Plover Bay Technologies Ltd. · HKEX:1523
Plover Bay Technologies — H1 2020 Earnings Presentation
18 slides from Plover Bay Technologies's earnings presentation, July 2020
Slide 1: 2020 Interim Results
Plover Bay Technologies Limited (1523 HK) July 2020 2020 Interim Results 0
Slide 2: Disclaimer
Disclaimer Plover Bay Technologies Limited is incorporated in the Cayman Islands with limited liability. The information contained in this presentation is intended solely for your personal reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not
Slide 3: Who We Are?
Who We Are? Provide Unbreakable Connectivity Anytime Anywhere ▪ Integrated hardware and software under “Peplink” and “Pepwave” to provide cloud-managed, secure, high-speed and unbreakable connectivity ▪ SpeedFusion creates high speed and “unbreakable” connectivity from any link, including fiber, bro
Slide 4: Products and customers
Products and customers SD-WAN router & Virtual appliances and Cloud management, networking devices feature licenses SpeedFusion Cloud Full range of solutions for a wide range of end customers Enterprise Conferencing Retail and Government hospitality Public safety Construction Maritime Others
Slide 5: Long term growth driver: 5G
Long term growth driver: 5G 5G Promises Potential issues ▪ Superior latency and bandwidth enable ▪ Incomplete 5G network coverage new kinds of real-time applications ▪ Network congestion, poor reception, data ▪ Convenience and flexibility of mobile allowance, etc ▪ No last-mile problem of fiber conn
Slide 6: Well positioned for the 5G opportunity
Well positioned for the 5G opportunity Unbreakable Connectivity Keeps the network running Complete range of solutions anywhere From software, SD-WAN routers, cloud management, to all-inclusive plans Cloud management Manage all router devices from just one screen Growing ecosystem Global network of p
Slide 7: What's new in 2020
Business Outlook What’s new in 2020 ▪ SpeedFusion Cloud, a subscription that massively simplifies SpeedFusion network upfront cost and complexity while retaining the same Cloud unbreakable and high speed connectivity. Improve online ▪ Expand digital marketing capability presence ▪ Continue to expand
Slide 8: SpeedFusion Cloud
SpeedFusion Cloud Benefits of SpeedFusion Cloud: • Plug in and use anywhere • Secure, stable and high speed connectivity • No server infrastructure required • Lowers upfront cost and maintenance • Quick to deploy, highly scalable Cloud and SaaS services Internet SpeedFusion tunnel
Slide 9: Digital marketing
Digital marketing Launched SpeedFusion Marketplace: • A platform for channel partners to contribute case studies and share knowledge • Expands from existing user forum to strengthen user ecosystem • Aggregates content and customer traffic • Improve marketing efficiency
Slide 10: Opportunities and Challenges
Opportunities and Challenges Opportunities Reliable connectivity remains the backbone of modern technology: • Permanent shift to remote access and cloud to ensure business resilience amid pandemic • 5G network driven innovation will create new demands for mobile connectivity among enterprise custome
Slide 11: Financial Highlights
Financial Highlights Interim period ended 1H19 1H20 Change 30 June (US$’000) Revenue 22,025 24,102 +9.4% Gross profit 14,060 14,136 +0.5% Operating expense, Other income (7,124) (8,066) +13.2% & Finance cost Profit before tax 6,935 6,070 -12.5% Reported net profit 5,758 5,120 -11.1% Gross profit mar
Slide 12: Revenue Analysis
Revenue Analysis Revenue by product (US$ million) Others Software licenses 24.1 Asia 23.9 Wired SD-WAN 22.1 22.0 5% 2% 1.1 1.3 Warranty & 5% 16% 16% 2% 19.7 1.1 support svc 18% 13% North 5.8 6.0 America 5.3 5.5 25% 4.2 25% Segment Regional Breakdown 22% Breakdown 13.2 13.0 (1H20 outside) (1H20 outsi
Slide 13: Gross Margin Analysis
Gross Margin Analysis Gross profit by product Segment Gross Profit Margin (US$ million) Warranty and support 14.7 14.1 93.4% 94.2% 94.2% 13.7 14.1 90.9% 92.4% 1.0 12.4 1.0 1.1 1.3 0.9 5.4 4.9 5.0 5.6 Wired SD-WAN 3.7 67.8% 65.0% 63.8% 64.8% Company GPM 58.7% 63.1% 62.2% 61.6% 5.1 5.2 5.7 5.8 58.5% 5
Slide 14: Operating Expenses Analysis
Operating Expenses Analysis Interim period ended 30 June: US$’000 Percentage of revenue 1H19 1H20 1H19 1H20 Selling & distribution expenses 1,168 1,337 5.3% 5.5% Admin expenses 2,609 2,912 11.8% 12.1% R&D expenses 3,513 4,070 16.0% 16.9% Total operating expenses 7,290 8,319 33.1% 34.5% Share option
Slide 15: Net profit, EPS and Dividend
Net profit, EPS and Dividend Interim period ended Net profit 1H19 1H20 30 June (US$ million) Profit before tax 6,935 6,070 5.8 Pretax operating margin 5.1 Income tax (1,177) (950) Effective tax rate 17.0% 15.7% Net profit 5,758 5,120 EPS data (US cents) 1H19 1H20 Basic EPS 0.56 0.49 Dividend per sha
Slide 16: Cash Flow and Balance Sheet Summaries
Cash Flow and Balance Sheet Summaries Cash Flow Statement Summary 1H19 1H20 Interim period ended 30 June (US$’000) Cash flows from operating activities 8,707 3,511 Cash flows used in investing activities (excluding (425) (307) bank deposits with original maturity > 3 months) Cash flows used in finan
Slide 17: Investment Highlights
Investment Highlights Revenue Net profit (ex. listing fee) (US$ million) 45.9 (US$ million) 12.1 41.8 10.6 37.1 8.8 28.4 6.5 21.9 4.4 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 ▪ Levered to enterprise connectivity growth demand – a cornerstone of all technologies ▪ Leading player in wireless
Slide 18: Enquiries
Enquiries: Christopher Tse Phone: +852 2990 7667 Chief Financial Officer Email: christophert@ploverbay.com
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