Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Broadway Industrial Group — H1 2023 Earnings Presentation
23 slides from Singapore Exchange's earnings presentation, Aug 10, 2023
Slide 1: Broadway Industrial Group Limited 1H2023 Results Presentation
Broadway Industrial Group Limited 1H2023 Results Presentation 10 August 2023 BIGL Confidential @ 2023 1
Slide 2: Contents
Contents Business Overview Tan Choon Hoong Chief Executive Officer 1H2023 Performance Review Tiong Chi Sieng Chief Financial Officer Investment Highlights & Performance Roundup Lew Syn Pau Chairman Q&A Disclaimer: This presentation may contain forward-looking statements. The actual future performanc
Slide 3: Business Overview
Business Overview Brief Corporate Profile 1H2023 Operational Highlights HDD Industry Outlook BIGL Confidential @ 2023 3
Slide 4: Corporate Profile
Corporate Profile Core Businesses HDD Business Precision Engineering One of the leaders in the Newly established in late 2022 / manufacture of precision early 2023 following a joint components and assemblies venture with Korea-based company Key provider of actuator arms, assemblies and other related
Slide 5: 1H2023 Operational Highlights
1H2023 Operational Highlights BIGL Confidential @ 2023 5
Slide 6: Rapid Progress of PE Business
Rapid Progress of PE Business As at By By 1H2023 3Q2023 4Q2023 Commencement of some operations Complete certification & Factory fully ahead of schedule commence customer qualification operational • Nov 2022: Signed SHA and • Ongoing: Customer qualification • Complete customer qualification secured f
Slide 7: Snapshots of Vietnam Operations
Factory Façade QA Lab CNC Production Line CNC Machines Office Area Snapshots of Vietnam Operations Diecasting Machines BIGL Confidential @ 2023 7
Slide 8: Our PE Products
Our PE Products Machined parts Machined parts for wireless infrastructure and microwave energy product for consumer and automobile products BIGL Confidential @ 2023 8
Slide 9: Prospects
Prospects New income stream • Establishes new core capabilities in • Enjoys greater economies of scale diecasting through shared manufacturing • Positions BIGL as a full turnkey facilities and resources with core HDD diecasting and machining solution business provider • Leverages extensive know-how
Slide 10: Growing Demand for Machined Parts
Growing Demand for Machined Parts 5G Communication Equipment and its mechanical parts market: increasing over 10% continuously + GROWING DEMAND FOR PRECISION PARTS* 5G Mobile Equipment Mechanical parts Driven by increasing sales of electric vehicles in countries, such as China and India, along with
Slide 11: HDD Industry Outlook
HDD Industry Outlook BIGL Confidential @ 2023 11
Slide 12: Overall HDD Segment Outlook
Overall HDD Segment Outlook Near Term Medium Term Long Term Demand for HDDs expected to remain weak Recovery in nearline Beneficiary of AI and in the second half of FY2023 demand mass storage trends Weak Changes in Emerging signs Positive trends from Sentiment customer strategy of recovery new appli
Slide 13: Enterprise HDD 4-Qtr Forecast
Enterprise HDD 4-Qtr Forecast Actuals 4-Qtr Forecast By units CQ1 ’23 CQ2 ’23 CQ3 ’23 CQ4’ 23 CQ1 ‘24 CQ2 ‘24 Total Computing/CE 20.71 20.49 21.08 22.49 19.73 20.11 -1.1% 2.9% 6.7% -12.3% 1.9% % High-value, high- Total Enterprise 12.88 10.79 11.43 12.96 12.51 13.53 performance enterprise % -16.2% 5.
Slide 14: Strategies to Cushion Near Term Challenges
Strategies to Cushion Near Term Challenges 01. Remain nimble 04. Increase effectiveness Closely monitor macroenvironment and markets and adjust strategies Improve productivity and accordingly operational efficiency 02. Manage utilisation 05. Ramp up new PE business Ensure capacity utilisation is at
Slide 15: 1H2023 Performance Review
1H2023 Performance Review BIGL Confidential @ 2023 15
Slide 16: 1H2023 Financial Highlights
1H2023 Financial Highlights 44.6% S$126.4M -S$1.2M -1.0% REVENUE NPAT* NPAT S$125.4M S$0.5M MARGIN 0.1% HDD HDD HDD NPAT REVENUE NPAT* MARGIN -0.27C S$27.4M EPS CASH ON HAND *NPAT is net profit after tax and minority interest BIGL Confidential @ 2023 16
Slide 17: 1H2023 Performance Review
1H2023 Performance Review S$’million 1H2023 1H2022 % Change Revenue 126.4 228.4 (44.6) Key Highlights: Gross Profit 4.1 15.6 (73.8) • 1H2023 revenue includes maiden contribution of S$1.0M from new PE business Operating Profit (0.5) 8.5 NM • Group recorded S$1.2M loss due to start-up NPAT (1.2) 7.5 N
Slide 18: Summary of Balance Sheet
Summary of Balance Sheet S$’million FY2019 FY2020 FY2021 FY2022 1H2023 Cash & bank balances 8.7 29.0 27.7 29.4 27.4 Key Highlights: Net current assets (26.2) 9.0 22.6 24.8 23.5 • Balance sheet remained healthy with Net non-current assets 88.1 67.2 65.2 63.2 63.5 S$27.4M cash on hand. Total net asset
Slide 19: Key Financial Ratios
Key Financial Ratios • Key financial matrices remain relatively healthy, which will enable the Group to navigate the current challenges in the operating environment S$’million FY2019 FY2020 FY2021 FY2022 1H2023 Working Capital Ratio (Current Assets / Current Liabilities) 0.79 1.08 1.17 1.42 1.36 Cur
Slide 20: Investment Highlights & Performance Roundup
Investment Highlights & Performance Roundup BIGL Confidential @ 2023 20
Slide 21: Key Investment Highlights
Key Investment Highlights HDD Business: • Continued focus on the growing high value, high performance enterprise segment of HDDs, which is expected from the relentless growth in enterprise usage such as data centres and cloud storage Precision Engineering Business: • Operations commenced ahead of sc
Slide 22: Position Among Peers
Position Among Peers* Market Cap Price (S$) Net profit ROE Debt / P/E Div yield (S$’ m) margin (%) (%) Equity (times) (%) (times) BIGL 37.74 0.08 -1.21 7.20 Net Cash 6.01 - Frencken Group 352.30 0.83 3.01 13.24 Net Cash 6.79 4.41 Limited UMS Holdings Limited 704.06 1.05 21.53 28.83 Net Cash 7.17 2.8
Slide 23: Thank You Questions please?
Thank You Questions please? BIGL Confidential @ 2023 23
Broadway Industrial Group — H1 2023 Earnings Presentation on 6ix