Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — Q3 2023 Earnings Presentation
25 slides from Zhen Ding Technology's earnings presentation, Nov 6, 2023
Slide 1: Zhen Ding Technology Holding 3Q23 Financial Results
Zhen Ding Technology Holding (4958 TT) 3Q23 Financial Results November 6th, 2023
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: Agenda
1 3Q23 Financial Results AGENDA 2 Company Strategy Business Roadmap and Execution 3 of IC Substrate 3
Slide 4: 3Q23 Financial Results
GD BE RAT HE Zhen Ding Tech. Holding 3Q23 Financial Results
Slide 5: 3Q23 Financial Results
3Q23 Financial Results (Unit: NT$ million, unless otherwise stated) 3Q23 2Q23 3Q22 QoQ (%) YoY (%) Revenue 41,919 23,537 50,004 78.1% -16.2% Gross Profit 8,583 2,123 12,986 304.3% -33.9% Gross Margin 20.5% 9.0% 26.0% +11.5ppts -5.5ppts Operating Expense 5,008 4,011 4,919 24.9% 1.8% Operating Profit
Slide 6: 1Q~3Q23 Financial Results
1Q~3Q23 Financial Results (Unit: NT$ million, unless otherwise stated) 1-3Q23 1-3Q22 YoY (%) Revenue 97,002 118,454 -18.1% Gross Profit 15,781 25,975 -39.2% Gross Margin 16.3% 21.9% -5.7ppts Operating Expense 12,875 12,222 5.3% Operating Profit 2,905 13,753 -78.9% Operating Margin 3.0% 11.6% -8.6ppt
Slide 7: Quarterly Operation Result
Quarterly Operation Result Revenue Gross Margin (%) 2022 2023 Unit: NT$ million 2022 2023 26.0% 26.3% -16% YoY 19.1% 18.8% 52,902 50,004 20.5% 16.1% -7% YoY -32% YoY 41,919 9.0% Net Margin (%) 34,534 14.3% 33,915 31,545 13.0% 10.8% 23,537 8.2% 8.0% 2.7% 0.6% 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 7
Slide 8: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 1Q-3Q22 Revenue NT$118.5bn 1Q-3Q23 Revenue NT$97.0bn Automotive Radar/Base Automotive Radar/Base Station/Server/Others, Station/Server/Others, IC Substrate, 3.1% 4.6% IC Substrate, 3.8% 3.5% Mobile Communication, Computers and 65.9% Consumer Electronics, Computers
Slide 9: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices Unit: NT$ million 2023-9-30 2022-9-30 Change Amount % Amount % Amount % Cash and Cash Equivalents (2) 59,979 24.2% 48,957 21.3% 11,022 +2.9ppts Notes & Accounts Receivable 32,141 13.0% 36,326 15.8% -4,185 -2.8ppts Inventories 22,311 9.0% 24,053 10.5% -1,742
Slide 10: 2011-2022 Financial Summary
2011-2022 Financial Summary Unit: NT$ million Period 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenue 44,280 55,369 64,483 75,954 85,738 82,393 109,238 117,913 120,068 131,279 155,022 171,356 Gross Profit 6,993 10,775 11,894 14,323 16,427 12,542 17,833 26,061 27,222 26,584 30,537
Slide 11: Company Strategy
GD BE RAT HE Zhen Ding Tech. Holding Company Strategy 11
Slide 12: Bottomed Out in 1H23; Moderate Recovery in 2H23
Bottomed Out in 1H23; Moderate Recovery in 2H23 ZDT’s Quarterly Revenue ◼ We faced headwinds in 1H23 and focused on product Unit: NT$ million development and operational efficiency optimization: 56,442 Affected by weak demand in consumer electronics and 52,902 customer product transitions, our 1H23
Slide 13: All PCB Segments Will Resume Growth Next Year
All PCB Segments Will Resume Growth Next Year Unit: US$ million 2023-2028 產品 項目 2018 2019 2020 2021 2022 2023(F) 2024(F) 2025(F) 2026(F) 2027(F) 2028(F) CAGR 產值 33,225 31,969 32,674 40,641 38,720 34,542 34,986 36,576 39,025 41,768 42,486 RPCB 4.20% 佔全球比 53.20% 52.10% 50.10% 50.20% 47.40% 49.69% 47.9
Slide 14: Our One ZDT Growth Strategy
Our One ZDT Growth Strategy Develop new application markets Keep creating One ZDT synergies with customers Offer complete product lines for ADAS Cloud Datacenter diversified applications. Co-develop Product products with customers and provide them best product solutions Multiple manufacturing sites
Slide 15: Actively Develop Server and Automotive Applications
Actively Develop Server and Automotive Applications Server Application Automotive Application ◼ Based on current customer orders and those in development, ZDT ◼ ZDT aims to be a key promoter of automotive autonomy, aims to achieve double-digit revenue CAGR for server applications intelligence, and e
Slide 16: The Four New Fabs to Drive Future Growth
The Four New Fabs to Drive Future Growth Qinghuangdao BT Substrate Fab: Shenzhen ABF Substrate Fab: FCBGA FC-CSP/WB-CSP/Memory Kaohsiung Luzhu Science Park: Huai’an Park 3: High-end HDI/MSAP FPC and Advanced Module Production Line 16
Slide 17: Zhen Ding Plans to Build a New Fab in Thailand
Zhen Ding Plans to Build a New Fab in Thailand Strategic Collaboration with Local Partner Prachinburi Province, • In response to customer demands and to expand the group's Thailand. global footprint. • Location will be in Prachinburi Province, Thailand. • The groundbreaking ceremony is scheduled on
Slide 18: Business Roadmap and Execution of IC Substrate
Business Roadmap and Execution of IC Substrate 18
Slide 19: IC Substrate Business Update
IC Substrate Business Update 1 Inventories for most BT customers have returned to roughly normal levels; ABF may start to recover at the end of the year: • Most BT customers’ inventory days have returned to roughly normal levels, and we have made progress in winning important memory customers. As a
Slide 20: 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 21: 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 22: 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 23: IC Substrate Goals
IC Substrate Goals NT$ 60bn >50% 15%+/- Top 5 IC Substrate Capex: IC Substrate Revenue: IC Substrate Revenue: IC Substrate Market Share: Plan to invest NT$60bn 2023~2027 Revenue Account for 15 %+/- of Aim to become one of the from 2022~2027 CAGR >50% company’s consolidated global top 5 companies in
Slide 24: Q&A
GD BE RAT HE Zhen Ding Tech. Holding Q&A 24
Slide 25: Thank You
- H) ean THANK YOU
Zhen Ding Technology Holding — Q3 2023 Earnings Presentation on 6ix