Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — H1 2012 Earnings Presentation
27 slides from Comba Telecom Systems's earnings presentation, Aug 23, 2012
Slide 1: Corporate Presentation Interim Results 2012
Corporate Presentation Interim Results 2012 V .01 23 Aug 2012 (IPPC)
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Comba Telecom Systems Holdings Limited (the “Company”) for reference only. The information contained in this presentation has not been independently verified. The Company does not make any representation, warranty or undertaking, whether express or i
Slide 3: Agenda
Agenda Financial Highlights Financial Review Customer Review Business Review Open Forum Appendix 3
Slide 4: Financial Highlights
Financial Highlights Financial Results Financial Position Key Financial Indicators Long-Term Guaranteed Loan 4
Slide 5: Financial Results
Financial Results For the six months ended 30 June For the year ended HK$’000 2012 2011 Change 2011 Revenue 2,591,529 2,545,114 +1.8% 6,354,218 Gross profit 719,304 966,392 (25.6%) 2,326,697 Gross profit margin 27.8% 38.0% (10.2%) pts 36.6% Operating (loss)/profit (135,458) 399,227 N/A 805,919 Opera
Slide 6: Financial Position
Financial Position As at As at As at 30 June 31 December 30 June HK$’000 2012 2011 Change 2011 Net debt (838,980) (9,603) N/A (729,534) Total assets 9,578,597 9,581,332 0.03% 8,827,655 Total liabilities 5,784,688 5,498,508 +5.2% 5,160,905 Net assets 3,731,779 4,014,064 (7.0%) 3,597,325 NAV per share
Slide 7: Key Financial Indicators
Key Financial Indicators For the six months ended 30 June For the year ended 2012 2011 Change 2011 Inventory turnover days 239 229 +10 days 188 A/R turnover days 315 259 +56 days 209 A/P turnover days 288 266 +22 days 233 Gross gearing ratio 15.9% 16.5% (0.6%) pt 11.7% 7
Slide 8: Long-Term Guaranteed Loan (3 years)
Long-Term Guaranteed Loan (3 years) Participating Banks Use of Proceeds (US$210 million) 1. Production line expansion 2. Business expansion 3. Research and development expenditures 4. Additional working capital 8
Slide 9: Financial Review
Financial Review Revenue Breakdown by Customers Revenue Breakdown by Businesses Cost Structure 9
Slide 10: Revenue Breakdown by Customers
Revenue Breakdown by Customers For six months ended 30 June 2012 China Unicom 8.3% 22.1% China Mobile China Telecom 52.1% 6.9% 24.8% 7.7% International Customers & 16.7% Core Equipment Manufacturers Others 23.8% 1.4% 34.9% = YOY change Stable performance in the PRC market & moderate growth in overse
Slide 11: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses For the six months ended 30 June 2012 Services Wireless Enhancement 27.0% 20.5% 3.8% 25.7% Wireless Access & 13.7% Antennas & Subsystems 33.6% Transmission 6.6% 72.0% = YOY change Strong growth in Wireless Access & Transmission but decline in Wireless Enhancement due
Slide 12: Cost Structure
Cost Structure For the six months ended 30 June As % of Total Revenue = YOY change 34.9% R & D costs 73.0% 35% Expansion of R&D team and development of new product offerings 28.8% 7.7% 30% Selling and distribution costs 48.5% 4.6% 25% Inflation, increase in staff salaries and benefits 9.6% as a
Slide 13: Customer Review
Customer Review Global Customers China Business International Customers & Core Equipment Manufacturers
Slide 14: Global Customers
Global Customers Core China Equipment Vendors EMEA APAC Americas 14
Slide 15: China Business
China Business Review & Opportunities: Revenues flat at HK$2,121 million Slow economic growth with deferred operator CAPEX CAPEX particularly affected wireless enhancement projects Increased pricing pressure in the market Data demands on wireless networks driven by increasing 3G usage Revenue (HK$’0
Slide 16: International Customers & Core Equipment Manufacturers
International Customers & Core Equipment Manufacturers Review & Opportunities: Revenues up by 24% to HK$433 million Globally, operator CAPEX has tightened but overall still healthy Strategic geographic expansion through direct presence and partners Successfully positioned as “total solutions partner
Slide 17: Business Review
Business Review Wireless Access & Transmission Wireless Enhancement Antenna & Subsystems Services Summary
Slide 18: Solutions for all Network Stages
Solutions for all Network Stages In-building Coverage Scenic Areas Stadium/Large Venues (Camouflaged Solutions) Wireless Backhaul Base Station Solutions Rural Area Coverage Subways & Tunnels Urban Area Coverage 18
Slide 19: Solutions for all Network Stages
Solutions for all Network Stages Network Optimization Solutions etc.. In-Building Solutions In-building Coverage Scenic Areas Stadium/Large Venues BTS Antennas (Camouflaged Solutions) Tower Mounted Solutions Small Cell Solutions Outdoor Wireless Enhancement Installation, Wireless Backhaul Commission
Slide 20: Wireless Access & Transmission
Wireless Access & Transmission Review & Opportunities: Small Cell Solutions Revenues increased by 72% to HK$356 million (IB-WAS) WLAN Solutions WIRELESS ACCESS (WLAN Solutions + IB-WAS Solutions) Directly addresses demand for capacity solutions from operators Positive market response to IB-WAS Solut
Slide 21: Wireless Access & Transmission
Wireless Access & Transmission WIRELESS TRANSMISSION (Digital Microwave Systems & Satellite Solutions) Digital Expanded digital microwave solution sales to Microwave Systems international markets around the world IP backhaul solutions for LTE requirements Expanded portfolio with highly integrate
Slide 22: Wireless Enhancement
Wireless Enhancement Review & Opportunities: Revenues decreased by 20% to HK$699 million China operator delays in CAPEX directly impact spending on wireless enhancement Active DAS (Med/Large Venue) Increasing price erosion affecting revenues and Remote Radio Units margins Global long-term growth of
Slide 23: Antennas & Subsystems
Antennas & Subsystems Review & Opportunities: Revenues increased by 7% to HK$870 million Remains the number one antenna supplier in China Recognized as one of the world’s leading base Antennas station antennas vendor* Continued portfolio expansion to drive future Tower Mounted Solutions growth. Co
Slide 24: Services
Services Network Planning Network Project Consultancy Rollout Installation Review & Opportunities: Network Maintenance & Commissioning Revenues increased by 4% to HK$667 million Network Network Growth reflecting strategy of solution sales Optimization Commissioning Key differential element enabling
Slide 25: Summary
Summary Implementing cost and budget controls driving to profitability Diversify revenue base with new markets and verticals Focused R&D to develop strategic products and solutions Optimistic outlook on future industry development with continuous data capacity requirements
Slide 26: Open Forum & Thank You
Open Forum & Thank You
Slide 27: Appendix - Awarded Shares Expenses
Appendix - Awarded Shares Expenses On 12 April 2011, 26 million new shares were awarded to 365 qualified individuals at the market closing price of HK$9.32. Total expenses of approximately HK$226 million will be charged to the P/L in the 3 years. 1H 2H FY Vesting shares Expenses Vesting shares Exp
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