2015 THIRD QUARTER RESULTS REVIEW - Guangdong Investment · 2015-11-06 · 2015 THIRD QUARTER...
Transcript of 2015 THIRD QUARTER RESULTS REVIEW - Guangdong Investment · 2015-11-06 · 2015 THIRD QUARTER...
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1 Stock Code: 0270
October 2015
2015 THIRD QUARTER RESULTS REVIEW
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O U R B U S I N E S S
Infrastructures Water Resources Property Investment and Development &
Department Stores
Hotel Operations
Guangdong Investment Limited
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F I N A N C I A L P E R F O R M A N C E S U M M A R Y
Dividend (HK$ cents) 1H2014: 8
1H2015: 10 +25%
(HK$ mm)
6,352 7,161 7,736 7,990 8,426 6,998
2,431 3,007 3,414 4,426 4,397
3,135
0
2,000
4,000
6,000
8,000
10,000
2010 2011 2012 2013 2014 9M15
Revenue
Profit
Revenue (HK$ mm) 9M14: 6,542
9M15: 6,998 +7.0%
Profit * (HK$ mm) 9M14: 3,698
9M15: 3,135 -15.2%
Note*: The profit before tax decreased by 16.7% or HK$869 million to HK$4,322 million (2014: HK$5,191 million) for the Period as (i) the net gain arising from fair value adjustments for investment properties was HK$113 million (2014: HK$942 million), (ii) the net exchange difference charged to the profit or loss for the Period was HK$306 million (2014: HK$25 million), and (iii) the absence of the recovery of impairment on certain electric power plant amounting to HK$85 million recorded last year.
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1 H 1 5 R E V E N U E P E R F O R M A N C E B Y S E G M E N T
Property & Department Stores
1H14: HK$1,073 mm
1H15: HK$1,146mm 1H14: HK$2,727 mm
1H15: HK$3,112mm
Water Resources
+14.1% +6.8%
Infrastructures Hotel Operations & Management
1H14: HK$255 mm
1H15: HK$229 mm
1H14: HK$326 mm
1H15: HK$327mm
+0.3%
-10.2%
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1 H 1 5 S E G M E N T R E S U L T S
69% 27% 1.9% 2.5%
Water Resources Property Investment and Development &
Department Stores
Hotel Operations & Management
Infrastructures
Operating Profit (excluding interest income, other income and gains & finance costs)
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D I V I D E N D P A Y O U T T R E N D
15.0 18.0
20.0 23.0
28.0
38.5% 37.3% 36.5%
32.4%
39.7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
5
10
15
20
25
30
2010 2011 2012 2013 2014
Dividend
DividendPayout Ratio
(HK$ cents)
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F I N A N C I A L P O S I T I O N
Jun 2015 (HK$ mm) Dec 2014 (HK$ mm)
Total Assets 52,140 47,615
Included: Fixed assets and prepaid land lease 5,323 3,823
Investment properties 12,510 12,114
Operating concession rights & receivables under service concession arrangements 12,927 13,330
Available-for-sale financial assets 10,807 8,208
Cash and cash equivalents 7,368 7,002
Total Liabilities and Minority Interest 20,750 17,348
Included: bank and other borrowings 6.515 3,864
Non-interest bearing receipt in advance 946 946
Non-controlling interests 5,796 5,397
Equity attributable to Equity Holders 31,390 30,267
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H O N G K O N G W A T E R S U P P L Y A R R A N G E M E N T
Existing Arrangement
2015 – 2017
Volume/Tariff Flexible supply volume based on actual needs
Annual revenue
2015: HK$4.2 bn
2016: HK$4.5 bn
2017: HK$4.8 bn
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H K W A T E R S U P P L Y R E V E N U E T R E N D
2.5 2.5 2.5 2.5 3.0 3.1 3.3 3.5 3.7 4.0 4.2 4.5
4.8
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2005 2006 2007 2008* 2009 2010 2011 2012 2013 2014 2015 2016 2017
(HK$ bn)
Note*: Subsidy amounted to RMB 652 mm finalized by Guangdong Provincial Government for the period from 2005 to 2008. The subsidy was paid by instalments over four year starting from 2008
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D O N G J I A N G ( E A S T R I V E R ) W A T E R S U P P L Y C O N C E S S I O N
30-year concession started in 2000 to supply fresh water to Hong Kong, Shenzhen and Dongguan
Designed annual capacity of 2.4 billion cubic meters (bcm)
Revenue and Profit before Tax for 9M15 amounted to HK$4,412.1 mm and HK$2734.6 mm
0.0
0.5
1.0
1.5
2.0
2.5
2010 2011 2012 2013 2014 9M15
(bcm) Annual Water Distribution Volume
9M14
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W A T E R R E S O U R C E S P R O J E C T A C Q U I S I T I O N S
Nansha project: Revenue and Profit before Tax for 9M15 amounted to HK$186.6 mm and HK$21.9 mm
Wuhua, Jinsheng, Daojiao, Meizhou, Kaiping and Danzhou projects: Revenue and Profit before Tax for 9M15 amounted to HK$211.7 mm and HK$87.6 mm
Acquired 6 water supply projects, 1 waste water treatment project for a total consideration of RMB993 mm
Waste Water Project Waste Water Processing Capacity (tpd) Water Supply Project Water Supply Capacity(tpd)
Wuhua 40,000 Nansha 200,000
Jinsheng 70,000 Meizhou 280,000
Daojiao 40,000 Danzhou 100,000
Meizhou 100,000 Baoying 90,000
Kaiping 50,000 Gaoyou 95,000
Wuzhou 70,000 Jianghe 520,000
Yizheng 100,000
Wuzhou 355,000
Zhaoqing 90,000
Total 370,000 1,830,000
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C A P A C I T I Y G R O W T H T R E N D
NA NA 280 300 370 200 200
540 580
1830
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2012 2013 2014 2015 Post-acquisition
Waste WaterTreatment
Urban WaterSupply
Capacity Growth Trend by Type (‘000 tpd)
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P R O P E R T Y I N V E S T M E N T & D E V E L O P M E N T
* Including rentals from department store run by the Group ** Excluding revaluation gain and net interest income
966 1,056
1,115 1,180
893
651 735 748 796 626
0
200
400
600
800
1,000
1,200
1,400
2011 2012 2013 2014 9M15
Revenue
Profit beforeTax
Teem Plaza Performance Trend
HK$ mm
*
**
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D E P A R T M E N T S T O R E S
649 711
772 784
641
280 224 306 312 295
0
20
40
60
80
100
120
140
160
180
200
0
100
200
300
400
500
600
700
800
900
2011 2012 2013 2014 9M15
Revenue
Profit beforeTax
Leased Area
Department Stores Performance Trend
HK$ mm ‘000 m2
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H O T E L O P E R A T I O N S & M A N A G E M E N T
HOTEL OPERATIONS
Hotel owned or lease owned: 7 hotels
Average room rate and occupancy rate for star-rated hotels
• Sheraton Guangzhou Hotel: HK$1,274 and 86.9% (2014: HK$1,188 and 82.9%)
• Other 4 star-rated hotels: HK$667 and 81.5% (2014: HK$748 and 84.2%)
OVERALL
Revenue: HK$502 mm (-3.2%) Profit before tax: HK$81 mm (-22.8%)
HOTEL MANAGEMENT
Hotel managed: 40 hotels (2014: 38 hotels)
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P O W E R G E N E R A T I O N – Z H O N G S H A N P O W E R P L A N T
(HK$ mm)
449 440 425 400
293
56
105 126
149 117
0
50
100
150
200
250
300
350
400
450
500
2011 2012 2013 2014 9M15
Revenue
Profit before Tax
Revenue Trend
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P O W E R G E N E R A T I O N – J I N G H A I P O W E R P L A N T *
(HK$ mm)
3,640 3,708
8,281 7,635
5,009
293 498
1,683 1,709 1,244
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2011 2012 2013 2014 9M15
Revenue
Profit before Tax
Revenue Trend
*The Company’s effective interest in Jinghai Power is 25%.
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T O L L R O A D – X I N G L I U E X P R E S S W A Y
On October 9th, the Company completed acquisition of 100% stake of Xingliu Expressway from parent company
Main Line Branch Line Toll Station
Nanning City
Yulin City
Hengxian
Yunbiao
Xingye
Muge
Guigang
Guigang City
Xingliu Expressway Overview
Part of the G80 Guangzhou-Kunming Expressway that connects Yunnan, Guangxi and Guangdong Provinces
Commenced operation in August 2003 with five toll stations
The main line is 99.6km in length
Three branch line with aggregate length of 52.7km
Operation right of the Xingliu Expressway will expire in September 2032
FY 2013 FY 2014
Profit before Tax RMB 149 mn RMB 227 mn
Profit after Tax RMB 111 mn RMB 185 mn
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F I N A N C I A L S U M M A R Y
1H15 (HK$ mm) 1H14 (HK$ mm) Y/Y%
REVENUE 4,686 4,316 8.6%
Gross Profit 3,295 3,034 8.6%
Changes in fair value of investment properties 92 618 -85.1%
Administrative expenses (571) (579) -1.4%
Reversal of impairment of items of property, plant and equipment - 85
Others 331 306
PROFIT BEFORE TAX 3,147 3,464 -9.2%
Income tax expense (687) (666)
PROFIT FOR THE YEAR 2,460 2,798 -12.1%
Attributable to: Owners of the Company Non-controlling interest
2,221 238
2,469 329
EPS ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANY
Basic 35.53 HK cents 39.57 HK cents -10.2%
Diluted 35.47 HK cents 39.47 HK cents -10.1%
Gross margin 70.3% 70.3%
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C O N D E N S E D B A L A N C E S H E E T
Jun 2015 (HK$ mm) Dec 2014 (HK$ mm)
NON-CURRENT ASSETS 32,687 31,607
Property, plant and equipment 5,153 3,650
Investment properties 12,510 12,114
Operating concession rights & receivables under service concession arrangements 12,918 13,321
Others 2,106 2,522
CURRENT ASSETS 19,453 16,008
Available-for-sale financial assets 10,807 8,208
Cash and cash equivalents 7,368 7,002
Others 1,278 798
CURRENT LIABILITIES (5,024) (6,134)
Payables and accruals (3,596) (3,164)
Interest-bearing bank and other borrowings (569) (1,889)
Others (859) (1,081)
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C O N D E N S E D B A L A N C E S H E E T ( C O N T ’ D )
Jun 2015 (HK$ mm) Dec 2014 (HK$ mm)
NON-CURRENT LIABILITIES (9,930) (5,817)
Bank and other borrowings (5,946) (1,975)
Others (3,984) (3,842)
EQUITY 37,186 35,664
Equity attributable to owners of the Company 31,390 30,267
Non-controlling interests 5,796 5,397
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S U M M A R Y
Overall
Grow our business in water resources and infrastructure sectors as part of the Group’s strategy to increase profit growth points and overall investment portfolio
Keep Focusing
Seek investment opportunities in the water resources market to develop our core business
Monitor potential opportunities involving public-private-partnership projects in other sub sectors of infrastructure space
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L E G A L D I S C L A I M E R
This presentation does not constitute an offer or solicitation to anyone in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation or is unlawful without compliance with any registration, filing or other requirements.
This presentation contains “forward-looking statements” which are statements that refer to expectations and plans for the future and include, without limitation, statements regarding the Company’s future results of operations, financial condition or business prospects as well as other statements based on projections, estimates and assumptions. Words such as "expect," "intend," "plan," "believe," "estimate," "may," "will," "should" and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, which reflect the current expectations and plans of the directors and management of the Company, may not materialize or may change. Many risks, uncertainties and other factors, some of which are unpredictable and beyond the Company’s control, could affect the matters discussed in these forward-looking statements. These factors include, without limitation, economic and business conditions globally and in the countries where we operate, the Company’s ability to predict and respond quickly to market developments, pricing trends and competition; changes in applicable laws and regulations (including applicable tax and tariff rates). Any variance from the expectations or plans on which these forward-looking statements are based could cause the Company’s actual results or actions to differ materially from those expressed or implied in these statements. These statements are not guarantees of future performance and we caution readers not to place undue reliance on these statements. The Company undertakes no obligation to update any forward-looking statements in this presentation, whether as a result of new information or any subsequent change, development or event. All forward-looking statements in this presentation are qualified by reference to this paragraph.
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Thank You