Hung Hing Printing Group Limited · HKEX:450

Hung Hing Printing — H1 2019 Earnings Presentation

19 slides from Hung Hing Printing's earnings presentation, Jun 30, 2019

  1. Slide 1: Interim Results 6 months to 30 June 2019

    Interim Results 6 months to 30 June 2019 ©2019 Hung Hing Printing Group Ltd.

  2. Slide 2: Highlights – Six months ended 30 June, 2019

    Highlights – Six months ended 30 June, 2019 ► Group revenue slightly down by 1.9% vs. PY to HK$1,436 mil. ► Gross profit margin improved by 5.1% pt. to 14.6% ► Earnings attributable to shareholders HK$4.9 mil. (vs. 35m loss PY) ► Net cash on-hand HK$790 mil. (HK$ 91 mil. Div. paid in last 12 mths) ►

  3. Slide 3: Group Sales in 1H at HK$1,436 mil.; down -1.9% vs. PY

    Group Sales in 1H at HK$1,436 mil.; down -1.9% vs. PY (HK$ million, Six-month period) 1,600 -1.9% 1,464 1,436 1,410 1,395 1,400 169 1,323 210 221 233 Paper Trading (PT) 1,200 218 123 84 102 80 66 1,000 329 297 349 291 278 Corrugated Box (CB) 800 600 Consumer Product 775 760 804 853 Packaging (CPP) 4

  4. Slide 4: Group EBITDA% to Sales in 1H at +3.6%

    Group EBITDA%* to Sales in 1H at +3.6% Key Drivers: i) Strong BPP performance due to portfolio rationalization tally with automation investments which lifted production efficiency, reduced labor costs and trimmed loss-making accounts; ii) Reduced paper prices, and iii) RMB depreciation favorable to

  5. Slide 5: Group Income Statement – 1st Half 2019

    Group Income Statement – 1st Half 2019 For the 6 months ended 30 June (HK$ Mil.) 2019 2018 Change vs 2018 Commentary Revenue 1,436.3 1,463.6 (27.3) -1.9% Exports growth (+6%) & addition Cost of sales (1,226.1) (1,324.5) 98.4 -7.4% full 6-mth sales from GDR offset Gross profit 210.2 139.2 71.0 51.0%

  6. Slide 6: Margins driven up by BPP; Other BUs were under pressure

    Margins driven up by BPP; Other BUs were under pressure Segment revenue & profit contribution% (6-mth period) Books and Package Printing (BPP) Consumer Product Packaging (CPP) Revenue (HK$mil.) Revenue (HK$mil.) 900 853 4.0% 804 400 5.0% 2.7% 2.0% 349 3.0% 300 291 600 0.0% 2.3% 1.0% -2.0% 200 -1.0%

  7. Slide 7: Maintained Robust Financial Position with Net Cash HK$ 790 mil.

    Maintained Robust Financial Position with Net Cash HK$ 790 mil. Ref. Only As of Jun 30 (w/o HKFRS 16) As of Dec 31 2019 ** 2018 (HK$ million) 2019 2018 Changes (with FRS 16) (w/o FRS 16) Assets Non-current 1,500 1,483 1,377 123 1,472 Current 2,602 2,602 2,892 (290) 2,594 Total Assets 4,102 4,085 4,2

  8. Slide 8: Earnings/(Loss) per Share - EPS/LPS: 1st Half 2019

    Earnings/(Loss) per Share - EPS/LPS : 1st Half 2019 Profits/(Loss) Basic Attributable to Shareholders EPS/(LPS) 20 2 1.6 14 1.2 11 10 1 0.5 5 0 0 (HK$ million) (HK Cents) (1) (10) (2) (20) (2.4) (3) (22) (30) (4) (3.9) (35) (5) (40) 1H2015 1H2016 1H2017 1H2018 1H2019 1H2015 1H2016 1H2017 1H2018 1H20

  9. Slide 9: Proposed Interim Dividend for 2019

    Proposed Interim Dividend for 2019 (HK¢ per share) Commentary 35.0 • Consider to maintain interim 32 dividend no less than similar level as prior years 30.0 • Cautiously optimistic about sustaining a solid business performance in 2H, Taking 25.0 into account: i) Economic uncertainties 20.0 ii) Solid

  10. Slide 10: Appendices

    Appendices ©2019 Hung Hing Printing Group Ltd.

  11. Slide 11: Business Structure

    Business Structure Hung Hing Printing Group Limited Book & package Consumer product Corrugated Paper Beluga printing packaging box trading % 9% 2019 Interim 59% HK$853mm 20% HK$123mm 12% N.A. HK$291mm HK$169mm Market Leader Top 5 in Major player in Leader in Innovative position globally China South

  12. Slide 12: Our Office and Production Plants

    Our Office and Production Plants Hong Kong Shenzhen Zhongshan Wuxi Heshan Shunde Vietnam • Printing and • Printing and • Printing and • Established in • Relocated to manufacturing of • Printing and • Land area manufacturing of manufacturing of 2007 for printing manufacturing Tai Po folding cartons,

  13. Slide 13: Our Global Presence

    Our Global Presence Sales Offices: Benelux Scandinavia United Kingdom Germany France Turkey USA South America Vietnam Production Plant ©2019 Hung Hing Printing Group Ltd. I p. 13

  14. Slide 14: Strategic Investments

    Strategic Investments ©2019 Hung Hing Printing Group Ltd. I p. 14

  15. Slide 15: Innovation Hub at HH

    Innovation Hub at HH Our team is specialized in creative design and product development for a brand new and exciting category of 'print + digital' products using innovative and patented technologies. Improve Creative De-Spec and cost Creating new re-assessment concepts and formats Problem Solving Ba

  16. Slide 16: We care about the environment

    We care about the environment PSA Printing Standards Audit certification is a rigorous, objective process for assessing a printer’s color control FSCR® ability to operate a standards- Forest Stewardship Council - compliant workflow. Chain of Custody to ensure paper originates from well-managed GMI F

  17. Slide 17: Going forward

    Going forward 1992 1950 Founded as a small printing 1959 1966 1970 1989 Listed on the Stock Diversified into Began operation Expanded into Relocated to Tai shop in Central, Hong Kong, by Exchange of the printing and in corrugated paper trading Po Industrial Mr. Yam Cheong Hung. Hong Kong. manufactur

  18. Slide 18: Disclaimer

    Disclaimer The presentation is prepared by Hung Hing Printing Group Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment deci

  19. Slide 19: Thank you.

    Thank you. ©2019 Hung Hing Printing Group Ltd. I p. 19

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