Hung Hing Printing Group Limited · HKEX:450
Hung Hing Printing — H1 FY2010/11 Earnings Presentation
19 slides from Hung Hing Printing's earnings presentation, November 2010
Slide 1: Interim Results 6 months to September 2010
Interim Results 6 months to September 2010
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 Solid recovery from significant slow down in 2009 Revenues up 18% over prior year period Operating profit up 17% Stable operating margins despite high paper prices and rising labor costs Continuous strong focus on operational efficiencies and process improvements to maintain margins Align
Slide 4: Financial Highlights
Financial Highlights Revenue growth boosts profitability Six months ended 30 Sep HK$ million FY10/11 FY09/10 Change % Revenue 1,560 1,320 239 ↑ 18% Gross profit 336 299 37 ↑ 12% Gross profit % 21.5% 22.7% 1.2% ↓ Admin & Selling expenses 131 124 7↑ 6% Operating profit 179 153 26 ↑ 17% Profit attribut
Slide 5: A Well-Balanced Portfolio
A Well-Balanced Portfolio Revenue by business unit Book and Package Printing Six months ended Sep 2010 Revenue up 27% Consumer Product Packaging is well positioned to capture the growth (15%) opportunity in the Guangdong Province and in the Eastern China Region Corrugated Box complimented and enjoye
Slide 6: Operating Revenue is up 18%
Operating Revenue is up 18% 1,786 1,560 Up 18% 1,504 & Page 6
Slide 7: Segments Operating Profits are up 21%
Segments Operating Profits are up 21% 233 197 Up 21% 162 & Page 7
Slide 8: Business Unit Review
HUNG HING YEARS OF PRINTING EXCELLENCE Business Unit Review Page 8
Slide 9: Book & Package Printing
Book & Package Printing Recovery of export markets, consolidation of customer purchases Revenue & Operating Profit % (Six months ended 30 Sep) 1,000 18% 911 900 16% 866 16% Revenue up 27% to 773 HK$866 million 800 732 682 14% Revenue (HK$ million) Operating Profit (%) 700 12% Operating profit ↑ 600
Slide 10: Consumer Product Packaging
Consumer Product Packaging China growth strategy progressing, competition dictates greater efficiencies Revenue & Operating Profit % (Six months ended 30 Sep) Revenue up ↑ 5% to 450 423 10% HK$340 million 400 9% 340 8% But operating profit 350 Revenue (HK$ million) 322 9% 323 impacted by pricing Ope
Slide 11: Corrugated Box
Corrugated Box Return of Pearl River Delta Exports, seeing impacts of operating initiatives Revenue & Operating Profit % (Six months ended 30 Sep) Revenue up ↑ 27% 350 19% 20% to HK$232 million; External revenue up 18% 300 ↑ up 38% to HK$170 15.3% 16% million reflecting Revenue (HK$ million) 250 99
Slide 12: Paper Trading
Paper Trading Strength of paper markets supported paper prices and better margins Revenue & Operating Profit % (Six months ended 30 Sep) Revenue up ↑ 11% 500 11.0% 11.2% 12% to HK$411 million, supported by 450 10% intersegment 400 business growth Revenue (HK$ million) 350 205 204 Operating Profit (%
Slide 13: Capital Investment – business capability
Capital Investment – business capability 250 We have continued to Full year Half year invest in technology that 201 enhances efficiency and 200 quality. Delivery of 4 state of the 154 art printing presses in the (HK$ million ) 150 132 first half year. 98 Additional commitment 100 for 3 more in the s
Slide 14: EBITDA trends and Capex
EBITDA trends and Capex Adjusted EBITDA and CAPEX Full year Half year 400 377 359 340 350 325 300 (HK$ million) 250 221 201 200 154 150 132 98 100 62 50 0 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 Adjusted EBITDA CAPEX EBITDA has excluded prior year impacts from Paper mill operations (now an associate
Slide 15: Maintaining our Strategy Focus
Maintaining our Strategy Focus ■ Completion of group-wide Supply Chain review Operational ■ Automation, technology upgrades, workflow improvements Efficiency ■ Reorganized IT and additional resources in product integrity and Sales & Operations Planning ■ Additional leadership focus and organizationa
Slide 16: Key Balance Sheet Items
Key Balance Sheet Items 30 Sep 31 Mar HK$ million 2010 2010 Change % Property, plant & equipment 1,356 1,304 52 ↑ 4% Inventories 617 656 (39) ↓ -6% Inventories days 87 83 Trade and bills receivables 823 525 298 ↑ 57% AR days 68 107 Cash 779 1,109 (330) ↓ -30% Borrowings 384 425 (41) ↓ -10% Short-ter
Slide 17: Profit Attributable To Equity Holders & Earnings Per Share
Profit Attributable To Equity Holders & Earnings Per Share Profit attributable to equity holders Basic Earnings per share was Six months ended 30 Sep Six months ended 30 Sep 250 40 37.7 227 222 35 200 29.6 30 25 (HK$ million) (HK Cents) 150 20.8 125 129 20 101 14.3 100 15 10.9 10 50 5 0 0 FY06/07 FY
Slide 18: Proposed Dividends
Proposed Dividends Full year Half year 35 29.5 Propose interim dividend 30 of 5 cents. 23.0 25 22.0 In consideration of the substantial net cash and (HK Cents) 20 strong operating cash 14 flow, the Board of 15 Directors is proposing a 8.5 10 special dividend of 17 cents. 5 0 FY06/07 FY07/08 FY08/09
Slide 19: Q&A
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.
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