Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — H1 2006 Earnings Presentation
25 slides from Comba Telecom Systems's earnings presentation, 2006
Slide 1: Corporate Presentation Interim Results 2006
Corporate Presentation Interim Results 2006
Slide 2: Agenda
Agenda Overview Financial Highlights Financial Review Customer Review Solutions Review Business Review & Outlook 1
Slide 3: Overview
Overview Benefiting from continuous economic growth, urban and rural development in the PRC Increasing revenue from three major growth strategies: BTS antennas, DMS and international market Enhancing R&D capabilities and expanding production capacity to fuel future growth Strengthening international
Slide 4: Financial Highlights
Comba Financial Highlights
Slide 5: Financial Results
Financial Results For the six months ended 30 June HK$’000 1H 2006 1H 2005 Change Revenue 589,490 413,013 +42.7% Gross profit 252,788 200,779 +25.9% Gross profit margin 42.9% 48.6% -5.7 % pts Net profit 45,561 35,941 +26.8% Net profit margin 7.7% 8.7% -1.0 % pts Basic EPS (HK cents) 5.46 4.32 +26.4%
Slide 6: Financial Position
Financial Position As at As at HK$’000 30 Jun 06 31 Dec 05 Change Current assets 1,971,659 1,947,340 +1.3% Current liabilities 990,426 986,921 +0.4% Net current assets 981,233 960,419 +2.2% Total assets 2,234,629 2,182,236 +2.4% Total liabilities 990,426 986,921 +0.4% Net assets 1,244,203 1,195,315
Slide 7: Key Financial Indicators
Key Financial Indicators For the six months ended 30 June 1H 2006 1H 2005 Inventory turnover days 339 476 A/R turnover days 233 230 A/P turnover days 221 249 Current ratio 2.0 2.1 Gearing ratio 11.3% 15.0% ROAE (annualised) 7.5% 6.5% 6
Slide 8: Financial Review
Comba Financial Review
Slide 9: Revenue Breakdown by Customers
Revenue Breakdown by Customers Others 12.9% 36.6% China Unicom – CDMA China Mobile 13.4% 65.2% 15.6% 93.7% 8.5% China Unicom – GSM 22.9% = YOY change Remarkable revenue growth from China Mobile 8
Slide 10: Revenue Breakdown by Solutions
Revenue Breakdown by Solutions Wireless Transmission (DMS) Others 875.0% 3.4% 4.0% 8.1% Subsystems & Antennas 7.6% 131.7% Wireless Enhancement Wireless Enhancement (Outdoor) 15.4% 69.6% (Indoor) 37.9% 35.1% = YOY change New products - growth drivers 9
Slide 11: Profit & Margin
Profit & Margin Gross Profit Net Profit (HK$M) (HK$M) 300 60 253.0 45.6 201.0 35.9 48.6% 150 42.9% 30 8.7% 7.7% 0 0 1H 2005 1H 2006 1H 2005 1H 2006 Gross Profit Margin Net Profit Margin 10
Slide 12: Cost Structure
Cost Structure As % of Total Sales 40% R & D costs 5.2% Enhanced R&D capabilities in the PRC and the US 35% Devoted R&D efforts on new products including 3G 30% 5.7% 10.6% Selling and distribution costs 25% Focused sales efforts on markets with good 9.5% demand 20% Broadened product portfoli
Slide 13: Customer Review
Customer Review Global Customer Base China Business International Business
Slide 14: Global Customer Base
Global Customer Base Operators & Core Equipment Manufacturer Maintain strong position in home market Growth seen in all regions Expanded to OEM channels Established reputable global customer base Continuing to grow new customers in Asia and Europe All logos and company names are registered trademark
Slide 15: China Business
China Business Review: Extending leadership & maintaining long term relationship 2G equipment demand remains strong in both urban and rural areas Key long term partner in network enhancement & participation in 3G trials Major wins on customer procurement programs Member of the TD-SCDMA industry alli
Slide 16: International Business
International Business Review: Others 2% Group’s core growth strategy EMEA Strategy in international business beginning India Sub-con 29% 48% to show dividends APAC 21% Continued inroads into new markets through direct and distributor presence RoHS compliant products for Europe Expansion to CALA (Ca
Slide 17: Solutions Review
Solutions Review Wireless Enhancement Solutions: indoor & outdoor Subsystems & Antennas Wireless Transmission: digital microwave systems
Slide 18: Expanding our Solution Offerings
Expanding our Solution Offerings End-to-End Solutions Wireless Enhancement Solutions (indoor) Subsystems and Antennas Wireless Enhancement Solutions (outdoor) Wireless Transmission (digital microwave systems) 17
Slide 19: Wireless Enhancement Solutions
Wireless Enhancement Solutions Indoor & Outdoor INDOOR INDOOR OUTDOOR INDOOR Medium Large Venue Small SOLUTIONS Sized Venue Venue •Optical Repeater Passive •Solar Power Repeater Hybrid Passive / Active •Dynamic Traffic Hybrid Fiber / Multi-Operator / Routing Review: Coax Network RF Repeater Frequenc
Slide 20: Subsystems & Antennas
Subsystems & Antennas Antennas Tower-Top Solutions MCPA RF Front Ends Review: Member of the AISG group Multi-band antennas streamlined product line: MIMO and Smart Antennas Revenue 44,702 (HK$’000) Tripled manufacturing capacity in BTS antennas Technology leadership: sole high-end antenna supplier f
Slide 21: Wireless Transmission
Wireless Transmission Digital Microwave Systems Review: Completed various frequencies offering including new Super-PDH and Revenue SDH solutions (HK$’000) 19,749 Typical long sales cycle, but growth seen in developing countries Opportunities: Recurring businesses from existing customers 2,026 Gainin
Slide 22: Business Review & Outlook
Business Review & Outlook Operations Review Market Outlook Summary
Slide 23: Operations Review
Operations Review New China Headquarters for R&D and G&A in operation Tight integration of R&D centers in China & US New anechoic chamber is one of the largest in Asia and recognized as a national standard Resource realignment with creation of 3 business units Wireless Enhancement Sub-systems & Ante
Slide 24: Market Outlook
Market Outlook “2G is alive and well in developing countries” (Source: ABI Research) Worldwide mobile phone subscribers expected at 2.5 billion by FY2006 to grow to 3.5 billion by 2010 (Source: Strategy Analytics) China Wireless subscribers to exceed 440M by FY2006 (Source: MII) China Mobile expendi
Slide 25: Summary
Summary Strategy of diversifying customer base and product portfolio has begun to reap solid results Development of new product & solutions and new international markets will continue Completion of new facilities and close integration of R&D resources means the company is well-positioned for future
Comba Telecom Systems Holdings — H1 2006 Earnings Presentation on 6ix