Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — Investor Presentation (June 2023)
25 slides from Zhen Ding Technology's investor presentation, June 2023
Slide 1: Zhen Ding Technology Holding (4958 TT) Investor Presentation
Zhen Ding Technology Holding (4958 TT) Investor Presentation June, 2023
Slide 2: Safe Harbor Notice
Safe Harbor Notice Zhen Ding Technology Holding′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 un
Slide 3: Zhen Ding (ZDT) At a Glance
Zhen Ding (ZDT) At a Glance NT$171.4 Bn NT$106.1 Bn 16.4% #1 Revenue in 2022 Market Cap as of 10Y Average ROE (+10.5% YoY) March 31st, 2023 PCB Manufacturer Worldwide +12% Revenue Breakdown – By Applications NT$171.4bn 2011-2022 +10.5% YoY NT$155.0bn +18.1% YoY 4.0% Revenue CAGR 4.2% 3.2% 2006 Found
Slide 4: Agenda
1 Company Strategy AGENDA 2 Business Roadmap and Execution 3 1Q23 Financial Results 4
Slide 5: Company Strategy
call BEAT HE Zhen Ding Tech. Holding Company Strategy
Slide 6: ZDT Has Maintained Robust Revenue Growth
ZDT Has Maintained Robust Revenue Growth 2022 Global Top 10 PCB Companies Revenue Trends Unit: US$ million 6000 臻鼎 Zhen Ding 5000 No. 2 No. 3 4000 No. 4 3000 No. 5 No. 6 2000 No. 7 1000 No. 8 No. 9 0 No. 10 Source：NT Information；Prismark (2023/02) 6
Slide 7: Market Share Gain with Stable Operation and Profitability
Market Share Gain with Stable Operation and Profitability ZDT: Continued Market Share Gain in the Global PCB Market Stable Profitability 毛利率 Gross Margin Unit: % 23.3% 22.1% 22.7% 7.0% 19.5% 20.3% 19.7% 6.8% 6.8% 18.4% 18.9% 19.2% 16.3% 15.8% 6.3% 6.3% 15.2% 6.1% 2011 2012 2013 2014 2015 2016 2017 2
Slide 8: One ZDT: Aim to Reach 10% Global PCB Market Share by 2030
One ZDT: Aim to Reach 10% Global PCB Market Share by 2030 2022 Revenue by Application 2025 Target Revenue by Application Aim to Reach 10% Global Market Share by 2030 Mobile Communication 10.0% Automotive Radar/Base Others, 行動通訊, Station/Server/Others, 4.0% 其它, 35%+/- 50%+/- IC Substrate, 3.2% Comput
Slide 9: Continued Capacity Expansion, Pursuing Stable Growth
Continued Capacity Expansion, Pursuing Stable Growth Capex Capex/Sales (%) Unit：NT$ million 00 20.1% 21.0% 00 16.5% 16.9% 31,149 16.0% 00 13.5% 13.8% 13.5% 29,032 11.8% 11.7% 00 11.0% Early deployment 9.0% 21,645 6.7% of production 00 7.3% 6.2% 16,224 16,211 capacity to meet 00 12,747 6.0% customers
Slide 10: Commitment to EPS + ESG – Improvement in ESG Ratings
Commitment to EPS + ESG – Improvement in ESG Ratings S&P Global ESG Rating Sustainalytics ESG Risk Rating In 2022, Zhen Ding’s S&P ESG Score improved to 71 and was Zhen Ding’s Sustainalytics ESG Risk Ratings improved from 20.9 selected as a member of the S&P Global Sustainability Yearbook. to 17.2,
Slide 11: Business Roadmap and Execution
Business Roadmap and Execution 11
Slide 12: PCB Markets will Continue to Grow
PCB Markets will Continue to Grow 100% IC ICSSubstrate 80% 60% HDI 40% FPC FPC+Module 20% RPCB 0% 2017 2018 2019 2020 2021 2022(E) 2023(F) 2024(F) 2025(F) 2026(F) 2027(F) Unit: US$ million Product 2022-2027 項目 2017 2018 2019 2020 2021 2022 2023(F) 2024(F) 2025(F) 2026(F) 2027(F) Segments CAGR Value
Slide 13: Five Major Global Manufacturing Campuses
Five Major Global Manufacturing Campuses Multiple manufacturing campuses to fulfill clients’ needs China Qinhuangdao Qinhuangdao Park BT Substrate Park (FPC & advanced module /SLP High end HDI) China Huai’an India Huai’an Park 1 Huai’an Park 2 Huai’an Park 3 (RPCB/HDI) (FPC & advanced (High-end HDI/
Slide 14: Capacity Expansion Plan: ABF Trail Production Yield is Comparable to Tier 1 Peers
Capacity Expansion Plan: ABF Trail Production Yield is Comparable to Tier 1 Peers Qinhuangdao BT Substrate Fab: Shenzhen ABF Substrate Fab: FCBGA FC-CSP/WB-CSP/Memory Kaohsiung Luzhu Science Park: Huai’an Park 3: High-end HDI/MSAP FPC and Advanced Module Production Line 14
Slide 15: IC Substrate & Huai'an Park 3 Capacity Expansion Plan
IC Substrate & Huai’an Park 3 Capacity Expansion Plan 2023 2024 2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Installation Fab 1 SZ ABF (Mid to high-end Sample certification Substrate products) Plant Mass production, target yield: comparable to tier 1 peers Full utilization, target yield: comparable to t
Slide 16: Business Outlook
Business Outlook Based on current business outlook, management targets: 2023 Revenue: IC Substrate Goals: Global macro-economic remains highly uncertain, but we still strive our revenue target of approximately flat, and remain positive on 2024-2025 demand IC Substrate Goals: NT$ 60 bn >50% 15%+/
Slide 17: 4Q22 & 2022 Financial Results
4Q22 & 2022 Financial Results 17
Slide 18: 1Q23 Financial Results
1Q23 Financial Results (Unit: NT$ million, unless otherwise stated) 1Q23 1Q22 YoY (%) Revenue 31,545 33,915 -7.0% Gross Profit 5,075 6,387 -20.5% Gross Margin 16.1% 18.8% -2.7ppts Operating Expense 3,857 3,491 10.5% Operating Profit 1,219 2,896 -57.9% Operating Margin 3.9% 8.5% -4.6ppts Non-Operatin
Slide 19: 2022 Financial Summary
2022 Financial Summary (Unit: NT$ million, unless otherwise stated) 2022 2021 Change YoY% Revenue 171,356 155,022 16,334 10.5% Gross Margin 23.3% 19.7% +3.6ppts Operating Profit 22,447 15,781 6,666 42.2% Operating Margin 13.1% 10.2% +2.9ppts Net Income 20,535 13,694 6,841 50.0% Net Margin 12.0% 8.8%
Slide 20: Quarterly Operation Results
Quarterly Operation Results Revenue Gross Margin (%) 2022 2023 2022 2023 Unit: NT$ million 26.3% 26.0% 19.1% 52,902 18.8% 50,004 16.1% -7% YoY Net Margin (%) 34,534 14.3% 33,915 31,545 13.0% 10.8% 8.2% 2.7% 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 20
Slide 21: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 2022Q1 Revenue NT$33.9bn 2023Q1 Revenue NT$31.5bn Automotive Automotive Radar/Base Radar/Base Station/Server/Others, Station/Server/Others, 4.5% 4.5% IC Substrate, IC Substrate, 4.5% 2.4% Computers and Consumer Mobile Electronics, Mobile Communication, 19.8% Commu
Slide 22: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices Unit: NT$ million 2023-3-31 2022-3-31 Change Amount % Amount % Amount % Cash and Cash Equivalents (2) 68,703 29.7% 42,689 21.3% 26,014 +8.4ppts Notes & Accounts Receivable 19,062 8.2% 26,569 13.2% (7,507) -5.0ppts Inventories 13,985 6.0% 19,754 9.8% (5,769)
Slide 23: 2011-2022 Financial Summary
2011-2022 Financial Summary Unit: NT$ million Period 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenue 44,280 55,369 64,483 75,954 85,738 82,393 109,238 117,913 120,068 131,279 155,022 171,356 Gross Profit 6,993 10,775 11,894 14,323 16,427 12,542 17,833 26,061 27,222 26,584 30,537
Slide 24: Q&A
call BEAT HE Zhen Ding Tech. Holding Q&A 24
Slide 25: Thank You
- Cy) RAR THANK YOU
Zhen Ding Technology Holding — Investor Presentation (June 2023) on 6ix