Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — H1 2024 Earnings Presentation
22 slides from Zhen Ding Technology's earnings presentation, Aug 13, 2024
Slide 1: Zhen Ding Technology Holding 2Q24 and 1H24 Investor Conference
Zhen Ding Technology Holding (4958 TT) 2Q24 and 1H24 Investor Conference August 13th, 2024
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 2Q24 & 1H24 Financial Results Eddie Chiang, Chief Financial Officer 2 Company Strategy AGENDA Charles Shen, Chairman IC Substrate Business Update 3 D.J. Lee, Director & Chief Operating Officer 3
Slide 4: 2Q24 & 1H24 Financial Results
2Q24 & 1H24 Financial Results Eddie Chiang, Chief Financial Officer 4
Slide 5: 2Q24 Financial Results
2Q24 Financial Results (Unit: NT$ million, unless otherwise stated) 2Q24 2Q23 YoY (%) Revenue 32,411 23,537 +37.7% Gross Profit 4,247 2,123 +100.1% Gross Margin 13.1% 9.0% +4.1ppts Operating Expense 4,891 4,011 +21.9% Operating Profit (644) (1,888) Operating Margin -2.0% -8.0% +6.0ppts Non-Operating
Slide 6: 1H24 Financial Results
1H24 Financial Results (Unit: NT$ million, unless otherwise stated) 1H24 1H23 YoY (%) Revenue 64,922 55,082 +17.9% Gross Profit 9,584 7,198 +33.2% Gross Margin 14.8% 13.1% +1.7ppts Operating Expense 9,485 7,867 +20.6% Operating Profit 99 (669) Operating Margin 0.2% -1.2% +1.4ppts Non-Operating Incom
Slide 7: Quarterly Operation Results
Quarterly Operation Results Revenue Gross Margin (%) 2023 2024 Unit: NT$ million 2023 2024 16.4% 21.5% 54,396 20.5% 13.1% 16.1% +38% YoY 41,919 +3% YoY 9.0% Net Margin (%) 31,545 32,510 32,411 9.3% 8.0% 23,537 4.4% 2.7% 2.1% 0.6% 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 7
Slide 8: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 1H24 Revenue NT$64.9bn 1H23 Revenue NT$55.1bn 1H24 Revenue Applications Automotive/Server/ YoY% Automotive/Server/ Base Station & IC IC Base Station & Mobile Others, 5.8% Substrate, 5.4% Substrate, Others, 5.1% Communication 3.5% 5.9% Computers and Computers and C
Slide 9: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices Unit: NT$ million 2024-6-30 2023-6-30 Change Amount % Amount % Amount % Cash and Cash Equivalents (2) 69,461 28.2% 59,916 26.8% 9,545 +1.4ppts Notes & Accounts Receivable 22,317 9.1% 17,496 7.5% 4,821 +1.6ppts Inventories 18,784 7.6% 13,784 5.9% 5,000 +1.7p
Slide 10: 2014-2023 Financial Summary
2014-2023 Financial Summary Unit: NT$ million Period 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue 75,954 85,738 82,393 109,238 117,913 120,068 131,279 155,022 171,356 151,398 Gross Profit 14,323 16,427 12,542 17,833 26,061 27,222 26,584 30,537 39,888 27,459 Net Income 6,735 7,731 3,456
Slide 11: Company Strategy
Company Strategy Charles Shen, Chairman 11
Slide 12: Business Review and Outlook
Business Review and Outlook 1 2Q24 revenue increased by 37.7% YoY, ahead of previous expectation. All four major applications achieved double-digit YoY growth: We previously expected a sequential decline in 2Q24 revenue due to the impact of customer product transition. However, the reported 2Q24 rev
Slide 13: One ZDT: We Offer A Full Range of PCBs for AI
One ZDT: We Offer A Full Range of PCBs for AI From AI Edge Devices to AI Servers – AI Increases Design Complexity for PCBs ZDT Offers the Most Comprehensive and Advanced PCBs for All Kinds of AI Applications Cloud High AI Server Edge Server Performance Memory HDI Mini FPC LED Channel Module One ZDT
Slide 14: In 2024, HDI to Have the Highest Growth in the PCB Industry, Followed by IC Substrate
In 2024, HDI to Have the Highest Growth in the PCB Industry, Followed by IC Substrate 100% 80% 60% 40% 20% 0% 2018 2019 2020 2021 2022 2023 2024(F) 2025(F) 2026(F) 2027(F) 2028(F) 2028(F)單位：百萬美元 2023-2028 Product Item 2018 2019 2020 2021 2022 2023 2024(F) 2025(F) 2026(F) 2027(F) CAGR Value 33,225 31
Slide 15: Continued Effort to Diversify Product Portfolio
Continued Effort to Diversify Product Portfolio ZDT’s 2Q24 Revenue for Automotive/Server/Base Station ZDT’s 2Q24 Revenue for IC Substrates Achieved 40.2% YoY Growth Continues to Reach a Record High +40.2% YoY 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1
Slide 16: Construction of New Fab in Thailand is Progressing According to Plan
Construction of New Fab in Thailand is Progressing According to Plan (Dec 2023) Thailand Prachinburi Park (Phase 1)： (Current) Thailand Prachinburi Park (Phase 1)： High-end RPCB/HDI High-end RPCB/HDI ◼ The construction of the new fab in Prachinburi Province, Thailand is progressing according to plan
Slide 17: IC Substrate Business Update
IC Substrate Business Update D.J. Lee, Director & Chief Operating Officer 17
Slide 18: IC Substrate Business Update
IC Substrate Business Update IC substrate revenue again reached a record high for a single quarter in 2Q24, with revenue contribution increasing to 5.9% in 1H24. IC substrate 1 revenue will maintain at rapid growth this year: • IC substrate revenue increased by 96.7% YoY in 1H24, and it is expected
Slide 19: 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 20: IC Substrate Goals
IC Substrate Goals NT$ 60 bn >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 21: Q&A
GD BE RAT HE Zhen Ding Tech. Holding Q&A 21
Slide 22: Thank You
- H) ean THANK YOU
Zhen Ding Technology Holding — H1 2024 Earnings Presentation on 6ix