Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — Investor Presentation (May 2024)
34 slides from Zhen Ding Technology's investor presentation, May 2024
Slide 1: Zhen Ding Technology Holding (4958 TT) Investor Presentation
Zhen Ding Technology Holding (4958 TT) Investor Presentation May, 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: Zhen Ding (ZDT) at a Glance
Zhen Ding (ZDT) at a Glance NT$ 151.4bn NT$ 113.6bn 14.7% No. 1 Revenue in 2023 (-11.6% YoY) (Market Cap as of May 15, 2024) 10yr Average ROE PCB Manufacturer Worldwide +9% Revenue Breakdown 銷售分析 – By Applications – 產品應用別 NT$171.4 bn 2013-2023年 -11.6% YoYNT$151.4 bn 3.0% Revenue CAGR 3.2% 4.1% 2006
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 2013-2023. Leverage One ZDT synergies to further widen the market share gap: 2 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: 1Q24 Review and Outlook
1Q24 Review and Outlook 1Q24 revenue increased by 3.06% YoY, returning to the annual growth track: 1 In 1Q24, Zhen Ding’s computer and consumption electronics, automotive/server/base station revenue achieved double- digit annual growth, while IC substrate revenue increased by three-digitals and hit
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% 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) 2023-2028 產品 項目 2018 2019 2020 2021 2022 2023(E) 2024(F) 2025(F) 2026(F) 2027(F) 2028(F) CAGR Value 33,225 31,969 32,674 40,641 38,
Slide 10: One ZDT: One Stop Shopping Synergies
One ZDT：One Stop Shopping Synergies FPC (+Module) HDI(+SLP+Mini LED) 5G Applications Advanced HDI, SLP AR/VR Metaverse HDI NB、Automotive HDI New Energy Mini 5G AiP、SiP Intelligent Vehicles FPC LED AR/VR Metaverse Next-gen Display Mini LED/Micro LED One Module SLP ZDT RPCB(+Base S
Slide 11: 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 12: Product Portfolio continues to diversify into multiple applications
Product Portfolio continues to diversity into multiple application 1Q24 ZDT’s revenue for automotive/server/base ZDT’s 1Q24 revenue for IC Substrate reached station increasing 26.5% YoY a record high +26.5% YoY 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 13: 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 14: Aim to Reach 10% Global PCB Market Share by 2030
Aim to Reach 10% Global PCB Market Share by 2030 1Q24 Revenue $32.5 bn 2027 Target Revenue by Aim to Reach 10% Global Market Application Share by 2030 Automotive /Server/Bas 10.0% Mobile e Station & IC Substrate, Communication Others, 5.5% 5.7% Others Computers and Consumer Electronics, 24.9% 7.0% M
Slide 15: Aggressive Expansion in IC Substrate
Aggressive Expansion in IC Substrate Aim to Become One of the Top Five in the World by 2030 15
Slide 16: IC Substrate Business Update
IC Substrate Business Update 1 IC substrate revenue hit a new quarterly high in 1Q24, entering a rapid growth phase: • IC substrate business accounted for 5.7% of revenue in 1Q24. The company still targets a CAGR over 50% for 2023-2027. IC substrates are expected to contribute approximately 15%+/- t
Slide 17: AI Application – Chiplet Substrate
AI Application – Chiplet Substrate AI Chip Solution Chiplet Substrate Single SOC (System on Chip) High-speed Data Larger die size, more Computing Transmission complicated manufacturing HBM HBM process, and higher costs HBM SOC HBM AI applications require high-speed Chiplet computing capabilities and
Slide 18: Automotive IC Substrate
Automotive IC Substrate Intelligence DCU Chip Packaging ZDT’s IC Substrate • Autopilot DCU Autopilot AI Chip CMOS FCBGA • Cockpit DCU Smart Cockpit Chip Storage Chip Sensor DCU Chip ADAS Chip FCBGA • mmWave Radar CSP • Laser Radar • Camera 4~18L 17x17~75x75mm Connectivity Communication Module FCCSP
Slide 19: IC Substrate Capacity Expansion Plan
IC Substrate Capacity Expansion Plan 2023 2024 2025 2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Installation Fab 1 Sample certification SZ ABF (Mid-to high- Substrate end products) Full utilization, target yield: Mass production, target yield: comparable to tier 1 peers Plant comparable to
Slide 20: IC Substrate Goals
IC Substrate Goals NT$ 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 21: Global Manufacturing Footprint
Global Manufacturing Footprint 21
Slide 22: 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 23: Global Manufacturing Footprint advancing with construction in Thailand
Global Manufacturing Footprint is advancing step by step with actively construction in Thailand according to the plan (last Dec.) Phase I：high-end RPCB/HDI (currently) Phase I：high-end RPCB/HDI Trial production in 1H25 and mass production in small-scale in 2H25. Phase I will focus on server, aut
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 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 27: Financial Summary
&@ TEMA IE ‘Zhen Ding Tech. Holding Financial Summary
Slide 28: 1Q24 Financial Results
1Q24 Financial Results (Unit: NT$ million, unless otherwise stated) 1Q24 1Q23 YoY (%) Revenue 32,510 31,545 3.1% Gross Profit 5,337 5,075 5.2% Gross Margin 16.4% 16.1% +0.3ppts Operating Expense 4,594 3,857 19.1% Operating Profit 743 1,219 -39.1% Operating Margin 2.3% 3.9% -1.6ppts Non-Operating Inc
Slide 29: Quarterly Operation Result
Quarterly Operation Result Revenue Gross Margin (%) 2023 2024 Unit: NT$ million 2023 2024 16.4% 21.5% 54,396 20.5% 16.1% 41,919 +3% YoY 9.0% Net Margin (%) 31,545 32,510 9.3% 8.0% 23,537 4.4% 2.7% 0.6% 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 29
Slide 30: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 1Q24 Revenue NT$ 32.5 bn 1Q23 Revenue NT$31.5 bn Automotive 1Q24 Revenue Automotive By Application /Server/Ba YoY% /Server/Bas IC se Station e Station & Substrate, & Others, IC Others, Mobile Communication -10.1% 2.4% 4.5% Substrate, 5.5% 5.7% Computer Computer an
Slide 31: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices (Unit: NT$ million) 2024-3-31 2023-3-31 change Amount % Amount % Amount % (2) Cash and Cash Equivalents 72,995 30.0% 68,703 29.7% 4,292 6.25% Notes & Accounts Receivable 20,856 8.6% 19,062 8.2% 1,794 9.41% Inventories 15,858 6.5% 13,985 6.0% 1,873 13.39% Pr
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
a Cy) RHR THANK YOU
Zhen Ding Technology Holding — Investor Presentation (May 2024) on 6ix