Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — FY2006 Earnings Presentation
28 slides from Comba Telecom Systems's earnings presentation, April 2007
Slide 1: Annual Results 2006 Corporate Presentation
Stock Code: 2342.HK Annual Results 2006 Corporate Presentation April 2007
Slide 2: Agenda
Agenda Overview Financial Highlights Financial Review Industry Trend Customer Review Market Outlook Open Forum 2
Slide 3: Overview
Overview Remarkable growth in revenue from China Mobile New products such as BTS antennas and DMS were well-received International sales more than doubled Robust net profit growth and healthy balance sheet PRC new headquarters established and production capacity expanded in existing plant Leveraged
Slide 4: Financial Highlights
Financial Highlights
Slide 5: Financial Results
Financial Results For the year ended 31 December HK$’000 2006 2005 Change Revenue 1,550,441 1,170,515 +32.5% Gross profit 586,540 474,326 +23.7% Gross profit margin 37.8% 40.5% -2.7 % pts Profit attributable to shareholders 131,140 82,089 +59.8% Net profit margin 8.5% 7.0% +1.5 % pts Basic EPS (HK c
Slide 6: Financial Position
Financial Position As at 31 December HK$’000 2006 2005 Change Current assets 2,082,581 1,947,340 +6.9% Current liabilities 1,009,693 986,921 +2.3% Net current assets 1,072,888 960,419 +11.7% Total assets 2,416,552 2,182,236 +10.7% Total liabilities 1,009,693 986,921 +2.3% Net assets 1,406,859 1,195,
Slide 7: Key Financial Indicators
Key Financial Indicators For the year ended 31 December 2006 2005 Inventory turnover days 225 286 A/R turnover days 172 174 A/P turnover days 162 170 Current ratio 2.1X 2.0X Gearing ratio 6.3% 14.0% Return on average equity 10.1% 7.2% 7
Slide 8: Financial Review
Financial Review
Slide 9: Revenue Breakdown by Customers
Revenue Breakdown by Customers Others 13.0% 40.8% China Unicom China Mobile 18.8% 68.2% 26.2% 67.1% = YOY change Remarkable revenue growth from China Mobile 9
Slide 10: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses Extended Maintenance Others 142.8% 2.2% 0.5% 133.8% Wireless Transmissions (DMS) 340.0% 3.6% Wireless Enhancement Antennas & Subsystems 69.0% 24.7% 16.5% 72.5% = YOY change Antennas and DMS products were well-received in the market 10
Slide 11: Profit & Margin
Profit & Margin Gross Profit Net Profit (HK$M) (HK$M) 600 586.5 131.1 120 474.3 400 90 82.1 40.5% 37.8% 8.5% 60 7.0% 200 30 0 0 2005 2006 2005 2006 Gross Profit Margin Net Profit Margin 11
Slide 12: Cost Structure
Cost Structure As % of Total Revenue 35% R & D costs 30% Enhanced capabilities in both PRC and US R&D 5.3% centres 22% Dedicated products for PRC and global markets 25% 4.9% 7.4% Selling and distribution costs 20% 6.5% 15% Focused sales efforts in high demand markets Leveraged well-establish
Slide 13: Industry Trend
Industry Trend Industry Trends Implications
Slide 14: Global Industry Trend
Global Industry Trend Mobile Connections GLOBAL Mobile Connections APAC (Millions) 1,416 (Millions) 1,267 1,112 945 726 Total 3,555.50 2G 3,307.80 3G 3,023.30 2005 2006 2007 2008 2009 2,665.30 Mobile Connections EMEA 2,175.80 (Millions) 1,199 1,283 1,346 1,076 897 1,734.30 2005 2006 2007 2008 2009 M
Slide 15: Industry Trend - China
Industry Trend - China China – Mobile Subscribers Mobile Network Infrastructure Spend (Millions) US$ (Millions) CAGR: CAGR: 12,012.9 +9% +16% 477.2 516.1 521.4 9,564.0 430.7 376.1 7,631.4 6,572.7 6,864.9 2005 2006 2007 2008 2009 2006 penetration = 33% China – Mobile Penetration 2005 2006 2007 2008 2
Slide 16: Implications of Industry Trend
Implications of Industry Trend More network capacity to cope with usage increase with data traffic expected to grow rapidly 3G is here and growing, but 2G still remains a formidable market Focus shifts from coverage driven to Product diversification also a capacity driven network Cost effective capa
Slide 17: Customer Review
Customer Review Global Customer Base China Business International Business
Slide 18: International Customer Base
International Customer Base EMEA China CALA APAC OEM 18
Slide 19: China Business
China Business Review: Continuous subscriber growth drives demand Continuous growth in urban and rural China Village connect projects Leadership position in customer procurement programs Strong demand for products from all business units Opportunities: Revenue 1,436,508 (HK$’000) Volume deliveries o
Slide 20: International Business
International Business Review: Group’s core committed growth strategy RoW 15% International business strategy beginning to India Sub-con show dividends with balanced growth for all 40% EMEA regions 23% APAC 22% Continued inroads into new markets through direct and partners presence RoHS compliant pr
Slide 21: Extended Addressable Markets
Extended Addressable Markets End-to-End Solutions Wireless Enhancement Solutions (indoor) Antennas & Subsystems Wireless Enhancement Wireless Solutions Transmission (outdoor) (digital microwave systems) 21
Slide 22: Wireless Enhancement
Wireless Enhancement OUTDOOR INDOOR INDOOR Large Venue SOLUTIONS INDOOR Medium Small Sized Venue Venue •Optical Repeater •Solar Power Passive Repeater •Dynamic Traffic Hybrid Passive / Active Hybrid Fiber / Multi-Operator / Routing Coax Network RF Repeater Frequency Review: Shifting Repeater Unrival
Slide 23: Antennas & Subsystems
Antennas & Subsystems Antennas Tower-Top Solutions MCPA RF Front Ends Review: Major wins in multiple China procurement programs The major BTS antenna manufacturer in China Tripled manufacturing capacity in BTS antennas Revenue Tech leadership: sole high-end antenna supplier for key customers (HK$’00
Slide 24: Wireless Transmission
Wireless Transmission Digital Microwave Systems Review: Year of Harvest for this newest Business Unit Revenue Success in China & Int’l markets with growing volume (HK$’000) Major win with volume supply for an int’l operator buildout Completed PDH, Super-PDH and SDH solutions offering 55,785 Opportun
Slide 25: Market Outlook
Market Outlook
Slide 26: 3G China: TD-SCDMA
3G China: TD-SCDMA We are ready and well positioned !! Long term trusted partner of China operators Partnership established with 3 core equipment vendors Antenna, Subsystems, RRU, etc Extended Product Line addressing all deployment needs: Indoor & Outdoor Enhancements Antennas & Subsystems for site
Slide 27: Major Global Opportunities
Major Global Opportunities Western Europe Eastern Europe 3G enhancement New buildouts & enhancements • 3G equipment North America agreement with TIM • Enhancement solutions • Approval of major AWS vendors India China • Launch of AWS MCPA New buildouts & 3G Rollouts enhancements •Solutions for rollou
Slide 28: Open Forum
Open Forum
Comba Telecom Systems Holdings — FY2006 Earnings Presentation on 6ix