JANUARY 2021 - Squarespace
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
JANUARY 2021
1
DISCLAIMER
This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties.
Actual future performance, outcomes and results may differ materially from those expressed in forward-looking
statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these
factors include (without limitation) general industry and economic conditions, interest rate trends, cost of
capital and capital availability, competition from other developments or companies, changes in operating
expenses (including employee wages, benefits and training costs), governmental and public policy changes
and the continued availability of financing in the amounts and the terms necessary to support future business.
You are cautioned not to place undue reliance on these forward-looking statements, which are based on the
current view of management on future events.
The information contained in this presentation has not been independently verified. No representation or
warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy,
completeness or correctness of the information or opinions contained in this presentation. Neither KPower
Berhad (formerly known as Kumpulan Powernet Berhad) (“KPower” or the “Company”) or any of its affiliates,
advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss
howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its
contents or otherwise arising in connection with this presentation.
The past performance of KPower is not indicative of the future performance of KPower.
The value of shares in KPower (“Shares”) and the income derived from them may fall as well as rise. Shares are
not obligations of, deposits in, or guaranteed by, KPower or any of its affiliates. An investment in Shares is subject
to investment risks, including the possible loss of the principal amount invested.
2
AGENDA
1 Investment Merits 7 Business Segment
2 Stock Information 8 Financial Performance
3 History & Key Milestones 9 Future Outlook
4 Board of Directors 10 Key Takeaways
5 Key Management Team 11 News & Coverage
6 Corporate Structure
3
INVESTMENT MERITS
Earnings Established & Experienced
Growth Board of Directors and
Catalysts Management
▪ Directors and management with
▪ On growth mode with focus on
experience across diverse areas under
renewable energy, utilities and
energy, utilities and construction
infrastructure jobs
industries
▪ Achieved RM1.2 billion order book for
▪ Ability in replicating execution
FY2020
capabilities for KPower’s growth
▪ Aims to achieve RM2 billion order book
for FY2021
4
STOCK INFORMATION
1-YEAR SHARE PRICE AND VOLUME MOVEMENT
3.00 40.00mm
2.50 35.00mm
2.00 30.00mm
1.50 25.00mm
1.00 20.00mm
0.50 15.00mm
0.00 10.00mm
-0.50 5.00mm
-1.00 0
KPower Berhad (KLSE:KPOWER) - Volume KPower Berhad (KLSE:KPOWER) - Share Pricing
Stock Name / Code : KPOWER / Code: 7130
Market : Main Market
SUBSTANTIAL SHAREHOLDERS
Sector : Consumer Products & Services
% of Total Shares
Shares Outstanding : 452.3 million Holder Outstanding
Market Capital : RM1.1 billion
Mohd Abdul Karim bin Abdullah 32.14
52-week high/low : RM2.47/ RM0.21
Grand Deal Vision Sdn Bhd 14.94
Share Price : RM 2.42 (14 January 2021)
Dividend Policy : 20% of PAT Source: S&P Capital IQ, as at 14 January 2021
5
HISTORY & KEY MILESTONES
• Exceeded RM1.0 billion orderbook target for
the financial year ended 30 June 2020.
• Secured the following projects:
o USD16 million of renewable energy project
in Laos. 2019
o RM365 million of renewable energy project
in Perak, Malaysia. • Dato’ Dr. Ir. Ts. Mohd
o USD48 million of renewable energy project Abdul Karim Abdullah,
in Nepal. 2020 founder of Serba
o USD41 million of civil works for a Dinamik Holdings
hydropower project in Laos.
o USD46.2 million of renewable energy Berhad, and Grand Deal
project in Nepal. Vision Sdn. Bhd.
o USD13 million of renewable energy acquired majority stake
projects in Indonesia. in KPower.
o RM296 million of renewable energy project • The Group diversified
in Perak, Malaysia
• Private Placements: 10% + 35% of the total into energy & utilities
number of issued shares. and infrastructure &
• Diversification of the Company’s principal logistics.
activities. • Secured RM270 million
• Acquired 51% stake in logistics company,
Chemtrax Sdn. Bhd. 2021 of utilities project in
Kuala Lumpur, Malaysia.
• Proposed share split and issuance of free
warrants.
• Acquired 70% stake in Granulab
(M) Sdn. Bhd., a medical device
manufacturing company, from
SIRIM Berhad.
• USD6 million contract to supply PCR
Reagent Kit for COVID-19 in
Indonesia.
6
BOARD OF DIRECTORS
Dato’ Dr. Ir. Ts. Mohd Abdul Karim Abdullah
Non-Independent Non-Executive Chairman Dato’ Arivalagan A/L Arujunan
Founder of oil-and-gas engineering company Non-Independent Non-Executive
Serba Dinamik Holdings Berhad since 1993. Director
Presence in Southeast Asia, Central and South Currently Director of Aspire Homes
Asia, the Middle East, United States of Sdn Bhd, a property developer.
America, Europe and most recently Africa.
Mustakim Mat Nun Kok Pauline
Deputy Chairman and Group Managing Independent Non-Executive Director
Director Over 13 years of experience in
Over 23 years experience in Power, Water, auditing and accounting in various
Finance and Private Equity. Served in various industries, including government
locations in the middle east, ASEAN and linked companies (GLCs).
domestic market.
Sarah Azreen Abdul Samat Tan Yee Hou
Non-Independent Non-Executive Director Independent Non-Executive Director
Over 19 years of experience in corporate Deputy Managing Director of LTKM’s
finance transactions involving equity issuance, wholly-owned subsidiary LTK
mergers and acquisitions, corporate Development Sdn Bhd, which he led
restructuring and corporate valuation. diversification into property sector.
7
KEY MANAGEMENT TEAM
KPower is led by a team of dynamic professionals with a wealth of experience in project management and
implementation, construction and investment activities especially in utility and renewable energy sectors.
Amirul Afif Abd Aziz
Mustakim Mat Nun
Group Chief Financial Officer
Group Managing Director
Over 20 years’ experience in finance,
Over 23 years’ experience in finance, power
power & water industries in Malaysia
& water industries
and Middle East
Muhammad Syukri Sulaiman Zainal Azwadi Zainal Abidin
SVP, Head of Corporate Finance and SVP, Supply Chain Management and Acting
Investor Relations Head of Risk & Compliance
Over 15 years’ experience in finance, power Over 20 years’ experience in oil & gas,
& infrastructure industries finance & power industries
Khairulaklam Omar
Kamalulariffin Ahmad
SVP, Head of Project Development
VP, Head of Project Implementation
20 years’ engineering experience in power
20 years’ experience in construction,
& water covering Southeast Asia with
water & energy project management
multinational companies
Lilik Harianti Saijan
Puteri Nur Qistina Abd. Rahman VP, Head of Corporate Resources &
Acting Head of Finance Administration
10 years of experience in audit with several 20 years’ experience in multinational &
Big Four accounting firms government-linked companies across
various sectors
8
LEVERAGING ON HUMAN CAPITAL
The Board of Directors of KPower and key management team with combined experience of
over 200 years will further enhance KPower’s strength to evolve for future growth.
BOARD OF DIRECTORS
Diverse Extensive Vast industry
Dynamic network
background experience
Multinational
KEY MANAGEMENT Middle East 13%
37%
Malaysia
50% Energy
By leveraging on the 62%
management’s vast experience Regional Finance Industry
and industry network, KPower is Experience 25% Experience
well positioned to land more major
projects in the future.
ASEAN
13%
9
THE NEW KPOWER - BUSINESS SEGMENT
The Company successfully repositioned itself by expanding into new sectors to generate
sustainable revenue streams, in addition to its existing businesses.
ENERGY & PROPERTY LOGISTICS HEALTHCARE &
UTILITIES TECHNOLOGIES
Green and To venture into
To provide logistic healthcare and
renewable energy solutions to
related to medical products
Sustainable property complement
hydropower, solar, focusing on
development various activities
waste to energy technology
within the network applications and
and biomass of shareholders solutions
10CORPORATE STRUCTURE
KPOWER
Energy & Utilities Property Logistics Healthcare & Technologies
Local International Development Investment
100% 100% 100% 100% 100% 100% 70%
100%
KPower Powernet
KPower KPower KPower KPower Granulab (M)
Zelinn Healthcare & Industries
Engineering International Development Logistics Sdn. Bhd.
Limited Technologies Sdn. Bhd.
Sdn. Bhd. (L) Ltd. Sdn. Bhd. Sdn. Bhd.
Sdn. Bhd.
Formerly known
Formerly known as
as Hypergize Link
Powernet Properties 51%
Sdn. Bhd.
Sdn. Bhd.
Chemtrax
Sdn. Bhd.
11TOTAL REVENUE
120,000
100,000 95,843
80,000
(RM'000)
60,000 57,063
60% of FY20’s
revenue
40,000
20,000
13,217
6,737 3,924 5,725
0
FY16 FY17 FY18 FY19 FY20 1Q FY21
Quarter under review
12PROFITABILITY
PROFIT AFTER TAX (“PAT”) AND PAT MARGIN
15,000 14.27%
40
12,000
9,000 0
13.33%
6,000
(RM’000)
-40
3,000
(%)
0 -80
FY16 FY17 FY18 FY19 FY20 1Q FY21
-3,000 -120
-6,000
-160
-9,000
-12,000 -200
PAT (RM'000) PAT Margin (%)
FY16 FY17 FY18 FY19 FY20 1Q FY21
PAT (RM’000) (8,481) (7,218) (4,977) 481 12,776 8,143
PAT Margin (%) (125.89) (183.94) (86.94) 3.64 13.33 14.27
Quarter under review
13FINANCIAL PERFORMANCE
Improved Quarter-on-Quarter Performance
Revenue Operating profit/(loss) Profit/(loss) before tax
(RM’000) (RM’000) (RM’000)
45% 11,074 11,074 11,049 11,049
57,063 57,063 10,103 10,114
10%
9%
411% 39,361 611%
625%
11,162 1,525
1,557
1Q 1Q 4Q 1Q 1Q FY20 1Q 4Q 1Q 1Q FY20 1Q 4Q 1Q
FY20 FY21 FY20 FY21 FY21 FY20 FY21 FY21 FY20 FY21
Profit/(loss) after tax Basic earnings/(loss) Net asset per share
(RM’000) per share (sen) (RM)
10.28 10.28
8,143 8,143 9.23 11% 1.44 7% 1.44
7,308 1.34
336%
759% 11% 729%
0.33
948 1.24
1Q FY20 1Q FY21 4Q FY20 1Q FY21 1Q FY20 1Q 4Q 1Q 1Q 1Q 4Q 1Q
FY21 FY20 FY21 FY20 FY21 FY20 FY21
14SEGMENTAL BREAKDOWN
120,000
100,000
80,000 Construction Related Activities
(RM’000)
Property Development
60,000
Property Investment
40,000
Manufacturing
20,000 Others
0
FY16 FY17 FY18 FY19 FY20 1Q FY21
FY (RM’000) 1Q FY21
Segments %
2016 2017 2018 2019 2020 RM’000
Contribution
Construction
- - - - 79,571 52,809 92.54
Related Activities
Property
- - - 9,802 15,010 4,092 7.17
Development
Property
1,321 1,156 519 3,275 606 21 0.04
Investment
Manufacturing 5,435 2,768 5,209 2,669 656 141 0.25
Others 8 - - - - - -
Quarter under review
15Industry
16OUTLOOK OF CURRENT BUSINESS
World Energy +50%
Consumption Renewables – accounting for
Most of this growth comes from regions almost ¼ of global demand growth
by 2050 where strong economic growth is driving
demand, particularly in Asia
+4.0%
Global Renewable
Energy Investment USD 2.8 trillion USD 301.7B
Trends, 2010-2019 total renewable energy investment total investment in 2019
Malaysia and RM 33B investments to be supported
ASEAN’s Energy 35% from renewable energy in installed by government, public-private
Mix Target by 2025 power capacity (20% in 2019) partnerships & private financing.
Latest government stimulus via 1000
MW LSS4.
Asia Estimated
Infrastructure USD 22,551B Power: USD 11,689B
Investment Needs, including maintenance & rehabilitation Transport: USD 7,796B
2016-2030 costs (without climate change mitigation Telecommunications: USD 2,279B
& adaptation costs) Water & sanitation: USD 787B
Small Hydropower
Plants Growth in 225MW Representing CAGR of 24%
Malaysia by 2024 (from 59.3MW in 2018)
Sources:
U.S. Energy Information Administration; Frankfurt School-UNEP Centre; International Energy Agency; Joint Ministerial Statement of the 38th ASEAN Ministers
on Energy Meeting, 19 November 2020 ; Asian Development Bank; Protégé Associates Sdn Bhd
17SECTOR OUTLOOK
Opportunities in the Energy Sector
Main concerns of ASEAN countries Rapid Economic & Demographic Growth
Energy security The need to develop energy
infrastructure Total Population (2014-2019)
Struggling to meet the 300
(Millions)
escalating energy demand Low electrification rate among 250
of the growing populations the countries especially the rural 200
and economies areas
150
100
50
RE Installed Capacity (MW) in Southeast Asia 0
30,000
25,000
20,000
2014 2015 2016 2017 2018 2019
15,000
10,000 Electricity generation in the region has tripled between 1995 and 2015,
reaching over 872 terawatt hours (TWh). During this period, electricity
5,000 generation grew at an average rate of 7% per year, led by increases in
Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam
-
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Electricity generation by country in Southeast Asia, 1995-2015
Indonesia Thailand Cambodia Brunei
Philippines Myanmar Laos Vietnam
Malaysia Singapore
Source: Renewable Energy Statistics 2020, International Renewable Energy Agency (IRENA)
A new target of 35% renewable energy in installed
power capacity in the ASEAN region by 2025
Source: Joint Ministerial Statement of the 38th ASEAN Ministers on Energy Meeting, 19 November 2020
Source: International Energy Agency, 2017
18SECTOR OUTLOOK
Opportunities in the Renewable Energy Sector
LAOS
Installed: 5,118 MW
NEPAL Potential: 11,630 MW by
Installed: 856 2025 excluding large hydro
MW(2016)
Potential: 85,800 MW
VIETNAM
Installed: 18,523 MW
Target: 96,000 MW by 2025
MYANMAR
Installed: 3,322 MW PHILIPPINES
Potential: 23,594 MW Installed: 6,522 MW
by 2030 Target: 15.2 GW by 2030
THAILAND
Installed: 10,411 MW
Target: 19,684 MW by
2036
CAMBODIA
MALAYSIA Installed: 1,358 MW
Installed: 7,443 MW Target: 2,241 MW for
Potential: 35% RE hydro by 2020
target in the installed
capacity mix by 2025 Sources:
(excl. large hydro of 1) Renewable Energy to Replace Coal Power in Southeast Asia, –
more than 100MW) Renewable Energy Institute, October 2019
INDONESIA 2) Renewable Energy Market Analysis, Southeast Asia,
Installed: 9,484 MW International Renewable Energy Agency
3) The 5th ASEAN Energy Outlook 2015-2040, ASEAN Centre for
Potential: 45,200 MW Energy
by 2030 4) Nepal Energy Sector Assessment, Strategy, and Road Map,
Asian Development Bank, March 2017
5) Joint Ministerial Statement of the 38th ASEAN Ministers on
Energy Meeting, 19 November 2020
19SECTOR OUTLOOK
Opportunities in the Utilities Industry – Water Related Activities
Growth Opportunities
Propelled by a rapid
Inadequate
population growth &
infrastructure
urbanisation
• In Southeast Asia, the water and wastewater services industry is still
nascent with a highly fragmented market.
• Although Singapore and Malaysia are currently the markets with
the most activity, developing markets such as Indonesia, Vietnam,
and the Philippines are expected to offer strong growth
opportunities in the coming years.
Investment in Sea
The Asia Pacific (Asia) total water and wastewater services industry
market is considered to be at the growth stage, with varied
development stage across countries in the region.
~300 million ~1.5 billion
have no access
people lack
to safe drinking
basic sanitation
water
Sources:
1. Asian Development Bank
2. Water Situation and Opportunities in Asia, Asiawater.org
3. Growth Opportunities in APAC Water & Wastewater Services Market,
Frost & Sullivan
20Group
21CURRENT ORDER BOOK
8 MW NAM SAMOY HYDROPOWER PLANT
Contract Value : USD16 million
(equivalent to approximately RM66
million)
3X5 MW NAM TAEP 1 AND 3X5 MW NAM
TAEP 2 HYDROPOWER PLANTS
Contract Value : USD41 million 3.1 MW SG. SIMPANG, SUMATERA MINI
(equivalent to approximately RM175 HYDROPOWER PLANT
million)
Contract Value : USD7 million (equivalent
to approximately RM30 million)
2.6 MW SG. KLAAI, SUMATERA MINI
KUALA LUMPUR SEWERAGE TREATMENT PLANT HYDROPOWER PLANT
Contract Value : RM270 million Contract Value : USD6 million (equivalent
to approximately RM25 million)
32.47 MW PERAK MINI HYDROPOWER PLANTS
22.9 MW NEPAL MINI HYDROPOWER PLANT
Contract Value : RM365 million SUPPLY OF PCR REAGENT KIT FOR COVID-19
Contract Value : USD48 million (equivalent
to approximately RM208 million) Contract Value : USD6 million (equivalent
PROPERTY DEVELOPMENT & OTHER JOBS to approximately RM24 million)
Contract Value : RM53 million
22 MW NEPAL MINI HYDROPOWER PLANT
MISCELLANEOUS
Contract Value : USD46.2 million
27.3 MW PERAK MINI HYDROPOWER PLANT
(equivalent to approximately RM193 Contract Value : Approximately RM40
Contract Value : RM296 million million) million
22CURRENT TENDER ACTIVITIES
TOTAL BID WON TOTAL ORDER BOOK
(since KPower’s acquisition) OUTSTANDING
RM1.745 Billion (as at to date)
Malaysia RM984 Mil RM1.583 Billion Laos
▪ Utilities : RM270 Mil
Nepal RM401 Mil
▪ Energy : RM1.361 Bil RM44 Million
▪ Infrastructure : RM52 Mil Energy
Laos RM241 Mil ▪ Property Development : RM42 Mil
▪ Healthcare : RM24 Mil
Indonesia RM119 Mil
100%
TOTAL BID = RM3.91 Billion Malaysia
RM743 Million
3%
2% Infrastructure
Middle East
RM1.35 Billion 27% Energy
Infrastructure Energy Nepal Indonesia
RM602 Million RM1.169 Billion
68% Utility
Energy Energy
41% 59%
100% Logistic
100%
23KEY TAKEAWAYS
Improvement in financial performance from new business
✓ Recorded an increase in revenue by 411% y-o-y during 1Q FY2021.
✓ Profitability grew by 759% y-o-y in the same period.
✓ Driven by construction related activities mainly arise from preliminary works on the
construction projects.
On track to expand and strengthen regional presence
✓ Secured RM984 million of utilities, energy, and property projects in Malaysia.
✓ Secured RM401 million of energy projects in Nepal.
✓ Secured RM241million of energy projects in Laos.
✓ Secured RM95 million of energy and infrastructure projects in Indonesia.
✓ Secured RM24 million contract to supply PCR Reagent Kit for COVID-19 in
Indonesia.
Steadily progressing the growing path
✓ Achieved RM1.2 billion order book of works in FY2020 which provides the earnings
visibility for next 3-4 years.
✓ Out of RM2.0 billion order book target in FY2021, RM568 million is secured.
✓ Exploring potential mergers and acquisitions to enhance business prospects.
✓ Major shareholders are committed to support the capital requirements of the Group.
24NEWS & COVERAGE
25THANK YOU
26You can also read
