Techcential International Ltd. · TPEX:6616
Techcential International — Investor Presentation (April 2021)
54 slides from Techcential International's investor presentation, Apr 16, 2021
Slide 1: Techcential International Ltd
Line ID：til6616 TECHCENTIAL INTERNATIONAL LTD Updated: 16/04/2021 Company Website：www.techcential-international.com TIL-KY Stock Code：6616
Slide 2: Disclaimer
Disclaimer This briefing report is provided by Techcential International Ltd. We have not reviewed the content by an accountant or an independent and impartial third party. Users should refer to the reported by Techcential International declare to the competent authority while reading the briefing m
Slide 3: Contents
Contents: Company Profile Main business/product introduction Financial Information Market development overview 2021 business development plan Challenges and opportunities faced by enterprises TIL-KY Stock Code：6616
Slide 4: Company Profile
Malaysia Johor Company Profile Muar TIL-KY Stock Code：6616
Slide 5: Company Profile
Company Profile Company Name : Techcential International Ltd. Established : June 14, 2016 Founder : Eng Say Kuang Chairman : Eng Say Kaw (Ricky) General Manager : Eng Kai Pin (Gavin) Capital : NT$236 million Main business : Professional manufacturing and sales of American wooden bedroom furniture, a
Slide 6: Board of Directors
Board of Directors Nationality or Qualification Title Name location Registered Chairman Eng Say Kaw Malaysia VI Industries Bhd., CEO Idealhope Furniture Sdn. Bhd., CEO Director Eng Synergy Management Sdn. Bhd. Malaysia Techcential International Ltd, CEO Representative: Eng Kai Pin TC Home Sdn. Bhd,
Slide 7: Company History
Company History 2001 Established TC Home Sdn. Bhd., mainly developing the trading of furniture. The main business items include planning the wood processing industry and furniture manufacturing. 2008 The transformation focuses on customized bedroom furniture. 2013 Introduce the ERP system on the pro
Slide 8: Group Structure
Group Structure (As of March 31, 2021) Techcential International Ltd (Cayman Islands) Professional furniture 100% 70% 100% manufacturing EHL Cabinetry KD Techcential Sdn. Bhd. TC Home Sdn. Bhd. furniture Sdn. Bhd. (Malaysia) (Malaysia) (Malaysia) 100% Kitchen cabinet 100% ESK Biomass manufacturing W
Slide 9: Main business/product introduction
Main business/product introduction TIL-KY Stock Code：6616
Slide 10: Techcential - Bedroom furniture
Product Introduction Techcential - Bedroom furniture Mirror Chest Dresser Night Stand Bed TIL-KY Stock Code：6616
Slide 11: Finishing
Finishing TIL-KY Stock Code：6616
Slide 12: Finishing
Finishing TIL-KY Stock Code：6616
Slide 13: PU Paper
PU Paper TIL-KY Stock Code：6616
Slide 14: PU Paper
PU Paper TIL-KY Stock Code：6616
Slide 15: TC Home – KD furniture (Detachable)
Product Introduction TC Home – KD furniture (Detachable) TIL-KY Stock Code：6616
Slide 16: ESK Biomass ESK WP
Product Introduction ESK Biomass ESK WP Fuel pellets The related business of rubberwood TIL-KY Stock Code：6616
Slide 17: EHL Cabinetry
Product Introduction EHL Cabinetry TIL-KY Stock Code：6616
Slide 18: Product raw materials and main sources
Product raw materials and main sources Rubberwood Main source Malaysia MDF Main source Malaysia CHIPBOARD Main source Malaysia TIL-KY Stock Code：6616
Slide 19: The production process of Wooden furniture
TC- The production process of Wooden furniture TIL-KY Stock Code：6616
Slide 20: Product safety certification
Product safety certification Techcential has not only focusing on the quality of products but also strictly controls the safety standards of products. Our products meet: - The California Air Resources Board (CARB) established ATCM (Airborne Toxic Control)-formaldehyde emission standards for wood pro
Slide 21: The advantage of core competitive
The advantage of core competitive Raw material direct purchase R&D design Techcential and Tariff International Discount customization Ltd Flexible mass production TIL-KY Stock Code：6616
Slide 22: Financial Information
Financial Information TIL-KY Stock Code：6616
Slide 23: Target customers of TC
Target customers of TC Top 100 U.S. Furniture Stores Distributors (2936.TW) (8066.TW) Importers TIL-KY Stock Code：6616
Slide 24: TIL Group Sales (Customer) status
TIL Group Sales (Customer) status 2019 2020 Others Others 16% 23% GLOBAL 2% ESSENTIALS 2% ASHLEY ASHLEY C.OAK 2% 37% C.H. TEY 2% EIG 2% 44% T.CASTLE 2% P.KINGDOM 2% LF 3% COA 8% CMI EIG 8% 11% IFM COA CMI 8% 8% 20% Operating Income：NT$ 1,386,627 thousand Operating Income：NT$ 1,259,850 thousand TIL-K
Slide 25: Financial data of most recent years
Financial data of most recent years: Unit: NT$ thousand Project/year 2020 % 2019 % 2018 % Operating revenues 1,259,850 100 1,386,627 100 1,082,868 100 Operating costs 1,015,450 81 1,076,063 78 897,420 83 Gross profit 244,400 19 310,564 22 185,448 17 Operating expenses 145,301 11 178,748 13 132,063 1
Slide 26: Company's revenue overview of most recent years
Company's revenue overview of most recent years Turnover Unit：NT$ MIllion 1,600 1,387 1,400 1,260 1,200 1,083 1,000 876 800 600 400 200 - Revenue 2017 2018 2019 2020 TIL-KY Stock Code：6616
Slide 27: Company's quarterly revenue of most recent years
Company's quarterly revenue of most recent years TURNOVER BY QUARTER Unit NT$ Million 450 2017 2018 2019 2020 2021 Record -High 400 Record -High 350 300 250 200 150 Q1 Q2 Q3 Q4 TIL-KY Stock Code：6616
Slide 28: Company's quarterly GP% performance
Company's quarterly GP% performance in recent years GP% by Quater 25% 24% 24% 22% 22% 21% 20% 20% 20% 19% 19% 18% 17% 17% 17% 15% 15% 14% 10% 9% 5% 0% Q1 Q2 Q3 Q4 2017 2018 2019 2020 TIL-KY Stock Code：6616
Slide 29: Product sales status of TC
Product sales status of TC Products 2020 Q1-Q4 Revenue ratio 2019 Q1-Q4 Revenue Y2020 (MYR (MYR ratio Compared with thousand) thousand) last year's revenue Finishing 122,580 74.79% 129,732 83.71% -5.51% PU 39,553 24.13% 25,247 16.29% 56.66% Others 1,773 1.08% - - - Subtotal 163,906 100% 154,979 100%
Slide 30: Company's EPS of most recent years
Company’s EPS of most recent years EPS 4.50 4.00 3.90 3.50 3.00 2.60 2.50 2.00 1.44 1.57 1.50 1.00 0.50 - EPS 2017 2018 2019 2020 TIL-KY Stock Code：6616
Slide 31: Dividend distribution over the years
Techcential KY-Dividend distribution over the years Year EPS Cash dividend distributed 2017 1.44 NT$1 per share 2018 1.57 NT$1 per share First half of 2019 1.80 NT$0.8 per share EPS NT$3.9 in 2019, Cash dividend distributed Second half of 2019 2.10 NT$2.2 per share NTD 3 per share First half of 2020
Slide 32: The company's fundraising situation in recent years
The company's fundraising situation in recent years ■ In 2019, Techcential International issued the first convertible corporate bond and the projects are as follows, and the funds have been used up. -Repayment of bank loans -Reinvestment in subsidiary EHL -Enrich working capital ■ In 2021, Techcenti
Slide 33: Market development overview
Market development overview TIL-KY Stock Code：6616
Slide 34: Global Major Furniture Importing Country
Global Major Furniture Importing Country CSIL preliminary data for 2020 show substantial decreases in furniture imports for all the major countries. In the last ten years, the international trade of furniture has consistently amounted to about 1% of the international trade of manufactures. Aft
Slide 35: Top countries of household furniture imports in U.S. 2019
Top 10 countries of household furniture imports in U.S. 2019 Sources：https://www.statista.com/ TIL-KY Stock Code：6616
Slide 36: The increase of U.S. furniture sales during May 2020
The increase of U.S. furniture sales during May 2020 • Due to the pandemic, more people are staying home and spending money on their home at high level than normal. This is driving the sales of Home Furnishing exceeding its expectation. TIL-KY Stock Code：6616
Slide 37: The housing market stands at a tipping point
The housing market stands at a tipping point after a stunningly successful year during the pandemic CNBC，2021-03-12 7:00AM;Diana Olick： Home prices are overheated, mortgage rates are rising, the supply of homes for sale is anemic and consumer confidence in the housing market is falling. Pandemic-rel
Slide 38: Furniture sales start strong in 2021 with double digit growth
Furniture sales start strong in 2021 with double digit growth Furniture Today，2021-02-17；Reporter: Adelaide Elliott. Bringing in a total of $11.35 billion in January, according advance estimates from the Department of Commerce’s monthly report on retail sales, furniture and home furnishings store sa
Slide 39: US March retail sales rebound (UDN)
美3月零售銷售 爆發式反彈 UDN聯合新聞網-全球財經；2021-04-16；節錄段落如下： 美國3月零售銷售出現爆發式反彈，成長率直逼二位數，且為十個月來最 大增幅，主因為氣候轉暖，且家庭領到紓困支票，加上經濟活動逐漸解 封，也為第1季經濟成長奠定基礎。 美國商務部15日公布，3月零售銷售總額比2月激增9.8%，遠高於經濟學 者預期的5.8%，為去年5月來最大增幅。 許多家庭都領到政府發放的每人1,400美元紓困支票，加上政府發放加碼 的失業給付，且疫情好轉，更多餐廳恢復營業，因而帶動零售銷售強彈。 經濟學者指出，政府紓困計畫逐步落實，加上疫苗接種加速普及，均有 助於零售銷售
Slide 40: The sales of U.S. Furniture and Home Furnishing Stores
The sales of U.S. Furniture and Home Furnishing Stores 美國家具及家居店銷售情況 Units：US$ Billion 110 90 70 50 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 2018 2019 2020 2021 Sources：U.S. Census Bureau, Monthly and Annual Retail Trade TIL-KY Stock Code：6616
Slide 41: Malaysia furniture exports in 2020
Malaysia furniture exports in 2020 Furniture of other Parts of furniture materials 23.7 767 Unit:MYR Million Seats and its parts 742.1 Plastics furniture 25.7 Metal furniture 670.4 Wooden furniture 10,626.6 • Malaysia‘s furniture exports reached 128.55 billion MYR in 2020, an increase of 15% from 20
Slide 42: Malaysia's exports of furniture in 2020
Malaysia’s exports of furniture in 2020 Malaysia's furniture exports reached MYR 128 billion in 2020. This is an increase of 15% over last year. The total value of furniture exports to the United States increased by 63.6% over last year. MALAYSIA’S EXPORTS OF FURNITURE (Top 5 countries) 9,000.00 8,0
Slide 43: Malaysia Movement Control Order (MCO)-2020
Malaysia Movement Control Order (MCO)-2020 Date Movement Control Order The operation of Techcential 18/03/2020 – First-phase of movement Total shutdown. 31/03/2020 control order 01/04/2020 – Second-phase of movement Complete shutdown. Negotiate "50% unpaid leave" with employees to reduce 14/04/2020
Slide 44: Subsidiary TC received Temporary Suspension Notice
Employee infected with COVID-19 Subsidiary TC received “Temporary Suspension Notice” 29/12/2021 -TC received an employee infected with COVID-19. The company immediately suspends work autonomously and conducts disinfection on December 30 and 31. During this period, we arrange all employees for an ins
Slide 45: 2021 Business Development Plan
2021 Business Development Plan TIL-KY Stock Code：6616
Slide 46: 2021 business development plan
2021 business development plan Focus on -Keep improving and increase profit TC the research and Expected TCH developme to start nt of PU the Start EHL paper business the products, of which will manufa Developm ESKW “KD cturing become furniture ent and the main business trading of The (Detacha ESKB g
Slide 47: Challenges and opportunities in Y2021
Challenges and opportunities in Y2021 TIL-KY Stock Code：6616
Slide 48: Challenges and opportunities faced by enterprises
Challenges and opportunities faced by enterprises COVID-19 Pandemic Global shipping/container circulation issues Changes in U.S. furniture sales The U.S. retail industry challenges Malaysian labour laws Rising raw material costs USD currency fluctuations TIL-KY Stock Code：6616
Slide 49: NRF chief economist: Economy 'has come a long way'
NRF chief economist: Economy ‘has come a long way’ 新聞鏈結/來源： 節錄段落如下： ■ WASHINGTON — National Retail Federation Chief Economist Jack Kleinhenz said in this month’s Monthly Economic Review that the economy has made dramatic progress since it was at a near-standstill this time last year. ■ “The economy
Slide 50: Global container shortage!
Global container shortage! International freight rates have soared by 3 to 10 times, and 1 container is still hard to find-Free Finance 6Park News En；2021-03-06 16:44；by 6Park NewsDesk： The global pandemic of COVID-19)disrupted the normal rhythm of the international shipping market. Container supply
Slide 51: Canal blockage freight rates (Chinese news excerpt)
運河阻塞影響 歐美線運價恐再大漲 航貿周刊；工商時報；張珮芬；2021-04-01；節錄段落如下： 因為蘇伊士運河阻塞事件，全球最大貨櫃船公司馬士基31日通知客戶， 相關航線船隻預計延遲到港20天，該公司Spot艙位預定系統暫停線上訂 艙；中國遠洋則宣布紅海線取消三個航班，4月份無法接受訂艙。 大型海運承攬業者指出，歐洲線已應聲出現1,700美元「買艙費」、美東 線要3,000美元，甚至有託運人以每大箱（40呎櫃）1萬美元搶美東線艙 位。 實際上，目前美西線的買艙費一直都還存在，因美國西岸碼頭壅塞並未 舒緩，託運人開始把貨運疏散到美國西北岸，靠近美東的美國內陸貨則 轉由紐約運進，現在因蘇伊士運
Slide 52: Port congestion to ease in Q3 (Chinese news excerpt)
塞港Q3才會緩解 長榮海：樂觀看全年業績 自由時報-自由財經；2021-04-02；記者王憶紅 台北報導；節錄段落如下： 長榮海運（2603）謝惠全指出，全球塞港情形導致艙位供不應求， 目前美西塞港嚴重，預期塞港問題延遲到第3季才可望舒緩，且在 美、歐今年經濟景氣都樂觀下，「今年將會有不錯的成績」。 謝惠全指出，美國今年GDP（國內生產毛額）成長，成屋庫存率低， 只要經濟一轉好，新屋開工率就會增加，且客戶端安全庫存量也會 適度放大，再加上1.9兆美元的紓困案推出，美國今年景氣會很好， 貨櫃海運貨量也就會增加。美國線佔長榮海運營收40％，長榮今年 會在美國線投入比去年更多的船舶，以滿足市場成長。
Slide 53: Malaysia furniture export orders surge (news excerpt)
【独家】每月增30% 排期至明年 家具外销爆单 e南洋-財經新聞；2021-01-23；独家报道：苏韵鸰；節錄段落如下： 在疫情攻城下，各行各业几乎坐困愁城，不过大马的家具业却出乎意料地突破 重围，外销订单不止全线“爆满”，甚至有一些夸张到排期至2022年才能出货。 根据业者透露，他们的订单每个月都增加20至30%，大部分是出口到美国、日本 及欧洲国家。 根据马来西亚家具总会对家具出口的调查显示，去年首11个月，大马家具整体 出口总值114亿9400万令吉，当中，出口到美国的达68亿4350万令吉，占出口比 率59.5%。 2019年同期，大马家具整体出口总值是99亿7110万令吉，而出口到美
Slide 54: Thanks for your attention Keep in touch
Line ID：til6616 Thanks for your attention Keep in touch Company Website：www.techcential-international.com TIL-KY Stock Code：6616
Techcential International — Investor Presentation (April 2021) on 6ix