Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — H1 2016 Earnings Presentation
23 slides from Comba Telecom Systems's earnings presentation, 2016
Slide 1: Comba Telecom 2016 Interim Results
- REMARRARARDA on és Comba Telecom Systems Holdings Limited 5 - FRA Ma SR Stock Code : 2342 Exploring Opportunities, Creating Value, Reforming Mechanism, Enhancing Efficiency RAID BME SS ial + He MAE +
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Comba Telecom Systems Holdings Limited (the “Company”) for reference only. The information contained in this presentation has not been independently verified. The Company does not make any representation, warranty or undertaking, whether express or i
Slide 3: Agenda
Agenda 1. Financial Highlights 2. Financial Review 3. Customer Review 4. Business Review 5. 2016 and Beyond: Strategic Direction 6. Open Forum 3
Slide 4: Financial Highlights
Financial Highlights 1. Financial Results 2. Exceptional Items 3. Proforma Financial Results 4. Financial Position 5. Key Financial Indicators 4
Slide 5: Financial Results
Financial Results For the six months ended 30 June For the year ended HK$’000 2016 2015 Change 31 December 2015 Revenue 3,098,952 3,345,331 (7.4%) 6,770,894 Gross profit 934,013 973,504 (4.1%) 1,914,490 Gross profit margin 30.1% 29.1% 1.0 pp 28.3% Operating profit 198,183 219,108 (9.6%) 396,540 Tax
Slide 6: Exceptional Items
Exceptional Items HK$’000 For the six months ended 30 June For the year Margin Margin ended Items Details 2016 2015 31 Dec Impact Impact 2015 1 Cost of sales Inventories (92,655) GPM▼3.0 pp (85,388) GPM▼2.6 pp (71,500) written-off Impairment of Certain 2 trade overseas (16,848) receivables (41,276)
Slide 7: Proforma Financial Results
Proforma Financial Results (Assuming NO Exceptional Items) For the six months ended 30 June For the year ended HK$’000 2016 2015 Change 31 Dec 2015 Revenue 3,098,952 3,345,331 (7.4%) 6,770,894 Gross profit 1,026,668 1,058,892 (3.0%) 1,985,990 Gross profit margin 33.1% 31.7% 1.4 pp 29.3% Operating pr
Slide 8: Financial Position
Financial Position As at As at 30 HK$’000 As at 30 June 2016 Change 30 June 2015 December 2015 Net cash / (debt) 179,791 647,829 (72.2%) (411,478) Total assets 9,071,475 9,574,875 (5.3%) 10,061,152 Total liabilities 5,396,359 5,863,088 (8.0%) 6,225,131 Net assets 3,616,666 3,652,531 (1.0%) 3,778,083
Slide 9: Key Financial Indicators
Key Financial Indicators For the year For the six months ended 30 June ended 2016 2015 Change 31 December 2015 Inventory turnover days 136 162 (26) Days 149 A/R turnover days 247 253 (6) Days 225 A/P turnover days 269 257 12 Days 251 Gross gearing ratio 12.1% 16.5% (4.4 pp) 14.3% Dividend payout rat
Slide 10: Financial Review
Financial Review 1. Revenue Breakdown by Customers 2. Revenue Breakdown by Businesses 3. Cost Structure 10
Slide 11: Revenue Breakdown by Customers
Revenue Breakdown by Customers For the six months ended 30 June 2016 Revenue (HK$Mn) 3,345 124 3,099 Enterprise* China Mobile 154 20.7% 596 24.9% 604 26.4% 5.0% 787 International 581 Customers and 19.5% Core Equipment Manufacturers 30.4% China Unicom 807 942 1.3% 18.7% 16.8% 1,031 818 China Telecom
Slide 12: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses For the six months ended 30 June 2016 Revenue (HK$Mn) Wireless 3,345 Enhancement 3,099 7.4% Services 952 17.9% 898 5.7% 140 29.0% 150 4.8% 48.3% 1,653 Antennas 1,495 & Subsystems Wireless Access 9.5% & Transmission 7.2% 600 556 = YOY change 1H15 1H16 Enhancement Anten
Slide 13: Cost Structure
Cost Structure For the six months ended 30 June = YOY change As % of Total Revenue R&D costs (HK$127.5M) 11.3% 29.1% New product offerings 26.3% Keep abreast of latest technology development 4.1% 3.4% S&D expenses (HK$279.4M) 4.7% More marketing activities 9.0% 8.0% Admin expenses (HK$315.6M)
Slide 14: Customer Review
D)) Customer Review 14
Slide 15: Carrier Business
Carrier Business Revenue Revenue (HK$’000) -10.8% (HK$’000) 2,625,289 +1.3% 2,340,615 596,331 603,883 1H 2015 1H 2016 1H 2015 1H 2016 International Business & Core China Carriers Equipment Manufacturers Revenues decreased 10.8% to HK$ 2,341 million Revenues increased 1.3% to HK$ 604 million Continue
Slide 16: Enterprise Business
Enterprise Business Revenue (HK$’000) +24.9% 154,454 123,711 1H 2015 1H 2016 Enterprise Business Revenues increased 24.9% to HK$ 154 million Leveraging on 20 years of project experience and goodwill from property owners Strategy of diversifying customer base beyond carriers Deployment of neutral hos
Slide 17: Business Review
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Slide 18: Wireless Access/Transmission & Wireless Enhancement
Wireless Access/Transmission & Wireless Enhancement Satellite Small Cells & WLAN Digital Microwave DAS and Repeaters Revenue Revenue (HK$’000) -7.4% (HK$’000) +7.2% 149,977 139,890 600,373 555,959 1H 2015 1H 2016 1H 2015 1H 2016 Wireless Access & Transmission Wireless Enhancement Revenues increased
Slide 19: Antennas/Subsystems & Services
Antennas/Subsystems & Services Combining Solutions Antennas Revenue Revenue -9.5% -5.7% (HK$’000) (HK$’000) 1,652,770 1,495,337 952,298 897,679 1H 2015 1H 2016 1H 2015 1H 2016 Antennas & Subsystems Services Revenues decreased 9.5% to HK$ 1,495 million Revenues decreased 5.7% to HK$ 898 million Compl
Slide 20: 2016 and Beyond: Strategic Direction
2016 and Beyond: Strategic Direction 20
Slide 21: 2016+: Market Expansion
2016+ : Market Expansion T R E N D S 4G HetNets Network Shared Industry / Densification Infrastructure Enterprises • LTE, LTE-A, • Integrated • Total solution • Co-siting • Neutral Host LTE-A Pro solutions/ deploying solutions HetNet / DAS creating need services with indoor & for complex WiFi, Small
Slide 22: 2016+: Enterprise Segment Strategy
2016+ : Enterprise Segment Strategy Connected Enterprises / Smart Cities Evolution of Enterprises Wireless NEUTRAL HOSTS IoT OPERATOR-LED ENTERPRISE-LED Application Layer MEC Data Monetization Location Technology NFV Unrivalled Property Coordination Strong Technology Solutions Base Capabilities
Slide 23: Thank You
D)) Thank You
Comba Telecom Systems Holdings — H1 2016 Earnings Presentation on 6ix