Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — FY2007 Earnings Presentation
27 slides from Comba Telecom Systems's earnings presentation, 2008
Slide 1: Corporate Presentation Annual Results 2007
Stock Code: 2342.HK Corporate Presentation Annual Results 2007
Slide 2: Agenda
Agenda Overview Financial Highlights Financial Review Customer Review Business Review Market Outlook Open Forum 2
Slide 3: Overview
Overview Steady revenue growth from China Mobile and China Unicom Rapid international expansion to deliver robust growth Remarkable growth in antennas and subsystems business Increasing importance of services – a new growth driver Enhanced revenue mix and cost controls improved gross profit margin I
Slide 4: Financial Highlights
Financial Highlights Financial Results Financial Position Key Financial Indicators
Slide 5: Financial Results
Financial Results For the year ended 31 December HK$’000 2007 2006 Change Revenue 1,768,418 1,550,441 +14% Gross profit 681,257 586,540 +16% Gross profit margin 38.5% 37.8% +0.7 % pts Profit attributable to shareholders 191,619 131,140 +46% Net profit margin 10.8% 8.5% +2.3 % pts Basic EPS (HK cents
Slide 6: Financial Position
Financial Position As at 31 December HK$’000 2007 2006 Change Current assets 2,343,942 2,082,581 +13% Current liabilities 1,047,631 1,009,693 +4% Net current assets 1,296,311 1,072,888 +21% Total assets 2,759,342 2,416,552 +14% Total liabilities 1,054,392 1,009,693 +4% Net assets 1,698,256 1,399,117
Slide 7: Key Financial Indicators
Key Financial Indicators For the year ended 31 December 2007 2006 Inventory turnover days 230 225 A/R turnover days 200 172 A/P turnover days 176 162 Current ratio 2.2X 2.1X Quick ratio 1.5X 1.5X Gearing ratio 3.2% 6.3% Return on average equity 12.4% 10.1% 7
Slide 8: Financial Review
Financial Review Revenue Breakdown by Customers Revenue Breakdown by Businesses Profit & Margin Cost Structure
Slide 9: Revenue Breakdown by Customers
Revenue Breakdown by Customers China Unicom 17.4% 6% International 9.9% China Mobile 54% 65.3% 9% 7.4% Others 50% = YOY change Steady growth in China Fastest growth internationally 9
Slide 10: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses Services 45% Wireless Enhancement 50.6% 18.8% 2% Wireless Transmissions (DMS) 16% 2.7% 27.9% Antennas & Subsystems 29% = YOY change Remarkable growth in Antennas & Subsystems as well as Services 10
Slide 11: Profit & Margin
Profit & Margin Gross Profit 16% Net Profit 46% (HK$M) (HK$M) 800 191.6 681.3 180 586.5 600 131.1 135 400 38.5% 10.8% 37.8% 90 8.5% 200 45 0 0 2006 2007 2006 2007 Gross Profit Margin Net Profit Margin 11
Slide 12: Cost Structure
Cost Structure As % of Total Revenue R & D costs 19% 35% Global R&D efforts to meet market needs 30% Selling and distribution costs 26% 4.9% 5.2% Increased international expansion to fuel long 25% term growth Administrative expenses 11% 20% 6.9% 7.6% Strengthened budgetary control 15% 15.7% 15
Slide 13: Customer Review
Customer Review Global Customer Base China Business International Business
Slide 14: Global Customer Base
Global Customer Base China Core Equipment Vendor EMEA APAC Americas 14
Slide 15: China Business
China Business Review: Continuing subscriber growth drives demand Continuous growth in urban and rural China z 2G growth with Village Connect Projects z Transport network coverage projects for the Qinghai-Tibet Railway (Qingzang) z Olympic Stadium coverage projects Expansion of VAS driving capacity
Slide 16: International Business
International Business Review: Group’s core committed growth strategy Consistently strong year-on-year growth at 54% India 11% Contributing 10% of group revenue APAC EMEA 33.8% 39.9% Continued inroads into new markets through direct Americas and partners 18% z Increased global points of presence Opp
Slide 17: Business Review
Business Review Wireless Enhancement Antennas & Subsystems Wireless Transmission Services
Slide 18: Business Review
Business Review Wireless Enhancement (indoor) Antennas and Subsystems Wireless Transmission Services Wireless Enhancement (outdoor) 18
Slide 19: Wireless Enhancement
Wireless Enhancement INDOOR INDOOR INDOOR OUTDOOR Small Medium Large Venue SOLUTIONS Venue Sized Venue •Optical Repeater Passive •Solar Power Repeater Hybrid Passive / Active •Dynamic Traffic Hybrid Fiber / Multi-Operator / Routing Coax Network RF Repeater Frequency Review: Shifting Equipment sales
Slide 20: Antennas & Subsystems
Antennas & Subsystems Antennas Tower-Top Solutions RF Front Ends Review: The major BTS antenna manufacturer in China Tech leadership: sole high-end antenna supplier for key customers Revenue (HK$’000) 493,946 Leveraging successful procurement programs with China operators TD-SCDMA antenna deployment
Slide 21: Wireless Transmission
Wireless Transmission Digital Microwave Systems Review: Slower deployment of wireless transmission solutions from existing customers Growing and diversifying customer base Revenue Launch of new solution range to address a wider market segment more (HK$’000) competitively in 4Q08 Y/Y: -16% Opportunit
Slide 22: Services
Services Review: Services include maintenance, consultation, commissioning, network optimization and project management Revenue New product launch has fuelled additional services revenue (HK$’000) Expansion in both domestic and international market Y/Y: +45% 331,657 Existing installation base drivin
Slide 23: Market Outlook
Market Outlook Global Industry Trend China Outlook Major Global Opportunities
Slide 24: Global Industry Trend
Global Industry Trend Mobile Connections GLOBAL China – Mobile Subscribers (Millions) (Millions) Y/Y: Y/Y: +10% 738 Subscribers +7% Penetration 3,258 547 3,080 461 2,879 393 2,642 2,340 1,956 64% 61% 57% 2005 2006 2007 2010 53% 40% 47% 2007 penetration = 42% China – Mobile Penetration 45% 0 0 42% 20
Slide 25: China Outlook
China Outlook Commercialization of TD-SCDMA network in 2008 Restructuring of China telecoms industry allowing more operators CAPEX increase of major operators Completion of various Olympic venues Continued growth rates of mobile phone adoption fuelled by annual economic growth rates of 8-9% Demand f
Slide 26: Major Global Opportunities
Major Global Opportunities Western Europe Eastern Europe 3G enhancement New buildouts & enhancements • 3G equipment North America agreement with TIM • Enhancement solutions China • Approval of major AWS & Extensions vendors • Launch of MCPA solutions India 3G Rollouts New buildouts & 2G Coastal & In
Slide 27: Open Forum
Open Forum
Comba Telecom Systems Holdings — FY2007 Earnings Presentation on 6ix