Group members: Orange, Lolita, Emily, LuYao,                Tommy             1
OutlineIntroductionIndustry brief introductionFinancial analysisAuditor’s commentsConclusions & Recommendations           ...
Introduction aboutKoon Holdings Limited         3
An introduction About KoonKoon Holding Limited (“Koon”), an investmentholding company, was incorporated specifically forli...
The history of groupBegan in 1975 as a small sole proprietorshipKoon construction and Transport Co,Pte Ltd (“KCTC”)was inc...
Group business divisionsConstruction Division (one of largest in Singapore civilengineering, reclamation and shore protect...
Group Structure       7
OutlookIn the latest forecast, the HDB expects new Build-To-Order (BTO) flat launch, which will add to strongdemand for pr...
Industry Brief Introduction   Construction & Engineering        9
Company Overview Business Description Koon Holdings Limited(KNH) is an investment holding company based in Singapore, with...
Market Comparison         Earnings P/E Ratio P/B       P/E      P/S Ratio                            Ratio     GrowthKoon ...
Peer Comparison                 Koon               Holdings(                 KNH)Clough(                     Leighton( CLO...
Peer Comparison       13
Financial Analysis  • Financial Figures & Ratios  • Financial Outlook                 14
ProfitabilityGroup recorded lower revenue of S$35.7 million, down 3.7%from the previous corresponding period.      37,500 ...
ProfitabilityRevenue from the Construction division declinedbut was partially mitigated by an increase inrevenue contribut...
ProfitabilityS$000            1H2010    1H2011 Change %      lower Gross Profit                                           ...
RatiosGrowth in Net Earnings Margin, ROA, ROE                          Valuation35.00%30.00%25.00%20.00%15.00%10.00% 5.00%...
RatiosCredit is well managed.                          Current Ratio      1.6      1.4      1.2        1      0.8      0.6...
Auditor’s comments             From Deloitte & Touche LLP        20
Opinion1. The consolidated financial statements (Financial position and   Statement of changes in equity ) are drawn up.2....
Cash flow statement Analysis              --- The importance of cash flow         22
23
Big difference                                               2010Y     2009YIncome tax paid                               ...
Consolidated statement of cash flows (ended                 30 June 2011)                                            S$000...
Conclusions & Recommendations             26
Key FactsFounded in 1977One of Singapore’s largest civil engineering, precast, reclamation and shore protection speciali...
Competitive Strengths &Industry Outlook                  Competitive Strengths                  1. BCA A1 Category in     ...
Competitive Strengths &Industry Outlook               Industry Outlook                    29
Competitive Strengths &Industry Outlook                  Competitive Strengths                   30
Competitive Strengths &Industry Outlook                 Competitive Strengths                1. Comprehensive Range of    ...
Competitive Strengths &Industry Outlook                  Industry Outlook                  1. BCA A1 Category in          ...
Competitive Strengths &Industry Outlook               Industry Outlook                    33
Competitive Strengths &Industry Outlook                  1. Owns 48.9% ordinary shares                     and 18.9% prefe...
Financial Highlights     SGD Million          1H 2011        1H 2010       Change                           35.7          ...
Financial Highlights         36
Recommendation      37
Recommendation                            P/E Ratio                      Company       3.62                      Industry ...
Thank you!      39
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0 koon financial analysis-final edition

  1. 1. Group members: Orange, Lolita, Emily, LuYao, Tommy 1
  2. 2. OutlineIntroductionIndustry brief introductionFinancial analysisAuditor’s commentsConclusions & Recommendations 2
  3. 3. Introduction aboutKoon Holdings Limited 3
  4. 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. 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. 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. 7. Group Structure 7
  8. 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. 9. Industry Brief Introduction Construction & Engineering 9
  10. 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. 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. 12. Peer Comparison Koon Holdings( KNH)Clough( Leighton( CLO) Construction LEI) & Engineering UGL(UGL) Monadelphous( MND) 12
  13. 13. Peer Comparison 13
  14. 14. Financial Analysis • Financial Figures & Ratios • Financial Outlook 14
  15. 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. 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. 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. 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. 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. 20. Auditor’s comments From Deloitte & Touche LLP 20
  21. 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. 22. Cash flow statement Analysis --- The importance of cash flow 22
  23. 23. 23
  24. 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. 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. 26. Conclusions & Recommendations 26
  27. 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. 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. 29. Competitive Strengths &Industry Outlook Industry Outlook 29
  30. 30. Competitive Strengths &Industry Outlook Competitive Strengths 30
  31. 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. 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. 33. Competitive Strengths &Industry Outlook Industry Outlook 33
  34. 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. 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. 36. Financial Highlights 36
  37. 37. Recommendation 37
  38. 38. Recommendation P/E Ratio Company 3.62 Industry 35.72 Sectors 22.18Investment Recommendation :Sell 38
  39. 39. Thank you! 39

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