Investor Presentation TEO SENG CAPITAL BERHAD September 2020 Mr. Gan Han Long Business Affairs Manager +6019 759 1368 [email protected]
Investor Presentation
TEO SENG CAPITAL BERHAD
September 2020
Mr. Gan Han LongBusiness Affairs Manager+6019 759 [email protected]
1
Table of contents
Company profile
Investment case
IntroductionCorporateoverview
Business overview
Growth drivers
Financial overview
Milestones
Corporate structure
Board of Directors
Shareholder structure
Dividend history
Capital raising, buybacks, and M&A history
Product portfolio
Layer farming operational process
Key customers
Geographic footprint
ESG and sustainability
Awards
COVID-19 impact
Consumption of commercial eggs
Local and international promotion
Capacity utilization and expansion, and new products
Company outlook
Financial highlights
Segment financials
Key financial data & ratios
Earnings guidance
2
Company profile
▪ One of the largest commercial egg producers with
revenue of MYR 547m in 2019 (11% PAT margin) and
market cap of MYR 267m as of 21 July 2020
▪ Listed on the Second Board of Bursa Malaysia on 29
October 2008 and subsequently transferred to the
Main Board of Bursa on 3 August 2009
▪ An integrated layer farmer adopting an All-In-All-Out
(“AIAO”) layer farming management system,
supported by its own feed mill and paper egg tray
production and waste management (organic fertilizer
production)
▪ Successful management team with over 40 years of
industry experience in Malaysia
▪ Farms are accredited by the Malaysian Good
Agricultural Practice (“MyGAP”) of the Department of
Veterinary Services Malaysia
▪ More than 50% of layer farms are accredited by the
Singapore Food Agency (“SFA”; formerly known as
AVA) to export eggs to Singapore
▪ Synergizing animal health products division by
providing animal health care with quality products and
customized solutions to both internal and external
parties
412,758 433,712 424,209
490,285
546,535
2015 2016 2017 2018 2019
Revenue Summary (RM'000)
3
Investment case
Successful management team with over 40 years
of industry experience
Affordable, necessary and nutritious staple food for daily consumption
One of the largest
integrated poultry players in
both Malaysia and Singapore
Stable corporate growth
Sound and robust financial
fundamentals
Professional and high-quality
management and governance
Consistent dividend payout
4
Table of contents
Company profile
Investment case
IntroductionCorporate overview
Business overview
Growth drivers
Financial overview
Milestones
Corporate structure
Board of Directors
Management team
Shareholder structure
Dividend history
Capital raising, buybacks, and M&A history
Product portfolio
Layer farming operational process
Key customers
Geographic footprint
ESG and sustainability
Awards
COVID-19 impact
Financial highlights
Segment financials
Key financial data & ratios
Earnings guidance
Consumption of commercial eggs
Raw material and egg selling price trends
Market share
Local and international promotion
Capacity utilization and expansion, and new products
Company outlook
5
Mission and Vision: Hatching for the Future
VisionEnhance sustainability of business by focusing on cost effectiveness and develop corporate value that is aligned with the vision.
Mission 1To innovate variety of egg products to satisfy the consumers.
Mission 2Keeping pace with the time, we develop a fully integrated layer farming system andimplement industrially advanced technologies & knowledge which aim to sustain ourcompetitive advantages.
Mission 3To instill professional mindset of importance of cost-benefit at all levels of the participants in the company, including general workers, middle management and top management, in order to improve cost effectiveness.
6
Milestones – Teo Seng Capital Berhad
1992
Set up 1st
layer farm
1995
Implemented
Closed House
System
Own produce
paper egg trays
1998
Launched
HAPPY EGG
1999
All-IN-ALL-OUT
system
2002
Set up feed
mill plant
2005
Awarded export
permit to SG by
AVA
Acquisition of
animal health
products business
2008
Successfully listed on
Second Board of
Bursa Malaysia
2009
Transferred to
Main Board of
Bursa
2011 2011
Expanded trading
of egg business
into SG
Contract farming
with KPF
2015
Acquired BH Fresh
Food P/L as
distribution centre
of egg products in
SG
Incorporation of
waste
management
business
Commencement
of operation
of CPS 1
2016
Incorporation of
Ritma Premier P/L
in SG
2017
Awarded
“The Brand Laureate
Best Brand Award –
Product Branding”
HAPPY EGG product
innovation and
rebranding
2019
Acquired
Professional Vet
Enterprise S/B in
Kuching,
Sarawak
7
Milestones – Animal Health Products
2003 2004 2005 2007 2009 2011 2012 2014 2015 2016 2017 2018 2019
Business
CommencementIncorporation of
Ritma Premier Pte
Ltd in Singapore
Acquisition of
Professional Vet
Enterprise Sdn
Bhd in East
Malaysia
Incorporation
of Ritma
Prestasi Sdn
Bhd
8
Corporate structure
Teo Seng Capital
Teo Seng Farming
Success Century
Ritma Prestasi
Teo Seng Paper Products
Teo Seng Feedmill
Premium Egg Products
Teo Seng Integrated
Farming
Laskar Fertilizer
Ritma Premier
Professional Vet
Enterprise
B-Tech Aquaculture
BH Fresh Food
All subsidiaries are 100%-owned
Great Egg Industries
9
Experienced in banking and finance, credit
control management and financial management
Member of the Chartered Institute of
Management Accountant (“CIMA”), Malaysian
Institute of Accountants (“MIA”), CPA Australia
and ASEAN Chartered Professional Accountants
(“ACPA”). Experienced in financial management
and accounting
Experienced in furniture manufacturing and
trading industry, plantation industry and
producing of fertiliser industry
Over 25 years experience in sales and
marketing
Over 30 years experience in the poultry industry
Board of Directors
LAU JUI PENG
Over 20 years experience in the poultry industry
Non-Executive Chairman
CHOONG KEEN SHIAN
Independent Non-Executive Director
NAM HIOK JOO
Managing Director
FREDERICK NG YONG CHIANG
Independent Non-Executive Director
LOH WEE CHING
Non-Executive Director
DATO KOH LOW @ KOH KIM TOON
Independent Non-Executive Director
Audit
Committee
Risk Management
Committee
Nomination
Committee
Remuneration
Committee
10
Shareholder structure
Major shareholders (as of 12 Jun 2020) %
Advantage Valuations Sdn. Bhd. 52.2
Evli Emerging Frontier Fund (Finland) 4.4
Public Islamic Opportunities Fund 2.4
Leong Hup (Malaysia) Sdn. Bhd. 2.4
Saham Amanah Sabah 1.8
Teo Sik Ghood 1.5
Lau Eng Guang 0.9
Employees Provident Fund Board 0.8
Leong Hup Holdings Sdn. Bhd. 0.7
Lau Joo Kiang 0.6
Other / retail investors 32.3
Total 100.0
Commitment to minority shareholders
We are committed to creating value for minority
shareholders and acting in their best interests
through:
▪ Consistent payment of dividends
▪ Strong corporate governance
▪ Striving to maximize shareholder value
Advantage Valuations Sdn Bhd
Free float
52.19% 47.81%
Teo Seng Capital Berhad
11
Dividend history and policy
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019
Dividend declared (sen) 1.75 NIL 2.50 10.00 3.50 1.50 NIL 3.00 6.00
20%
0%
21%
41%
26%
19%
0%
30% 30%
0%
10%
20%
30%
40%
50%
Ma
r-1
2
Dec-
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
Dividend / PAT Ratio
Dividend policy
The Board intends to pay dividends of between 20% to 50% of Profit After Tax (PAT) after taking into
consideration the Group’s retained profits, cash flow, as well as the funding requirements of the Group.
It is a policy of the Board in recommending dividends to allow shareholders to participate in the profits
of the Group whilst retaining adequate reserves for its future growth.
12
Capital raising, buybacks and M&A history
2008 2011 2015 2019
Initial Public Offering
Date: 29th Oct 2008
No. of shares: 38m at RM0.45
per share
Amount raised: RM17.37m
Acquired Success Century Sdn Bhd for layer farming
expansion
Expanded egg trading
business to SG by acquiring
Premium Egg Products Pte.Ltd.
Acquired Professional Vet Enterprise Sdn. Bhd. in
Kuching, Sarawak for direct
market penetration of East
Malaysia
Acquired BH Fresh Food Pte. Ltd. as distribution
centre of egg products in
SG
One (1) bonus issue for
every two (2) existing
shares
One (1) warrant for every
four (4) existing shares
Share buyback
Date: May to Jun 2015
No. of shares: 209,000
Amount: RM0.38m
Share buyback
Date: Nov to Dec 2019
No. of shares: 5,947,700
Amount: RM8.00m
Capital raising /
share issuance
Buyback M&A
13
Table of contents
Company profile
Investment case
IntroductionCorporateoverview
Business overview
Growth drivers
Financial overview
Milestones
Corporate structure
Board of Directors
Shareholder structure
Dividend history
Capital raising, buybacks, and M&A history
Product portfolio
Layer farming operational process
Key customers
Geographic footprint
ESG and sustainability
Awards
COVID-19 impact
Financial highlights
Segment financials
Key financial data & ratios
Earnings guidance
Consumption of commercial eggs
Local and international promotion
Capacity utilization and expansion, and new products
Company outlook
14
Product portfolio
Eggs
Our farm has been
accredited with the
Malaysian Good
Agricultural Practices
(My GAP) certification
by the Department of
Veterinary Services of
Malaysia
Paper Egg Trays
We produce sturdy
paper egg trays by
using recycled
newspapers and old
magazines, which
would otherwise cause
congestions in the
limited dumpsites
around the country
Fertilizer
Contains over 60% of
rich, organic matter
that includes essential
nutrients (NPK),
magnesium and calcium
for plants
Animal health products
We distribute a great
range of imported
animal health products
for both food animals
and pet animals such as
anti-parasites,
antibiotics, food
additives, supplements,
etc.
Fresh layer hen
Quality and highly-
demanded brands is
what sets us aside. We
are the best
manufacturers and
suppliers of quality
halal whole fresh layer
hen
Teo Seng Capital Berhad aspires to provide a variety of healthy egg products and create a happy life for ourstakeholders through product innovation, ethical business practices and environmentally sustainable measures to alignwith our core value of “Hatching for the Future.”
15
Product portfolio
Layer farming
Farm and production capacity:
▪ 24 farms categorized into Pullet and Layer farms (8
Pullets, & 16 Layers)
▪ The existing capacity for layer farming is 5.5m birds
(layer), daily laying approximately 4m eggs (3.8m in
Year 2018), approximately 40% of which is exported
to overseas
▪ 2 Central Packing Stations facilitated by 4 egg
grading machines with a total grading capacity of
650,000 eggs per hour
16
Product portfolio
Feed
▪ Produced and consumed 100% of it own manufactured
feeds
▪ Maximum production capacity per month can produce
approximately 30,000 matrix tons of feed, sufficient for
existing 4 million daily egg production and future layer
farming expansion
▪ Upgrade of feed mill plant was completed and
commenced operations in 4Q17
Paper Egg Tray
Paper Egg Trays and Production Capacity
▪ 2 machine set-up
▪ Effectively recycle used paper into paper egg tray with the
rate of 68 grams and 75 grams
▪ A new Europe technology-based machine is commencing
operation in Q3’16 and it increases the production capacity
of 6,840 pieces per hour
▪ Total produce approximately 260,000 paper egg trays daily
running on 24 hours basis, supplying 80% of internal
operation needs
▪ Supplying approximately 20% to external
17
Product portfolio
Animal Health Products
▪ To promote animal health care with quality products and
customized solutions
▪ First-hand information on the latest innovation and research
available for deployment toward our business
▪ Acquired Professional Vet Enterprise Sdn. Bhd. in Sep 2019 to
directly penetrate market in East Malaysia
▪ Offices located in Puchong (Selangor), Kuching (Sarawak) and
Singapore
▪ Sales – Food Animal Product (FAP) and Companion Animal
Product (CAP)
▪ Good quality and branded products from Bayer, Elanco,
Innovad, O. Corporation (Korea) and etc
▪ Obtained sole-distributorship for products of Bayer, Innovad,
Himalaya, Elanco (vaccine products) and Natural Core in
Malaysia and Singapore
18
Product portfolio
Organic Fertilizer
▪ Turning the chicken manure into organic fertilizer
▪ Recycle farm waste
▪ Sustain the environmental protection
▪ Awarded Bionexus status last October 2015
19
Layer farming operational process
Breeder (D.O.C.)
Pullet Farm (1 day to 16 weeks old)
Central Packaging Station (Grading and Packaging)
Finished Goods(Wholesalers, Hypermarket, Retails, Food Processing)
Layer Farm (17 to 90 weeks old)
20
Integrated layer farming operational process
Paper egg tray plant
Animal health products
Layer farm(17th to 90th week)
Pullet farm(DOC to 16th week)
Feedmill plant
Central packing station
Fertilizer plant
Further egg processing Graded eggs
Customers
Egg trays
Egg trays
Medicine, vaccine, and supplements
Medicine, vaccine, and supplements
Ungraded eggs
Raw chicken manure
Raw chicken manure
Grower feed
Layer feed
Customers
Organic fertilizer
LayerDay-old-chick (“DOC”)
21
Key customers
Wholesalers
Hypermarkets / Retailers
Food Producers
22
Geographic footprint
Our sales network in regional areas is:
▪ Peninsular Malaysia – eggs, animal health
products, egg trays and fertilizer
▪ East Malaysia – animal health products
▪ Singapore – eggs and animal health products
▪ Hong Kong – eggs
Singapore
Peninsular MalaysiaEast Malaysia
RitmaPrestasi
Teo Seng Capital
Professional VET Enterprise
Headquarters and subsidiaries are in
Yong Peng (Johor), Puchong (Selangor), Kuching (Sarawak) and Singapore
23
Environmental, Social & Governance (“ESG”)
o Corporate governance and regulatory compliance overseen by Corporate Affair Committee and reporting tomanagement team and Board of Directors
o Rigorous biosecurity and disease control at farms to minimize risk of disease outbreako International Standards ISO 22000 accreditation for egg division and PEFC ST 2002:2013 for egg trays
division
Economic & Market Place
o Farm waste management system is in place to minimize the negative environmental and social impacts causedby company’s operations
o Using recycled newspapers and corrugated cartons to produce paper egg trayso Wastewater treatment system for egg packing station and washing division and paper egg trays productiono Solar photovoltaic projects installed at farms and factories to generate renewable energy for daily operational
use and reduce emission of CO2
Environmental
o Human Resource Department is in charge of employee development, succession planning and all matters inregard to human resources and workforce
o Health, Safety & Environment officer and Safety & Health Committee establish and execute relevant policiesand procedures
Human Resource & Workplace
o Corporate Social Responsibility (“CSR”) events and activities organized, i.e. blood donations, school sharing events, charity and sponsorships
Social & Community
24
UN Sustainable Development Goals▪ 42% of management staff are women
▪ Equal remuneration for women and men
▪ Zero-tolerance policy towards all forms of violence
at work. No cases of workplace violence and
harassment
▪ Wastewater treatment system for egg packing
station and washing division and paper egg tray
production
▪ 15 solar photovoltaic projects installed at farms and
factories to generate renewable energy for daily
operational use
▪ As an expanding poultry company, the organic
growth of the company translates to job opportunities
for local workforce
▪ Farm waste management system is in place to
minimize the negative environmental and social
impact caused by company’s operations
▪ Using recycled newspapers and corrugated cartons
to produce paper egg trays
▪ Solar photovoltaic projects installed at farms and
factories to generate renewable energy for daily
operational use and reduce CO2 emissions
SASB Standards
Green House Gas
Emission
o Reduction of carbon discharge
totalling 4,000 tonnes a year
once installation of all solar PV
systems is completed
Energy
Management
o 30% of electricity cost saving on
the farms and factories which
installed solar PV systems
Workforce Health
& Safety
o Total recordable injury rate
(“TRIR”) tracked
Business Ethic o Anti-corruption policy in place
o Enterprise Risk Management and
Sustainability Framework is
established
25
ISO Certifications & Company Awards
First company in Malaysia to be awarded with ISO 22000 and PEFC ST 2002:2013 (Teo Seng Paper Products)
2007 – Teo Seng Farming Sdn. Bhd.
Outstanding Emerging Livestock Industry Award
2009 – Teo Seng Capital Berhad.
Outstanding Layer Farm Award
2013 – Teo Seng Farming Sdn. Bhd.
Outstanding Layer Farm Award
2006 – Ritma Prestasi Sdn. Bhd.
Excellent Business Achievement from Bayer
2008 – Ritma Prestasi Sdn. Bhd.
Silver Sales Achievement from Bayer
2013 – Ritma Prestasi Sdn. Bhd.
Outstanding Top 10 CompaniesMalaysia’s Fast-Moving CompaniesSME 100 Award 2013
2014 – Ritma Prestasi Sdn. Bhd.
Asia Pacific Entrepreneur Excellence Award – Excellence Service Quality
2014 – Ritma Prestasi Sdn. Bhd.
Asia Pacific Entrepreneur Excellence Award – Excellence Leadership
2017 – Teo Seng Farming Sdn. Bhd.
The Brand Laureate Best Brand Award –Product Branding
2015 – Teo Seng Farming Sdn. Bhd.
Outstanding Innovative Layer Farm Award
Others
26
COVID-19 impact
▪ As an “Essential Services and Goods” supplier, Teo Seng was allowed to continue
to operate as usual during period of Movement Control Order (“MCO”) and
Conditional MCO.
▪ No breach of contracts and we continue to meet our bank covenants and other
contractual covenants.
▪ No need to raise additional capital to weather the crisis as we are at healthy
financial position and our gearing ratio is below 1, at 0.52 times according to
2019 financial statements.
▪ Capital expenditures on new layer farm will be delayed by 6 months.
▪ Taking rigorous measures to mitigate the risk of infection and protect employees,
such as body temperature checking by security check point, face mask provided
to every staffs and hand sanitizers are in place.
▪ Since the declaration of 3rd interim dividend for financial year ended 2019 was
made on 13th Feb 2020 and share buyback activities in November and
December 2019, any subsequent declaration of dividend and share buyback
will be depending on the financial performance 2020.
▪ No layoffs and no changes to employee benefits and executive compensation.
▪ Going forward, employees will be paid in accordance with government
guidelines, while suppliers and service providers will be paid based on services
completed.
▪ We made donations of eggs to local community, NGO, government organizations,
charity organizations and others.
27
Table of contents
Company profile
Investment case
IntroductionCorporateoverview
Business overview
Growth drivers
Financial overview
Milestones
Corporate structure
Board of Directors
Management team
Shareholder structure
Dividend history
Capital raising, buybacks, and M&A history
Product portfolio
Layer farming operational process
Key customers
Geographic footprint
ESG and sustainability
Awards
COVID-19 impact
Consumption of commercial eggs
Local and international promotion
Capacity utilization and expansion, and new products
Company outlook
Financial highlights
Segment financials
Key financial data & ratios
Earnings guidance
28
Consumption of commercial eggs
Source: DVS, SFA, Company
8,708 8,829 9,289
10,442
11,368
11,943
14,087
13,413
1,594 1,639 1,686 1,716 1,791 1,900 1,971 2,029
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2011 2012 2013 2014 2015 2016 2017 2018
Consumption per year (million pcs)
MY SG
MY: 54%; CAGR 6.37%SG: 17%; CAGR 2.22%
300 299 309
341
361 365
383
363
307 308 312 313 323
338 349
358
0
50
100
150
200
250
300
350
400
450
2011 2012 2013 2014 2015 2016 2017 2018
Consumption per capita - MY & SG
MY SG
MY: 21%; CAGR 2.76%SG: 17%; CAGR 2.22%
29
Raw material cost and egg selling price trend
▪ Prices for maize and soya fluctuate due to supply and demand dynamics in the international
market, caused by several complex factors, including adverse regional weather conditions,
global currency fluctuations, and market speculation.
▪ Price of eggs is mainly affected by the demand and supply for eggs.
30
Local and international promotion
Promotion of eggs in Malaysia
▪ To increase the market share and
grow the sales on premium product
(Happy Egg) and designated eggs
(eggs sold to hypermarket)
▪ To explore direct sales
▪ To appoint distributor(s) for premium
products in Selangor / KL region
▪ To develop new premium products
▪ School education events at primary
schools (27 schools in 2018 and 2019)
▪ To conduct sampling and promotion
events in hypermarket and supermarket
and partnership or collaboration with
other industry preferable F&B,
corporates and associations (38 stores in 2018 and 2019)
▪ Truck advertisement on own and
customers’ trucks (54 trucks)
▪ To export 40% of daily egg production
to overseas
▪ To appoint distributor(s) to sell Happy
Egg in overseas
▪ On-going exploration of new overseas
markets (new countries)
Promotion of eggs overseas
31
Capacity utilization and expansion
Plant Current Utilization Planned expansion
Layer farm 100% +50% (by 2026)
Feed mill plant 70% +30%
Paper egg trays plant 100% -
Capacity utilization and expansion
32
New products
Hard-boiled Egg Soft-boiled Egg Herbal Egg
33
Company outlook
3.0
3.4 3.63.7
4.0 4.14.5
5.0
0
1
2
3
4
5
6
2015 2016 2017 2018 2019 2020(forecast)
2021(forecast)
2022(forecast)
Daily Egg Production (million eggs)
▪ 1m or 33% egg production
growth in 2015-2019
▪ 8.25% egg production
growth per year
▪ 1m or 25% egg production
growth in 2020-2022
▪ 8.33% egg production
growth per year
Acquired Professional Vet Enterprise
S/B to directly penetrate East
Malaysia market for trading of
animal health products
Investing in solar panel systems across
farms and factories for renewable
energy generation to save on
electricity costs and positively
contribute to environment conservation
efforts
Layer farming expansion in central
region in Peninsular Malaysia
Downstream businesses, i.e. hard-
boiled eggs and old hen processing
products
34
Table of contents
Company profile
Investment case
IntroductionCorporateoverview
Business overview
Growth drivers
Financial overview
Milestones
Corporate structure
Board of Directors
Management team
Shareholder structure
Dividend history
Capital raising, buybacks, and M&A history
Product portfolio
Layer farming operational process
Key customers
Geographic footprint
ESG and sustainability
Awards
COVID-19 impact
Financial highlights
Segment financials
Key financial data & ratios
Earnings guidance
Consumption of commercial eggs
Local and international promotion
Capacity utilization and expansion, and new products
Company outlook
35
Financial highlights
171 189
260 263
331
381 413
434 424
490
547
-
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenue Summary (RM mil)
31 33 37 18
45
82 69 48
29
70
107
-
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
EBITDA Summary (RM mil)
20 18 20 3
23 49 41
21 3
30 59
-
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Profit After Tax Summary (RM mil)
Revenue growth of 11.5% in 2019 was largely
attributed to the stability of egg price and growth
in egg sales
In line with the continuous growth of capital expenditure, Teo
Seng recorded remarkable EBITDA margin (2019: 19.6% ;
2018: 14.2%) over the years, and achieved growth of 54.6%
in 2019 was mainly attributed to the stability of egg and raw
materials prices and growth in egg sales
Egg industry is elastic to egg prices, which is
attributed to demand and supply dynamics.
In the case there is an egg oversupply in the
market, farmers will usually carry out early
depopulation of spent hens to reduce supply
and the price will be stabilized and
normalized.Same as Revenue, PAT growth of 93.6% in 2019 was
largely attributed to the stability of egg and raw
materials prices and growth in egg sales
36
Segment financials – Revenue
87.4%
12.6%
2018
87.7%
12.3%
2019
87.7%
12.3%
2018
90.2%
9.8%
2019
Revenue by segment EBITDA by segment
Poultry farming Investment and trading of poultry-related products
37
Segment financials – Geography
Revenue by geography
Malaysia Singapore
62.77%
29.01%
8.22%
2018
Others
62.22%
32.28%
5.51%
2019
38
Key financial data and ratios
RM’000 2016 2017 2018 2019 % change (2018 vs. 2019)
Revenue 433,712 424,209 490,285 546,535 11.5
Finance cost 6,676 7,332 8,310 7,821 -5.9
Profit before tax 25,968 4,086 41,298 77,068 86.6
Profit after tax 20,721 3,460 30,393 58,835 93.6
Total assets 468,195 494,980 543,281 562,548 3.6
Total liabilities 222,433 246,198 265,471 255,911 -3.6
Total borrowing 150,462 177,769 175,094 160,095 -8.6
Total equity 245,762 248,782 277,810 306,630 10.4
Cash and bank balances 34,264 19,368 30,001 41,101 37.0
Gearing ratio (x) 0.61 0.71 0.63 0.52 -17.2
Net debt-to-equity ratio (x) 0.47 0.64 0.52 0.39 -25.7
Net asset per share (RM) 0.82 0.83 0.93 1.04 12.6
Current ratio (x) 1.16 1.01 1.10 1.29 17.6
Return on equity (%) 8.43 1.39 10.94 19.19 75.4
Basic earnings per share (sen) 6.91 1.15 10.13 20.02 97.6
Number of shares 299,792,225 299,792,225 299,792,225 293,844,525
39
Earnings Guidance
2020/2nd half
Movement Control Order (“MCO”) and Conditional MCO implemented by Malaysia government havebeen lifted and Recovery MCO is on-going until 31st August 2020 and further extended to 31st
December 2020. Since the lifting of Conditional MCO, the government allows the businesses, i.e.schools, restaurants, factories etc. to resume operations provided standard operational procedures arecomplied with.
We foresee the consumption of eggs to rebound and believe that the egg price will recover if the basescenario (stable egg demand and supply) holds.
2020/12 months
Despite that the Group’s businesses are categorized as essential foods and the recent improved sellingprice of eggs, the uncertainty of market conditions is still challenging. The Board of Directors isconfident to face this challenge by taking necessary precautionary actions and by mitigate the possiblerisk impact on Covid-19 pandemic. Looking forward, the Group will continue being prudent inmanaging its financial resources, operational costs, and capex requirements.
40
Disclaimer
The financial information in this document is consolidated earnings and financial positions based on Annual Reports.
This document is provided for the convenience of investors only. Selected key financial data is only for easy and usefulreview of historical financial performance and comparison with competitors. The financial forecast outcomes maycause some parts of this document to change.
This document contains "forward-looking statements" – that is, statements related to future, not past events. In thiscontext, "forward-looking statements" often address our expected future business and financial performance, andoften contain words such as “future”, "expects”, "anticipates”, "intends”, "plans”, "believes”, "seeks” or "will".“Forward-looking statements" by their nature address matters that are, to different degrees, uncertain.
For us, particular uncertainties which could adversely or positively affect our future results include:
• The behaviour of financial markets including fluctuations in exchange rates, interest rates, etc.
• Strategic actions including market share growth and multi-dimensional business nature.
• Business developments in our major businesses including Commercial Egg (core product), Feed and Paper Egg Tray(supporting products), frozen old hens, organic fertilizer and animal health product (others products).
• Other numerous matters at the national and international levels which could affect our future results.
These uncertainties may cause our actual results to be materially different from those expressed in this document.
This presentation has been prepared by Teo Seng solely for use as a presentation to prospective and existinginvestors. The information in this presentation has not been independently verified. No representation or warranty,express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness orcorrectness of the information and opinions in this presentation. None of Teo Seng’s or any of its subsidiaries’ agentsor advisers, or any of their respective affiliates, advisers or representatives, undertake to update or revise anyforward-looking statements, whether as a result of new information, future events or otherwise, and none of them shallhave any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or itscontents or otherwise arising in connection with this presentation.
Teo Seng Capital Berhad aspires toprovide a variety of healthy eggproducts and create a happy life forour stakeholders through productinnovation, ethical business practicesand environmentally sustainablemeasures to align with our core valueof “Hatching for the Future.”
THANK YOU!
Mr. Gan Han LongBusiness Affairs Manager+6019 759 [email protected]