Rechi Precision Co. Ltd. · TWSE:4532
Rechi Precision — Investor Presentation (October 2020)
27 slides from Rechi Precision's investor presentation, Oct 12, 2020
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 28.86% China Steel Corporation 4.56% Sharp Corporation 4.51% Others 64.07% Until Aug 31, 2020 Transform & Insist Move to our future 4
Slide 5: 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 6: Location of facilities & Production Capacity
Company Introduction Financial Highlights Market Opportunity Development Strategy Location of facilities & Production Capacity 6 Transform & Insist Move to our future 6
Slide 7: Financial Highlights
Financial Highlights Transform & Insist Move to our future 7
Slide 8: The revenue ratio of RECHI products
Company Introduction Financial Highlights Market Opportunity Development Strategy The revenue ratio of RECHI products 2019/1/1-2019/12/31 2020/1/1-2020/6/31 Motor Others Motor Others business 0.9% business 1.0% 2.5% 4.5% Compressor Compressor business business 96.6% 94.6% Transform & Insist Move to
Slide 9: Revenue growth of RECHI
Company Introduction Financial Highlights Market Opportunity Development Strategy Revenue growth of RECHI Until Jul 8, 2020 Unit：sets ◆ Accumulative Sales Quantity reached to 200 million sets. Unit: NT$ mn 25,000 25,000 Accumulative Sales Quantity reached to 100 million sets. 20,000 20,000 15,000 15
Slide 10: Revenue growth and Margins
Company Introduction Financial Highlights Market Opportunity Development Strategy Revenue growth Unit : NT$ mn Revenue Growth YoY % 25,000 15% 22,479 20,133 19,827 10% 20,000 18,127 17,674 16,473 15,630 15,285 5% 15,000 0% 9,480 -5% 10,000 -10% 5,000 -15% 0 -20% 2012 2013 2014 2015 2016 2017 2018 20
Slide 11: ROE & ROA, Operating CF & Capex
Company Introduction Financial Highlights Market Opportunity Development Strategy ROE & ROA 16% 14.6% 14.4% 14% 12.6% 12.6% 12.0% 12% 11.0% 10% 9.1% 8.0% 7.2% 6.8% 6.7% 8% 6.1% 6.3% 6% 4.7% 4.9% 5.1% 3.2% 3.3% 4% 2% ROE ROA 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020H1 Operating CF & Capex 2,352
Slide 12: Dividend policy
Company Introduction Financial Highlights Market Opportunity Development Strategy Dividend policy 2015 2016 2017 2018 2019 EPS (NT$) 1.86 2.8 2.1 2.2 1.3 Cash DPS (NT$) 1.6 2.28 1.75 1.2 0.5 Payout ratio (%) 86.0 81.4 83.3 54.5 38.5 Cash yield (%)* 6.2 7.0 5.8 4.8 2.3 * Based on share price on follo
Slide 13: Income statement
Company Introduction Financial Highlights Market Opportunity Development Strategy Income statement Unit in Thousand NT$ 2020H1 ％ 2019H1 ％ YoY % Sales volume of 9,118,473 10,020,286 -901,813 -9.0 compressor Sales revenues 9,479,782 100 11,510,776 100 -2,030,994 -17.6 Cost of goods sold -8,303,967 -87
Slide 14: Balance sheet
Company Introduction Financial Highlights Market Opportunity Development Strategy Balance sheet Unit in Thousand NT$ 2020H1 ％ 2019H1 ％ YoY % Cash and current financial 5,942,932 22 4,790,402 16 1,152,530 24 assets Accounts receivable,net 8,619,083 33 10,655,097 37 -2,036,014 -19 Inventories 1,846,09
Slide 15: Cash flow statement
Company Introduction Financial Highlights Market Opportunity Development Strategy Cash flow statement Unit in Thousand NT$ 2020H1 2019H1 Cash, beginning of year 1,158,126 1,691,863 Net cash provided by operating activities 1,999,303 400,221 Cash flow from investment activities -312,820 -1,487,372 (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：k / sets 300,000 40% 36.0% 250,000 30% 200,000 179,000 20% 168,304 173,353 164,060 163,402 155,650 150,000 133,550 133,210 10% 銷量 Sales 122,310 114,420 5.4% 9.2% 同比 Growth YoY 100,00
Slide 18: The market trend of A/C in CHINA
Company Introduction Financial Highlights Market Opportunity Development Strategy The market trend of A/C in CHINA Unit：k / sets 300,000 35% 31.7% 30% 250,000 25% 20% 200,000 161,800 15% 151,748 152,119 156,900 150,627 142,491 150,000 10% 銷量 Sales 111,118 116,064 6.5% 同比 106,358 108,172 5% Growth Yo
Slide 19: 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：k / sets 300,000 30% 26.9% 25% 250,000 230,000 223,000 20% 215,181 216,342 206,040 17.3% 192,725 200,000 15% 13.6% 10.5% 152,520 151,825 10% 150,000 129,990 133,621 6
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：k / sets 90,000 80,000 79,000 70,000 68,250 美芝 GMCC 60,000 61,010 凌達 LANDA 50,000 49,620 49,392 49,096 46,817 海立 HIGHLY 44,080 42,410 40,000 瑞智 RECHI 35,020 36,130 33
Slide 21: Development strategy
Development strategy Transform & Insist Move to our future 21
Slide 22: RECHI Development Strategy
Company Introduction Financial Highlights Market Opportunity Development Strategy RECHI 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 futu
Slide 23: RECHI sold over 216 customers in 28 countries worldwide
Company Introduction Financial Highlights Market Opportunity Development Strategy RECHI Sales : Geographic ratio RECHI Sales : application ratio 3% 2% 70.0% Europe 62.7% 5% 60.0% N American 7% 29% China 50.0% SE Asia 40.0% 37.3% 13% S American 30.0% East Asia 20.0% 15% Middle East (including 10.0% 2
Slide 24: The DC inverter trend of Global A/C
Company Introduction Financial Highlights Market Opportunity Development Strategy DC inverter air-conditioners The DC inverter trend of Global A/C AC air-conditioners Unit：k / sets 1.JAPAN’s leadership of the DC inverter A/C in the world ，RECHI developed DC inverter for Room A/C with main clients an
Slide 25: Revenue ratio of Non-Room A/C and Innovative application items
Company Introduction Financial Highlights Market Opportunity Development Strategy The revenue ration of Non-Room A/C and the products of Innovative application items The trend of market and development Roof-Top A/C 0.7% • Heat Pump Dryer → High energy-efficiency 、 others 9.8% Compact Size Heat Pump
Slide 26: The sales plan of RECHI compressors
Company Introduction Financial Highlights Market Opportunity Development Strategy The sales plan of RECHI compressors Room A/C Unit：sets DC Inverter compressor AC compressor Unit：sets Non-Room A/C and the products of Innovative application sort 25,000,000 25,000,000 20,000,000 20,000,000 15,000,000
Slide 27: 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 27
Rechi Precision — Investor Presentation (October 2020) on 6ix