Plover Bay Technologies Ltd. · HKEX:1523
Plover Bay Technologies — H1 2018 Earnings Presentation
20 slides from Plover Bay Technologies's earnings presentation, Jul 31, 2018
Slide 1: Plover Bay Technologies Limited (1523 HK) Interim Results 2018
31 July 2018 Plover Bay Technologies Limited (1523 HK) Interim Results 2018 0
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is intended solely for your personal reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning Plover Bay Technologies Limited (the “Company”). T
Slide 3: What is SD-WAN?
What is SD-WAN? SD-WAN is Smart Connectivity Plover Bay’s SD-WAN technology offers: ▪ SpeedFusion – Combine bandwidth from multiple network connections to form a high speed network ▪ Unbreakable Connectivity – Multiple connections means when one is down, others instantly take over so that network se
Slide 4: SD-WAN – A Fast Growing Market
SD-WAN – A Fast Growing Market SD-WAN will be a US$ 8 billion market by 2021 (based on end customer selling price) Drivers of SD-WAN ▪ Network cost reduction ▪ Internet of Things ▪ Data analytics ▪ Data traffic growth 3
Slide 5: Market Landscape: Wired vs Wireless SD-WAN
Market Landscape: Wired vs Wireless SD-WAN Wireless Is the Future for SD-WAN Routers Total SD-WAN Wired – the current mainstream market Infrastructure US$4,151M VMWare VeloCloud (acquired in Nov 2017) Cisco Viptela (acquired in March 2017) Versa Networks Nuage (Nokia) Talari Networks Elfiq Aryaka Ne
Slide 6: Wireless vs Wired
Wireless vs Wired Wired-SD WAN Wireless SD-WAN Limited to office / indoor deployments Deploy anywhere Low barrier of entry Multiple certifications for different telecom operators Industrial standards requirement Software provides differentiation Purpose designed hardware Integration of Software and
Slide 7: Business Updates: New Opportunities
Business Updates New Opportunities ▪ Potential customers keen to embed Plover Bay’s SD-WAN technologies into their products ▪ Leading names in maritime satellite telecommunications, luxury recreational vehicles and IT equipment and services ▪ New platform of growth in addition to network of distribu
Slide 8: Business Updates: New Products: FusionSIM
Business Updates New Products: FusionSIM ▪ Pre-package mobile data from multiple carriers to maximize the benefit of SpeedFusion ▪ Enhances coverage and quality of service for managed service providers (MSP) ▪ One-stop, hassle free deployment for end-customers ▪ Highly reduced upfront equipment cost
Slide 9: Business Updates: New Brand - Pepxim
Business Updates New Brand - Pepxim ▪ Marks our entry into IoT space ▪ Building blocks for a smart office, simplify administration and save costs ▪ Use software & cloud to disrupt traditional, well-adopted products ▪ Products: PepSign, Smart Reader, SD-Switch, SD-PMU, IoT Cloud Adding disruptive new
Slide 10: Complete Range of Products for SD-Branch
Complete Range of Products for SD-Branch SIM Bank & FusionSIM Wireless SD-WAN Software-defined switch Wired SD-WAN Small form factor wireless SD-WAN IoT network devices & services EPX 9
Slide 11: Going Beyond SD-WAN Routers
Going Beyond SD-WAN Routers 10
Slide 12: Business Updates: Further enhancing our competitiveness
Business Updates Further enhancing our competitiveness ▪ Expanded operations team in Taiwan with focus to drive down production cost, improve sourcing capabilities and expand supplier base ▪ Improve production planning and procurement processes ▪ Work closely with supply chain in Taiwan to further s
Slide 13: Trade War – Turning Challenge into Opportunity
Business Updates Trade War – Turning Challenge into Opportunity ▪ Routers from China origin are subject to 10% tariff, according to list of goods proposed by US Trade Representative on 11 July 2018 (subject to hearing on 30 Aug 2018) ▪ How this impacts us - Since 2016, we parallel run low to mid-end
Slide 14: Financial Highlights
Financial Highlights Six months ended 30 June YoY 2016 2017 2018 (USD’000) Change Revenue 12,033 17,788 19,728 +10.9% Gross profit 7,923 10,502 12,449 +18.5% Operating income 3,981 4,992 5,797 +16.1% Reported net profit 2,801 4,135 4,743 +14.7% Non-GAAP net profit 3,338 4,573 5,156 +12.8% Gross prof
Slide 15: Revenue Breakdown
Revenue Breakdown Revenue by product 25.0 (USD millions) Software Others 19.3 19.7 Wired 20.0 Asia 17.8 0.4 0.9 Warranty & 4% SD-WAN 2% 16.3 0.8 services 4% 21% 15% 3% 3.5 4.2 0.7 3.1 21%18% 23% 15.0 22% 2.7 12.0 0.5 Product mix Geo breakdown 2.5 10.0 9.8 11.5 10.6 1H18 & 1H17 1H18 & 1H17 53% 8.6 (O
Slide 16: Gross Profit Margin Breakdown
Gross Profit Margin Breakdown Gross profit by segment Gross profit margin by key segments (USD millions) 12.5 12.4 0.5 70.4% Wired SD- 0.8 68.6% 10.5 WAN routers, 10.0 66.1% 66.0% 69.7% 0.8 3.1 0.7 3.8 7.9 65.8% 2.3 2.7 64.5% Group GPM, 0.5 61.4% 63.1% 2.2 59.0% 6.2 4.8 4.0 4.3 53.0% 53.5% 3.0 Wirel
Slide 17: Operating Expenses Breakdown
Operating Expenses Breakdown USD’000 Percentage of revenue Six months ended 30 June 2017 2018 2017 2018 Other operating income: Other income & gains, net 369 83 2.1% 0.4% Operating expenses: Selling & Distribution 637 1,058 3.6% 5.4% Admin expenses 1,974 2,166 11.1% 11.0% R&D expenses 3,268 3,511 18
Slide 18: Net Profit, EPS and Dividend
Net Profit, EPS and Dividend 6M ended 30 June 2016 2017 2018 (USD’000) 14.7% net profit growth Net profit 2,801 4,135 4,743 + Listing fees 537 - - + Stock option - 438 413 Non GAAP Profit 3,338 4,573 5,156 EPS data (US cents) 4,743 4,135 (24.0%) 3,794 Basic 0.37 0.41 0.47 (23.2%) 3,340 Diluted 0.37
Slide 19: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation Cash flow highlights 2016 2017 2018 6M ended 30 June (USD’000) Cashflow from operations 3,390 1,160 11,259 Cashflow from investing (446) (1,297) (472) Free cash flow 2,944 (137) 10,787 Working capital highlights (USD’000) 30 Jun 2017 31 Dec 2017 30 Jun 2018 Trade and
Slide 20: Q&A Investor Relations Contact
Q&A Investor Relations Contact Phone: +852 2990 7667 Email: ir@ploverbay.com
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