Tongda Group Holdings Limited · HKEX:698
Tongda — FY2012 Earnings Presentation
28 slides from Tongda's earnings presentation, Mar 15, 2013
Slide 1: Annual Results Announcement
TONGDA GROUP HOLDINGS LIMITED 通達集團控股有限公司 Stock code: 698 2012 Annual Results Announcement 15 March 2013
Slide 2: Contents
Contents 1 Executive Summary 2 Financial Highlights 3 Business Segment Analysis 4 Appendix 2012 Annual Results 1
Slide 3: Executive Summary
Executive Summary 2012 Annual Results
Slide 4: Executive Summary - Business Review
Executive Summary - Business Review Given the Group’s proven results performance and stable dividend policy, Templeton Strategic Emerging Markets Fund IV, LDC has becomes a strategic shareholder of Tongda Group since mid-December 2012 In view of the long-term growth potential of 4G LTE smart devices
Slide 5: Executive Summary - Outlook
Executive Summary- Outlook Keep a close eye on the latest market trend, develop diversified business and enhance high-tech product portfolio, aiming to consolidate its position of a leading supplier of high-precision components for consumer electronic products Further develop high-value added decora
Slide 6: Financial Highlights
Financial Highlights 2012 Annual Results
Slide 7: Turnover
Turnover HK$ million The Group’s total turnover increased by 8.3% YoY to 3,500 3,408 HK$3,408 million in 2012: 3,147 Continual revenue growth 3,000 in IML & IMD products 2,500 2,348 Strong sales in handset and notebook computer 2,000 businesses 1,500 Increased order volume of its major customers suc
Slide 8: Turnover by Product
Turnover by Product Turnover (HK$ million) Breakdown 2012 2011 Change 2012 2011 Electrical Fittings Division (IML products 2,813.4 2,653.5 +6.0% 83% 84% included) Ironware Parts Division 491.6 376.9 +30.5% 14% 12% Communication Facilities Division and 103.0 116.7 - 11.7% 3% 4% Others Total 3,408.0 3
Slide 9: Turnover by Product
Turnover by Product 3% 4% 6.1% 14% 12% 14.1% 40.5% 2010 2011 45% 2012 46% 21% 25% 25.5% 16%13.7% 14% 13.7% For the year ended 31 December Handsets Casing Ironware Parts Electrical Appliances Casing Communication Facilities & Others Notebook Computers Casing 2012 Annual Results 8
Slide 10: Electrical Fittings Division
Electrical Fittings Division Turnover (HK$ million) Breakdown 2012 2011 Change 2012 2011 Handsets 1,556.1 1,420.3 +9.5% 55% 53% Electrical Electrical Appliances 702.3 784.0 - 10.4% 25% 30% Fittings Division Notebook Computers 555.0 449.2 +23.6% 20% 17% Total 2,813.4 2,653.5 +6.0% 100% 100% For the y
Slide 11: Profit & Margin
Profit & Margin HK$ million HK$ million The Group’s gross profit 800 24.0% and net profit rose 731 22.0% 20.7% and 19.9% YoY 700 21.4% 605 20.0% respectively to HK$730.6 19.2% million and HK$300.0 600 18.0% million in 2012: 17.4% 16.0% 500 14.0% Expanded portfolio of 408 high value-added 400 300 12.
Slide 12: Dividend Policy
Dividend Policy HK$ (cent) HK$ million The Group maintains a 50% stable dividend payout 1.8 2.0 1.7 policy at around 30%- 35% of its net profit 40% 40% 31.4% Final dividend for 2012 32% is proposed to be 1.2 HK 30% cent per share (2011: HK 1.0 cent) Together with the interim 20% dividend of HK 0.8 c
Slide 13: Key Financial Figures
Key Financial Figures As at As at (HK$ ‘000) 31 Dec 2012 31 Dec 2011 CAPEX 285,986 193,802 Net Assets 2,192,877 1,915,140 Net Assets per share (HK$) 0.46 0.41 Current Assets Ratio (times) 1.46 1.56 Cash and Bank Balances (include pledged 313,899 311,184 deposits) Total Debt 653,080 639,550 Gearing R
Slide 14: Key Financial Figures (Cont'd)
Key Financial Figures (Cont’d) As at As at (HK$ ‘000) 31 Dec 2012 31 Dec 2011 Working Capital Turnover Days 121 108 Inventory Turnover Days1 101 82 Trade and Bills Receivables Turnover Days2 148 135 Trade and Bills Payable Turnover Days3 128 109 1. (opening + ending inventory) / 2 x 365 days / COGS
Slide 15: Business Segment Analysis
Business Segment Analysis 2012 Annual Results
Slide 16: Handsets - Business Performance
Handsets - Business Performance Growing smartphone market is the key catalyst Tongda Group is a one-stop expert of high value- added and high margin integrated casings featuring popular functions Internationally renowned clientele include Huawei, ZTE, Nokia, TCL, Lenovo and other rapidly growing dom
Slide 17: Handsets – Growth Strategies
Handsets – Growth Strategies Continues to strength its R&D capability to maintain market position By the end of 2017, it forecasts 1.5 billion smartphones will be shipped worldwide, accounting for more than two-thirds of the total mobile phone shipments (Source: IDC) Driven by both China and export
Slide 18: Notebook Computers – Business Performance
Notebook Computers – Business Performance Increased order volume and selling prices Diversified and high value-added product portfolio, ranging from IMD and IML to metal casings that are widely deployed in notebooks, tablets, netbooks and ultrabooks Strong collaborative relationship with global note
Slide 19: Notebook Computers – Growth Strategies
Notebook Computers – Growth Strategies Continue to enrich high-margin product offerings Continue to focus on ultra-thin and functional components while metal coating and other metal effects will be the key new focus Continue to extend the application of IML to other computer component products Growt
Slide 20: Electrical Appliances - Business Performance
Electrical Appliances - Business Performance Improved Market Situation in 2H 2012 Ensure the Group’s leading position in the decorative and functional casings business of high end electrical appliances Continue solid cooperation with electrical appliance brands such as Haier, Midea and Gree 2012 T
Slide 21: Electrical Appliances – Growth Strategies
Electrical Appliances – Growth Strategies Leverage extensive industry experience and market leadership With more than 20 years’ experience in the home appliance industry, Tongda Group will weather the unfavourable conditions and maintain its market leadership The Chinese Government’s subsidy on eco-
Slide 22: Laser Direct Structuring - New Growth Driver
Laser Direct Structuring - New Growth Driver The only operator in China providing a vertically integrated supply chain LDS is an important breakthrough given that 4G LTE – the fastest developing mobile system technology – is largely dependent on an effective antenna system to achieve its various ope
Slide 23: Laser Direct Structuring – Growth Strategies
Laser Direct Structuring – Growth Strategies Leveraging the Long-term Growth Worldwide 4G LTE Subscriber Forecast Potential of 4G LTE (Millions) According to iHS Suppli Research, the number of 800 750 mobile network operators that are trialing, 700 deploying or commercially operating 4G LTE 650 netw
Slide 24: Appendix
Appendix 2012 Annual Results
Slide 25: Income Statement
Income Statement 2012 2011 Change HK$'000 HK$'000 Turnover 3,408,091 3,147,119 8.3% Cost of sales (2,677,444) (2,541,776) 5.3% Gross profit 730,647 605,343 20.7% Other income and gains, net 17,217 39,778 -56.7% Selling and distribution expenses (81,868) (70,435) 16.2% Administration expenses (210,57
Slide 26: Scalable Production Facilities
Scalable Production Facilities Shishi City, Fujian Changshu, Jiangsu Xiamen, Fujian Shenzhen, Guangdong Xiamen, Fujian 2012 Annual Results 25
Slide 27: Disclaimer
Disclaimer Disclaimer The material contained herein is a presentation of general background information about the Company’s activities at the date of the presentation, and is not an offer of securities for sales. It is information given in summary form and does not purport to be complete. It is not
Slide 28: Thank You!
Thank You! Investor Relations Contact Tongda Group Holdings Ltd. Rm1201-1203, 12/F, Shui On Centre, 6-8 Harbour Road, Wanchai, Hong Kong Contact Person: Ms. Irene Chan Tel : (852) 2872-2618 Fax : (852) 2510-0991 E-mail : ir@tongda.com.hk 2012 Annual Results