Hung Hing Printing Group Limited · HKEX:450
Hung Hing Printing — H1 FY2012/13 Earnings Presentation
20 slides from Hung Hing Printing's earnings presentation, November 2012
Slide 1: Interim Results
Interim Results 6 months to September 2012 0
Slide 2: Disclaimer
Disclaimer The presentation is prepared by Hung Hing Printing Group Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment deci
Slide 3: Highlights
Highlights Group revenues were up +8 % for the six months ended 30 Sep 2012. Profit attributable to shareholders +46%. While the rate of consolidation in export printing industry accelerated, Hung Hing has benefitted as publishers are seeking a printer partner of reassurance of size and established
Slide 4: Financial Highlights
Financial Highlights Revenue growth boosts profitability Six months ended 30 Sep HK$ million 2012 2011 Change % Revenue 1,707 1,573 134 ↑ 8% Gross profit 253 209 44 ↑ 21% Gross profit % 15% 13% 2% ↑ Operating profit 71 56 15 ↑ 27% Operating profit % 4% 3% 1% ↑ Profit before income tax 55 45 10 ↑ 22%
Slide 5: Operating Revenue is up 8%
Operating Revenue is up 8% (HK$ million, 6 months ended Sep 2012) 2,000 1,786 1,707 1,560 Up 8% 1,573 248 165 Paper Trading 1,500 1,321 184 176 145 204 170 147 193 Corrugated Box (HK$ million) 373 423 123 340 389 1,000 Consumer Product 323 Packaging Book and Package 500 1,024 Printing 911 866 860 68
Slide 6: Segments Operating Profits are up 14%
Segments Operating Profits are up 14% (HK$ million, 6 months ended Sep 2012) 250 233 197 49 200 Paper Trading 163 46 57 Corrugated Box (HK$ million) 150 25 17 36 Consumer Product 41 23 10 100 75 Packaging 66 Up 14% Book and Package 12 Printing 50 105 21 17 98 4 86 20 11 42 14 0 FY08/09 FY09/10 FY10/
Slide 7: Business Unit Review
Business Unit Review 6
Slide 8: Hung Hing has established infrastructure in the PRD region and East China
Hung Hing has established infrastructure in the PRD region and an established base in East China Hung Hing–overview of manufacturing facilities Zhongshan Wuxi Printing and manufacturing of folding Printing and manufacturing of folding cartons, cartons, litho lam and corrugated litho lam and corrugat
Slide 9: Hung Hing operates four complementary business segments
Hung Hing operates four complementary business segments Book & package Consumer product Corrugated box Paper trading printing packaging Leader globally Major player in China Major player in South Leader in South China Market position China 60% (HK$1,024mm) 22% (HK$373mm) 8% (HK$145mm) 10% (HK$165mm)
Slide 10: Segment financials – Books and package printing
Segment financials – Books and package printing External revenue & Segment profit % (Six months ended 30 Sep) Books and package printing Commentary We maintain our market share and Revenue (HK$mm) Segment profit (%) 1,200 14% leadership position. Sales were up by 19%. 1,024 13% 12% 12% Slow economic
Slide 11: Segment financials – Consumer product packaging
Segment financials – Consumer product packaging External revenue & Segment profit % (Six months ended 30 Sep) Consumer product packaging Commentary Keen competition in the fairly fragmented Revenue (HK$mm) Segment profit (%) market where pricing is of crucial 500 10% 9% importance; 9% 423 On-going s
Slide 12: Segment financials – Corrugated box
Segment financials – Corrugated box Revenue & Segment profit % (Six months ended 30 Sep) Corrugated box Commentary Impacted by the slowdown in export External Intersegment Segment profit (%) manufacturing, across Pearl River Delta. Revenue (HK$mm) Overall, external sales declined by 1% 350 19% 20% 1
Slide 13: Segment financials – Paper trading
Segment financials – Paper trading Revenue & Segment profit % (Six months ended 30 Sep) Paper trading Commentary Revenue was affected by the slowdown in External Intersegment Segment profit (%) Revenue (HK$mm) export activities in the Pearl River Delta 500 12% 11% 11% The trend of softening paper pr
Slide 14: Key Balance Sheet Items
Key Balance Sheet Items 30 Sep 31 Mar HK$ million 2012 2012 Change % Property, plant & equipment 1,329 1,366 (37) ↓ -3% Inventories 646 711 (65) ↓ -9% Inventories days 57 94 Trade and bills receivables 930 648 282 ↑ 44% AR days 82 91 Cash 562 781 (219) ↓ -28% Borrowings 428 530 (102) ↓ -19% Short-te
Slide 15: Capital Investment – business capability
Capital Investment – business capability 180 Commentary Full year Half year 157 We always believe advanced 160 technology brings competitive 141 advantage in terms of quality, 140 132 timeliness and costs. 120 We’ll continue to invest in production (HK$ million ) equipment to help automation and 100
Slide 16: Profit Attributable To Owners & Earnings Per Share
Profit Attributable To Owners of the HHPG & Earnings Per Share Profit attributable to Owners of HH Basic Earnings per share Six months ended 30 Sep Six months ended 30 Sep 250 35 222 29.6 30 200 25 150 (HK$ million) (HK Cents) 129 20 101 14.3 100 15 10.9 10 45 50 5.0 31 5 3.4 0 0 FY08/09 FY09/10 FY1
Slide 17: Proposed Dividends
Proposed Dividends Commentary 35 Full year Half year 30 27 Earnings per share HK 5cents 25 23 (interim) (HK Cents) 20 9 17 Backed by the Group’s strong 14 15 cash flow and solid financial - position, an interim dividend of 10 HK 3 cents per shares was 10 10 5 declared. 4 5 3 - 5 2 - 4 4 3 2 0 FY08/0
Slide 18: BelugaBloo – a new e-publishing service
BelugaBloo – a new e-publishing service 17
Slide 19: BelugaBloo – a new e-publishing service
BelugaBloo – a new e-publishing service • Natural extension to our core business in children’s book printing • Complementary and value-added service targeted for children’s book publishers • End-to-end e-publishing solution - design, built, marketing, distribution and support • Major offering - Inte
Slide 20: Thank you Q&A
Thank you Q&A A Leading Printer in Asia With unrivalled market leadership, well-balanced portfolio and sustained growth for over six decades, Hung Hing is in an excellent position to take advantage of growing opportunities as the economic recovery continues to build momentum. 19
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