SLIDE 1
3
OPERATIONS REVIEW
4
1H18 OPERATIONS REVIEW
Achieved take-
RM0.77 bil
(RM0.85 bil @ 31-Dec 17)
73.9%
(69.7% @ 31-Dec 17)
RM53.2 mil
(RM146.3 mil @ 31-Dec 17)
RM31.8 mil
(RM66.0 mil @ 31-Dec 17)
TAMBUN INDAH LAND BERHAD 2Q18 CORPORATE UPDATE AUGUST 2018 - - PDF document
TAMBUN INDAH LAND BERHAD 2Q18 CORPORATE UPDATE AUGUST 2018 - - PDF document
TAMBUN INDAH LAND BERHAD 2Q18 CORPORATE UPDATE AUGUST 2018 Strictly Private & Confidential CONTENTS Operations Review Financial Highlights Growth Roadmap Investment Case Appendix 2 OPERATIONS REVIEW 3 1H18 OPERATIONS REVIEW
SLIDE 2
SLIDE 3
5
ONGOING PROJECTS (@ 30-JUN 2018)
Projects Launched Type
- No. of
Units
- Est. GDV
Take-Up Rate Progress Unbilled Sales Raintree Park 1 2-storey semi-D and linked semi-D 116 171.9 97.3% 98.9% 1.8 2-storey gated terrace 166 Duplex Villas 56 Raintree Park 2 2-storey link semi-D 68 221.9 76.0% 90.5% 16.0 2-storey gated terrace 208 Duplex Villas 104 2-storey semi-D 42 2-storey bungalow 4 Avenue Garden Serviced apartments 312 96.2 84.3% 94.1% 4.8 Pearl Tropika 2-storey Homes 279 150.0 74.1% 97.3% 3.0 Pearl Saujana Permai 2-storey semi-D 20 107.4 31.5% 82.8% 5.8 2-storey terrace 199 Pearl Evergreen 2-storey semi-D 28 21.5 28.4% 93.3% 0.4 2-storey bungalow 2 TOTAL 1,604 768.9 73.9% 31.8 6
FINANCIAL HIGHLIGHTS
SLIDE 4
138.2 135.7 148.8 107.2 39.2 FY14 FY15 FY16 FY17 1H18 102.1 101.1 112.2 81.5 26.4 FY14 FY15 FY16 FY17 1H18
Group Revenue ( ) Group Gross Profit Margin (%)
7
466.8 367.7 360.8 277.2 88.2 FY14 FY15 FY16 FY17 1H18
Group PBT ( ) Group PATMI ( )
REVENUE AND PROFIT TRENDS
34.4% 41.7% 45.4% 45.7% 55.3% FY14 FY15 FY16 FY17 1H18
Note: PBT: Profit Before Tax; PATMI: Profit After Tax and Minority Interests Note 2: 1st January 2018, the above information for FY2017
- nwards have been prepared in accordance with MFRS, whereas information for FY 2014 to FY 2016 have been prepared in accordance
FRS FRS FRS MFRS MFRS FRS FRS FRS MFRS MFRS FRS FRS FRS MFRS MFRS FRS FRS FRS MFRS MFRS
As at Restated as at 30-Jun-18 31-Dec-17 MFRS MFRS Non-Current Assets 306.9 313.0 Current Assets 421.6 435.8 Current Liabilities 80.1 97.0 Non-Current Liabilities 59.1 68.5 587.4 581.4 Non-Controlling Interest 1.9 1.9 Borrowings (ST + LT) 84.0 106.4 Cash & Bank Balances 130.9 105.3 Net Gearing Ratio (x) Net Cash 0.00x Net Assets / Share (RM) (1) 1.36 1.34 Return on Average Shareholders Equity (2) 11.1% 15.7%
Group Gearing Level ( )
8
BALANCE SHEET
landbank expansion
(1) Based on 433.3 mil (2017: 433.3 mil) ordinary shares (2) Trailing 12 months
Balance Sheet (Snapshot)
FY14 FY15 FY16 FY17 1H18 Shareholders Equity Gross Borrowings Cash & Bank Balances
Net Gearing 0.04x Net Gearing 0.01x Net Gearing 0.03x Net Gearing 0.00x Net Cash
Note: 1st January 2018, the above information for FY2017
- nwards have been prepared in accordance with MFRS, whereas information for FY 2014 to FY 2016 have been prepared in accordance
FRS FRS FRS MFRS MFRS
SLIDE 5
6.6 9.7 9.0 10.0 7.7 FY13 FY14 FY15 FY16 FY17
Dividend Payout ( ) Dividend Per Share (sen)
9
DIVIDEND HISTORY
Final dividend of 4.7 sen/share in respect of FY17 paid in August 2018
* Dividend Policy: 40% to 60% of net profit excluding any valuation gain or loss on investment properties for the financial year
26.8 41.0 38.3 42.7 33.4
41.3% 40.1% 40.6% 40.7% 40.1%
FY13 FY14 FY15 FY16 FY17 Dividend Paid To be paid Payout Ratio 10
GROWTH ROADMAP
SLIDE 6
11
PROJECT PROFILE BY LOCATION
Projects Timeline to completion Land size (acres)
- Est. GDV
Ongoing (launched) Current to 2019 94.8 768.9 Future Projects 2018-2023 389.2 2,893.3 Investment purposes 2015-2023 63.4*
- TOTAL
547.4 3,662.2
Seberang Perai Selatan Raintree Park 1 & 2 Avenue Garden Pearl Tropika Pearl Evergreen Pearl Saujana Permai
* Includes the land area of Pearl City Mall-Phase 1 (completed in 2016) and GEMS International School-Phase 1 (completed in 2015)
Seberang Perai Selatan Raintree Park 1 & 2 Avenue Garden Pearl Tropika Pearl Evergreen Pearl Saujana Permai
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GROWTH STRATEGIES
landbanking To establish recurring income stream through investment properties Recurring income stream from investment properties such as GEMS International School, Pearl City Mall and Straits Garden Commercial Lots To further develop and promote Pearl City Business Park to enhance recurring income stream To identify and expand strategic landbank in and outside Penang to sustain growth To leverage on township development experience and duplicate success in potential landbanks Targeting further launches in 2018 Planned project launches in 2018 with RM154 million GDV Palma Residency a landed gated and guarded residential development comprising 90 units of terraces Palm Garden 18 storey apartment block with facilities, comprising 335 units
- f serviced apartments
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UPCOMING PROJECTS
Palma Residency
Gated and guarded landed terrace homes in Alma, Bukit Mertajam Total number of units: 90 Estimated GDV: RM48 million Key highlights: Low density development 10 minutes to North-South highway and 20 minutes to Penang Bridge/Second Link Close to various amenities such as shopping mall, schools, banks, F&B outlets and others Projects Type Expected commencement
- Est. GDV
Palma Residency, Alma @ Bukit Mertajam Residential units 2018 48.0 Palm Garden @ Pearl City Residential units End 2018 / Early 2019 105.7 Begonia Villa @ Pearl City Residential units 2019 84.3 Permai Residency @ Kota Permai Residential units 2019 53.0 Camellia Park - Commercial Commercial units 2019 4.0 Kota Permai Other Phases Residential units 2020 - 2021 150.0 Pearl City Other Phases Residential units 2020 - 2023 2,448.3 TOTAL 2,893.3 14
PIPELINE PROJECTS
Pipeline projects of RM2.9 billion GDV
SLIDE 8
15
INVESTMENT CASE
16
VALUATION
Share price @ 9-Aug 2018 RM1.03 Market Cap @ 9-Aug 20181 RM446.3 mil Trailing PE ratio 6.87x Price to book ratio 2 0.76x FY17 Dividend Yield 3 7.5%
1 Based on 433.3 mil shares 2 Based on NTA per share of RM1.36 as at 30-Jun-2018 3Based on FY17 dividend of 7.7 sen per share
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17
Respected brand name in the Penang property market with an established track record as an innovative and quality developer Strong growth catalysts in Penang that will continue to spur property demand, boosted by foreign direct investment and infrastructure projects Tambun Indah is a good proxy to the Penang Second economic impact, with its iconic Pearl City township development Earnings to be sustained by existing and pipeline projects of approximately RM2.9 billion supported by land banking to diversify outside of Penang if the opportunity arises Committed to creating value by constantly seeking market re-rating Dividend policy of 40% to 60% of net profit excluding any valuation gain or loss on investment properties for the financial year
INVESTMENT MERITS
Attractive proxy to the fast-growing Mainland Penang property market...
Disclaimer: Any information, details, views or opinions presented in this presentation are solely for your benefit and may not be disclosed in whole or in part by you to anyone. Any information, details, views or opinions presented in this presentation are subject to change without notice. Our company accepts no liability for the contents of this presentation, or for the consequences of any actions taken on the basis of the information provided.
18
THANK YOU
IR Contacts:
- Ms. Roselyn Tan
T: 04-3240088 roselyn.tan@tambunindah.com
- Mr. Steve Neoh
T: 04-3240088 steveneoh@tambunindah.com
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19
APPENDIX
20
Based on weighted average no. of ordinary shares issued for each period
1H18 1H17 FY17 FY16 MFRS MFRS MFRS FRS 88,218 148,943 (40.8%) Revenue 277,173 360,836 (23.2%) 48,748 67,110 (27.4%) Gross Profit 126,600 163,913 (22.8%) 45.4% 39,168 57,073 (31.4%) PBT 107,216 148,765 (27.9%) 41.2% 26,431 42,951 (38.5%) PATMI 81,467 112,203 (27.4%) 31.1% 6.10 10.00 (39.0%) 18.88 26.36 (28.4%) Change Change RM'000
FY2015 FY2015 Quarterly Group Revenue Quarterly Group Net Profit
INCOME STATEMENT
Note : 1st January 2018, the above information for FY2017
- nwards have been prepared in accordance with MFRS, whereas information for FY 2015 to FY 2016 have been prepared in accordance
SLIDE 11
21
Total
Pearl Tropika (@ Pearl City) Mar-16 18 9.9 Avenue Garden (@ Pearl City) Jan-16 20 6.5 Raintree Park 2 (@ Pearl City) Dec-15 31 17.1 Pearl Saujana Permai (@ Pearl City) May-17 33 15.8 Raintree Park 1 (@ Pearl City) Dec-14 5 2.3 Pearl Evergreen (@ Pearl City) Apr-17 1 0.7 Completed Projects 2 0.9 TOTAL 110 53.2
Project Name Launch Date Total No. of Units sold in 1H18
1H18 SALES OVERVIEW
Ongoing projects in Pearl City driving sales 22
REVENUE ANALYSIS BY PROJECT
shoplots) contributing positively
% Group Revenue % Group Revenue Property Development & Management Pearl City launches:
- Raintree Park 1
11.82 13.4% 39.14 14.1%
- Raintree Park 2
26.85 30.4% 64.77 23.4%
- Pearl Tropika
17.47 19.8% 52.32 18.9%
- Avenue Garden
10.40 11.8% 44.18 15.9%
- Pearl Harmoni
- 14.07
5.1%
- Pearl Evergreen
1.00 1.1% 4.71 1.7%
- Pearl Saujana Permai
15.26 17.3% 12.69 4.6%
- Pearl Residence
- 5.22
1.9%
- Pearl Square 1
- 0.78
0.3%
- Pearl City completed projects
0.46 0.5% Straits Garden 0.39 0.5% 22.89 8.3% Bukit Residence 2.01 2.3% 8.52 3.0% Camellia Park
- 1.98
0.7% Permai Residence
- 0.63
0.2% Completed Projects
- 0.35
0.1% Property Management 0.06 0.1% 0.03 0.0% Sub Total 85.72 97.2% 272.28 98.2% Other Revenue Construction, Rental, Carparks, etc 2.50 2.8% 4.89 1.8% FY17 ` 1H18 MFRS MFRS
Pearl City developments made up 94.3% of 1H18 group revenue
Compared to 85.9% of FY17 group revenue
Investment Properties
GEMS International School, Mainland first international school commenced
- perations in September 2015
The shoplots at Straits Garden, Penang commenced
- perations
since mid 2016
Note : 1st January 2018, the above information for FY2017
- nwards have been prepared in accordance with MFRS
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CORPORATE PROFILE
24 Founded in 1994, Tambun Indah is reputable in Mainland Penang for high-quality, modern design projects at relatively affordable prices Many of our developments are enjoying full take-up rates & high prices in secondary home market
- ever gated & guarded landed
community Taman Tambun Indah (launched in 1994) Also unveiled Seberang first strata-landed gated community, Palm Villas (launched in 2007) Has launched more than 8,600 units with total GDV of approximately RM3.3 bil since inception Now developing the first integrated township in Mainland Penang at Simpang Ampat, Pearl City Iconic flagship with an estimated GDV of RM4.6 bil Slated for completion by 2023 Tambun Indah was included in for 2013, 2014 and 2015
CORPORATE OVERVIEW
An established reputation for developing modern, relatively affordable projects... pioneering many firsts in Mainland Penang
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PENANG GROWTH CATALYSTS
Combined approved manufacturing investments
- f more than RM30.0 billion since 2010 [Source: MIDA]
Significant domestic and foreign direct investments (DDI and FDI) include: Aviatron Boon Siew Honda VAT Phison Electronics Bose Malaysia Automotive Lighting Haemonetics Corporation Hewlett Packard Seagate Sandisk Corporation Inari Amertron VITROX Corporation Shared Services Hub (MOU with Temasek): Business Process Outsourcing Penang International Technology Park Expansion of Batu Kawan Industrial Park to generate new manufacturing activities & employment
- pportunities
Tourism and medical tourism seen as future growth drivers Penang Second Bridge to spur further economic growth by improving transportation network
Penang economy increasingly robust... strategies in place to keep the momentum going 26
PEARL CITY
Mixed Development in Simpang Ampat, Seberang Perai Selatan To gain complete exposure and benefit from completion of Penang Second Bridge Upon completion, Pearl City will be a well-integrated city complemented with: Public amenities Recreation facilities Healthcare facilities Retail amenities >15,000 residential housing units
Pearl City with locations of impending and existing developments
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