Choon Chew Char Choon
techniques and ensuring the timely completion and delivery
Dakota State University
Charlotte Tan Charlotte Tan
design
construction, procurement, lease management, sales & marketing for Hiap Hoe Group
Management (Hons) degree
Raymond Low Raymond Low
creating new benchmark developments for the Group
Director
projects
May Tay May Tay
residential properties within the Group.
LaSalle
University of South Australia
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5/5A Balmoral Road 5/5A Balmoral Road 68 St Thomas Walk 68 St Thomas Walk 1 Lewis Road 1 Lewis Road 45/47 Toh Tuck Road 45/47 Toh Tuck Road 65 Cavenagh Road 65 Cavenagh Road
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Artist Artist’ ’s Impression s Impression 68 St Thomas Walk
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Artist Artist’ ’s Impression s Impression 1 Lewis Road
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Skyline 360O At St Thomas Walk Signature @ Lewis % Sold % Sold 80 80% % 94 94% % Land Cost (psf ppr) Land Cost (psf ppr) S$715 S$715 S$710 S$710 Average Selling Price (psf) Average Selling Price (psf) S$2,078 S$2,078 S$1,364 S$1,364 Highest Price Achieved (psf) Highest Price Achieved (psf) S$2,508 S$2,508 S$1,629 S$1,629
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Artist Artist’ ’s Impression s Impression 65, 65A to 65E Cavenagh Road
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Waterscape At Cavenagh % Sold % Sold ∼ ∼75% 75% Land Cost (psf ppr) Land Cost (psf ppr) S$618 S$618 Average Selling Price (psf) Average Selling Price (psf) S$1,909 S$1,909 Highest Price Achieved (psf) S$2,173 S$2,173
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45/47 Toh Tuck Road
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Artist Artist’ ’s Impression s Impression 5 Balmoral Road
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The Beverly Treasure
% Sold % Sold 95 95% % ‐ ‐ Land Cost (psf ppr) Land Cost (psf ppr) S$442 S$442 S$1,723 S$1,723 Average Selling Price (psf) Average Selling Price (psf) S$805 S$805 N.A. N.A. Highest Price Achieved (psf) Highest Price Achieved (psf) S$969 S$969 N.A. N.A. Equity Interest Equity Interest 60% 60% 60% 60% Joint Venture Partner Joint Venture Partner SMPL SMPL1
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SHL SHL2
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Footnote:‐ 1 – SuperBowl Management Pte Ltd 2 – SuperBowl Holdings Limited
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Artist Artist’ ’s Impression s Impression
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Balestier, Singapore
/ F&B space. Zhongshan Mall anchor tenants include Fairprice Finest, Crystal Jade Steamboat, Breadtalk, Guardian and Cheers
respectively, as at 30 June 2013
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Ley Choon Group Holdings is listed on SGX‐ST with a market capitalisation of S$128.5 million as at 12 Aug 2013
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Year End 31 Dec ($ Year End 31 Dec ($’ ’000) 000) FY12 FY12 FY11 FY11 FY10 FY10 FY09 FY09 FY08 FY08 Revenue Revenue 145,668 145,668 136,414 136,414 106,580 106,580 110,480 110,480 29,729 29,729 Gross Profit Gross Profit 57,671 57,671 46,569 46,569 49,751 49,751 43,798 43,798 13,191 13,191 Profit Before Tax Profit Before Tax 66,855 66,855 54,527 54,527 39,577 39,577 41,622 41,622 8,252 8,252 Profit After Tax Profit After Tax 57,540 57,540 47,369 47,369 34,567 34,567 34,309 34,309 8,178 8,178 EPS (cents) EPS (cents) 12.30 12.30 10.06 10.06 7.33 7.33 7.26 7.26 2.46 2.46
8,178 34,309 34,567 47,369 57,540 28% 31% 32% 35% 40%
0% 10% 20% 30% 40% 50% 60% 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 85,000 FY08 FY09 FY10 FY11 FY12 Net Profit Net Profit Margin
Stable Revenue & Profitability Growth (S$’000)
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(S$ (S$’ ’000) 000) 2QFY13 2QFY13 2QFY12 2QFY12 Change Change (%) (%) 1HFY13 1HFY13 1HFY12 1HFY12 Change Change (%) (%) Revenue Revenue 80,301 80,301 42,950 42,950 87.0 87.0 110,648 110,648 80,419 80,419 37.6 37.6 Gross Profit Gross Profit 38,267 38,267 16,412 16,412 133.2 133.2 52,244 52,244 30,284 30,284 72.5 72.5 Profit Before Tax Profit Before Tax 35,328 35,328 19,355 19,355 82.5 82.5 47,056 47,056 35,649 35,649 32.0 32.0 Profit After Tax Profit After Tax 29,007 29,007 16,661 16,661 74.1 74.1 38,790 38,790 30,710 30,710 26.3 26.3 EPS (cents) EPS (cents) 6.24 6.24 3.54 3.54 76.3 76.3 8.40 8.40 6.53 6.53 28.6 28.6
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50000 100000 150000 200000 250000 300000 350000 400000
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1HFY13
S$'000
Shareholders' Funds
50 100 150 200 250 300
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1HFY13
Percentage (%)
Gearing Ratio
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Total Debt* (S$ ‘000)
326,512 135,088 81,922 69,919 67,357 58,759 125,152 167,770 101,969 77,447
FY09 FY10 FY11 FY12 1HFY13 Long Term Debt Short Term Debt
77,447 67,357 <1-year >1-year
Debt Expiry Profile* (S$’000)
Debt Management
significantly over past few years
0.92% to 1.55305%
*As at 30 June 2013
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Diversification Diversification Build Land Bank Build Land Bank Leverage in-house Expertise to Enhance Returns Leverage in-house Expertise to Enhance Returns Focus on Recurring Income Focus on Recurring Income
– Development and sale of properties; and – Investment income
Two diversified sources of revenue:
– – Development and sale of properties; and Development and sale of properties; and – – Investment income Investment income
Geographic diversification: 1st foray into Melbourne, Australia
Focus on land in prime and strategic locations
Secondary focus on well‐ ‐located suburban land parcels located suburban land parcels
Enbloc acquisitions and tender for newly released land parcels
efficiency and quality control
Construction arm to support property development for better cost efficiency and quality control efficiency and quality control
Proven efficiency in maximising returns
Acquiring investment properties at attractive yields
Recurring income stream from hospitality, retail and office properties erties
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(S$ (S$’ ’000) 000) @30 Jun @30 Jun 2013 2013 @31 Dec @31 Dec 2012 2012 @31 Dec @31 Dec 2011 2011 @31 Dec @31 Dec 2010 2010 @31 Dec @31 Dec 2009 2009 @31 Dec @31 Dec 2008 2008 Total Assets Total Assets 615,411 615,411 590,296 590,296 592,177 592,177 527,535 527,535 601,924 601,924 534,332 534,332 Total Liabilities Total Liabilities 273,646 273,646 284,975 284,975 340,734 340,734 320,542 320,542 426,940 426,940 392,714 392,714 Share Capital & Premium Share Capital & Premium 84,445 84,445 84,445 84,445 84,445 84,445 84,445 84,445 84,445 84,445 84,445 84,445 ‐ ‐ accumulated losses prior to accumulated losses prior to RTO RTO (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) ‐ ‐ accumulated profits post RTO accumulated profits post RTO 261,393 261,393 227,518 227,518 174,352 174,352 129,268 129,268 96,969 96,969 63,800 63,800 ‐ ‐ other reserves*
4,597 4,597 1,303 1,303 261 261 828 828 1,023 1,023 786 786 Minority Interest Minority Interest (1,000) (1,000) (274) (274) 56 56 123 123 218 218 258 258 Total Equity Total Equity 341,765 341,765 305,321 305,321 251,443 251,443 206,993 206,993 174,984 174,984 141,618 141,618 Total Equity & Liabilities Total Equity & Liabilities 615,411 615,411 590,296 590,296 592,177 592,177 527,535 527,535 601,924 601,924 534,332 534,332
Net Asset Value Per Share (cents) Net Asset Value Per Share (cents) 72.84 72.84 64.94 64.94 53.39 53.39 43.81 43.81 36.97 36.97 37.38 37.38 Gearing Gearing 0.42x 0.42x 0.56x 0.56x 0.99x 0.99x 1.26x 1.26x 2.20x 2.20x 2.60x 2.60x
*other reserves for FY09, FY10, FY11 & FY12 includes Treasury Sh *other reserves for FY09, FY10, FY11 & FY12 includes Treasury Shares ares
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(S$ (S$’ ’000) 000) @30 Jun @30 Jun 2013 2013 @31 Dec @31 Dec 2012 2012 @31 Dec @31 Dec 2011 2011 @31 Dec @31 Dec 2010 2010 @31 Dec @31 Dec 2009 2009 @31 Dec @31 Dec 2008 2008 Operating Cash Flow Operating Cash Flow 23,545 23,545 62,809 62,809 (36,123) (36,123) 195,588 195,588 (15,566) (15,566) (281,705) (281,705) Investing Cash Flow Investing Cash Flow (762) (762) 12,289 12,289 22,860 22,860 (32,546) (32,546) (247) (247) (41,574) (41,574) Financing Cash Flow Financing Cash Flow (22,120) (22,120) (64,868) (64,868) (12,817) (12,817) (129,911) (129,911) 9,265 9,265 302,911 302,911 Net +/(‐) in cash and cash equivalents 663 10,231 (26,080) (33,130) (6,548) (20,368) Cash and cash Cash and cash equivalents at beginning equivalents at beginning
20,600 20,600 10,370 10,370 36,449 36,449 3,319 3,319 9,867 9,867 30,235 30,235 Cash and cash equivalents at end of year 21,263 20,600 10,370 36,449 3,319 9,867
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Gross Margin 47.2% 39.6% 34.1% 46.7% 39.6% 44.4% Operating Margin 41.7% 37.2% 32.5% 36.1% 37.7% 29.9% Net Margin (Profit after Tax) 35.1% 39.5% 34.7% 32.4% 31.1% 27.5% Total Borrowings / Total Assets 0.24x 0.29x 0.42x 0.49x 0.64x 0.69x Net Borrowings / Total Assets 0.20x 0.26x 0.40x 0.42x 0.63x 0.67x Total Borrowings / Total TNW 0.42x 0.56x 0.99x 1.26x 2.20x 2.60x Net Borrowings / Total TNW 0.36x 0.50x 0.95x 1.08x 2.18x 2.53x Total Tangible Net Worth (TNW)‐$’000 341,765 305,321 251,443 206,993 174,984 141,618