Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — H1 2011 Earnings Presentation
33 slides from Comba Telecom Systems's earnings presentation, Aug 25, 2011
Slide 1: Corporate Presentation Interim Results 2011
Corporate Presentation Interim Results 2011 V .01 25 Aug 2011 (IP & PC)
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Comba Telecom Systems Holdings Limited (the “Company’) for reference only. The information contained in this presentation has not been independently verified. The Company does not make any representation, warranty or undertaking, whether express or i
Slide 3: Agenda
Agenda Financial Overview Business Overview Financial Highlights Financial Review Customer Review Business Review Open Forum
Slide 4: Financial Overview
Financial Overview For the six months ended 30 June 2011 Revenue 27.1% 3G Revenue 91.7% 2G Revenue 13.5% Gross profit margin 2.2% points Profit attributable to shareholders 13.7% Basic EPS 10.6% Include extraordinary items: Share award expenses of HK$87 million for 365 qu
Slide 5: Business Overview
Business Overview For the six months ended 30 June 2011 Revenue by customers 1. China Mobile 39.4% 2. China Unicom 3.8% 3. China Telecom 12.7% 4. International Customers & Core Equipment Manufacturers 47.2% Revenue by product segments 1. Wireless Access 124.3% 2. Wireless Enhancement
Slide 6: Financial Highlights
Financial Highlights Financial Results Extraordinary Items Pro-forma Financial Results Financial Position Key Financial Indicators
Slide 7: Financial Results
Financial Results For the six months ended 30 June For the year ended HK$’000 2011 2010 Change 2010 Revenue 2,545,114 2,002,261 +27.1% 5,191,358 Gross profit 966,392 805,119 +20.0% 1,939,700 Gross profit margin 38.0% 40.2% -2.2% pts 37.4% Operating profit 399,227 354,900 +12.5% 877,520 Operating pro
Slide 8: Extraordinary Items
Extraordinary Items Share Award Credit of Negative Good Arising from the Acquisition
Slide 9: Share Award
Share Award On 12 April 2011, 26 million new shares were awarded to 365 qualified individuals at the market closing price of HK$9.32. Total expenses of approximately HK$226 million will be charged to the P/L in the 3 years. 1H 2H FY Vesting shares Expenses Vesting shares Expenses Vesting shares Ex
Slide 10: Acquisition
Acquisition On 20 June 2011, 100% interest of the PRC company was acquired The company is also in the telecommunications industry with some new products and technologies Cash consideration of HK$84 million for a net asset value of HK$132 million A credit of negative goodwill of HK$48 million
Slide 11: Pro-forma Financial Results
Pro-forma Financial Results (Assuming NO share award expenses and negative goodwill arising from the acquisition) For the six months ended 30 June For the year ended HK$’000 2011 2010 Change 2010 Revenue 2,545,114 2,002,261 +27.1% 5,191,358 Operating profit 438,176 354,900 +23.5% 877,520 Operating p
Slide 12: Financial Position
Financial Position As at As at As at 30 June 31 December 30 June HK$’000 2011 2010 Change 2010 Net cash / (debt) (729,534) 880,084 n/a (94,107) Net current assets 3,410,827 3,061,004 +11.4% 2,445,779 Total assets 8,827,655 7,262,426 +21.6% 6,034,015 Total liabilities 5,160,905 3,953,401 +30.5% 3,228
Slide 13: Key Financial Indicators
Key Financial Indicators For the six months ended 30 June For the year ended 2011 2010 Change 2010 Inventory turnover days 229 251 -22 187 A/R turnover days 259 222 +37 176 A/P turnover days 266 262 +4 221 Current ratio 1.8X 1.8X +0% pts 1.9X Quick ratio 1.3X 1.3X +0% pts 1.4X Gross gearing ratio 16
Slide 14: Financial Review
Financial Review Revenue Breakdown by Customers Revenue Breakdown by Businesses Revenue Trend Gross Profit and GP Margin Trend Net Profit and NP Margin Trend Cost Structure and Cost Structure Trend
Slide 15: Revenue Breakdown by Customers
Revenue Breakdown by Customers For the six months ended 30 June 2011 China Unicom 3.8% 20.8% China Mobile China Telecom 57.0% 39.4% 12.7% 6.3% International Customers & 13.7% Core Equipment Manufacturers Others 47.2% 2.2% 77.7% = YOY change Moderate Growth in the PRC Market with Rapid Expansion in O
Slide 16: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses For the six months ended 30 June 2011 Wireless Enhancement 34.6% Services 26.9% 25.2% 22.7% Antennas & Subsystems 32.1% Wireless Access 8.1% 17.7% 124.3% = YOY change Good Growth in All Business Segments with Strong Growth in Wireless Access 16
Slide 17: Revenue Trend
Revenue Trend (HK$Mn) 6,000 5,191.4 5,000 4,440.0 4,000 3,189.1 3,000 2,525.9 2,672.6 2,000 1,550.4 1,768.4 1,690.4 960.9 990.6 2,545.1 1,000 1,767.4 2,002.3 589.5 777.8 835.5 0 2006 2007 2008 2009 2010 2011 1H 2H Strong revenue growth over the years & 17 back-end loaded revenue model
Slide 18: Gross Profit & GP Margin Trend
Gross Profit & GP Margin Trend (HK$Mn) 2,500 42.9% 44% 41.5% 41.1% 41.3% 40.2% 2,000 38.5% 37.9% 1,939.7 40% 37.8% 37.5% 38.0% 1,681.9 37.4% 36.2% 35.6% 1,500 35.6% 36% 34.7% 35.6% 952.6 1,134.6 1,000 946.0 32% 681.3 586.5 602.3 500 333.7 358.7 966.4 28% 729.3 805.1 252.8 322.6 343.7 0 24% 2006 2007
Slide 19: Net Profit & NP Margin Trend
Net Profit & NP Margin Trend (HK$Mn) 1,000 16% 14.0% 800 13.9% 14.0% 14% 13.1% 724.3 12.7% 12.4% 12.5% 600 11.6% 12% 564.5 445.3 400 10.8% 332.3 10% 9.2% 8.9% 9.8% 9.0% 8.5% 8.6% 200 191.6 227.5 8% 131.1 7.7% 155.5 279.0 317.2 115.2 232.2 85.5 45.6 76.4 72.0 0 6% 2006 2007 2008 2009 2010 2011 1H 2H
Slide 20: Cost Structure
Cost Structure For the six months ended 30 June As % of Total Revenue = YOY change 30% 28.8% R & D costs 48.6% Expansion of R&D team and product 26.2% 4.6% portfolio for maintaining GP margin 25% 3.9% Selling and distribution costs 38.8% 6.6% Expansion for global business, increase in staff 20%
Slide 21: Cost Structure Trend
Cost Structure Trend As % of Total Revenue 35.0% 35% 6.5% 30% 28.9% 28.8% 25.8% 27.1% 26.2% 5.2% 24.9% 24.0% 4.6% 25% 4.3% 23.3% 3.9% 22.6% 9.5% 4.6% 3.8% 3.4% 4.1% 4.2% 6.6% 20% 7.4% 6.8% 6.1% 6.3% 4.3% 5.3% 5.1% 4.5% 15% 10% 17.1% 10.7% 14.3% 12.3% 12.9% 14.7% 14.6% 12.1% 13.4% 11.6% 5% 0.2% 0.3%
Slide 22: Customer Review
Customer Review Global Customers China Business International Customers & Core Equipment Manufacturers
Slide 23: Global Customers
Global Customers Core China Equipment Vendors EMEA APAC Americas 23
Slide 24: China Business
China Business Review & Opportunities: Revenues increased 23% to HK$2.1 billion Continued market growth: PRC expected to exceed 1 billion subscribers in 2012* Deeper penetration as leading solutions partner: Long term, multi-year 2G/3Gprojects with operators Development of new solutions lines to
Slide 25: International Customers & Core Equipment Manufacturers
International Customers & Core Equipment Manufacturers Review & Opportunities: International and OEM sales up by 47.2% to HK$350 million Very strong direct sales to international operators & steady growth in core equipment vendor sales Customer diversification and strategy of cross- selling/up-sel
Slide 26: Business Review
Business Review Wireless Enhancement Antennas & Subsystems Wireless Access Services
Slide 27: Solutions for all Network Stages
Solutions for all Network Stages In-building Coverage Scenic Areas Stadium/Large Venues (Camouflaged Solutions) Wireless Backhaul (Digital Microwave Solutions) Base Station Solutions Rural Area Coverage Subways & Tunnels Urban Area Coverage 27
Slide 28: Solutions for all Network Stages
Solutions for all Network Stages In-Building Solutions Network Offload In-building Coverage Scenic Areas Stadium/Large Venues BTS Antennas (Camouflaged Solutions) Tower Mounted Solutions Network Optimization Solutions etc.. Outdoor Wireless Enhancement Installation commissioning etc. Wireless Backha
Slide 29: Wireless Enhancement
Wireless Enhancement Review & Opportunities: Increased 27% to HK$879 million China 2G and 3G network buildout and enhancement driving demand for repeater Active DAS solutions (Med/Large Venue) Remote Radio Units Deeper promotion of DAS solutions into China and international markets to strengthen lea
Slide 30: Antennas & Subsystems
Antennas & Subsystems Review & Opportunities: Revenues increased by 18% to HK$816 million Maintained leading position as antenna supplier in China Antennas Recognized as one of the world’s leading base station antennas vendor* Tower Mounted Solutions Worldwide leader in Tower Mounted Amplifiers* Con
Slide 31: Wireless Access
Wireless Access Review & Opportunities: Strong growth of 124% to HK$207 million Expanded digital microwave solution sales to other WLAN Solutions international markets for balanced customer portfolio IP backhaul solutions for LTE requirements Cost-effective solutions developed including couplers
Slide 32: Services
Services Network Planning Network Project Consultancy Rollout Review & Opportunities: Installation Increased 23% to HK$642 million Network & Maintenance Commissioning Key differential element enabling the Comba to supply Network Optimization Network Commissioning total solutions to customers in Chin
Slide 33: Open Forum
Comba Open Forum
Comba Telecom Systems Holdings — H1 2011 Earnings Presentation on 6ix