Malaysian Pacific Industries Bhd. · MYX:MPI
Malaysian Pacific Industries Bhd — Q2 FY2025 Earnings Presentation
50 slides from Malaysian Pacific Industries Bhd's earnings presentation, Feb 19, 2025
Slide 1: Malaysian Pacific Industries Berhad Investor Presentation Q2 FY2025
1 M A L A Y S I A N P A C I F I C I N D U S T R I E S B E R H A D I N V E S T O R P R E S E N T A T I O N Q 2 F Y 2 0 2 5 ( O c t - D e c ‘ 2 4 ) INVESTOR RELATIONS CONTACT Rohit Kumar +605 5262333 extn 8497 rohitkumar@carsem.com Malaysian Pacific Industries Berhad
Slide 2: Disclaimer
2 DISCLAIMER Malaysian Pacific Industries (MPI) provides access to this presentation for general reference only. This presentation is strictly confidential solely intended for communicating financials and may not be reproduced or circulated without MPI’s prior consent. If you are the recipient of th
Slide 3: Table of Content
1 3 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 4: Business overview: MPI, a member of the Hong Leong Group
4 Business overview MPI – A MEMBER OF THE HONG LEONG GROUP Hong Leong Group and MPI • The Hong Leong Group was established over 50 years ago and is one of The Hong Leong Group the largest conglomerates in Asia One of the Largest Conglomerates in Malaysia • Carsem is an operating company within Malay
Slide 5: Financial performance snapshot
5 Financial performance snapshot STRONG FUNDAMENTALS CREATE BUSINESS RESILIENCE IN TOUGH TIMES Revenue (RM million) PATAMI* growth (%) Debt 530 33% ZERO Q2 FY25 Q2 FY25 vs. Q1 FY25 as of Q2 FY25 CAPEX (RM million) EBITDA (%) Net cash (RM million) 143 25% 967 Q2 FY25 Q2 FY25 as of Q2 FY25 Note: FY25
Slide 6: Table of Content
1 6 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 7: Journey & capabilities
7 Our journey Carsem One of the most JOURNEY & CAPABILITIES trusted OSAT Power Management 5G 5G TEST partners globally - CuClip Technology for Cloud Server Farms SiC, GaN RF – Smartphone For auto, AI – Thin & Multi-Die mid/ high power MLP – Small & Thin Sensors TVS SiC tech X3 for Mobile Market Sens
Slide 8: Management team
8 Management team MANY YEARS OF CONSOLIDATED EXPERIENCE IN THE INDUSTRY MANUEL ZARAUZA, GROUP MANAGING DIRECTOR, MPI Over 25 years of manufacturing sector experience; Previously with Siemens, Osram Opto Semiconductors, and Seoul Semiconductor PO LAU ERIC CHEAH INDERJEET SINGH Jay RAYMOND SHI CK LEE
Slide 9: Table of Content
1 9 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 10: Supply chain & business model
10 Supply chain & business model CARSEM’S PACKAGING & TESTING SERVICES FORM A VITAL PART OF SEMICONDUCTOR VALUE CHAIN IC backend Boxing/ PCB manu- SMT SMT End Mask IC frontend production module/ System design IC Design facturing Assembly Assembly customer production production (Assembly & system (ba
Slide 11: Wide portfolio
11 Wide portfolio COMPREHENSIVE TURNKEY PACKAGING & TEST SERVICES ACROSS KEY APPLICATIONS Automotive System in Quad Flat Package MLP Small Outline IC Package (SiP) (QFP) Industrial (inc. AI) Transient Voltage Power Management Consumer & MEMS & Sensors Copper Clip Flip Chip Suppressor (TVS) (SiC, GaN
Slide 12: Geographic footprint
12 Geographic footprint BROAD GEOGRAPHIC PRESENCE, SERVING A GLOBAL CUSTOMER BASE CARSEM NORTH AMERICA CARSEM S. KOREA CARSEM SUZHOU, CHINA CARSEM JAPAN CARSEM TAIWAN CARSEM IPOH, MALAYSIA S-SITE, M-SITE LEGEND Manufacturing plants & Sales offices Sales offices Malaysian Pacific Industries Berhad
Slide 13: Production facilities
13 Production facilities CARSEM MANUFACTURING SITES & BUSINESS UNITS Carsem (M-Site, Ipoh) • Floor Space: 436K sq. ft. (40,500 sq. m.) SOIC MICRO MSU • Workforce: 2,098 employees Automotive & Consumer Carsem (S-Site, Ipoh) • Floor Space: 640K sq. ft. (60,000 sq. m.) PMG MLP TEST • Workforce: 2,746 e
Slide 14: Table of Content
1 14 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 15: Sustainability performance
15 Sustainability performance MPI IS A RELIABLE AND RECOGNIZED BRAND FOR SUSTAINABLE BUSINESS PRACTICES for THREE successive years HATTRICK of awards EQUITIES |TECHNOLOGY Malaysian Pacific Industries Bhd (Manuel Zarauza Brandulas, Group Managing Director) Leader in sustainability Recognised Malaysia
Slide 16: Environment
16 Environment NEW WASTEWATER CONCENTRATION SYSTEM AT CARSEM SUZHOU Began trial run from Q2 FY25 ~90% wastewater shall be converted to normal water for reuse Significant annual cost savings Malaysian Pacific Industries Berhad
Slide 17: Training & education
17 Training & education TRAINING AND UPSKILLING IS AMONG OUR TOPMOST STRATEGIC PRIORITIES IATF16949 Quality tools training Project management training VDA 6.3 Process Audit Training DOE design and JMP analysis Malaysian Pacific Industries Berhad
Slide 18: Training & education
18 Training & education TRAINING AND UPSKILLING IS AMONG OUR TOPMOST STRATEGIC PRIORITIES Training for enhancing engineering capabilities Training for Project Management Malaysian Pacific Industries Berhad
Slide 19: Anti-bribery & anti-corruption
19 Anti-bribery & anti-corruption LEADING ETHICALLY & TRANSPARENTLY Certification for implementing Anti-Bribery Management Systems, complying with ISO 37001:2016. Operating subsidiaries Certifying authority Status Carsem M SIRIM QAS International Sdn. Bhd. Certified Shanghai Ingeer Certification Ass
Slide 20: Table of Content
1 20 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 21: Industry dynamics
21 Industry dynamics SEMICONDUCTOR INDUSTRY OUTLOOK Globally, supply challenges persist in segments like automotive and industrial chips, impacted by inventory adjustments and shifting demand patterns End market revenue YoY Revenue decline YoY Escalating US – China technology war Oct – Dec Qtr 2024
Slide 22: Industry dynamics
22 Industry dynamics TOUGH TIMES NOW, BUT A BRIGHT FUTURE AHEAD - ONLY THE RESILIENT WILL THRIVE! Source: PwC Malaysian Pacific Industries Berhad
Slide 23: Industry dynamics
23 Industry dynamics MARKET VOLATILITY IN THE SHORT TERM, THOUGH LONG TERM SECULAR GROWTH TRENDS REMAIN Semiconductor industry is poised for growth in the long term, however the short term has several roadblocks Geopolitics Over-capacity Demand fluctuations Material price surge To maintain a competi
Slide 24: Growth strategy
24 Growth strategy OUR LONG TERM VISION IS TO BE THE LEADING OSAT FOR AUTOMOTIVE, DRIVEN BY 4 STRATEGY TENETS Sales Technology • Strategic sales across application & geography • Investing in wide band gap tech (SiC, GaN), power • Continued strategic investments and facility expansion packages for AI
Slide 25: Sales – Future growth focus
25 Sales – Future growth focus CARSEM IS PRIORITIZING FUTURE GROWTH OVER IMMEDIATE PROFITS CARSEM SUXIANG Carsem, CSX latest progress ✓ Construction - completed ✓ Renovation – on going ✓ Factory handover – Feb’25 ✓ Equipment move-in & qualification – Mar’25 Malaysian Pacific Industries Berhad
Slide 26: Sales – Future growth focus
26 Sales – Future growth focus NEW FACTORY OPPOSITE CARSEM M SITE FOR WIDEBAND GAP (WBG) FOL (Level 2) EOL (Level 1) WIDEBAND GAP TECHNOLOGY PLANT Malaysian Pacific Industries Berhad
Slide 27: Confident about longer term growth
27 Confident about longer term growth MPI IS FULLY GEARED UP TO CAPITALIZE AS SOON AS THE MARKET BOUNCES BACK Right portfolio positioning Competitive pricing strategy Continued investments in growth areas Adequate capacity to absorb new business Anchor customers and strong pipeline Robust cash posit
Slide 28: Sales – Revenue composition
28 Sales – Revenue composition GROWTH IN AI SERVER PACKAGES BUSINESS HAS HELPED OFFSET THE DECLINE IN AUTOMOTIVE SECTOR AUTOMOTIVE CONSUMER & COMMUNICATIONS • 5G and IoT are unlocking multitude of use • Slowdown in automotive sector cases – smart cities, healthcare, etc. • Long term growth is driven
Slide 29: Technology – Automotive segment
29 Technology – Automotive segment INNOVATING IN LINE WITH STRATEGY TO BE GLOBALLY PREFERRED OSAT PARTNER FOR AUTOMOTIVE Major trends impacting semiconductor demand (Mobility disruptions) Electrification Autonomy Connectivity Novel battery technologies, growth of electrical Surge in autonomous drivi
Slide 30: Technology – Industrial segment
30 Technology – Industrial segment EXPANDING PORTFOLIO ALIGNED WITH TRENDS IN ADVANCED PACKAGING & TESTING FOR POWER Major trends impacting semiconductor demand Industry 4.0 Big Data Higher performing devices with greater functionality driving models that More servers with high power & high efficien
Slide 31: Technology – Consumer/ communications segment
31 Technology – Consumer/ communications segment TAPPING INTO THE 5G REVOLUTION THROUGH ROBUST CUSTOM OFFERINGS Major trends impacting semiconductor demand 5G IoT High data rates, massive connectivity and ultra-low latency, catalyzing Need for combining functionalities – security, connectivity & mic
Slide 32: Technology–Immediate focus: SiC
32 Technology–Immediate focus SiC - UNLOCKING RF & POWER APPLICATIONS CARSEM ADVANTAGE ✓ Already working with the No.1 SiC wafer supplier in the world Benefits of SiC over ✓ Optimized packaging & previous gen materials performance for better results SiC technology for power has ✓Wider bandgap, ✓ Ong
Slide 33: Technology–Immediate focus: sTOLL
33 Technology–Immediate focus sTOLL 1st successful CLIP MOSFET at CARSEM SUZHOU sTOLL- new 7x8 mm² Power MOSFET package Perfect choice for future automotive applications up to 250 A Key applications • 12V EPS / 12 VBLDC / 12-48V DC-DC End applications • Motor driving End Customer (Battery supplier)
Slide 34: Technology–Immediate focus
34 Technology–Immediate focus CUTTING EDGE TECHNOLOGY DEVELOPMENT ACROSS RENEWABLE ENERGY, ENERGY EFFICIENCY AND ROBOTICS Hydrogen fuel cell – gas sensor Air flow sensor for ICE vehicles Custom design and manufacturing by Carsem ✓ Custom developed air flow sensor micromodule; enables improvement in
Slide 35: Technology – Immediate focus: GaN for RF
35 Technology – Immediate focus GaN FOR RADIO FREQUENCY (RF) APPLICATIONS – 5G BASE STATIONS Significant growth is projected for front end modules (FEM) in the next 8 years ✓ Carsem spent US$ 12Mil for 5G RF FEM. Carsem Suzhou already has experience in FEM for 4G/5G, include DiFEM Module/DiFEM Modul
Slide 36: Technology – Future focus: 5G testing
36 Technology – Future focus 5G TESTING 5G – Next Generation of mobile broadband Carsem Suzhou ✓ CSZ is working with 10+ customers for 5G device testing ✓ Completed 5G and Wifi7 RF test capability development, up to WiFi7 7.125GHz ✓ Continuing engagement with specialized customer for 5G FR2 (mmWave)
Slide 37: Technology – Future focus: Satellite communication
37 Technology – Future focus Satellite Communication Satellite Communication Growth Up Carsem Suzhou ✓ Continue to extend super high RF frequency up to 54 GHz Freq extension ✓ Coverage for mmWave applications: such as 5G, Satcom, Radar, and EW ✓ Engagement with specialized customer for satellite com
Slide 38: Technology – Future focus: Modules
38 Technology – Future focus MODULES CARSEM SUZHOU Entirely new SMT Line 3D X - Ray C - Mold ✓ Invested in dedicated machines for FEM module line, full utilization in Q2 FY25, aiming for capacity expansion in FY25 ✓ Started production for DiFEM Module/ LFEM Module/ Duplexer+ Quadrupled ✓ In regular
Slide 39: Quality & productivity focus
39 Quality & productivity focus AUTOMATION – eBond Diagram Pain Points BEFORE AFTER 1. Paper & Printing Cost DOC-CON DOC-CON 2. Inconvenient - Technician has to Bond diagram approval Bond diagram approval carry a lot of documents 3. Productivity – Time spent at Kitting process to print KITTING ROOM
Slide 40: Awards and recognitions
40 Awards and recognitions QUALITY, PEOPLE and ESG BEST SUPPLIER AWARDS received MAXSCEND Xing Hao ALK CANAANTEK Kang Xi Xing Yao ALLEGRO AIF Malaysian Pacific Industries Berhad
Slide 41: Table of Content
1 41 TABLE OF INTRODUCTION CONTENT 2 CORPORATE OVERVIEW 3 BUSINESS OVERVIEW 4 SUSTAINABILITY 5 GROWTH DRIVERS 6 FINANCIALS & SUMMARY
Slide 42: Financial highlights
42 Financial highlights Q2 FY25 SNAPSHOT REVENUE Despite overall market uncertainty, Q2 FY25 has grown sequentially by 3% in USD against Q1 FY25 PATAMI PATAMI sequentially increased by 33% to RM 40.0M in Q2 FY25 against Q1 FY25 CASH Even during global slowdown, MPI continues to have a strong cash po
Slide 43: Key financials
43 Key financials MPI GROUP RESULTS AT A GLANCE Q2 FY25 Q1 FY25 Q2 FY24 Q2 vs Q1 Q2 vs Q2 YTD FY25 YTD FY24 YoY RM mil RM mil RM mil % % RM mil RM mil % Revenue 530.5 516.6 522.8 3% 1% 1,047.1 1,036.0 1% PAT 52.1 40.5 47.5 29% 10% 92.6 77.6 19% PATAMI 40.0 30.1 32.2 33% 25% 70.2 48.7 44% EPS (sen) 2
Slide 44: Investments
44 Investments CARSEM CONTINUES TO INVEST FOCUSSING MAINLY ON SENSORS, RF & SILICON CARBIDE/ GALLIUM NITRIDE MPI CAPEX (RM million) • Installing new machines for capacity expansion • Hire more people across the globe to support business operations & sales • Invest in Research & Development to delive
Slide 45: Cash
45 Cash MPI’S CASH POSITION REMAINS HEALTHY – READY TO CAPITALIZE ON ORGANIC/ INORGANIC OPPORTUNITIES NET CASH (RM million) 284 444 573 713 826 902 772 840 816 813 801 872 936 958 1,001 1,040 967 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24
Slide 46: Statement of profit or loss
46 Statement of profit or loss Q2FY25 Q2FY24 Changes RM '000 RM '000 % Revenue 530,499 522,751 1% Cost of sales (469,268) (455,215) 3% Gross profit 61,231 67,536 -9% Operating expenses (22,639) (30,294) -25% Other operating income/(expenses) 11,309 6,225 82% Profit from operation 49,901 43,467 15% I
Slide 47: Statement of financial position
47 Statement of financial position 31/12/2024 30/06/2024 RM'000 RM'000 Non-current assets Property, plant and equipment 1,335,600 1,311,637 Right-of-use assets 41,585 42,891 Investment properties 26,073 26,174 Investments 46 46 1,403,304 1,380,748 Current Assets Inventories 147,739 146,200 Trade and
Slide 48: Statement of financial position
48 Statement of financial position 31/12/2024 30/06/2024 RM'000 RM'000 Equity Share Capital 352,373 352,373 Reserves 1,903,493 1,902,200 Treasury shares (160,858) (163,619) 2,095,008 2,090,954 Non-controlling interests 390,316 375,336 2,485,324 2,466,290 Non-current liabilities Borrowings (unsecured
Slide 49: Summary
49 Summary Effective portfolio positioning is driving our growth, Q2 FY25 up by 3% sequentially compared to Q1 FY25 Despite rising costs & continued investments, PATAMI increased by 33% against the last quarter MPI has a healthy order book for future quarters despite the ongoing market uncertainty C
Slide 50: Thank You
50 Thank You Malaysian Pacific Industries Berhad
Malaysian Pacific Industries Berhad — Q2 FY2025 Earnings Presentation on 6ix