Rechi Precision Co. Ltd. · TWSE:4532
Rechi Precision — Investor Presentation (September 2019)
28 slides from Rechi Precision's investor presentation, Sep 11, 2019
Slide 1: Investor Conference
Investor Conference Transform & Insist Move to our future
Slide 2: Safe Harbor Notice
Safe Harbor Notice • RECHI’s statements of its current expectations are forward looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. • Except as required by law, we undertake no obligation t
Slide 3: Outline
Outline Company Introduction Financial Highlights Market Opportunity Development Strategy Transform & Insist Move to our future 3
Slide 4: Main shareholders
Company Introduction Financial Highlights Market Opportunity Development Strategy Main shareholders SAMPO Corporation 26.73% China Steel Corporation 4.55% Sharp Corporation 4.50% Others 64.23% Until Dec 31, 2018 Transform & Insist Move to our future 4
Slide 5: Organization structure
Company Introduction Financial Highlights Market Opportunity Development Strategy Organization structure R E C H I P R E C I S I O N C O . , LT D 100% 100% 42.2% Rechi Investments Co., Ltd. Rechi Holdings Co., Ltd. Dyna Rechi Co., Ltd. 100% 100% 100% 100% Rechi International Rechi Investments 77.78%
Slide 6: Location of facilities & Production Capacity
Company Introduction Financial Highlights Market Opportunity Development Strategy Location of facilities & Production Capacity Cover area : 298,149m2 Cover area : 151,016m2 Cover area : 29,652m2 JR/DRJ QR KR HQ and R&D center Compressor Current capacity Current capacity 9 million 6 million Compresso
Slide 7: Milestone of RECHI
Company Introduction Financial Highlights Market Opportunity Development Strategy Milestone of RECHI China (Jiujiang factory Established Accumulative sales of compressors reached Dyna Rechi Japan service office acquired 100 million units in 2014 set up Ablek ( The 100 millionth unit was produced on
Slide 8: Financial Highlights
Financial Highlights Transform & Insist Move to our future 8
Slide 9: Revenue growth of RECHI
Company Introduction Financial Highlights Market Opportunity Development Strategy Revenue growth of RECHI Unit: k Unit: NT$ mn 25,000 Until Dec 31, 2018 30,000 ◆ Cumulative Sales：172,376,496 units 25,000 20,000 Accumulative Sales Quantity reached to 100 million units. 20,000 15,000 15,000 10,000 10,
Slide 10: Revenue growth and Margins
Company Introduction Financial Highlights Market Opportunity Development Strategy Revenue growth Unit : NT$ mn Revenue Growth YoY % 25,000 22,479 100% 19,827 80% 20,000 16,794 18,127 17,674 16,473 60% 15,285 15,630 15,000 12,587 40% 10,000 20% 6,922 0% 5,000 -20% 0 -40% 09" 10" 11" 12" 13" 14" 15" 1
Slide 11: ROE & ROA, Operating CF & Capex
Company Introduction Financial Highlights Market Opportunity Development Strategy ROE & ROA ROE ROA 20% 14.6% 14.6% 14.4% 15% 12.6% 12.6% 12.0% 10.0% 11.0% 9.1% 10% 7.5% 7.2% 6.1% 6.3% 6.8% 4.7% 4.9% 5.1% 5% 5.6% 0% -1.7% -5% -5.5% -10% 09" 10" 11" 12" 13" 14" 15" 16" 17" 18" Operating CF & Capex Un
Slide 12: Dividend policy
Company Introduction Financial Highlights Market Opportunity Development Strategy Dividend policy 2014 2015 2016 2017 2018 EPS (NT$) 2.3 1.86 2.8 2.1 2.2 Cash DPS (NT$) 2 1.6 2.28 1.75 1.2 Payout ratio (%) 87.0 86.0 81.4 83.3 54.5 Cash yield (%)* 8.6 6.2 7.0 5.8 4.8 * Based on share price on followi
Slide 13: Income statement
Company Introduction Financial Highlights Market Opportunity Development Strategy Income statement Unit in Thousand NT$ 2019H1 ％ 2018H1 ％ YoY % Sales volume of 10,020,286 10,419,167 -398,881 -3.8 compressor Sales revenues 11,510,776 100 12,582,359 100 -1,071,583 -8.5 Cost of goods sold -9,798,498 -8
Slide 14: Balance sheet
Company Introduction Financial Highlights Market Opportunity Development Strategy Balance sheet Unit in Thousand NT$ 2019H1 ％ 2018H1 ％ YoY % Cash and current financial 4,790,402 16 4,881,826 18 -91,424 -2 assets Accounts receivable,net 10,655,097 37 11,156,998 41 -501,901 -4 Inventories 2,496,621 9
Slide 15: Cash flow statement
Company Introduction Financial Highlights Market Opportunity Development Strategy Cash flow statement Unit in Thousand NT$ 2019H1 2018H1 Cash, beginning of year 1,691,863 1,875,853 Net cash provided by operating activities 400,221 -57,090 Cash flow from investment activities -1,487,372 -1,036,016 (D
Slide 16: Market Opportunity
Market Opportunity Transform & Insist Move to our future 16
Slide 17: The market trend of Global A/C
Company Introduction Financial Highlights Market Opportunity Development Strategy The market trend of Global A/C Unit：10k 300,000 40% 36.0% 250,000 30% 200,000 20% 168,304 173,353 164,060 163,402 155,650 150,000 9.2% 133,210 133,550 10% Sales 122,310 114,420 Growth YOY 2.1% 5.4% 100,000 -0.3% 0% 線性(
Slide 18: The market trend of rotary compressor in CHINA
Company Introduction Financial Highlights Market Opportunity Development Strategy The market trend of rotary compressor in CHINA Unit：10k 300,000 26.9% 30% 25% 250,000 224,480 20% 17.3% 213,290 206,036 202,100 192,724 200,000 15% 10.5% 13.6% 152,520 151,825 10% 150,000 129,990 133,621 Sales 6.9% 5%
Slide 19: The market trend of BLDC Motor in CHINA
Company Introduction Financial Highlights Market Opportunity Development Strategy The market trend of BLDC Motor in CHINA Unit：10k 300,000 31.8% 35% 30% 250,000 25% 24.1% 22.4% 200,000 20% 15% 150,000 13.7% 137,625 Sales 9.4% 122,333 10% 108,740 Growth YOY 96,458 100,000 84,850 5% 線性(Sales) 64,370 5
Slide 20: The top 6 of rotary compressor makers in CHINA
Company Introduction Financial Highlights Market Opportunity Development Strategy The top 6 of rotary compressor makers in CHINA Unit：10k 80,000 70,000 68,250 60,000 61,010 50,000 GMCC 49,620 49,392 46,817 LANDA 44,080 42,410 40,000 HIGHLY 35,020 36,130 RECHI 33,310 30,000 30,550 PANASONIC 27,210 24
Slide 21: RECHI sold over 150 customers in 28 countries worldwide
Company Introduction Financial Highlights Market Opportunity Development Strategy RECHI Sales : Geographic distribution RECHI Sales : Application distribution Korea, 0.5% Taiwan, 1.1% Middle East, 2.3% 70.0% India, 4.0% 62.2% Japan, 4.1% 60.0% S American, 7.3% 50.0% Europe, 27.2% Korea 40.0% 37.8% T
Slide 22: Development strategy
Development strategy Transform & Insist Move to our future 22
Slide 23: Development Strategy
Company Introduction Financial Highlights Market Opportunity Development Strategy Development Strategy Pursue Create Opportunities Market for new energy- Demand saving markets THE STRATEGY OF VALUE REVOLUTION New energy- Technology saving Innovation products Transform & Insist Move to our future 23
Slide 24: Subversive innovation
Company Introduction Financial Highlights Market Opportunity Development Strategy Subversive innovation Now 2019 Future RHCHI 30th Core business Value Innovation The business model of Subversive innovation products and Core Technology • Compressor • MINI SMART AIRCON This product can be customized d
Slide 25: Cooling e-Nest
Cooling e-Nest Choose the best to love your pets Energy saving Constant Sterilization Combination Temperature 25 Transform & Insist Move to our future 25
Slide 26: Foldable Cordless Bluetooth speaker
Foldable Cordless Bluetooth speaker Long Endurance Transform & Insist Move to our future 26
Slide 27: Upgrading RECHI's Competitiveness
Company Introduction Financial Highlights Market Opportunity Development Strategy Upgrading RECHI’s Competitiveness • Compressor Product High energy-efficiency、Larger size、Smaller size、Less noise、Application Competitiveness • Motor Production Maximization 、Subversive innovation product、Expanding mot
Slide 28: Create unlimited possibilities for the Energy Saving Industry
Create unlimited possibilities for the Energy Saving Industry. Become the top provider of proactive Energy Saving Product. Transform & Insist Move to our future 28
Rechi Precision — Investor Presentation (September 2019) on 6ix