CB Industrial Product Holding Berhad Third Quarter 2014 Results Update

CB Industrial Product Holding Berhad
Equipping Palm Oil Industries Around The World
Third Quarter 2014 Results Update
Review of Performance
Quarterly Review
Continuing Operations
Revenue
Profit from operations
Share of results of associates and
jointly-controlled entity
Quarter ended
30 September
% change
9 months ended
30 September
% change
2014
2013
2014
2013
(RM’000)
(RM’000)
(RM’000)
(RM’000)
149,399
136,093
9.78
394,860
429,861
(8.14)
25,142
24,660
1.02
71,477
70,776
0.01
2,120
4,332
51.06
4,545
2,390
90.17
24,602
24,921
(1.13)
69,996
65,497
6.87
8.52
8.29
2.77
25.26
22.43
12.62
Movement of CBIP mimics the movement of the Bursa Malaysia
Profit
before taxation Index, which27,048
28,944dependent
(6.55)
75,634the price
72,789 of CPO
3.90
Plantation
is largely
upon
Profit after taxation
Earnings per share (sen)

Revenue decreased by 8.14% for the 9
months financial period ended 30
September 2014, mainly due to lower
billing by the special purpose vehicles
division

Profit numbers improved for 9 months
financial period ended 30 September
2014 mainly due to improvement in
project billing and margin in the palm oil
engineering segment; and increased
contribution from the plantation jointlycontrolled entity and associates
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Review of Performance
Revenue Breakdown
9 months ended 30 September 2014
Special
Purpose
Vehicles
25%
9 months ended 30 September 2014
Special
Purpose
Vehicles
44%
Palm Oil
Engineering
56%
Palm Oil
Engineering
75%
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Profit Before Taxation
Breakdown
Profit Before Taxation
9 months ended 30 September
% change
2014
2013
(RM’000)
(RM’000)
Palm Oil Engineering
67,457
57,804
16.70
Oil Palm Plantation
(6,513)
(4,994)
30.41
Special Purpose Vehicles
10,145
17,589
(42.32)
4,545
2,390
90.17
75,634
72,789
3.90
Share of results of associates and jointly-controlled entity
Total
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Prospect
Palm Oil Engineering
RM’000
510,000
500,000
490,000
480,000
470,000
460,000
450,000
440,000
430,000
420,000
410,000
400,000

499,000
488,092
483,118
465,000
The orderbook is expected
to bode well for the
performance of the palm
oil engineering sector for
the financial year ending
2014 and 2015
439,646
3Q2013
4Q2013
1Q2014
2Q2014
3Q2014
Orderbook

Orderbook continues to grow, increasing by
3.33% from the preceding third quarter of 2013 to
RM499 million as at the fourth quarter of 2014

Growth has been driven by an influx of new
customers globally and market penetration in the
Central American/African region
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Prospect
Special Purpose Vehicles
300,000
250,000
200,000
150,000
284,860
Orderbook
215,656
100,000
186,526
158,000
124,000
50,000
0
3Q2013

4Q2013
1Q2014
2Q2014
3Q2014
Orderbook for the special purpose vehicles
remain solid at RM124 million as at second
quarter of 2014, which is expected to last
until the fourth quarter of 2014
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Prospect
Oil Palm Plantation - Indonesia
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Prospect
Oil Palm Plantation - Indonesia

With
current
landbank
of
approximately 86,000 ha in Central
Kalimantan, Indonesia aggressive
plantation
development
has
commenced since first half of 2013

Of the 86,000 ha in Indonesia,
approximately 5,044 ha has been
planted as at third quarter of 2014 with
approximately 6,000 ha targeted to be
planted for the year 2015

Revenue
from
the
Indonesian
plantation is expected to be realized in
the first half of 2016, when the first mill
is expected to be completed, with a
second mill targeted to be completed
in 2017
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Prospect
Oil Palm Plantation – Associates and JV


With effective planted area attributable
to CBIP of 7,000 ha, the associates and
JV plantation assets has posted a
combined profit of RM4.55 million for
the 9 months period ended 30
September 2014, an increase of
90.17% over the preceding 9 months
period ended 30 September 2013
With
a
non-controlling
interest,
performance of the associates and JV
plantation assets is to a large extent,
dependent upon the crude palm oil
selling price and yield.
Planted: 3,448 ha
Planted: 2,319 ha
Planted: 1,264 ha
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Further Information
Registered Office
CB Industrial Product Holding Berhad
Lot 4, Jalan Waja
15
Registered
Office
Kawasan Perusahaan Telok Panglima Garang
42500 Telok Panglim Garang
Selangor Darul Ehsan
Telephone No.: 03 3122 2786
Facsimile No.: 03 2122 1336
E-mail: [email protected]
Website: www.cbip.com.my
Contact Person
Lim Zee Yang
Investor Relations & Corporate Affairs
CB Industrial Product Holding Berhad
Telephone No.: 03 3122 2823
Cellphone No.: 012 6303451
Facsimile No.: 03 2122 1336
E-mail: [email protected]
Disclaimer
Certain statements in this presentation are based on historical results which may not be
reflective of future results. Other statements, including without limitation, those regarding
our future prospects, strategies and objectives of our Group, which are forward-looking in
nature, are subject to uncertainties and contingencies. Although we believe that the
expectations reflected in such forward-looking statements are reasonable at this time, there
can be no assurance that such expectations will subsequently materialise. The inclusion in
this presentation should not be regarded as a representation or warranty by our Group or
our management team that the plans and objectives of our Group will be achieved.
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