Karin Technology Holdings Limited · SGX:K29
Karin Technology — Investor Presentation (2008)
36 slides from Karin Technology's investor presentation, 2008
Slide 1: COMPUCON GAMATECH IMIKABEL KARFID x KARLTEC KEPRO 5ESR SEN SPIRIT
COMPUCON GAMATECH IMIKABEL KARFID x KARLTEC KEPRO 5ESR SEN SPIRIT
Slide 2: About KARIN Group
About KARIN Group • Incorporated in 1977 • Listed on the Mainboard of Singapore Exchange (SGX) since March 2005 • Over 370 Staff (HK 165, PRC 195 & Singapore 10) • Based in Hong Kong with 18 subsidiaries in Hong Kong, the Mainland China and Singapore • Value-added Solutions and Services Provider
Slide 3: KARIN Group Business Coverage
KARIN Group Business Coverage (Asia Pacific) • Headquartered in Hong Kong with subsidiaries in Shanghai, Shenzhen, and Singapore, and offices in Beijing, Hangzhou, Qingdao and Xiamen, all scattered along the coastal region of the Mainland China
Slide 4: Group Business Strategies
Group Business Strategies • Full expansion on product and service ranges horizontally and vertically • Exploit recession-proof business such as energy saving and environmental protection • Development in new industries and industries not yet covered in extended market regions
Slide 5: Core Business
Core Business Karin Technology Holdings Limited Components IT Infrastructure System Components IC Application Professional Integrated Distribution Design Services Solutions
Slide 6: Subsidiaries engaging in Components Distribution
Subsidiaries engaging in Components Distribution Karin Electronic Supplies Co., Ltd. (Hong Kong) Karin Electronic Trading (Shenzhen) Co., Ltd. (Shenzhen, Beijing and Xiamen) Karin International Trading (Shanghai) Co., Ltd. (Shanghai and Qingdao) IMI Kabel Pte Limited (Singapore)
Slide 7: Product Lines
Product Lines • Electronic Components Group Plastic Material Crystal Fabless Integrated Circuits Design Connector Fabless Integrated Circuits Design Home Appliance Semi-Conductor Integrated Circuits Integrated Circuits
Slide 8: Product Lines
Product Lines • Industrial Materials & Instrumentation Marketing Group Panel PC/Single Board Computer Switching Power Supply Electronic and Industrial Fuses DC/DC Power Supply Capacitor Frequency Inverter Connector Electrical and Electronic Cables Power Semiconductor Terminal Blocks / Surge Voltage
Slide 9: Subsidiaries engaging in IC Application Design
Subsidiaries engaging in IC Application Design New Spirit Technology Limited (Hong Kong) New Spirit Electronic Technology Development (Shenzhen) Co., Ltd. (Shenzhen and Hangzhou)
Slide 10: Components - IC Application Design Solutions
Components - IC Application Design Solutions Applications Toys Wireless Devices Communication Devices Multi-Media Devices LCD Related Products Electrical Appliances
Slide 11: IC Application Design Solutions Product Lines
IC Application Design Solutions Product Lines Power Management IC Bluetooth Solutions Flash Based Remote MCU USB Controller IC Authentication IC Home Appliance MCU Connectors Power Management IC
Slide 12: IC Application Design Solutions Product Lines
IC Application Design Solutions Product Lines Bluetooth Solutions Memory IC Crystal LCD Module 2.4GHz Transceiver Bridge Diodes 8-Bit Telephone IC MCU & HDMI IC Speech, MCU & Memory IC
Slide 13: Subsidiaries engaging in IT Infrastructure Professional Services and System Integrated Solutions
Subsidiaries engaging in IT Infrastructure Professional Services and System Intergrated Solutions Karin Electronic Supplies Co., Ltd. (Hong Kong) Kepro Solutions Limited (Hong Kong) Sen Spirit Technology Limited (Hong Kong) Compucon Computers Limited (Hong Kong) Karltec Information System (Shenzhen)
Slide 14: Market Segments
Market Segments • Banking and Finance (Securities / Investment Banking) • Government Departments • Utilities • Insurance • Retails • Telecommunications • Transportation
Slide 15: Products and Solution
Products and Solution Security & Identity Access Solutions Mobile POS Hardware Solutions Information Infrastructure Solutions Server Options & Storage Solutions Storage Systems, Servers & Database Management Software Personal Computers Computing Application Software Network Computing Solutions Infor
Slide 16: Products and Solution (cont’d) & Market Regions
Products and Solution (cont’d) & Market Regions Application Infrastructure Software Information Infrastructure Solutions Enterprise Storage and Servers Network Security Solutions Computer Hardwares Printers • Market Regions Hong Kong Mainland China Macau
Slide 17: Strategy Focus
Strategy Focus Strengthen design Capability and Increase product line Optimize Operating HK; PRC & ASEAN Efficiencies Network Expansion Increase Overall Competitiveness
Slide 18: Strategy Focus • Core Objectives
Strategy Focus • Core Objectives - Reinforce Financial and Operational Controls - Improve Profit Margins - Improving Human Capital and Company Value
Slide 19: Reinforce Financial Controls
Reinforce Financial Controls • Stringent risk management on FX and Treasury • Cost control measures on logistics and other operations • Reinforcement of Internal Control and Management Reporting Process for greater transparency and migrating risks
Slide 20: Improve Profit Margins
Improve Profit Margins • Stringent cost controls • Offer services with higher margins - Cable : Electrical control cables branded by KARIN - Strengthening of IC Application Design and IT Services : Business units enhancing products with higher margins through IP and service incremental
Slide 21: Improve Human Capital and Company Value
Improve Human Capital and Company Value • Promote skill-set development among staff - Introduce staff achievement awards for professionalism, skill-sets, and technology. • Upgrade in-house IT infrastructure to promote synergy building among business units - Automated eWorkflow - Group Intranet - Ent
Slide 22: KARIN’s Objectives
KARIN’s Objectives • Keep growing our market share in our two core business segments • Achieve sustainable double-digit growth in both turnover and profitability. • Reward shareholders with relative high dividend payout ratio • Become a high performance distributor and solution provider in the respe
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS Karin Technology Holdings Limited KARIN
Slide 24: Revenue (year ended June)
Revenue (year ended 30 June) 1,894 2,000 1,444 1,116 1,100 1,500 986 HK$ [million] 1,000 741 497 535 500 908 619 703 565 0 2005 2006 2007 2008 1st half 2nd half
Slide 25: Gross Profit (year ended June)
Gross Profit (year ended 30 June) 182.3 200.0 140.7 104.4 150.0 90.2 88.1 HK$ [million] 100.0 71.1 44.3 56.3 50.0 94.2 69.6 45.9 48.1 0.0 2005 2006 2007 2008 1st half 2nd half
Slide 26: Gross Profit Margin (year ended June)
Gross Profit Margin (year ended 30 June) 12 11 10 9 8 Percentage (%) 9.7 9.6 7 9.5 6 8.1 5 4 3 2 1 0 2005 2006 2007 2008
Slide 27: Net Profit (year ended June)
Net Profit (year ended 30 June) 61.3 70.0 60.0 41.1 50.0 30.8 24.9 26.1 HK$ [million] 40.0 30.0 19.5 14.6 20.0 11.6 36.4 10.0 21.6 14.5 16.2 0.0 2005 2006 2007 2008 1st half 2nd half
Slide 28: Net Profit Margin (year ended June)
Net Profit Margin (year ended 30 June) 4 3 3.24 Percentage (%) 2.85 2.80 2 2.34 1 0 2005 2006 2007 2008
Slide 29: Revenue By Business Segments
Revenue By Business Segments (year ended 30 June) 1000 900 992 800 700 HK$ (million) 600 706 500 612 400 482 479 490 300 415 436 200 259 290 100 219 174 0 2005 2006 2007 2008 Components Distribution IC Application Design IT Infrastructure
Slide 30: Dividend Payout History
Dividend Payout History 13.2¢ 9.1¢ 7.0¢ 14.0 6.0¢ 45.1% 30.0% 12.0 16.7% 10.0 8.1 HK (cents) 8.0 4.8 6.0 3.7 4.0 6.0 5.1 2.0 4.3 3.3 0.0 2005 2006 2007 2008 Interim Final
Slide 31: Dividend payout history
Dividend payout history 2005 2006 2007 2008 S’000 S’000 S’000 S’000 Dividend 2,648 2,887 3,524 4,689 Dividend / share S 1.31 cents S 1.43 cents S 1.74 cents S 2.32 cents Cumulated 2,648 5,535 9,059 13,748 Cumulated S 1.31 cents S 2.74 cents S 4.48 cents S 6.81 cents dividend / share
Slide 32: Dividend Payout from 2005 to 2008
Dividend Payout from 2005 to 2008 Total dividend payout from 2005 to 2008 S$13,748,138 Aggregate dividend per share in the last 4 years S$0.068 Current share price S$0.220 Total dividend paid per share to current share price 30.91% IPO share price S$0.200 Total dividend paid per share to IPO share p
Slide 33: Key Indicators
Key Indicators 2005 2006 2007 2008 HK$’000 HK$’000 HK$’000 HK$’000 Net Asset Value 136,331 150,921 184,825 238,298 YOY increment N/A 10.7% 22.5% 28.9% Increment in 4 years N/A N/A N/A 74.8% HK$0.13 / HK$0.15 / HK$0.20 / HK$0.30 / Earnings per share S$0.028 S$0.031 S$0.039 S$0.053 ROA 27.69% 24.72% 3
Slide 34: Four Consecutive Years Financial Summary
Four Consecutive Years Financial Summary FY2005 FY2006 FY2007 FY2008 HK$’000 HK$’000 HK$’000 HK$’000 Revenue 1,116,017 1,099,542 1,444,106 1,893,938 Gross profit 90,189 104,354 140,689 182,340 Profit before tax 30,174 35,362 50,351 73,754 Tax (4,094) (5,157) (10,124) (11,583) Profit for the year 26,
Slide 35: Three Consecutive Years Financial Summary
Three Consecutive Years Financial Summary FY2005 FY2006 FY2007 FY2008 HK$’000 HK$’000 HK$’000 HK$’000 Non-current assets 32,230 34,810 50,587 58,162 Current assets 346,694 314,621 429,207 644,139 Current liabilities 241,278 196,777 291,179 458,910 Non-current liabilities 1,315 1,733 3,790 5,093 Net
Slide 36: ~ Together We Pace For Tomorrow ~
~ Together We Pace For Tomorrow ~
Karin Technology Holdings — Investor Presentation (2008) on 6ix