financial analysis

1. Group members: Orange, Lolita, Emily, LuYao,
Tommy
1

2. Outline
Introduction
Industry brief introduction
Financial analysis
Auditor’s comments
Conclusions & Recommendations
2

3. Introduction about
Koon Holdings Limited
3

4. An introduction About Koon
Koon Holding Limited (“Koon”), an investment
holding company, was incorporated specifically for
listing on the Australian Securities Exchange(“ASX”)
and Singapore Exchange Limited(“SGX”). KCTC is the
main operating company of the Group.
The “ Group” is one of Singapore's leading
infrastructure construction and civil engineering
group with an established track record of over 30
years.
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5. The history of group
Began in 1975 as a small sole proprietorship
Koon construction and Transport Co,Pte Ltd (“KCTC”)
was incorporated and raised capital in 1979
Joint venture with a major marine engineering
company, Zinkcon, to form Koon-Zankcon in 1985.
The success of the joint venture, prompted the
management to formalize arrangement and Koon-
Zinkcon Pte Ltd (“KZ”), was incorporated in
1997.(KCTC still has 50% shares of KZ)
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6. Group business divisions
Construction Division (one of largest in Singapore civil
engineering, reclamation and shore protection
specialists)
Plant and Equipment Rental Division (rental the plant
and equipment which owned by Koon)
Precast Division
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7. Group Structure
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8. Outlook
In the latest forecast, the HDB expects new Build-
To-Order (BTO) flat launch, which will add to strong
demand for precast products from Koon.
There are also considerable cost pressures
affecting labour and raw materials. The tight labour
market is also a concern.
The Group’s transformed business model remains
on track to diversify revenue base and build more
recurring revenue.
Focus on more value added products and solutions
to offer to customers.
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9. Industry Brief
Introduction
Construction & Engineering
9

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 works
civil engineering rental
10

11. Market Comparison
Earnings P/E Ratio P/B P/E P/S Ratio
Ratio Growth
Koon 0.20 4.28 0.90 -- 2.53
(KNH)
Market 1.35 10.93 1.11 2.17 2.82
Sector 1.12 11.6 1.07 0.63 0.56
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12. Peer Comparison
Koon
Holdings(
KNH)
Clough( Leighton(
CLO) Construction LEI)
&
Engineering
UGL(UGL) Monadelphous(
MND)
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13. Peer Comparison
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14. Financial Analysis
• Financial Figures & Ratios
• Financial Outlook
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15. Profitability
Group 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
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Source: press release in June 2011

16. Profitability
Revenue from the Construction division declined
but was partially mitigated by an increase in
revenue contribution from the Precast division
which grew 71.0% to S$6.3 million.
Revenue Breakdown by Divisions 1H2011
71% Revenue Growth
18%
2%
Construction
Plant and Equipment
Rental
80% Precast
13.6% Revenue Decrease
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17. Profitability
S$'000 1H2010 1H2011 Change % lower Gross Profit
margin due to newly
setup, technical design
Revenue 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 rose
Profit
Attributable to 6,318 6,029 4.80
due to the gain on
Shareholders disposal of leasehold
Earnings per property and dividend
3.85 3.68 4.60
Share income received.
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18. Ratios
Growth in Net Earnings Margin, ROA, ROE
Valuation
35.00%
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)
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19. Ratios
Credit is well managed.
Current Ratio
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2008 2009 2010
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20. Auditor’s comments
From Deloitte & Touche LLP
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21. Opinion
1. 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。
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22. Cash flow statement Analysis
--- The importance of cash flow
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23. 23

24. Big difference
2010Y 2009Y
Income 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
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25. Consolidated statement of cash flows (ended
30 June 2011)
S$'000
Net cash from operating activities 2,349
Net cash from investing activities 161
Net cash from financing activities (2,049)
Net increase in cash and cash equivalents 461
Cash and cash equivalents at June 30 22,979
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26. Conclusions & Recommendations
26

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. 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
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29. Competitive Strengths &Industry Outlook
Industry Outlook
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30. Competitive Strengths &Industry Outlook
Competitive Strengths
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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
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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
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33. Competitive Strengths &Industry Outlook
Industry Outlook
33

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.
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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 the
Construction and Precast divisions
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36. Financial Highlights
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37. Recommendation
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38. Recommendation
P/E Ratio
Company 3.62
Industry 35.72
Sectors 22.18
Investment Recommendation :Sell
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39. Thank you!
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