Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — Investor Presentation (February 2025)
34 slides from Zhen Ding Technology's investor presentation, February 2025
Slide 1: Zhen Ding Technology Holding Investor Presentation
Zhen Ding Technology Holding (4958 TT) Investor Presentation February 2025
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: Zhen Ding (ZDT) at a Glance
Zhen Ding (ZDT) at a Glance NT$171.7bn NT$110.5bn 14.7% Revenue in 2024 Market Cap 10yr Average ROE No. 1 (13.27% YoY) (as of Jan. 15, 20254) PCB Manufacturer Worldwide +9% Revenue Breakdown – By Applications 2014-2024年 +19.1% YoY NT$115.5bn Revenue CAGR NT$97.0bn 5.2% 5.5% 2006 Founded (Former Foxc
Slide 4: Why Invest in ZDT?
World’s largest PCB manufacturer with stable long-term growth: 1 ZDT has become the world’s largest PCB manufacturer since 2017. We have achieved a 9% revenue CAGR during 2014-2024. Leverage One ZDT synergies to further widen the market share 2 gap: With One ZDT as the core strategy, we will continu
Slide 5: World's Largest PCB Manufacturer with Stable Long-term Growth
World’s Largest PCB Manufacturer with Stable Long-term Growth 5
Slide 6: ZDT Outperforms Industry Average, Maintaining #1 Position
ZDT Outperforms Industry Average, Maintaining #1 Position 6
Slide 7: One ZDT: We Offer A Full Range of PCBs for AI
One ZDT: We Offer A Full Range of PCBs for AI From AI Edge Devices to AI Servers – AI Increases Design Complexity for PCBs ZDT Offers the Most Comprehensive and Advanced PCBs for All Kinds of AI Applications 臻鼎AI營收占比 Zhen Ding: Revenue Cloud Contribution from AI Related Products AI Server Edge Serve
Slide 8: Leverage One ZDT Synergies to Further Widen the Market Share Gap
Leverage One ZDT Synergies to Further Widen the Market Share Gap Aim to Reach 10% Global PCB Market Share by 2030 8
Slide 9: All PCB Segments to Resume Growth in 2024
All PCB Segments to Resume Growth in 2024 100% ICS 80% HDI 60% FPC 40% RPCB 20% 0% 2018 2019 2020 2021 2022 2023 2024(E) 2025(F) 2026(F) 2027(F) 2028(F) 2023-2028 Product Item 2018 2019 2020 2021 2022 2023 2024(E) 2025(F) 2026(F) 2027(F) 2028(F) CAGR Value 33,225 31,969 32,674 40,641 38,720 34,292 3
Slide 10: One ZDT Strategy Achieved Desired Results, Record Revenues
One ZDT Strategy Achieved Desired Results, with Automotive/ Server and IC Substrate Revenues Setting Record Highs ZDT’s 3Q24 Revenue for Automotive/Server/Base ZDT’s 3Q24 Revenue for IC Substrates Station Continues to Reach a Record High Reached a Record High for Four Consecutive Quarters 1Q22 2Q22
Slide 11: AI Server: Actively Engage with Customers for Future Generation Products
AI Server: Actively Engage with Customers for Future Generation Products 1 We are accelerating the development of PCB and IC substrate products for AI servers. 2 For high-end AI servers, customer demand for high-layer count (HLC) + HDI designs has increased. This is our area of expertise with a lead
Slide 12: Demand for High-end Mobile PCB continues to increase
Demand for High-end Mobile PCB continues to increase Global Foldable Phone Market Scale：ZDT has Global AI phone Market Scale：ZDT actively delivered to multiple customer collaborates with customers to develop new products (mm. pcs) non-foldable phone foldable phone (mm. pcs) non AI phone AI phone AI
Slide 13: Aim to Reach 10% Global PCB Market Share by 2030
Aim to Reach 10% Global PCB Market Share by 2030 1-3Q24Revenue NT$115.5bn 2027 Target Revenue by Aim to Reach 10% Global Market Application Share by 2030 Automotive/Server/ 10.0% Base Station & Mobile IC Others, 5.2% Communication Substrate, 5.5% Others Computers and Consumer Electronics, 7.0% 27.3%
Slide 14: Aggressive Expansion in IC Substrate
Aggressive Expansion in IC Substrate Aim to Become One of the Top Five in the World by 2030 14
Slide 15: IC Substrate Business Update
IC Substrate Business Update IC substrate revenue has set new quarterly records for four consecutive quarters, increasing by 88% for the first three quarters 1 of 2024, which is consistent with our previous expectation: • IC substrate revenue increased by 88% YoY for the first three quarters of 2024
Slide 16: Challenges on IC Substrates in Advanced Packaging
Challenges on IC Substrates in Advanced Packaging The complexity of IC substrates is increasing: High layer counts Large body size Flat surface Accurate production precision 2005 2020 2026 Body Size (mm) 31 x 31 75 x 60 120 x 140+ x20+ Layer count (L) 6 20 28+ x4+ Bump Count 1K 100K 300k+ ~ 500k+ x3
Slide 17: New AI Applications Drive the Demand of High-end IC Substrates
New AI Applications Drive the Demand of High-end IC Substrates 3 3 ABF Market Size BT Market Size 2021~(5G Era) US$100mn 2011~(4G Era) • GenAI, Data Center 2001~(2G/3G Era) • 5G Communication, IoT, Autonomous Vehicles • Smartphone, Tablet • Computer • Computer • Feature phone Mkt Share 0 2005 2006 2
Slide 18: SEMICON Taiwan Technology Trends Overview
SEMICON Taiwan Technology Trends Overview Advanced Packaging As Chiplet and HBM increase, the designs of bump area will become more irregular, which requires tighter control on packaging yields. The demand for more complex designs with large body sizes and high layer counts will increase. As p
Slide 19: IC Substrate Goals
IC Substrate Goals NT$ 60 bn >50% 15%+/- TOP 5 IC Substrate Capex: IC Substrate Revenue: IC Substrate Revenue: IC Substrate Market Plan to invest NT$60bn 2023~2027 Revenue Account for 15 %+/- of Share: from 2022~2027 CAGR >50% company’s consolidated Aim to become one of the revenue in 2027 global to
Slide 20: Global Manufacturing Footprint
Global Manufacturing Footprint 20
Slide 21: 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 22: Construction of Thailand Fab Progressing According to Plan
The Construction of Thailand Fab is Progressing According to Plan, with Equipment Installation Scheduled by the End of This Year (Last Dec.) Thailand Prachinburi Park (Phase I) (2024/8/26) Thailand Prachinburi Park (Phase I): Beam-Raising Ceremony The construction of the new fab in Prachinburi Pro
Slide 23: Kaohsiung AI Park: R&D and Manufacturing Site for AI Products
Kaohsiung AI Park: R&D and Manufacturing Site for AI Products The Kaohsiung AI Park will be Zhen Ding’s key R&D and manufacturing site for AI related products, to cater to the rising demand of AI applications. 23
Slide 24: Continued Capacity Expansion, Pursuing Stable Growth
Continued Capacity Expansion, Pursuing Stable Growth As the world’s largest PCB manufacturer, we keep positioning ourselves as a growth-oriented business, continually adopting early deployment of production capacity to meet customers’ need. Continually investing in KH and Thailand, laying the fo
Slide 25: Introduce Smart Manufacturing into Each Plant Step by Step
Introduce Smart Manufacturing into Each Plant Step by Step Advance Fabs Based on Industry 4.0 Unified identification Big data management Battle center AI Machine Learning CAD CAM CAE PDM PLM CRM SCM In Plan/In Cam Engineering design system Fault Detection and Classification (FDC) Run-to-Run Control
Slide 26: 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 2024 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 27: Financial Summary
&@ TEMA IE ‘Zhen Ding Tech. Holding Financial Summary
Slide 28: Quarterly Operation Results
Quarterly Operation Results Revenue Unit: NT$ million 2023 2024 +3% YoY +21% YoY 54,556 56,133 50,609 +3% YoY +38% YoY 41,919 31,545 32,510 32,411 23,537 10,000 1Q 2Q 3Q 4Q 28
Slide 29: 1Q~3Q24 Financial Results
1Q~3Q24 Financial Results (Unit: NT$ million, unless otherwise stated) 1-3Q24 1-3Q23 YoY (%) Revenue 115,531 97,002 +19.1% Gross Profit 20,990 15,781 +33.0% Gross Margin 18.2% 16.3% +1.9ppts Operating Expense 14,958 12,875 +16.2% Operating Profit 6,032 2,905 +107.6% Operating Margin 5.2% 3.0% +2.2pp
Slide 30: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 1-3Q24 Revenue NT$115.5bn 1-3Q23 Revenue NT$97.0bn 1-3Q24 Applications Automotive/Server/ Revenue YoY% Automotive/Server/ Base Station & IC IC Base Station & Mobile Others, 5.3% Substrate, 11.9% Substrate, Others, 4.6% Communication 3.5% 5.5% Computers Computers a
Slide 31: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices Unit: NT$ million 2024-9-30 2023-9-30 Change Amount % Amount % Amount % Cash and Cash Equivalents (2) 64,714 24.9% 59,979 24.2% 4,736 +0.7ppts Notes & Accounts Receivable 35,675 13.7% 32,141 13.0% 3,534 +0.8ppts Inventories 24,799 9.5% 22,311 9.0% 2,487 +0.
Slide 32: 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 33: Q&A
ese Q&A
Slide 34: Thank You
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