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0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
0 koon financial analysis-final edition
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0 koon financial analysis-final edition

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  • 1. Group members: Orange, Lolita, Emily, LuYao, Tommy 1
  • 2. OutlineIntroductionIndustry brief introductionFinancial analysisAuditor’s commentsConclusions & Recommendations 2
  • 3. Introduction aboutKoon Holdings Limited 3
  • 4. An introduction About KoonKoon Holding Limited (“Koon”), an investmentholding company, was incorporated specifically forlisting on the Australian Securities Exchange(“ASX”)and Singapore Exchange Limited(“SGX”). KCTC is themain operating company of the Group.The “ Group” is one of Singapores leadinginfrastructure construction and civil engineeringgroup with an established track record of over 30years. 4
  • 5. The history of groupBegan in 1975 as a small sole proprietorshipKoon construction and Transport Co,Pte Ltd (“KCTC”)was incorporated and raised capital in 1979Joint venture with a major marine engineeringcompany, Zinkcon, to form Koon-Zankcon in 1985.The success of the joint venture, prompted themanagement to formalize arrangement and Koon-Zinkcon Pte Ltd (“KZ”), was incorporated in1997.(KCTC still has 50% shares of KZ) 5
  • 6. Group business divisionsConstruction Division (one of largest in Singapore civilengineering, reclamation and shore protectionspecialists)Plant and Equipment Rental Division (rental the plantand equipment which owned by Koon)Precast Division 6
  • 7. Group Structure 7
  • 8. OutlookIn the latest forecast, the HDB expects new Build-To-Order (BTO) flat launch, which will add to strongdemand for precast products from Koon.There are also considerable cost pressuresaffecting labour and raw materials. The tight labourmarket is also a concern.The Group’s transformed business model remainson track to diversify revenue base and build morerecurring revenue.Focus on more value added products and solutionsto offer to customers. 8
  • 9. Industry Brief Introduction Construction & Engineering 9
  • 10. Company Overview Business Description Koon Holdings Limited(KNH) is an investment holding company based in Singapore, with expertise in four divisions. infrastructure plant and precast construction & equipment investments concrete workscivil engineering rental 10
  • 11. Market Comparison Earnings P/E Ratio P/B P/E P/S Ratio Ratio GrowthKoon 0.20 4.28 0.90 -- 2.53(KNH)Market 1.35 10.93 1.11 2.17 2.82Sector 1.12 11.6 1.07 0.63 0.56 11
  • 12. Peer Comparison Koon Holdings( KNH)Clough( Leighton( CLO) Construction LEI) & Engineering UGL(UGL) Monadelphous( MND) 12
  • 13. Peer Comparison 13
  • 14. Financial Analysis • Financial Figures & Ratios • Financial Outlook 14
  • 15. ProfitabilityGroup recorded lower revenue of S$35.7 million, down 3.7%from the previous corresponding period. 37,500 3.7% 37,000 36,500 1H2010 36,000 1H2011 35,500 35,000 34,500 Revenue 15 Source: press release in June 2011
  • 16. ProfitabilityRevenue from the Construction division declinedbut was partially mitigated by an increase inrevenue contribution from the Precast divisionwhich grew 71.0% to S$6.3 million. Revenue Breakdown by Divisions 1H2011 71% Revenue Growth 18% 2% Construction Plant and Equipment Rental 80% Precast 13.6% Revenue Decrease 16
  • 17. ProfitabilityS$000 1H2010 1H2011 Change % lower Gross Profit margin due to newly setup, technical designRevenue 37,028 35,662 (3.70) and production- related costs.Gross Profit 3,013 7,884 (61.80)Other income 9,597 770 1146.40 Net profit attributable to shareholders roseProfitAttributable to 6,318 6,029 4.80 due to the gain onShareholders disposal of leaseholdEarnings per property and dividend 3.85 3.68 4.60Share income received. 17
  • 18. RatiosGrowth in Net Earnings Margin, ROA, ROE Valuation35.00%30.00%25.00%20.00%15.00%10.00% 5.00% 0.00% 2008 2009 2010 Net Earnings Margin Return On Asset (ROA) Return On Equity (ROE) 18
  • 19. RatiosCredit is well managed. Current Ratio 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2008 2009 2010 19
  • 20. Auditor’s comments From Deloitte & Touche LLP 20
  • 21. Opinion1. The consolidated financial statements (Financial position and Statement of changes in equity ) are drawn up.2. The accounting and other records(company and by those subsidiaries incorporated) have been properly kept in accordance with the provisions of the Act。 21
  • 22. Cash flow statement Analysis --- The importance of cash flow 22
  • 23. 23
  • 24. Big difference 2010Y 2009YIncome tax paid (2,321) (1)Purchase of property, plant and equipment (6,147) (4,109)Repayment of bank loans (1,983) (593)Dividend paid (2,050) (810)Net cash (used in) from financing activities (1,921) 175 24
  • 25. Consolidated statement of cash flows (ended 30 June 2011) S$000Net cash from operating activities 2,349Net cash from investing activities 161Net cash from financing activities (2,049)Net increase in cash and cash equivalents 461Cash and cash equivalents at June 30 22,979 25
  • 26. Conclusions & Recommendations 26
  • 27. Key FactsFounded in 1977One of Singapore’s largest civil engineering, precast, reclamation and shore protection specialists.Listed on Australia Stock Exchange on 11th July 2003Listed on Singapore Exchange Securities Trading Limited (SGX) SESDAQ on 21st July 2003 and was upgraded to Main Board on 4th February 2010. 27
  • 28. Competitive Strengths &Industry Outlook Competitive Strengths 1. BCA A1 Category in Construction-Civil Engineering (eligible to tender for public projects of unlimited value); 2. Wide Range of products and services; 3. Strong Industry Recognition 4. Experienced Management Team 28
  • 29. Competitive Strengths &Industry Outlook Industry Outlook 29
  • 30. Competitive Strengths &Industry Outlook Competitive Strengths 30
  • 31. Competitive Strengths &Industry Outlook Competitive Strengths 1. Comprehensive Range of Precast Products 2. Quality Assurance –ISO 9001:2008 3. Trademark and License –BCA L6 licenses 4. Strong Collective Efforts 5. Partnership and support from Koon 31
  • 32. Competitive Strengths &Industry Outlook Industry Outlook 1. BCA A1 Category in Construction-Civil Engineering (eligible to tender for public projects of unlimited value); 2. Wide Range of products and services; 3. Strong Industry Recognition 4. Experienced Management Team 32
  • 33. Competitive Strengths &Industry Outlook Industry Outlook 33
  • 34. Competitive Strengths &Industry Outlook 1. Owns 48.9% ordinary shares and 18.9% preference shares in Tesla 2. Acquires 51% of the issued capital in GPS Alliance Holdings PL. 34
  • 35. Financial Highlights SGD Million 1H 2011 1H 2010 Change 35.7 37.0 (3.7%) Revenue 3.0 7.9 (61.8%) Gross Profit 9.6 0.8 +1,146.4% Other Income 6.3 6.0 +4.8% Profit Attributable to ShareholdersNon –Operating income buffered the decrease In profit from theConstruction and Precast divisions 35
  • 36. Financial Highlights 36
  • 37. Recommendation 37
  • 38. Recommendation P/E Ratio Company 3.62 Industry 35.72 Sectors 22.18Investment Recommendation :Sell 38
  • 39. Thank you! 39

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