Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — Q4 2023 Earnings Presentation
28 slides from Zhen Ding Technology's earnings presentation, Mar 12, 2024
Slide 1: Zhen Ding Technology Holding Fourth Quarter and Full Year of 2023 Investor Conference
Zhen Ding Technology Holding (4958 TT) Fourth Quarter and Full Year of 2023 Investor Conference March 12th, 2024
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: Agenda
1 4Q23 & 2023 Financial Results Eddie Chiang, Chief Financial Officer 2 Company Strategy AGENDA Charles Shen, Chairman IC Substrate Business Update 3 D.J. Lee, Director & Chief Operating Officer 3
Slide 4: 4Q23 & 2023 Financial Results
4Q23 & 2023 Financial Results Eddie Chiang, Chief Financial Officer 4
Slide 5: 4Q23 Financial Results
4Q23 Financial Results (Unit: NT$ million, unless otherwise stated) 4Q23 3Q23 4Q22 QoQ (%) YoY (%) Revenue 54,396 41,919 52,902 29.8% 2.8% Gross Profit 11,679 8,583 13,913 36.1% -16.1% Gross Margin 21.5% 20.5% 26.3% +1.0ppts -4.8ppts Operating Expense 5,424 5,008 5,219 8.3% 3.9% Operating Profit 6,2
Slide 6: 2023 Financial Results
2023 Financial Results (Unit: NT$ million, unless otherwise stated) 2023 2022 YoY (%) Revenue 151,398 171,356 -11.6% Gross Profit 27,459 39,888 -31.2% Gross Margin 18.1% 23.3% -5.2ppts Operating Expense 18,300 17,441 4.9% Operating Profit 9,160 22,447 -59.2% Operating Margin 6.1% 13.1% -7.0ppts Non-
Slide 7: Quarterly Operation Results
Quarterly Operation Results Revenue Gross Margin (%) 2022 2023 Unit: NT$ million 2022 2023 26.0% 26.3% +3% YoY -16% YoY 19.1% 18.8% 52,902 54,396 50,004 -7% YoY -32% YoY 41,919 34,534 Net Margin (%) 33,915 14.3% 31,545 13.0% 10.8% 9.3% 23,537 8.2% 8.0% 2.7% 0.6% 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 7
Slide 8: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 2022 Revenue NT$171.4bn 2023 Revenue NT$151.4bn Automotive/Server/ Automotive/Server/ Base Station & Base Station & IC Substrate, Others, 3.0% IC Substrate, Others, 4.1% 3.2% 3.3% Computers and Consumer Electronics, Computers 23.5% and Consumer Electronics, 34.6%
Slide 9: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices Unit: NT$ million 2023-12-31 2022-12-31 Change Amount % Amount % Amount % Cash and Cash Equivalents (2) 65,970 27.2% 57,599 24.8% 8,371 +2.4ppts Notes & Accounts Receivable 29,503 12.2% 30,529 13.1% -1,026 -0.9ppts Inventories 15,508 6.4% 17,725 7.6% -2,217
Slide 10: 2013-2023 Financial Summary
2013-2023 Financial Summary Unit: NT$ million Period 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue 64,483 75,954 85,738 82,393 109,238 117,913 120,068 131,279 155,022 171,356 151,398 Gross Profit 11,894 14,323 16,427 12,542 17,833 26,061 27,222 26,584 30,537 39,888 27,459 Net Income
Slide 11: Company Strategy
Company Strategy Charles Shen, Chairman 11
Slide 12: 2023 Review and Outlook
2023 Review and Outlook 1 2023 revenue declined by 11.6% YoY, in line with our expectation, and better than the industry average decline of 15%: In 2023, due to the weak global demand for consumer electronics, ZDT's revenue declined for the first time since 2017 but was better than the industry aver
Slide 13: ZDT Outperforms Industry Average, Maintaining #1 Position
ZDT Outperforms Industry Average, Maintaining #1 Position 2023 Global Top 10 PCB Companies Revenue Trends ZDT Maintains a Leading Market Share in the 6000 Unit: US$ million PCB Industry 2023: ZDT -11.6% YoY Maintain at Global #1 for 7 Consecutive Years 5000 Industry Avg. -15.0% 7.0% 7.0% 6.8% 6.8% 4
Slide 14: All PCB Segments to Resume Growth in 2024
All PCB Segments to Resume Growth in 2024 100% 80% IC Substrate 60% HDI 40% FPC+SMA 20% RPCB 0% 2018 2019 2020 2021 2022 2023(E) 2024(F) 2025(F) 2026(F) 2027(F) 2028(F) 2028(F)單位：百萬美元 2023-2028 Product Item 2018 2019 2020 2021 2022 2023(E) 2024(F) 2025(F) 2026(F) 2027(F) CAGR Value 33,225 31,969 32,
Slide 15: One ZDT: One Stop Shopping Synergies
One ZDT：One Stop Shopping Synergies FPC (+Module) HDI (+mSAP+Mini LED) HDI Mini FPC LED AI PC AI Smart- AR/VR Wearable NEV/ Next Gen AI Smart- AR/VR Wearable Smart phone Metaverse Devices Battery Display phone Metaverse Devices Cockpit One Module SLP ZDT RPCB (+Base Station + Automotive + Server) IC
Slide 16: ZDT: Strong Competitive Advantage under the Edge AI Trend
ZDT: Strong Competitive Advantage under the Edge AI Trend The design of PCB and IC substrate become more complex, with growing Execute various AI demand for fine lines and applications, including real- high layer counts products. time translation, voice note assistants and image editing assistants.
Slide 17: Solid Growth Momentum from Diversified Applications
Solid Growth Momentum from Diversified Applications ZDT’s Revenue for Automotive/Server/Base Station ZDT’s 4Q23 Revenue for IC Substrates also Reached a Marked Record Highs Repeatedly Record High 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 17
Slide 18: Global Manufacturing Footprint with New Capacity Rolling Out
Global Manufacturing Footprint with New Capacity Rolling Out Kaohsiung Luzhu Science Park: Thailand Prachinburi Park (Phase 1)： FPC and Advanced Module Production Line High-end RPCB/HDI Trial production in 1H25 and mass production in small- scale in 2H25. Phase 1 will focus on Plan to enter ma
Slide 19: Six Major Global Manufacturing Campuses
Six Major Global Manufacturing Campuses Multiple manufacturing campuses to fulfill clients’ needs China Qinghuangdao Qinghuangdao Park BT Substrate Park ► FPC & advanced ► FC-CSP/WB-CSP/Memory module/SLP High end HDI ► Phase 1 entered mass production in 2022 China Huai’an India Huai’an Park 1 Huai’a
Slide 20: EPS + ESG – Improvement of ESG Ratings
EPS + ESG – Improvement of ESG Ratings ► Corporate Governance Evaluation Ranking ► ISS ESG Rating Ranked between 6% to 20% in the 2023 Corporate Governance ISS has upgraded Zhen Ding's ESG Rating from "C" to "C+," Evaluation for listed companies and re-selected for inclusion granting Zhen Ding "Prim
Slide 21: IC Substrate Business Update
IC Substrate Business Update D.J. Lee, Director & Chief Operating Officer 21
Slide 22: IC Substrate Business Update
IC Substrate Business Update 1 IC substrate revenue reached a record high in 4Q23. BT substrates continue to recover, and the average utilization rate in 2024 is expected to exceed 80%. The BT business may turn profitable this year: • The utilization rate of BT substrates in 4Q23 has recovered to ov
Slide 23: AI Application – Chiplet Substrate
AI Application – Chiplet Substrate AI Chip Solution Chiplet Substrate Single SOC (System on Chip) High-speed Data Larger die size, more Computing Transmission complicated manufacturing HBM HBM process, and higher costs HBM SOC HBM AI applications require high-speed Chiplet computing capabilities and
Slide 24: Automotive IC Substrate
Automotive IC Substrate Intelligence DCU Chip Packaging ZDT’s IC Substrate • Autopilot DCU Autopilot AI Chip CMOS FCBGA • Cockpit DCU Smart Cockpit Chip Storage Chip Sensor DCU Chip ADAS Chip FCBGA • mmWave Radar CSP • Laser Radar • Camera 4~18L 17x17~75x75mm Connectivity Communication Module FCCSP
Slide 25: IC Substrate Capacity Expansion Plan
IC Substrate Capacity Expansion Plan 2023 2024 2025 2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Installation Fab 1 Sample certification SZ ABF (Mid to high- Substrate end products) Full utilization, target yield: Mass production, target yield: comparable to tier 1 peers Plant comparable to
Slide 26: IC Substrate Goals
IC Substrate Goals NT$ 60bn >50% 15%+/- Top 5 IC Substrate Capex: IC Substrate Revenue: IC Substrate Revenue: IC Substrate Market Share: Plan to invest NT$60bn 2023~2027 Revenue Account for 15 %+/- of Aim to become one of the from 2022~2027 CAGR >50% company’s consolidated global top 5 companies in
Slide 27: Q&A
call BEAT HE Zhen Ding Tech. Holding Q&A 27
Slide 28: Thank You
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Zhen Ding Technology Holding — Q4 2023 Earnings Presentation on 6ix