Pacific acific Pipe Pipe PCL PCL Opportunity Day 8 March 2017 - - PowerPoint PPT Presentation

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Pacific acific Pipe Pipe PCL PCL Opportunity Day 8 March 2017 - - PowerPoint PPT Presentation

Feb 07, 2023 454 likes •693 views

Pacific acific Pipe Pipe PCL PCL Opportunity Day 8 March 2017 Opportunity Day Pacific Pipe Public Company Limited Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties,

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SLIDE 1

Opportunity Day Pacific Pipe Public Company Limited

Pacific acific Pipe Pipe PCL PCL

Opportunity Day

8 March 2017

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SLIDE 2

Opportunity Day Pacific Pipe Public Company Limited

Disclaimer

2

This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. PAP has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than

  • anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking

statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and PAP does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

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SLIDE 3
  • 1. Overview of PAP
  • 3. Company Performance
  • 2. Economic & Industry Overview

Opportunity Day Pacific Pipe Public Company Limited

Agenda

3

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SLIDE 4

Overview of PAP

Opportunity Day Pacific Pipe Public Company Limited 4

 Pacific Pipe Public Co.,Ltd was founded in 1972 by Lekapojpanich family,

  • perating under the name of "Tang Mong Seng“ Factory and initially

engaging in the production of toy cars.

 On March 17, 2004, the company was converted into a listed firm officially

known as Pacific Pipe Public Company Limited, engaging in the production and distribution of structural steel pipes and plumbing system steel pipes

  • f many international standards.
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SLIDE 5

Product Capacities

Opportunity Day Pacific Pipe Public Company Limited 5

In the present, our company has the capability to manufacture black steel pipes and lip channel steel pipes in the total of 450,000 tons, and 50,000 tons of galvanized steel pipes per year.

Type Round Pipe Square Pipe Rectangular Pipe Lip C Channel Size Range

Min: 1/2* (DN 15 mm) Min: 12 x 12 mm Min: 38 x 19 mm Min: 60 x 30 x 10 mm Max: 16* (DN 400 mm) Max: 300 x 300 mm Max: 400 x 200 mm Max: 250 x 75 x 25 mm

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SLIDE 6

Construction industry

Architecture Structure of roof Fence Structure

Opportunity Day Pacific Pipe Public Company Limited 6

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SLIDE 7

Manufacture industry

Furniture Roller conveyor Pallets Plaything

Opportunity Day Pacific Pipe Public Company Limited 7

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SLIDE 8

Agro – industry

Nursery Tractor

Opportunity Day Pacific Pipe Public Company Limited 8

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SLIDE 9

System industrial

Conduits Fire Pump Plumbing

Opportunity Day Pacific Pipe Public Company Limited 9

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SLIDE 10
  • 1. Overview of PAP
  • 3. Company Performance
  • 2. Economic & Industry Overview

Opportunity Day Pacific Pipe Public Company Limited

Agenda

10

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SLIDE 11

World Steel Consumption

Steel Demand, Finished Steel thousands tones y-o-y growth rate, %

Region FY 2015 FY 2016 FY 2017 (F) FY 2017 (F) FY 2016 FY 2017 (F) European Union 166,029 160,309 162,554 10%

  • 3.40%

1.40% Other Europe 33,991 35,852 37,179 2% 5.50% 3.70% C.I.S. 101,374 101,784 103,922 6% 0.40% 2.10% North America 110,945 110,002 113,192 7%

  • 0.90%

2.90% Central and South America 43,899 39,119 40,723 3%

  • 10.90%

4.10% Middle East 26,974 28,805 28,834 2% 6.80% 0.10% Africa 12,791 12,056 12,526 1%

  • 5.70%

3.90% Asia 1,086,170 1,101,887 1,097,480 69% 1.40%

  • 0.40%

China 794,356 804,671 802,040 50% 1.30%

  • 0.30%

India 89,026 95,355 92,463 6% 7.10%

  • 3.00%

Japan 105,134 104,600 105,206 7%

  • 0.50%

0.60% Pakistan 2,892 3,467 3,187 0% 19.90%

  • 8.10%

South Korea 69,670 68,555 69,338 4%

  • 1.60%

1.10% Taiwan, China 21,370 21,364 21,436 1% 0.00% 0.30% Oceania 5,717 5,761 5,738 0% 0.80%

  • 0.40%

World Steel Demand 1,587,889 1,595,575 1,602,146 100% 0.50% 0.40%

Opportunity Day Pacific Pipe Public Company Limited 11 Source: World Steel Association

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SLIDE 12

Thailand Steel Consumption

Source: ISIT Opportunity Day Pacific Pipe Public Company Limited 12

13.70 10.70 14.00 14.50 16.80 17.70 17.30 16.70 17.70 17.80

2 4 6 8 10 12 14 16 18 20 2008 2009 2010 2011 2012 2013 2014 2015 2016 (F) 2017 (F)

Million MT Import Production Export Total

+9.1% +21.8% +7.6% +14.1% Growth 16/15

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SLIDE 13
  • 50

100 150 200 250 300 350 400 450 500 550 600 USD / MT

Steel Price Trend

Scrap Billet Slab CNY HRC

  • 50

100 150 200 250 20 25 30 35 40 45 50 55 60 65 Price Index (Iron Ore & Coke) USD per bbl

Raw Material and Energy Price Trend

WTI Coal Coke Iron Ore 100 150 200 250 300 350 400 450 500 550 600

  • 2

4 6 8 10 12 14 16 18 20 22 USD per tons THB per kilogram

Hot Roll Coil Price Trend

THB HRC CNY HRC 50 100 150 200 250 300 350 400 100 200 300 400 500 600 700 800 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Inventory x 10,000 MT HRC Market Price (USD/MT)

Possibility : Side Way Uptrend in 2017

Inventory HRC Price HRC (F1) Actual Zone Forecast Zone

Source : PAP data center

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SLIDE 14

Steel Price Trend

Opportunity Day Pacific Pipe Public Company Limited 14

100 150 200 250 300 350 400 450 500 550 600

  • 5.00

10.00 15.00 20.00 25.00 USD per tons THB per kilogram

Steel Price Trend

2 years back data

THB HRC Scrap Billet Slab CNY HRC (1.50) (0.50) 0.50 1.50 2.50 3.50 (120) (70) (20) 30 MACD - CNY HRC MACD - THB HRC

MACD Analysis

120 days back data

MACD 15 Days MACD 35 Days

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SLIDE 15

RM and Energy Price Trend

Opportunity Day Pacific Pipe Public Company Limited 15

25.00 35.00 45.00 55.00 65.00 75.00 85.00 95.00 60.00 70.00 80.00 90.00 100.00 110.00 120.00 130.00

MACD Analysis

120 days back data

Iron Ore 15 Days Iron Ore 35 Days WTI (4) 1 6 11 (16) (11) (6) (1) 4 9 MACD - Iron Ore MACD - WTI

  • 50.00

100.00 150.00 200.00 250.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00 55.00 60.00 65.00 Price Index (Iron Ore & Coke) USD per bbl

Raw Material and Energy Price Trend

2 years back data

WTI Coal Coke Iron Ore

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SLIDE 16

Import Pipe Per Month

Opportunity Day Pacific Pipe Public Company Limited 16

  • 10,000

20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 Net Weight Tons x 1,000

China Other Country

Start Investigation Process for AD Pipe from China & S.Korea Announced Temporary Rate for AD Pipe from China & S.Korea in Dec

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SLIDE 17
  • 1. Overview of PAP
  • 3. Company Performance
  • 2. Economic & Industry Overview

Opportunity Day Pacific Pipe Public Company Limited

Agenda

17

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SLIDE 18

Company Performance

Opportunity Day Pacific Pipe Public Company Limited 18

Listed: FY 2004 Market cap: THB 5,082 million (1 Mar.17) Par: 1 THB/Share Shareholding Structure

Free float 24.38%

0.33 0.55 0.21 (0.12) 0.78

0.25 0.40 0.16

  • 0.99

5.04% 7.92% 3.60% 0.00% 12.86%

  • 2.00%
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% (0.20)
  • 0.20
0.40 0.60 0.80 1.00 1.20

2012 2013 2014 2015 2016

EPS DPS Dividend Yield

75.76% 72.73% 76.19% 0.00% 126.92% 2012 2013 2014 2015 2016

Dividend payout ratio

Dividend policy > 40%

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SLIDE 19

Company Performance

19 Opportunity Day Pacific Pipe Public Company Limited 19

Production Utilization

Cap 350,000 mt

2014

New Plant Cap 450,000 mt

2015

7,471 7,020 6,615 7,150

279,779 260,137 301,482 326,226

  • 50,000

100,000 150,000 200,000 250,000 300,000 350,000 6,000 6,200 6,400 6,600 6,800 7,000 7,200 7,400 7,600

FY2013 FY2014 FY2015 FY2016 Millions Baht

Metric Tons

80% 74% 67% 73% 83%

0% 20% 40% 60% 80% 100%

FY2013 FY2014 FY2015 FY2016 FY2017 (F)

Production Utilization

666 379 156 811 407 181 546 5.45% 2.58%

  • 0.65%

7.64%

  • 2.00%

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% (100)

  • 100

200 300 400 500 600 700 800 900

FY2013 FY2014 FY2015 FY2016

EBITDA Net Profit Net profit (%)

Millions Baht

  • 43

Total Revenue EB EBITD ITDA & Ne Net t pr prof

  • fit

it

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SLIDE 20

Company Performance

Opportunity Day Pacific Pipe Public Company Limited 20

Statement of financial position

2,011 2,557 478 51 249 234 580 866 1,456 1,404 18 103 847 1,149 556 606 441 446

As at Dec 31,2015 As at Dec 31,2016 Cash Inventory A/R CA PPE + Non CA STL CL Share Holder's Equity THB : 3,708 (Millions) Non-CL A/S Li + E Li + E A/S THB : 3,318

Inventory Turnover (month)

1,393 1,575 847 1,149

2.80 2.79 2.34 1.99

  • 0.50

1.00 1.50 2.00 2.50 3.00

  • 200

400 600 800 1,000 1,200 1,400 1,600 1,800

FY2013 FY2014 FY2015 FY2016 Inventory (Millions) Inventory turnovers (Mth) Millions Baht Months

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SLIDE 21

Company Performance

21 Opportunity Day Pacific Pipe Public Company Limited 21

0.54 0.85 0.65 0.45

  • 0.10

0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00

FY2013 FY2014 FY2015 FY2016

12% 5%

  • 1%

15% 18% 8%

  • 2%

21%

  • 5%

0% 5% 10% 15% 20% 25%

FY2013 FY2014 FY2015 FY2016 ROA YTD ROE YTD

ROA & ROE D/E Ratio

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SLIDE 22