Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — H1 2014 Earnings Presentation
23 slides from Comba Telecom Systems's earnings presentation, Aug 22, 2014
Slide 1: 2014 Interim Results Corporate Presentation
2014 Interim Results Corporate Presentation IPPC_V.02_22 Aug 2014
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 3
Slide 4: Financial Highlights
Financial Highlights Financial Results Financial Position Key Financial Indicators 4
Slide 5: Financial Results
Financial Results For the six months ended 30 June For the year ended HK$’000 2014 2013 Change 31 December 2013 Revenue 3,023,575 2,162,422 39.8% 5,720,599 Gross profit 851,668 551,675 54.4% 1,365,586 Gross profit margin 28.2% 25.5% 2.7pp 23.9% Operating profit / (loss) 135,299 (110,526) 222.4% (104
Slide 6: Financial Position
Financial Position As at As at As at HK$’000 Change 30 June 2014 31 December 2013 30 June 2013 Net (debt) / cash (687,514) 108,575 (733.2)% (690,274) Total assets 10,486,904 10,318,277 1.6% 9,610,702 Total liabilities 6,764,634 6,590,386 2.6% 5,853,354 Net assets 3,668,049 3,673,796 (0.2)% 3,704,013
Slide 7: Key Financial Indicators
Key Financial Indicators For the year For the six months ended 30 June ended 2014 2013 Change 31 December 2013 Inventory turnover days 200 257 (57) days 188 A/R turnover days 293 388 (95) days 294 A/P turnover days 323 364 (41) days 298 Gross gearing ratio 14.8% 16.5% (1.7)pp 15.1% Dividend payout r
Slide 8: Financial Review
Financial Review Revenue Breakdown by Customers Revenue Breakdown by Businesses Cost Structure 8
Slide 9: Revenue Breakdown by Customers
Revenue Breakdown by Customers For the six months ended 30 June 2014 Revenue (HK$Mn) 3,024 China Unicom 3,000 48 China Mobile 21.5% 12.1% 685 2,500 2,162 12.3% 43.8% 29 2,000 596 432 215 1,500 372 19.7% 306 1,000 China Telecom 1.5% Others 22.7% 1,323 59.5% 1,180 177.8% 500 0 International Customers
Slide 10: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses For the six months ended 30 June 2014 Revenue (HK$Mn) Wireless 3,024 Enhancement 2,500 4.0% 2,162 946 Services 2,000 143 32.8% 19.1% 711 31.3% 1,500 182 1,356 1,000 712 Wireless Access 4.7% & Transmission 44.9% Antennas 500 21.1% & Subsystems 579 557 90.4% 0 1H13 1H14
Slide 11: Cost Structure
Cost Structure For the six months ended 30 June As % of Total Revenue = YOY change 33.4% R&D costs 23.5% 35% Continuous investment in the development and 4.0% expansion of new product offerings 30% 26.2% Selling and distribution expenses 3.8% 25% Significant increase of the revenue 11.0% 3.5% 20
Slide 12: Customer Review
Global Customers China Business International Customers & Core Equipment Manufacturers 12
Slide 13: Global Customers
Global Customers Core China Equipment Vendors EMEA APAC Americas 13
Slide 14: China Business
China Business Review & Opportunities: Revenues increased 34.7% to HK$ 2,291 million 4G licensing stimulating industry CAPEX for major network rollouts 2014 and beyond 4G driving wireless infrastructure spending Huge capacity demands on wireless networks driven by rapidly increasing data usage Comba
Slide 15: International Customers & Core Equipment Manufacturers
International Customers & Core Equipment Manufacturers Review & Opportunities: Revenues increased 58.7% to HK$ 685 million Strong CAPEX growth in international markets Deepening penetration and major project wins for various markets Expanded revenue base with additional international operators and O
Slide 16: Business Review
Antenna & Subsystems Wireless Enhancement Wireless Access & Transmission Services Summary 16
Slide 17: Antennas & Subsystems
Antennas & Subsystems Review & Opportunities: Revenues increased 90.4% to HK$ 1,356 million LTE antenna deployment for China network rollout International operator CAPEX for wireless networks increasing demand for antennas and subsystems Antennas 2014 and beyond RF Front Ends China 4G network buildo
Slide 18: Wireless Enhancement
Wireless Enhancement Review & Opportunities: Revenues increased 4% to HK$ 579 million Substantial deployment of wireless enhancement solutions for key projects – e.g. 2014 World Cup, 2014 Sochi Winter Games, HK MTR Express Rail Sales growth of wireless enhancement equipment to Active DAS OEM (Med/La
Slide 19: Wireless Access & Transmission
Wireless Access & Transmission Review & Opportunities: Revenues decreased 21.1% to HK$ 143 million Impact of slowdown in China’s Wi-Fi hotspot initiative Small Cell Solutions WLAN Growth in Small Cells and Microwave Solutions Solutions WIRELESS ACCESS (WLAN Solutions + Small Cell Solutions) Market a
Slide 20: Wireless Access & Transmission
Wireless Access & Transmission WIRELESS TRANSMISSION (Digital Microwave Systems & Satellite Solutions) Digital IP networks driving microwave backhaul solutions Microwave Systems Small cell backhaul seeing particular growth Development of innovative integrated solutions Integration of satellite solut
Slide 21: Services
Services Network Planning Network Project Consultancy Rollout Network Installation Review & Opportunities: Maintenance & Commissioning Revenues increased 32.8% to HK$ 945 million Network Network Key differential element enabling the Comba to supply Optimization Commissioning total solutions Services
Slide 22: Summary
Summary Positive market conditions and outlook for the industry and company China 4G licensing a key driver for CAPEX Long term opportunities for high-end solutions Strong CAPEX growth internationally LTE-related spending is the fastest growing segment Solidified brand value and market position with
Slide 23: Open Forum
Comba Open Forum
Comba Telecom Systems Holdings — H1 2014 Earnings Presentation on 6ix