SMJ International Holdings Ltd.store.todayir.com/todayirattachment_sg/smjintl/... · 2015. 6....

SMJ International Holdings Ltd.

Corporate Presentation

June 20151

This presentation prepared by SMJ International Holdings Ltd. (the "Company") does not constitute, or form part of,

an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of any vote or

approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this

presentation in any jurisdiction in contravention of applicable law. Persons requiring advice should consult their

stockbroker, bank manager, solicitor, accountant or other independent financial consultant.

This document is confidential and has been made available in confidence. It may not be reproduced, disclosed to

third parties or made public in any way or used for any purpose other than in connection with the proposed

investment opportunity without the express written permission of the Company.

This presentation should not be relied upon as a representation of any matter that an advisor or potential investor

should consider in evaluating the Company. The Company and its related bodies corporate or any of its directors,

agents, officers or employees do not make any representation or warranty, express or implied, as to the accuracy or

completeness of any information, statements or representations contained in this presentation, and they do not

accept any liability whatsoever (including in negligence) for any information, representation or statement made in or

omitted from this presentation.

This document contains certain forward looking statements which involve known and unknown risks, delays and

uncertainties not under the Company’s control which may cause actual results, performance or achievements of the

Company to be materially different from the results, performance or expectations implied by these forward looking

statements. The Company makes no representation or warranty, express or implied, as to or endorsement of the

accuracy or completeness of any information, statements or representations contained in this presentation with

respect to the Company

It is acknowledged that the Company will not undertake any obligation to release publicly any revisions or updates to

these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of

this presentation except as required by law or by any appropriate regulatory authority.

D I S C L A I M E R

2

For Investor Relations related matters:

Cogent Communications | Name: Emily Choo| Email: [email protected] | Tel: 6704 9278

mailto:[email protected]

Contents

Business Overview

Notable Projects

Competitive Strengths

Business Update

Business Strategies & Future

Plans

Investment Merits

Questions & Answers

3SMJ International Holdings Ltd. Corporate Presentation Jun

2015

Business Overview

SMJ International Holdings Ltd. Corporate Presentation Jun 2015

4

About SMJ

• One of the leading premier carpet specialists serving the commercial and

institutional sectors in Asia

• Sell and distribute globally a wide range of premier carpets marketed

under our proprietary “SMJ” brand

• Appointed supplier for “Shaw Contract Group”* range of carpets in

Singapore

• Established reputation and track record of >25 years

5

*US brand by Shaw Industries - one of the largest carpet makers in the world and is a subsidiary of Berkshire Hathaway Inc.

Stock code 40B

Market

capitalisation* 14.120

Current share price S$0.181

Total of no. of

issued shares78,000,000

* as of 12 Jun 2015


Milestones

5

1988 Founded by Mr Ho Siew Yee, Peter

1992 Appointed by Shaw Industries (a member of Berkshire Hathaway Inc.) as its authorised

supplier in Singapore

2000

Developed export sales business in Indonesia, followed by Malaysia

1994 Received “Major Exporter Scheme” status from the IRAS

1996 Underwent corporate branding exercise – selected carpet design tiles from third party carpet

manufacturers and sold them under proprietary "SMJ" brand

2012

Ventured into engaging Formosa Chemicals & Fibre Corporation, a member of the Taiwan

Formosa Group, to manufacture carpets for sale under proprietary “SMJ” brand

Expand into export sales globally

Re-located head office, corporate showroom and warehouse facility with floor area of

approx. 47,727 sq ft

Graded L4 by BCA under the workhead of SY06

Obtained bizSafe Level 3 certification

2001

2013 First foray to Myanmar with first distribution sales to supply 60,300 sq ft of carpets for

installation in a hospitality project

1999

2010 Obtained bizSafe Level 1 certification

2014 Appointed authorised supplier for Mohawk Carpets and Nox Corporation Korea

Awarded Singapore Green Building Product Certificate

2015 Signed distribution agreement as one of the two distributors representing Armstrong China

for their vinyl flooring collection in Singapore

Signed MOU to set up a Joint Venture in Indonesia

Revenue Model

7

• One-stop premier carpet specialist

in Singapore - consultancy

services, project planning, project

management and installation of

carpet flooring

• Supply to commercial & institutional

sectors

• Customers - property developers of

commercial buildings, architects,

designers and contractors

• Sell and distribute on wholesale

basis carpets under proprietary

“SMJ” brand to >20 countries

mainly in Asia

• Customers - mainly carpet dealers,

carpet importers and carpet

installation companies

Distribution SalesContract Sales


Global Distribution Network

>260 distributors in >20 countries


2015

SMJ INTERNATIONAL HOLDINGS LTD.

SMJ FURNISHINGS (S) PTE LTD

100%

Group Structure


2015

Management Team

10

Board of Directors

CEO

Rena Ho

COO

Lee Lay Choo

CFO

Bernard Neoh

Deputy CEO

Nellie Ho

Business Director

Mark Tay

Finance & Administration

Manager

Sherina Low Yeen Mei

Certif ications, Awards & Accolades

11

Singapore SME 500

Company award from

2006 to 2010

Singapore SME 1000

Company award from 2011

to 2014

BizSAFE Level 3 by

Workplace Safety and

Health Council

Singapore Green

Building

Product Certificate


Singapore

Environment Council

Green Label for

Environmentally

preferred carpet

Notable Projects


12

Location

Office at Marina Bay Financial

Centre Tower 3 at 12 Marina

Boulevard

Year of

Completion2012

Area (sq ft) 503,776

DBS BANK LTD.

HSBC

Location Office at HSBC Building at 21

Collyer Quay

Year of

Completion2011

Area (sq ft) 128,190

Notable Projects


2015



14

• One of the largest Singapore 42,614 sq ft warehouse to stock a wide variety

of carpet tiles and broadloom carpets

• 80 designs of carpets in up to 400 different colours

• Real-time inventory management system reduces turnaround time (next

working day for local and within seven working days for overseas)

Wide carpet selection and short turnaround time

• CEO, Deputy CEO and COO have 55 years of cumulative experience in

carpet industry

• Management, sales and project teams have deep knowledge of products

• Management also attends overseas trade fairs and product training

conducted by Shaw Industries regularly

Strong management team assisted by experienced sales and

projects teams

• “SMJ” brand marketed since 1996 and export markets developed for >15

years

• Well-recognised for quality and reliability

• Overseas market served by global distribution network of >260

distributors in >20 countries

Proprietary “SMJ” brand of carpets well-recognised in Singapore

and overseas


15



16

• Appointed authorised supplier for high-end “Shaw Contract Group” of

carpets since 1992

• Regular joint promotional and marketing efforts for new carpet launches by

Shaw Industries

• Leverage on training and technical knowledge provided by Shaw

Industries which enhances competitive position

Long standing relationship with Shaw Industries

Strong working relationship with 3rd Party Manufacturers

• Strong working relationships (over period of 5-13 years) with 3rd party

manufacturers that manufacture “SMJ” branded carpets

• Able to supply good quality at competitive cost

• 3rd party manufacturer’s R&D teams support development of new

concepts and ideas of carpets


Business Update


17

Business Updates

Expansion and diversification of product range

18

Distribute: Lees, Bigelow and

Duracolor

Location: Malaysia, Indonesia

Philippines, Singapore

Distribute: Ecoclick Luxury Vinyl

Tile (“LVT”), Ecolay LVT, Orchid

Collection LVT and Loom+ Tile

Location: Singapore

Distribute: Vinyl Flooring

Location: Singapore


Latest Announcements

19

1. Participated in overseas trade fairs:

• Decofair in Saudi Arabia

• Domotex 2015

2. Secured three contracts worth a total of

approximately S$1.3 million at the start of 2015

3. Signed distribution agreement with Armstrong as

one of the two distributors representing

Armstrong China for a part of their vinyl flooring

collection in the Singapore market

4. Inked a MOU to set up Joint Venture in

Indonesia as part of expansion plans


Prospects


20

Prospects

21

Potential in Export

Markets

State of economies in

Singapore and

Southeast Asia region

Continuous supply of

commercial space in

Singapore

• Secured three contracts worth

approximately S$1.3 million:

- A*STAR: 128,200 sq ft

- DSTA: 165,870 sq ft

- Mediacorp: 35,700 sq ft

• Various opportunities arising

from commercial

developments

• Rise in construction activities

for the government sector

• Pipeline supply of commercial

space coupled with general

optimism on global growth

would translate into positive

impact

• Expanding & strengthening

geographical coverage will

drive growth sales for

proprietary “SMJ” brand of

carpets

• Exported to overseas market

through global distribution

networks

• Recognise market potential

- Signed a MOU to set up a

Joint Venture in Indonesia

- Participated in Domotex

Carpet Exhibition in

Germany which has seen

encouraging responses

from potential distributors

from the Middle East and

Eastern Europe

• Dependent on perceived

economic conditions

• Spending budget of

businesses and

organisations will remain

relatively constant compared

to past years


Business Strategies & Future Plans


2015

Business Strategies & Future Plans

23

To become a one-stop office furnishing solution provider in the region

Expanding our product range and services through acquisitions, joint

ventures and/or strategic alliances

• Explore opportunities in other products and services (e.g. system office

furniture, blinds, wall coverings, non-carpet floorings)

• May expand business by providing new service offering (such as carpet

maintenance and cleaning)

• New products and services can leverage on existing sale and distribution

network

• Explore other suitable acquisitions and joint ventures

Improving our inventory management system and logistics support to

cater for our expanding product range

• Monitor and manage inventory efficiently with expanded range of products

offered

• Expand fleet of delivery trucks to ensure the ability to fulfill customer’s orders

are not compromised

Expanding and strengthening our geographical coverage

• Serve potential overseas customers in Contract Sales business

• Maximise potential by growing our distribution networks


Financial Highlights


24

• Revenue decrease in FY2014 mainly due to the decrease in Distribution Sales during the year

24.1 23.6

22

20.2

2.7 2.4 2.71.6

0

2

4

6

8

10

12

14

0

5

10

15

20

25

30

FY 2011 FY 2012 FY 2013 FY 2014

Revenue

PAT

Net Profit Margins

S$’mil Net Margin %

FY Financial Overview


2015

FY Segmental Review

27

Overseas37.5%

Singapore 62.5%

Distribution

54.0%

Contract 46.0% Distributio

n 57.0%

Contract43.0%

FY2012 FY2013

By l

ocati

on

By s

eg

men

t

Overseas39.5%

Singapore 60.5%

Overseas53.6%

Singapore 46.4%

Distribution

53.6%

Contract46.4%

FY2014


S$’000 30 June 2014 31 December 2014

Assets

Current 21,022 19,713

Non-current 1,396 1,842

Liabilities

Current 6,606 4,882

Non-current 9 9

Total Equity 15,803 16,664

Balance Sheet


2015

30

Investment Merits


Investment Merits

• One of the leading premier carpet specialists in Asia

Established reputation and track record

Wide variety of carpets in stock

Extensive distribution network

Own “SMJ” brand

• Pipeline supply of commercial space in Singapore – sustained demand

• Leveraging on growing demand for commercial and office spaces in emerging markets

• Authorised supplier of high-end Shaw Contract Group carpets in Singapore for Shaw

Industries (a member of Berkshire Hathaway Inc.), Mohawk carpets and Nox Corporation

Korea (vinyl flooring)

• Vision to become a regional one-stop office furnishing solutions provider

31

Intend to recommend and distribute dividends of 30% of PAT to

Shareholders for FY2014 and FY2015SMJ International Holdings Ltd. Corporate Presentation Jun

2015

SMJ International Holdings Ltd.store.todayir.com/todayirattachment_sg/smjintl/... · 2015. 6....

Documents

Transcript of SMJ International Holdings Ltd.store.todayir.com/todayirattachment_sg/smjintl/... · 2015. 6....