Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — H1 2007 Earnings Presentation
26 slides from Comba Telecom Systems's earnings presentation, September 2007
Slide 1: Interim Results 2007 Corporate Presentation
Stock Code: 2342.HK Interim Results 2007 Corporate Presentation September 2007
Slide 2: Agenda
Agenda Overview Financial Highlights Financial Review Customer Review Business Review Market Outlook Open Forum 2
Slide 3: Overview
Overview Remarkable growth in revenue from China Mobile Significant growth in international sales Sales of BTS antennas more than tripled Innovative products and cost controls sustained healthy margin Maintained strong net profit growth due to economies of scale Broadened product and solution portfo
Slide 4: Financial Highlights
Financial Highlights Financial Results Financial Position Key Financial Indicators
Slide 5: Financial Results
Financial Results For the six months ended 30 June HK$’000 2007 2006 Change Revenue 777,821 589,490 + 31.9% Gross profit 322,639 252,788 + 27.6% Gross profit margin 41.5 % 42.9% - 1.4 % pts Profit attributable to shareholders 76,386 45,561 + 67.7% Net profit margin 9.8 % 7.7% + 2.1 % pts Basic EPS (
Slide 6: Financial Position
Financial Position As at 30 As at 31 HK$’000 Change June 2007 December 2006 Current assets 2,099,948 2,082,581 + 0.8% Current liabilities 923,665 1,009,693 - 8.5% Net current assets 1,176,283 1,072,888 + 9.6% Total assets 2,451,625 2,416,552 + 1.5% Total liabilities 923,665 1,009,693 - 8.5% Net asse
Slide 7: Key Financial Indicators
Key Financial Indicators For the six months ended 30 June 2007 2006 Inventory turnover days 262 339 A/R turnover days 215 233 A/P turnover days 203 221 Current ratio 2.3X 2.0X Gearing ratio 5.0% 11.3% Return on average equity 10.5% 7.5% 7
Slide 8: Financial Review
Financial Review Revenue Breakdown by Customers Revenue Breakdown by Businesses Profit & Margin Cost Structure
Slide 9: Revenue Breakdown by Customers
Revenue Breakdown by Customers China Unicom 2.4% 16.2% International 52.2% 8.3% China Mobile Others 69.8% 5.7% 41.3% 32.2% = YOY change Remarkable revenue growth from China Mobile 9
Slide 10: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses Extended Maintenance Others 31.9% 2.0% 0.3% 65.7% Wireless Transmissions (DMS) 28.4% 2.0% Wireless Enhancement Antennas & Subsystems 68.7% 27.0% 27.9% 53.3% = YOY change Robust growth in Antennas and Subsystems 10
Slide 11: Profit & Margin
Profit & Margin Gross Profit Net Profit (HK$M) (HK$M) 76.4 60 400 322.7 45.6 252.8 9.8% 42.9% 41.5% 7.7% 200 30 0 0 1H 2006 1H 2007 1H 2006 1H 2007 Gross Profit Margin Net Profit Margin 11
Slide 12: Cost Structure
Cost Structure As % of Total Revenue 35% R & D costs 30% 5.7% Enhanced R&D capabilities in innovative products Focused R&D efforts to cater global market needs 6.0% 39.4% 25% 9.5% Selling and distribution costs 20% 8.2% 14.4% Focused sales efforts in high demand markets Leveraged well-establ
Slide 13: Customer Review
Customer Review Global Customer Base China Business International Business
Slide 14: International Customer Base
International Customer Base EMEA China Americas APAC OEM 14
Slide 15: China Business Review
China Business Review: Continuing subscriber growth drives demand Growth of addressable markets with addition of BTS solution set Continuous growth in urban and rural China 2G growth with Village Connect Projects Transport network coverage projects for the Qinghai-Tibet Railway (Qingzang) Cemented l
Slide 16: International Business
International Business Review: Group’s core committed growth strategy South International business strategy showing firm year- Asia 11% on-year growth at 52% EMEA APAC Continued inroads into new markets through direct 25% Americas 46% and partner presence CALA presence already showing good returns a
Slide 17: Business Review
Business Review Wireless Enhancement Antennas & Subsystems Wireless Transmission
Slide 18: Business Review
Business Review Wireless Enhancement (indoor) Antennas and Subsystems Wireless Transmission Wireless Enhancement (outdoor) 18
Slide 19: Wireless Enhancement
Wireless Enhancement INDOOR INDOOR INDOOR OUTDOOR Small Medium Large Venue SOLUTIONS Venue Sized Venue •Optical Repeater Passive •Solar Power Repeater Hybrid Passive / Active •Dynamic Traffic Hybrid Fiber / Multi-Operator / Routing Coax Network RF Repeater Frequency Review: Shifting Repeater Continu
Slide 20: Antennas & Subsystems
Antennas & Subsystems Antennas Tower-Top Solutions MCPA RF Front Ends Review: The major BTS antenna manufacturer in China Tech leadership: sole high-end antenna supplier for key customers Wide product portfolio of high performance and cost effective antennas Revenue 209,671 (HK$’000) Launch of TD-SC
Slide 21: Wireless Transmission
Wireless Transmission Digital Microwave Systems Review: Slower deployment of wireless transmission solution Growing and diversifying customer base Revenue Developed and completed outdoor solution with new product range (HK$’000) Y/Y: -28% Opportunities: 21,409 Recurring businesses from existing cust
Slide 22: Market Outlook
Market Outlook Global Industry Trend China Outlook Major Global Opportunities
Slide 23: Global Industry Trend
Global Industry Trend Mobile Connections GLOBAL China – Mobile Subscribers (Millions) (Millions) CAGR: Total 3,555.50 +9% 2G 3,307.80 477.2 516.1 521.4 430.7 3G 376.1 3,023.30 2,665.30 2,175.80 2005 2006 2007 2008 2009 2006 penetration = 33% China – Mobile Penetration 36.1% 38.8% 38.9% 32.8% 28.8% 2
Slide 24: China Outlook
China Outlook Solid 2G base Increasing 3G base with solutions deployments in trials Long term trusted partner of China operators Successful partnerships with core equipment vendors Proven products & solutions for high volume deployment Continuous product development and cost reduction efforts allows
Slide 25: Major Global Opportunities
Major Global Opportunities Western Europe Eastern Europe 3G enhancement New buildouts & enhancements • 3G equipment North America agreement with TIM • Enhancement solutions China • Approval of major AWS vendors • Launch of AWS MCPA India 3G Rollouts New buildouts & 2G Coastal & Inner Regions enhance
Slide 26: Open Forum
Open Forum
Comba Telecom Systems Holdings — H1 2007 Earnings Presentation on 6ix