ch. karnchang public company...

CH. Karnchang Public Company Limited

Presentation 3Q16

CONTENTS1

01 02 03 05 04 06 At a Glance

• About CK

• CK Business Model

Strong Construction

FutureOutlook

Strong Investment

StrongPerformance

Appendix

• Strong Backlog

•Infrastructure Outlook

•Strong Recurring Incomes

• Contribution to CK Construction works

•Investment Outlook

•Financial Performance • Appendix

ABOUT CK2

Industry Property & Construction

Sector Construction Services

Market Cap. (As of 16/01/17)

1423.5 Million USD

No. of Share 1,693,899,970 shares

First Trade Date 03 Aug 1995

Par Value 1.00 Baht

Dividend Policy 40 % of Net Profit

About CK

1 Mahasiri Siam Co.,Ltd. 18.68%

2 CH. Karnchang Holding Co., Ltd. 10.36%

3 CK Office Tower Co., Ltd. 5.51%

4 Thai NDVR Co., Ltd. 4.26%

5 Bangkok Bank PCL. 2.30%

6 State Street Bank Europe Limited 1.14%

7 K Equity LTF 1.12%

8 K Equity 70:30 LTF 1.12%

9 K Equity Dividend LTF 0.94%

Major Shareholder

1972

Founded CK withinitial registered capital of 1.40 MB on November 27, 1972

First expressway concession : BECL

1987

1994

- Converted into public company- Increased registered capital to 700 MB

-CK Listed on the SET on Aug 3.- BECL Listed on the SET on Aug 31

1995

1996

Increased registered capital to 1,050 MB

First underground mass transit : BMCL

1998

2004

-Founded SEAN.-BMCL & TTW began commercial operations

BMCL listed on the SET

2006

2007

Gained total amount of 877 MB from CK Warrant

TTW listed on the SET

2008

2009

Expanded into other energy businesses

Founded CKP as a holding company

2011

2012

NN2 COD, Signed Xayaburiproject, the biggest value in CK history

CKP listed on the SET

2013

2015

Amalgamation of BEM with registered capital to 15,285 MB

BEM traded under new name

2016

(As of 13/09/16) Shareholder StructureAs of 09/11/2016

Local Funds

22.47%

Foreign Investors

6.58%

Trivisvavet Family37.54%

Others33.41%

Construction Investment

CK BUSINESS MODEL

Transportation

Water

Power

Concession Operation

Construction Revenues

Capital Gain

Dividend

Investment Revenues

To be the comprehensive contractor - infrastructure

developer - concession investor to create synergy and

complementary business.

DividendConstruction

Work

3

30.25%

30.62%

19.40%

Strong Backlog - Current Projects (As of Sep 30, 2016) Period Contract Value

(Million USD)

Remaining Value

(Million USD)Progress

1. MRT Purple Line

- Elevated Structure, Contract 1 - Supply and Installation of M&E System in the MRT, Contract 4

2009-20162013-2016

418.9565.2

0.9215.4

99.7%61.9%

2. MRT Blue Line (Extension)

- Underground Civil (Sanam Chai-Tha Phra), Contract 2- Trackwork, Contract 5

2011-20172011-2017

282.1132.0

12.731.0

95.5%76.5%

3. MRT Green Line

- Elevated Structure and Depot, Contract 1

- Trackwork, Contract 2 2012-20162013-2017

371.963.3

37.216.8

90.0%73.5%

4. Xayaburi : A Run-off-river Hydropower Project 2011-2019 2,664.9 898.1 66.3%

5. Si Rat (Sector B+) Expressway 2012-2016 635.6 12.7 98.0%

6. The Cogeneration Power Project No.2 (BIC-2) 2014-2017 121.8 31.0 74.5%

7. 2nd Tap Water Treatment Plant in Samut Sakhon – Nakhon Pathom 2014-2016 82.0 28.3 65.5%

8. Capacity Expansion Project in Pathum Thani – Rangsit 2014-2016 10.4 1.8 83.0%

9. The Medical Center Building and Facilities – Mae Fah Luang University 2015-2018 39.0 27.9 28.5%

10. Underground Manholes and Ductbanks Project with the MRT Green Line 2015-2018 30.2 26.8 11.5%

11. The Diagnosis and Treatment Building and Facilities @ Mae Fah Luang University 2015-2018 33.0 27.9 15.3%

12. MRT Blue Line (Extension) : M&E - E&M and MRT Blue Line : communication systems 2015-2017 29.8 11.6 61.0%

13. MRT Blue Line : Maintenance Services and E&M Systems 2015-2023 35.9 32.8 8.4%

14. MRT Purple Line Bang Pai – Tao Poon : Maintenance Services and E&M Systems 2015-2023 42.9 42.9 0.0%

15. The raw water intake relocation project for Bang Pa-in 2015-2017 3.9 3.0 23.5%

16. SRT Double Track Railroad : Chira Junction - Khon Kaen Section 2015-2018 618.5 394.0 9.0%

17. Motorway No.4, Pattaya-Map Ta Phut Section, Phase5 2016-2018 20.5 19.4 5.5%

18. The Construction of the 230/500 kV Nabong Substation 2016-2019 62.1 48.1 22.5%

19. Motorway , Bang Pa-in – Nakhon Ratchasima Section 2016-2019 51.3 51.2 0.1%

20. Repair of Si Rat Expressway : Period 3 Phase 5, Sector D (Asoke-Srinagarindra) 2012-2016 0.9 0.9 0.0%

21. Other Projects 2012-2016 237.2 41.0 82.7%

Total 6,553.8 2,013.8

*

* K-Factor projects

**

**

*

*

**

*

*

4

Signed Projects in 2016 Signed Project Value (Million USD)

1. Motorway, Bang Pa-in – Nakhon RatchasimaSection Aug 2016 51.3

2. Xayaburi : A Run-of-river Hydropower Project(Variation Order) Jul 2016 548

3. The Construction of the 230/500 kV NabongSubstation Apr 2016 62

4. The Construction of Highway No.7, Pattaya –Map Ta Phut Section, Phase 5 Mar 2016 20.5

Total 681.8

STRONG BACKLOG5

Upcoming Projects StatusProject Value (Million USD)

1. Motorway, Bang Pa-in –Nakhon Ratchasima contract 4 To be signed in 1H17 56

2. MRT Blue Line Extension M&E To be signed in 1H17 706

3. MRT Orange Line : Contract 1 To be signed in 1H17 584.7



Total 2,095.5

Signed Project (Million USD)

MRT21%

Power48%

Motorway &

Expressway4%

Double Track20%

Building3%

Water System

2%

Other Project

2%

46% 56% 56% 61% 53%

54% 43% 44% 39% 47%

2012 2013 2014 2015 Q3/2016

Oversea Domestic

5

Backlog (Million USD) Domestic & Oversea Backlog

3,343 3,1772,661

2,3602,014

2012 2013 2014 2015 Q3/2016

Backlog breakdown by Type of work2,809

647

215

644 682

2,113

1 2 3 4 5 62012 2013 2014 2015 2016 2017

Development Direction :

Transport Infrastructure Development Master Plan6

84.7706 791

4,067

5,141

3,503

1,4121,045

1,6102,175

790

141

2016 2017 2018 2019 2020 2021 2022

Expected disbursement on infra projects

New Ongoing (Million USD)

Source: EIC Analysis

Upcoming ProjectsTotal inv.(Million

USD)Progress

1 MW : Pattaya – Maptaput 565

2 MW : Bang Pa In – Nakorn Ratchasrima 2,401

3 MW : Bang Yai - Karnchanaburi 1,582

4 Sawannabhumi Airport 1,469

5 Leam Chabang Seaport (SRTO & A0 Port) 113

6 UR : Orange Line (Thailand cultural center – Min Buri) 3,107

7 UR : Pink line (Kae Rai – Min Buri) 1,610

8 UR : Yellow line Lad Prao – Sam Rong 1,554

9 UR : Blue line (Bang Sue – Tha Phra &Hua Lampong – Bang Kae)

621

10 UR : Red Line (Bang Sue – Hua Mark & Hua Lampong) 1,243

11 UR : Airport Rail Link (Bang Sue – Phayathai) 876

12 DT : Prachuap Khiri Khan - Chumpon 480

13 DT : Map Kabao – Jira Junction 847

14 DT : Lop Buri – Pak Nampo 1,412

15 DT : Nakorn Phrathom – Hua Hin 565

16 HSR : Bangkok – Hua Hin 2,684

17 HSR : Bangkok - Rayong 4,322

18 HSR : Bangkok – Nong Kai 4,802

19 HSR : Bangkok – Chiang Rai 14,972

Already bid On bidding process Need cabinet approval Under FS Study

(Million USD)

ProjectsConstruction

Value (Million USD)

Project Owner

Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17

Double Track : Prachuap KhiriKhan - Chumphon

441.47

SRT

Bidding Signing Construction

Double Track : Nakhon Pathom –Hua Hin

544.35 Bidding Signing Construction

Double Track : Mab Krabao -Chira Junction


Double Track : Lop Buri – Pak Nam Po


Double Track : Hua Hin –Prachuap Keeree Kan


Sainoi - Ratchaburi Transmission Pipeline Project

254.24 PTT Bidding Signing Construction

Total 2,999.94

CK TARGETS IN 1H 20177

Projects Construction

Value (Million USD)

Owner

MRT Purple Line : Tao Poon - Ratboorana 1,840.4

MRTA

MRT Orange Line : Taling Chan -Thailand Cultural Centre

2,550

MRT Blue Line (Extension) : Bang Khae -Phuttamonthon 4

598.8

MRT Green Line : Samut Prakan - Bangpu 344.6

MRT Green Line : Khu Khot - Lam Luk Ka 282.5

Airport Rail Link (Extension) Don Muang- Bang Sue - Phaya Thai

881.7

SRT

Red Line : Rangsit - ThammasatUniversity (Rangsit Campus)

214.7

Red Line (Missing Link) 1,247.4

Double Track : Paknam Po – Den Chai 1,584.7

Double Track : Chira Junction –Ubon Ratchathani

1,012.4

Double Track : Khon Kaen - Nong Khai 737.3

Double Track : Chumphon - Surat Thani 661

CK TARGETS IN 2017 ONWARD8

ProjectsConstruction

Value (Million USD)

Owner

Double Track : Surat Thani - Hat Yai -Songkhla

1,466 SRT

3rd Runway, Suvarnabhumi Airport 282.5 AOT

Motorway : Pattaya - Map Ta Phut 70.6

DOHMotorway : Bang Pa-In - NakhonRatchasima

282.5

Motorway : Bang Yai - Kanchanaburi 282.5

Rama III - Dao Kanong Expressway 881.4EXAT

Third Stage Expressway (North) 406.8

Total 15,628

51%

8%4%

35%

2%

Project Breakdown By Type of work

Mass Transit

Express Way

Road

Double track train

Airport

7,890 Million USD

1,288.2 Million USD

635.6 Million USD

5,461.4 Million USD

282.5 Million USD

STRONG INVESTMENTS

As of 16/01/2017 Bangkok Expressway and Metro PLC. TTW PLC. CK Power PLC.

Stock Quote BEM TTW CKP

Shareholding (%) 30.62% 19.40% 30.25%

Concession

Expressway : EXAT

1990-2020 (2nd Stage Sector A B C)

1997-2027 (2nd Stage Sector D)

1996-2026 (Bang Pa-In – Pak Kret)

2012-2042 (Sirat – Outer Ring Road)

Metro: MRTA

2004-2029

(Blue Line)

2013-2043

(Purple Line)

TTW: PWA

2004-2034

PTW

1998-2023

2006-2023

TTW:

MNRE

2005-2030

PTW:

MOI

2000-2025

EGAT

2011-2036 (NN2 )2013-2038 (BIC)2019-2050 (XPCL)

PEA2012-2037 (BKC)2012-2037 (NRS)2013-2038 (CRS)

Registered Capital (Million USD)

431.78 112.71 261.02

Market Cap. (Million USD) 3,238.35 1,194.75 757.82

Par Value (Baht / share)

1.00 1.00 1.00

Dividend Policy 40% of net profit 50% of net profit 40% of net profit

Revenue (Million USD)

(As of 30 Sep 2016)267.5 117.24 139.25

D/E (As of 30 Sep 2016)

1.76 1.21 0.97

(29.73 % - Separate Balance Sheet)

9

1 CK 29.73%

2 MRTA 8.22%

3 KTB 6.85%

4 Others 54.31%

1 Mitsui 25.98%

2 BEM 19.45%

3 CK 19.40%

4 Others 35.17%

1 CK 30.25%

2 TTW 25.31%

3 BEM 19.40%

4 Others 25.04%

2012 2013 2014 2015 2016

DPS (baht) 1.32 1.58 1.70 2.50 -

Dividend Yield (%)

4.32 % 4.72 % 4.30 % 5.52 % -

DPS (baht) - - - - 0.12

Dividend Yield (%)

- - - - 1.74 %*

DPS (baht) 0.47 0.55 0.65 0.65 0.60

Dividend Yield (%)

4.35 % 5.20 % 5.17 % 6.13 % 5.56 %*

DPS (baht) - - - 0.10 0.0223

Dividend Yield (%)

- - - 0.75 % 0.70 % *

Total Dividend (Million Baht)

717.43 602.27 692.26 888.45 1,042

Total Dividend (Million USD)

20.3 17 19.5 25 29.5

STRONG RECURRING INCOMES10

* as of 30/09/2016

Construction Projects within CK Group by %

7

Signed Projects From CK Group by Contract Values (Million USD)

CONTRIBUTION TO CK CONSTRUCTION WORKS11

664.3

97.1

90.9

9.7219.5 312.5

2,807.6

565.3

214.1 108.6

610.2

61.5

117.7

71.4

515.6 424.0

919.3

1.7 81.7

535.3

71.972.3

2.8 2.9

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3/2016

CK Group Government Private

64% 64%53%

8% 17% 16%

84% 80% 85%69% 62%

36% 36%47%

92% 83% 84%

16% 20% 15%31% 38%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3/2016

CK Group Government & Private

12POTENTIAL PROJECTS FROM CK GROUP

The key projects of BEM to achieve during 2016 - 2020

TTW is taking the first stepin Myanmar

Y. 2016

Operating : 755 MW

Hydro : NN2 615 MW

Thermal : BIC 1 117.5 MW

Solar : BKC 8 MW,

CRS 8 MW, NRS 6 MW

Y. 2017 – 2018

Operating : 875 MW

New Capacity :

• 120 MW from BIC 2 (June 2017)

Y. 2019 – 2020

Operating : 2,280 MW

New Capacity :

• 1,285 MW from Xayaburi (Oct 2019)

Y. 2020 Onward

Target : 5,000 MW

Potentials :

• Hydropower Projects from Cross-Border

• Domestic Power Projects

CKP Solid Project Pipeline and Strong Growth Plan during 2016 - 2020

Mawlamyine Project

JointVenture

TTW 70% Z Corperation CO., LTD 30%

Concession BOT 30 years (Option +10 years 2 times)

Raw river Attran river

Investment 12 Million USD

Capacity 33,000 M3 Expandable up to 40,000 M3

(Source : Bangkok Post)

(Million USD) 2012 2013 2014 2015 1Q16 2Q16 3Q16 9M16

Construction Revenue

584.32 920.06 928.20 984.49 253.87 584.21 241.05 1,079.01

Total Revenue 624.12 1,186.72 1,001.21 1,074.24 9,086 256.67 252.82 1,101.27

Gross Profit 66.86 97.29 85.96 80.93 783 35.14 19.60 76.84

Net Profit 16.05 85.96 64.86 61.95 305 29.01 9.27 46.89

Gross Profit Margin

11.37% 10.54% 9.26% 8.22% 8.71% 6.02% 8.12% 7.12%

Net Profit Margin 2.57% 18.28% 6.48% 5.77% 3.35% 4.9% 3.67% 4.26%

Net D/E Ratio 2.64 1.73 1.48 1.66 1.67 1.56 1.47 1.47

STRONG PERFORMANCE13

Construction Project Progress Update

Sirat Expressway Project Value : 636 Million USD

Completed in 2016

MRT Purple Line ProjectProject Value : 984 Million USD

Completed in 2016

Construction Project Progress Update15


MRT Blue Line Extension ProjectProject Value : 282 Million USD

Construction Progress : 9.0 %

MRT Green Line (Extension) ProjectProject Value : 984 Million USD


Double Track : Chira Junction - Khon KaenProject Value : 619 Million USD


Motorway , Bang Pa-in – Nakhon RatchasimaProject Value : 21 Million USD



Construction Project Progress Update

Xayaburi : Hydropower ProjectProject Value : 2,665 Million USD


18


Xayaburi : Hydropower ProjectProject Value : 2,665 Million USD


Appendix

(Source : Bangkok Post)

, Bangkok Post

21

Metro Map

ProjectsDistance

kms.Stations Trains Cars Status

Operated(Year)

Operator

Blue Line (Bang Sue-Hua Lamphong) 20 18 19 57 Operating 2004 BEM

Purple Line (Bang Yai-Tao Poon) 23 16 21 63 Operating Aug 6, 2016 BEM

Airport Rail Link (Phaya Thai-SuvarnabhumiAirport)

28.5 8 9 - Operating 2010 SRT

Green Line - Mochit - Baring

21.8 2252 208 Operating 1999 BTS

Light Green Line - National Stadium-Saphan Taksin-Bang Wa

14.5 13

Total (kms.) 107.8

Existing Metro Lines 6 more Lines under construction

ProjectDistance

kms.Stations Trains Cars Status

Operated(Year)

Operator

Blue Line (Extension)Bang Sue-Tha PraHua Lamphong-Bang Khae

27 20 30 90 Constructing 2020BEM

(to be negotiated)

Red Line (Bang Sue-Rang Sit) 26.3 8 - - Constructing 2021 SRT

Green Line (Khu Khot – Samut Prakan)

44.7 33 - Constructing 2021 BTS

Pink Line (Kae Rai – Min Buri) 36 24 - - Constructing 2020 BTS

Yellow Line (Lat Phrao –Samrong)

30.4 21 - - Constructing 2020 BTS

Orange Line (TCC - Minburi)

23 17 - - Constructing 2022 -

Total (kms.) 187.4

22

CKP : Lao PDR in Focus

• Abundant water resource on the mainstream Mekong River

23

Please visit CK Website @

http://www.ch-karnchang.co.th

More Information : [email protected]

Tel : 66 (0) 2 277 0460 Ext. 2317, 2318 & 2319

THANK YOU

ch. karnchang public company...

Documents