Financial Period 2018 (FP2018) Results Announcement First Quarter Ended 30 September 2018 28 November 2018 First Quarter of FP2018 Financial Performance
Total Page:16
File Type:pdf, Size:1020Kb
Financial Period 2018 (FP2018) Results Announcement First Quarter ended 30 September 2018 28 November 2018 First Quarter of FP2018 Financial Performance 2 First Quarter Ended 30 September 2018 1QFP18 1QFY18 In RM’m YOY % 30-Sept-2018 30-Sept-2017 Revenue 480.3 472.6 2 Operating Profit (a) 42.7 18.8 127 Segment Results (b) 38.8 103.4 (63) PBIT (c) 39.0 422.2 (91) PBT 53.0 428.2 (88) PATAMI 28.8 421.7 (93) Basic EPS (sen) 0.4 10.8 (96) 1QFP2018 vs 1QFY2018 C O a) Operating Profit jumped 127% YoY: • Lower administrative, selling and marketing expenses by 33% M • Higher contribution from Property Development and Property Investment by 70% and M >100%, respectively E b) Segment results for 1QFP18 was affected by: N • Share of losses of Battersea of RM5.7m (vs profit of RM86.8m in 1QFY18) T • Partially mitigated by an increase in Property Investment’s PBIT of RM14.9m (profit of RM10.4m vs loss of RM4.5m in 1QFY18) A c) Lower PBIT as 1QFY18 included gains on disposals of: R • 100% equity stake in Malaysia Land Development Company (MLDC) of RM40.6m Y • 40% equity stake in Seriemas Development Company Berhad (Seriemas) of RM278.2m 3 Segment Results for 1QFP2018 68% 1QFP2018 112.7 1QFY2018 329% 48% 1% 36.3 10.4 (4.5) (9.8) (6.6) 1.9 1.9 Property Property Leisure & Concession Development Investment Hospitality Arrangement Higher operational performances Strong operational Higher operating Steady contribution from amid the challenging market performance losses Pagoh Education Hub • Higher sales and development • Recognition of rental • Lower occupancy rates • Marginal improvement activities at Serenia City, Denai income on meeting across all hospitality from facility and asset Alam, Cantara Residences and condition precedent for units and closure of management service: Melawati Corporate Centre the commencement of certain hospitality +1.4% YoY • Lower contribution from Serenity lease of Wisma Zuellig: units such as Genting • Recorded in finance Cove, Australia: RM4.8m, -31% YoY RM6.9m View Resort and income is the billing of from the sale of 11 plots of • Lower share of loss Darby Park Karri availability charges: residential land (13 plots last year) from Melawati Mall: Valley, Australia RM25.5m (RM23.1m in • Share of losses from Battersea: RM1.2m (loss of • Darby Park Singapore: 1QFY18) RM5.7m (vs. profit of RM86.8m in RM5.4m in 1QFY18) Reduction of long- 1QFY18) • Occupancy rate: term tenants 80% (60% in 1QFY18 included: Sept’17) • Gain on disposal of Seriemas: • Included a gain on RM278.2m disposal of an investment property in 4 UK: RM2.6m Cash and Debt Position as at 30 Sep’18 CASH & CASH EQUIVALENTS GROUP BORROWINGS (RM’m) (RM’m) 749.4 5% 710.5 5% 2,046.5 1,936.5 63% 808.6 495.8 30-Sep-18 30-Jun-18 Long-term Short-term 30-Sep-18 30-Jun-18 • Net cash used in operating activities lower at RM25.1m (30 Sep’17: RM347.3m, RM2,745.0m RM2,542.4m included the acquisition of MVV land • Higher short-term borrowings to mitigate from Sime Darby Plantation of RM689.6m) additional working capital requirements at flagship townships particularly Bandar Universiti Pagoh and • 30 Sep’17 included the proceeds from Serenia City disposals of subsidiaries and an associate • Healthy D/E ratio of RM677.0m 27.8% 20.6% Gross D/E Ratio Net D/E Ratio (FY18:25.5%) (FY18:18.0%) 5 Inventories as at 30 September 2018 RM6,713.7 RM6,778.0 million million -1% Mainly due to completion of Completed: units from: 1,033.9 835.5 +24% • Rimbun Sanctuary, Bukit Jelutong: 87 units – RM56m • Serini 1 & 2, Taman PDC – Launched: 1,187.7 1,614.3 Melawati: 241 units – -26% RM181m 2,610.7 PDC – Not Yet 2,462.4 Mainly due to costs incurred Launched: on land related and +6% infrastructure cost in: • Serenia City • Bandar Bukit Raja Land Held for PD: • Elmina 1,881.4 1,865.8 +1% 30-Sep-18 30-Jun-18 Completed Inventories PDC – Not Yet Launched Property development Land Held for Property costs (PDC) - Launched Development 6 Unsold Units as at 30 September 2018 1QFP18 Launches 267 Units units Taman Melawati (6%) 295 (MCC & Serini) Bukit Jelutong 104 Total: Alya KL 104 Completed Planters' Haven 66 4,469 units Projects Saujana Impian 61 935 units (Jun’18: 4,963) (21%) Chemara East 53 KL East (The Veo) 45 Elmina West 39 The Glades 34 Launches prior Others 134 FP2018 Total 935 3,267 units (73%) Completed units: 44% QoQ (vs. 648 units) from the completion of Rimbun Sanctuary, Bukit Jelutong and Serini, Taman Melawati Launches prior to FP2018: 22% QoQ due to higher sales recognised from: Ferrea and Semanea Hills at Denai Alam Casira 1 & 2, Azira and Athira at Bandar Bukit Raja Rumah Selangorku at Putra Heights 7 First Quarter of FP2018 Operational Highlights 8 Steady Sales Performance Supported by Strategic Launches in 1QFP18 Year-on-Year Performance 1QFP18 (Jul’18 – Sep’18) Net Sales Value Units Sold Value: Units: RM’m RM310.5 mil 284 35% 22% 815 Bandar Bukit Raja (Ayra) 712 (2-storey house) 667 No. of Units : 120 units Value : RM90.2 million 526 Launch Date : 28 July 18 Take-up : 82% Nilai Impian (Anggerik) (2-storey house) No. of Units : 142 units Value : RM76.2 million Launch Date : 21 Sept 18 Take-up : 44% 1QFP18 1QFY18 1QFP18 1QFY18 Serenia City (C3) (Industrial Lot) • Units sold: Includes 281 statutory units No. of Units : 22 lots Value : RM144.1 million at Putra Heights, with value of RM60.6mn Launch Date : 28 Sept 18 • Units sold excl. statutory: 534 Take-up : 32% Strategic re-planning of launches in view of the • 45% of sales originated from Bandar slowdown in demand: Bukit Raja township, followed by 1. “Wait-and-see” approach, attributable to townships along the Guthrie Corridor market uncertainties 2. Uncertainty in National Housing Policy / (34%) and Greater Klang Valley (19%) Budget 2019 • RM160.7m attributed to land sales at 3. High inventory level in the high-rise sector Bandar Bukit Raja 1 9 Resilient Unbilled Sales FP2018 (Jul-Dec’18) Targets: 1QFP2018: RM2,319 million Sales: RM1,000 million 14% QoQ (30 Jun’18: RM2,034 million) 30% YoY (30 Sept’17: RM1,778 million) Unbilled Sales: RM2,200 million RM’m 641 647 898 103 30 403 261 244 212 196 183 162 172 141 119 56 47 22 34 33 30 4 Denai Elmina Elmina Bukit BBR 2 & BBR 1 Putra Serenia ALYA Ara SJCC KL East Taman Others* Nilai Bdr. Pagoh & Alam & West East Jelutong 3 Heights City D'sara Melawati Ainsdale Taman Bukit Pasir Subang Putih QoQ %: 46 1 (7) (9) 16 >100 4 15 (3) (24) 12 (38) 12 81 0 (13) (5) Along Guthrie Corridor Bdr. Bukit Raja Negeri (BBR) Greater Klang Valley Johor Expressway (GCE) Klang Sembilan * Others: USJ Heights and Saujana Impian 10 Strategic Re-Planning of Launches 2QFP18 (Oct’18 – Dec’18) FY2019 (Jan’19 – Dec’19) Value: Units: Value: Units: RM600 – 650 mil 800 – 1,150 RM3.0 – 4.0 bn 4,000 – 4,500 BY TYPE BY LOCATION BY TYPE BY LOCATION 6% 15% 3% 15% 23% 21% 21% 3% 47% 48% 23% 62% 11% 34% 26% 42% Johor Greater Johor Klang Landed Integrated Commercial Landed Integrated N.Sembilan Klang Valley Greater Klang Valley Along GCE Commercial Industrial Klang Along GCE Residential - Landed Residential - Landed Avg. Price Est GDV Price Range Est GDV Key Launches No. of units Key Townships No. of units (RM ‘000) (RM mil) (RM ‘000) (RM mil) Serenia City (Adiva) 176 550 97.5 Elmina West 974 680 – 800 719.1 BBR 2 & 3 560 560 – 680 351.1 BBR 2 & 3 (R3A) 160 760 122.3 Serenia City 628 500 - 560 347.4 Elmina West (EG1C) 181 760 137.2 Bdr. Uni. Pagoh 227 390 - 420 91.9 Commercial Affordable Commercial Industrial Bandar Elmina West Bandar Nilai Impian Universiti (Harmoni 1) Universiti Pagoh (2 & 3-storey factory) Pagoh (C8-2) (Apartment) (C8-6 & C8-5) (Landed Office) (Shop Office) No. of Units : 38 units No. of Units : 562 units No. of Units : 60 units No. of Units : 149 units Est. GDV : RM33.8 mil Est. GDV : RM135.4 mil Est. GDV : RM62.0 mil Est. GDV : RM543.8 mil 11 Rediscover Our Hidden Gems (Sep – Nov 2018) Strategic campaign to promote new and completed developments Ranging from The Signature Collection, The Features Exclusive and Rediscover Landed Gems Introducer RM10,000 + rewards of additional 1% up to 1% to 2% rebate Preview of Preview of Launch of Ayra 22 Anggerik @ 27 Elmina Green C 3 2 @ Bandar Sept Nilai Impian Oct @ Elmina West Nov Bukit Raja 2 Successful preview and soft launches with booking rates averaging above 50% Launch of Launch of Private launch of 6 Serenia 28 Alcove @ 10 2 & 3 Storey Adiva @ Putra Townhouse @ Oct Serenia City Oct Heights Nov East Residence Target: To reduce the existing inventory level by 6% to 10% by end of 2018 12 Moving Forward 13 Outlook in 2018-2019 Budget 2019 is positive National Housing Policy • Waiver of stamp • Clear scope and duties for residential BUSINESS parameters of properties valued CHALLENGES proposed policy from RM300,001 to • Streamline effort to RM1 million per unit deliver affordable for first-time home houses buyers Oversupply of high-rise medium range properties Proposed reduction of • Industry is producing overall housing prices faster than the absorption by 10% rate • Developers are expected • High number of unsold Slower economic to review housing prices condominium/apartment growth in Malaysia in view of Sales and units in Selangor priced • Revised 2018 GDP Service Tax (SST) below RM1 million (~8,500 growth forecast of exemption for certain units) and Kuala Lumpur 4.8% from 5.4% construction material (~20,400 units) as at • Continued softness June’18 in the real estate • May affect the sales of sector ongoing / new launches 14 Key Priorities in FY2019 P R O P E R T Y P R O P E R T Y L E I S U R E & DEVELOPMENT INVESTMENT HOSPITALITY Timely completion