Hung Hing Printing Group Limited · HKEX:450
Hung Hing Printing — H1 2013 Earnings Presentation
20 slides from Hung Hing Printing's earnings presentation, August 2013
Slide 1: Interim Results 6 months to 30 June 2013
Interim Results 6 months to 30 June 2013 0
Slide 2: 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
Slide 3: Highlights
Highlights Group revenues HK$ 1,345 million were slightly behind the comparable period in 2012 by 2% for the six months ended 30 Jun 2013. Profit attributable to shareholders rose 30% to HK$16 million. Robust financial position with net cash of HK$345 million; increased by HK$104 million from year e
Slide 4: Financial Highlights: Stable Aggregate Revenue with Increase in Profit
Financial Highlights : Stable Aggregate Revenue with Increase in Profit attributable to shareholders Six months ended 30 Jun HK$ million 2013 2012 Change % Revenue 1,345 1,379 (34) ↓ -2% Gross profit 186 202 (16) ↓ -8% Gross profit % 14% 15% -1% ↓ Operating profit 24 32 (8) ↓ -26% Operating profit %
Slide 5: Stable aggregate revenue; two key BUs reported moderate growth
Maintain solid leadership position with stable aggregate revenue; Two key BUs BPP & CPP reported moderate growth (HK$ million, Six-month period) 1,800 1,707 1,707 1,560 1,560 1,573 1,573 165 1,500 184 176 145 1,379 1,379 1,345 1,345 170 147 165 123 1,200 373 101 Paper Trading (PT) 116 (HK$ million)
Slide 6: Segment profits disadvantaged vs. prior period
Segment profits were disadvantaged vs. prior period due to unfavorable order pattern changes and increased labor & social insurance costs (HK$ million, Six-month period) 197 200 46 150 Paper Trading 36 (HK$ million) 10 Corrugated Box 100 75 66 12 Consumer Product 105 21 17 40 Packaging 50 4 27 20 6
Slide 7: Business Unit Review
Business Unit Review 6
Slide 8: Hung Hing has established infrastructure in the PRD region and East China
Hung Hing has established infrastructure in the PRD region and an established base in East China Hung Hing–overview of manufacturing facilities Zhongshan Wuxi Printing and manufacturing of folding Printing and manufacturing of folding cartons, cartons, litho lam and corrugated litho lam and corrugat
Slide 9: Hung Hing operates four complementary business segments
Hung Hing operates four complementary business segments Book & package Consumer product Corrugated box Paper trading printing packaging Leader globally Major player in China Major player in South Major player in South Market position China China % 2013 Jan-Jun 57% (HK$763mm) 27% (HK$358mm) 7% (HK$10
Slide 10: Segment financials – Books and Package Printing (BPP)
Segment financials – Books and Package Printing (BPP) External revenue & Segment profit % (Six-month period) Books and package printing Commentary External revenue Revenue continued its growth trend and rose Segment profit (%) Revenue (HK$mm) 13% 14% marginally by +1% vs. prior period 1,024 1,000 12
Slide 11: Segment financials – Consumer Product Packaging (CPP)
Segment financials – Consumer Product Packaging (CPP) External revenue & Segment profit % (Six-month period) Consumer product packaging Commentary External revenue Revenue (HK$mm) Segment profit (%) Revenue grew by + 4 % vs. prior period. 389 400 373 8% Slowed down in PRC domestic consumption 358 7%
Slide 12: Segment financials – Corrugated Box (CB)
Segment financials – Corrugated Box (CB) External revenue & Segment profit % (Six-month period) Corrugated box Commentary External Intersegment Segment profit (%) CB benefited from stable growth in internal Revenue (HK$mm) demand, but external sales declined by -12% 250 15% 16% as it is more vulnera
Slide 13: Segment financials – Paper Trading (PT)
Segment financials – Paper Trading (PT) External revenue & Segment profit % (Six-month period) Paper trading Commentary External Intersegment Segment profit (%) During the half-year, internal inter-segment Revenue (HK$mm) sales remained stable but external revenue 500 12% 11% declined by 25%. 10% Ch
Slide 14: Robust financial position with net cash of HK$345 million
Robust financial position with net cash of HK$345 million; increased by HK$104 million from year end 2012; Working Capital also improved by HK$54 million 30 Jun 31 Dec HK$ million 2013 2012 Change % Property, plant & equipment 1,330 1,352 (22) ↓ -2% Inventories 671 613 58 ↑ 10% Inventories days * 65
Slide 15: Capital Investment Recognized
Capital Investment Recognized Full Year Half Year Commentary 160 157 Amid the prolonged economic 141 uncertainties in both export and 140 domestic markets, the Group continue to invest for business growth and 120 automation for capacity increase and operating efficiencies (HK$ million ) 100 HK$20 mi
Slide 16: Profit Attributable To Owners & Earnings Per Share
Profit Attributable To Owners of the HHPG & Earnings Per Share Profit attributable to Owners of HH Basic Earnings per share Six-month period Six-month period 140 16 129 14.3 120 14 12 100 10 (HK$ million) (HK Cents) 80 8 60 45 6 5.0 40 31 3.4 4 20 16 1.7 12 2 1.3 0 0 2010 4-9 2011 4-9 2012 4-9 2012
Slide 17: Proposed Dividends
Proposed Dividends Commentary 35 30 27 Earnings per share 25 23 Special HK 1.7cents (interim) dividend (HK Cents) 20 9 17 Backed by the Group’s strong 15 Final cash flow and solid financial dividend position, an interim dividend 10 of HK 1.7 cents per shares 10 5 5 was declared. 4 Interim 5 dividend
Slide 18: BelugaBloo – A New e-Publishing Service
BelugaBloo – A New e-Publishing Service 17
Slide 19: BelugaBloo – Latest Update
BelugaBloo – Latest Update • The BelugaBloo kids e-bookstore, introduced by the Group in 2011, continued to expand and now features over 200 children’s applications, attracting increasing downloads from markets across the world during the period. The platform has helped strengthen our printing busin
Slide 20: Thank you Q&A
Thank you Q&A A Leading Printer in Asia With unrivalled market leadership, well-balanced portfolio and sustained growth for over six decades, Hung Hing is in an excellent position to take advantage of growing opportunities as the economic recovery continues to build momentum. 19
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