southern acids (m) berhad analyst & press briefing financial results 2 nd quarter ended 31 st...
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SOUTHERN ACIDS (M) BERHAD
Analyst & Press BriefingFinancial Results 2nd Quarter ended 31st October 2010
10 December 2010
DELIVERING QUALITY SINCE 1981
Disclaimer NoticeThis presentation may contain projections and forward looking statements. Such statements are based on current circumstances and assumptions which may change over time. Accordingly no reliance should be placed on any of these projections and forward looking statements, express or implied in this presentation.
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Presentation Contents
2
1. Operating Business Divisions
5. Share Price Performance
4. Business Outlook
2. 2nd Quarter Group Financial Highlights
3. Review of Major Operations
3
FINANCIAL RESULTS 2nd QUARTER ENDED 31 OCT 2010
Oleochemical
Palm Oil Plantation
Healthcare
Warehousing & Port Cargo Handling
Investment & Management
Operating Business Segments
4
2nd Quarter
Group Financial
Highlights
FINANCIAL RESULTS FOR THE 3 MONTHS ENDED 31 OCT 2010
128,599 111,134 15.72%
653.40%14,940
11,509
1,983
1,334Profit for the period after tax
Profit before tax
Revenue
5.78 sen 0.30 senEarnings per share (EPS)
15,129Total comprehensive income for the period 1,334
3 months Oct 2009 (RM’000)
3 months Oct 2010 (RM’000) Change
762.74%
1,034.11%
5
1,826.66%
6
FINANCIAL RESULTS FOR THE 6 MONTHS ENDED 31 OCT 2010
257,830 219,639
6 months Oct 2010 (RM’000)
6 months Oct 2009 (RM’000) Change
17.39%
124.40%
129.84%
26,638
19,523
11,871
8,494Profit for the period after tax
Profit before tax
Revenue
9.92 sen 4.35 senEarnings per share (EPS)
24,774Total comprehensive income for the period 8,494 191.66%
128.05%
Total Group Revenue (RM’000)
2Q FY112Q FY10
6 months FY116 months FY10
-
50,000
100,000
150,000
200,000
250,000
300,000
128,599 111,134
257,830
219,639
Revenue up mainly on higher sales volume and average selling prices recorded by the oleochemical and plantation divisions. 7
Group Profit before Tax (RM’000)
2Q FY112Q FY10
6 months FY116 months FY10
-
5,000
10,000
15,000
20,000
25,000
30,000
14,940
1,983
26,638
11,871
Profit before tax up mainly on higher sales and better margin earned on sales recorded by the oleochemical and the plantation divisions.
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Revenue by Business Segment 3 Months ended 31 Oct 2010 (RM’000)
2Q FY112Q FY10
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000 87,234
76,596
24,032 17,789
15,224 13,238
1,694 2,233 415
1,278
Oleochemicals
Plantation
Healthcare
Warehousing
Others
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Revenue by Business Segments 6 Months ended 31 Oct 2010 (RM’000)
6 months FY116 months FY 109
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000 177,598
151,203
46,329 34,791
29,803 27,055
3,094 4,010 1,006
2,580
Oleochemicals
Plantation
Healthcare
Warehousing
Others
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Pre-Tax Profit/Loss by Business Segment 3 months ended 31 Oct 2010
(RM’000)
2Q FY112Q FY10 (2,000)
-
2,000
4,000
6,000
8,000
10,000
4,019
(1,396)
9,118
2,599 1,017
(1,174)
632 990 153 963
Oleochemicals
Plantation
Healthcare
Warehousing & Conveying
Others
Better results were recorded by all major operating divisions for the 2nd quarter ended FY 2011 save for the warehousing and conveying business who registered a small reduction in profit compared to FY 2010 results. 11
Pre-Tax Profit/Loss by Business Segment 6 months ended 31 Oct 2010
(RM’000)
6 months FY116 months FY10
(2,000) -
2,000 4,000 6,000 8,000
10,000 12,000 14,000 16,000 18,000
7,202
1,698
16,240
7,663
1,273
(1,744)
1,601 1,721 321
2,533
Oleochemicals
Plantation
Healthcare
Warehousing & Conveying
Others
Better results were recorded by all major operating divisions for the 6 months ending FY 2011 save for the warehousing and conveying business who registered a small reduction in profit compared to the FY 2010 results. 12
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ReviewOf Major
Operations
Reven
ue
Pre-tax
Profit
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000 1
77,5
98
7,2
02
151
,203
1,6
98
6 months FY11
6 months FY10
17.46%
324.15%
Oleochemical Demand for the division’s oleochemical products
remained strong in the six months financial year ending 2011 because of the aggressive marketing & pricing strategy and dynamic production modules to suit customers’ needs.
Revenue for the six months ending 2011 was higher by 17.46% compared to year ended 2010 as a result of higher sales volume and higher average selling price realised on sales.
Pre-tax profit was also significantly higher at RM7.2 million in the six months for the current financial year because of higher sales and a forex gain in FY2011 as compared to a forex loss in FY2010.
Review of Major Operations
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Revenue
Pre-tax P
rofit
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000 4
6,32
9
16,
240
34,
791
7,6
63
6 months FY11
6 months FY10
33.16%
111.93%
Palm Oil Plantation• The much improved results recorded by
the division for the 6 months ending FY2011 is mainly due to higher production and sales volume, higher CPO selling prices achieved and profit margin earned on sales.
• Increased FFB quantities processed.• Oil Extraction Rate (OER) achieved in
the 1st 6-months was 23.35%.
Review of Major Operations
15
Review of Major Operations
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(5,000)
-
5,000
10,000
15,000
20,000
25,000
30,000 29,803
1,273
27,055
(1,744)
6 months FY11
6 months FY10
Private Healthcare The Healthcare division has now
registered profit in two consecutive quarters in FY2011 as against the two quarter of losses recorded in the previous corresponding periods in FY2010.
The improved results is contributed mainly by the higher in-patient revenue recorded in the 1st 6-months of FY2011.
• The division is continuing with its efforts to aggressively market itself as a tertiary hospital of choice in the surrounding areas in Klang & Indonesia besides initiatives to also tap into the regional medical tourism market to broaden its income base.
10.16%
172.99%
RM’000
Review of Major Operations
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Reven
ue
Pre-tax
Profit
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500 3,094
1,601
4,010
1,721
6 months FY11
6 months FY10
Warehouse & Conveying
• Revenue and pre-tax profit from the warehousing and conveying division reduced marginally during the six months of FY2011 as against the previous corresponding six months in FY2010, mainly because of lower throughput handled by the division in FY2011 against FY2010.
RM’000
6.97%
22.84%
Business Outlook• Oleochemical • SAB’s oleo-chemical division is likely to enjoy robust growth in 2010 -
2012 in tandem with industry trends in Southeast Asia, fuelled by a short-term hike in demand from consumer markets and wider availability of raw materials such as palm oil, palm kernel oil.
• Growing markets for green chemicals and uses in new applications (eg. bio-lubricants, green chemicals, bio-plastics and biopolymers) may stimulate long-term growth in the regional oleochemical industry.
• Prices of fatty acids in Asia are dependent on feedstock palm kernel, palm stearin and CPO prices and tend to follow the price trends of these raw materials.
• Oil Palm Plantation• SAB’s plantation division is expected to benefit in the next
financial quarter FY2011 from the current hike in CPO prices which is trading at above RM3,500/mt. 18
Business Outlook• Private Health Care• SAB’s Private Health Care Division’s turnaround of financial
performance during the 1st & 2nd financial quarters FY2011 stems from its aggressive marketing campaign and success in winning support from its corporate clients.
• The Private Health Care Division is poised to take advantage of the growing medical tourism market in the region in the long term. Performance for the 3rd financial quarter FY2011 is expected to hold steady although seasonal influence of the festive period during the 3rd quarter may have a moderate impact on patient flow.
• Warehousing & Port Cargo Services• SAB’s Warehousing & Conveying Division is expected to hold its
current performance in tandem with demand for palm kernel expeller (pke) in the world market.
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Business Outlook• The Group’s 2nd quarter results was an
improvement over the 1st quarter, and the 1st 6-months results (FY2011) surpassed that of the previous corresponding period (FY2010) both in terms of revenue and profitability.
• Barring any unforeseen circumstances, we are optimistic that the Group will be able to sustain its current performance throughout the entire financial year.
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SharePrice
Performance
Share Price Performance
Jan 2008
Feb 2008
Mar 2008
Apr 2008
May 2008
Jun 2008
Jul 2008
Aug 2008
Sep 2008
Oct 2008
Nov 2008
Dec 2008
Jan 2009
Feb 2009
Mar 2009
Apr 2009
May 2009
Jun 2009
Jul 2009
Aug 2009
Sep 2009
Oct 2009
Nov 2009
Dec 2009
Jan 2010
Feb 2010
Mar 2010
Apr 2010
May 2010
Jun 2010
Jul 2010
Aug 2010
Sep 2010
Oct 2010
Nov 2010
Dec 2009
-
0.50
1.00
1.50
2.00
2.50
3.00
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Questions & Answers
Thank you