Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — H1 2008 Earnings Presentation
26 slides from Comba Telecom Systems's earnings presentation, 2008
Slide 1: Corporate Presentation Interim Results 2008
Stock Code: 2342.HK Corporate Presentation Interim Results 2008
Slide 2: Agenda
Agenda Overview Financial Highlights Financial Review Customer Review Business Review Market Outlook Open Forum 2
Slide 3: Overview
Overview Revenue from international market more than double Revenue from China Mobile and China Unicom remains stable Increasing revenue from most product segments: 1. Antennas and Subsystems ↑37% 2. Wireless Transmission (DMS) ↑37% 3. Services ↑74% Gross profit margin maintained at 41% ↑Selling & a
Slide 4: Financial Highlights
Financial Highlights Financial Results Financial Position Key Financial Indicators
Slide 5: Financial Results
Financial Results For the six months ended 30 June HK$’000 2008 2007 Change Revenue 835,492 777,821 +7% Gross profit 343,697 322,639 +7% Gross profit margin 41.1% 41.5 % -0.4% pts Profit attributable to shareholders 71,970 76,386 -6% Net profit margin 8.6% 9.8 % -1.2% pts Basic EPS (HK cents) 8.43 9
Slide 6: Financial Position
Financial Position As at As at HK$’000 Change 30 June 2008 31 December 2007 Current assets 2,780,128 2,343,942 +19% Current liabilities 1,395,148 1,047,631 +33% Net current assets 1,384,980 1,296,311 +7% Total assets 3,234,509 2,759,342 +17% Total liabilities 1,401,909 1,054,392 +33% Net assets 1,82
Slide 7: Key Financial Indicators
Key Financial Indicators For the six months ended 30 June 2008 2007 Inventory turnover days 330 262 A/R turnover days 269 215 A/P turnover days 233 203 Current ratio 2.0X 2.3X Quick ratio 1.2X 1.5X Gearing ratio 7.3% 5.0% Return on average equity 8.2% 10.5% 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 For the six months ended 30 June 2008 China Unicom 14.7% 3% International 16.7% China Mobile 116% 58.8% 9% 9.8% Others = YOY change 85% Stable PRC market Double in international market 9
Slide 10: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses For the six months ended 30 June 2008 Services 74% Wireless Enhancement 39.8% 22.8% 24% Wireless Transmissions (DMS) 3% 34.4% 37% Antennas & Subsystems = YOY change 37% Remarkable growth in most product segments 10
Slide 11: Profit & Margin
Profit & Margin For the six months ended 30 June Gross Profit 7% Net Profit 6% (HK$M) (HK$M) 400 80 76.4 72.0 343.7 322.6 200 40 41.5% 41.1% 9.8% 8.6% 0 0 1H 2007 1H 2008 1H 2007 1H 2008 Gross Profit Margin Net Profit Margin 11
Slide 12: Cost Structure
Cost Structure For the six months ended 30 June As % of Total Revenue = YOY change R & D costs 16% 35% Global R&D efforts to meet market needs 30% Selling and distribution costs 25% 6.0% 6.5% Enhanced global sales network for long-term growth 25% 8.2% 9.5% 20% Administrative expenses 21% Expansion i
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: Industry pressure impacting average selling prices Implementation of network coverage projects for Olympic venues Sichuan earthquake – emergency orders for Comba, but also meant other infrastructure projects were affected Restructuring of national telecoms industry affecting s
Slide 16: International Business
International Business Review: Growth strategy showing significant results Considerable growth at 116% from 2007 INDIA APAC Contributing 17% of group revenue EMEA 8% 20% 17% Increased customer portfolio with orders from India and Americas AMERICAS 55% Two pronged strategy targeting multinational ope
Slide 17: Business Review
Business Review Wireless Enhancement Antennas & Subsystems Wireless Transmission Services
Slide 18: Business Review
Business Review Wireless Enhancement Antennas (indoor) 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 Shifting Repeater Review & Opport
Slide 20: Antennas & Subsystems
Antennas & Subsystems Antennas Tower-Top Solutions RF Front Ends Review & Opportunities : The major BTS antenna manufacturer in China Leveraging successful procurement programs with China operators Revenue Volume orders of 3G TD-SCDMA and WCDMA antenna in China (HK$’000) Product portfolio expansion
Slide 21: Wireless Transmission
Wireless Transmission Digital Microwave Systems Review & Opportunities: Revenue Gain traction within China and international markets (HK$’000) Portfolio expansion: IP backhaul solutions for future requirements Y/Y: 24,834 Segmentation of market by developing cost-effective solutions 18,146 37% Initi
Slide 22: Services
Services Review & Opportunities: Revenue Services include maintenance, consultation, commissioning, network (HK$’000) optimization and project management Expansion in both domestic and international market Existing installation base driving extended maintenance service revenues Y/Y: 190,759 74% Recu
Slide 23: Market Outlook
Market Outlook China Outlook Global outlook
Slide 24: China Outlook
China Outlook Commercialization of TD-SCDMA network by late 2008 Restructuring of China telecoms industry allowing more operators 3G network buildouts CAPEX increase of major operators Continuous demand on 2G network upgrades Continued growth rates of mobile phone adoption fuelled by annual economic
Slide 25: Global Outlook
Global Outlook Eastern Europe North America 2G & 3G Plays Western Europe 700Mhz, AWS & WiMAX • Enhancement solutions 3G enhancement • Fragmented market • Rollout of AWS Networks • 2G/3G enhancements • Mature markets China • Strong WiMAX market • Demand for multi- Industry restructure operator soluti
Slide 26: Open Forum
Open Forum
Comba Telecom Systems Holdings — H1 2008 Earnings Presentation on 6ix