Valuetronics Holdings Limited · SGX:BN2
Valuetronics — Q1 FY2018 Earnings Presentation
28 slides from Valuetronics's earnings presentation, Aug 11, 2017
Slide 1: SGX Financial Statements and Related Announcement: First Quarter Results
Financial Statements and Related Announcement::First Quarter Results Page 1 of 1 Financial Statements and Related Announcement::First Quarter Results Issuer & Securities Issuer/ Manager VALUETRONICS HOLDINGS LIMITED Securities VALUETRONICS HOLDINGS LIMITED - BMG9316Y1084 - BN2 Stapled Security No An
Slide 2: Q1FY18 Results Presentation
Q1FY18 Results Presentation Note: This presentation is to be read in conjunction with the announcement issued on SGXNET on 11 August 2017. 1
Slide 3: Important Notice
Important Notice This presentation contains forward-looking statements which can be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimates or expectations. Such statements may include comments on industry, business or market trends, proje
Slide 4: Corporate Profile
Corporate Profile At a Glance Shareholding • Electronic Manufacturing Services (“EMS”) player established in 1992 in Hong Kong • Listed on Main Board of SGX on 28 March 2007 Executive Directors • Production facilities in Daya Bay & Danshui Town, 25.7% Guangdong, PRC (60 minutes from Shenzhen) • Audi
Slide 5: Business Model
Business Model Value Add A Premier Design and Manufacturing Partner Design & Development Engaging in Customers Value Chain •Mechanical & electrical Integrated engineering Manufacturing Services •Design for manufacturing design from concept to •Design & build test mass production •SMT fixtures •Bette
Slide 6: Key Milestones
Key Milestones 1992 2002 2003 2005 2007 2008 Headquartered in Use of ROHS Adopted work cell Became Philips Listed on SGX- Became Phillips Hong Kong with equipment and management & preferred supplier Mainboard & preferred supplier manufacturing accredited with updated to for its consumer commenced fo
Slide 7: Daya Bay Facility – Bird's-Eye View
Daya Bay Facility – Bird’s-Eye View • Land use rights acquired in 2006 • Total site area > 110,000 sq m 6
Slide 8: Customer & Product Portfolio
Customer & Product Portfolio Industrial & Commercial Consumer Electronics Electronics • Ability to accommodate customers requirement for various volume, mix and complexity • Customer base ranged from emerging enterprises in Northern American (low- volume complex custom product) to top global Multi-N
Slide 9: Industrial & Commercial Electronics
Industrial & Commercial Electronics Printers Temperature Sensing Devices Nasdaq-listed Company Unit of a NYSE-listed MNC Cold Chain Temperature Monitor for Industrial Transaction Printer for Slot, POS & Teller Station Machines & Commercial Use Global Brand owned by NYSE-listed MNC Company owned by a
Slide 10: Industrial & Commercial Electronics (Cont'd)
Industrial & Commercial Electronics (Cont’d) Communication Products Toronto-listed Company Taiwan-listed Company Company Based in North America High Precision GPS for Industrial Use 9
Slide 11: Industrial & Commercial Electronics (Cont'd)
Industrial & Commercial Electronics (Cont’d) Electronic Products for Others Automotive Industry Tier 1 Automotive System Manufacturer Access Card Readers Data and media connectivity module In-vitro Diagnostic Medical Equipment for Testing Human Tissue Samples 10
Slide 12: Consumer Electronics
Consumer Electronics Consumer Lifestyle Products Consumer Lifestyle Division of a Dutch MNC Subsidiary of Homax Group (Wholly-owned by PE firm) PCBA for Shavers & Electric Toothbrushes for Consumer Use 15W and 40W Bug Zappers 11
Slide 13: Consumer Electronics (Cont'd)
Consumer Electronics (Cont’d) Smart Lighting with IOT Features Lighting Division of a Dutch MNC Wireless lighting contain various LED specially chosen to produce wide range of intensities and over 16 million colours; Wirelessly controlled by mobile application 12
Slide 14: Q1FY18 Financial Highlights
Q1FY18 Financial Highlights 13
Slide 15: Financial Highlights
Financial Highlights HK$’M Q1 FY2018 Q1 FY2017 % Change Revenue 695.7 477.5 45.7 Gross Profit 104.3 76.6 36.2 Gross Profit Margin 15.0% 16.0% -1.0% pt Net Profit for 48.7 29.6 64.8 the period Net Profit Margin 7.0% 6.2% 0.8% pt
Slide 16: Return to Revenue Growth%
Return to Revenue Growth% Comparable sales growth% 50% 44% 46% 40% 35% 30% 20% 10% 9% 0% Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 -10% -16% -20% -12% -13% -24% -30% -27% -40% 15
Slide 17: Financial Highlights: Revenue Contribution
Financial Highlights Revenue Contribution Q1FY18 54.5% 45.5% Q1FY17 HK$379M HK$317M 34.6% 65.4% HK$165M HK$313M Industrial and Commercial Electronics Consumer Electronics
Slide 18: Revenue Trend
Revenue Trend HK$’ M 2,500.0 2,433.3 2,429.3 2,210.2 2,274.9 2,000.0 780.0 1,952.9 956.3 628.8 1,287.8 1,500.0 1,128.3 1,000.0 1,581.4 1,653.3 695.7 1,473.0 477.5 500.0 987.1 379.2 824.6 312.5 316.5 165.0 - FY13 FY14 FY15 FY16 FY17 Q1 FY17 Q1 FY18 Consumer Electronics Industrial & Commercial Electro
Slide 19: Quarterly Revenue
Quarterly Revenue HK$’ M 800 695.7 700 636.1 573.7 587.6 600 526.5 500 477.5 379.2 434.5 441.9 346.0 312.6 316.7 400 287.5 300 277.5 312.5 293.5 200 290.1 316.5 239.0 261.1 270.9 100 164.4 165.0 141.0 0 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Consumer Electronics Industrial & Commerc
Slide 20: Revenue by Shipment Destination
Revenue by Shipment Destination 100% 8.5% 10.0% 10.1% 90% 80% 37.3% 33.9% 70% 42.7% Europe 60% 50% China & Asia 40% Pacific 30% North 54.2% 56.0% 47.3% America 20% 10% 0% FY16 FY17 Q1FY18 19
Slide 21: Gross Profit & Net Profit Trend
Gross Profit & Net Profit Trend 120.0 18.0% 16.2% 16.2% 16.0% 15.5% 15.0% 16.0% 14.6% 14.6% 100.0 14.2% 104.3 14.0% 91.0 90.6 80.0 12.0% 83.5 77.0 76.6 10.0% 70.5 71.5 60.0 6.7% 7.3% 7.0% 8.0% 6.2% 6.6% 6.9% 6.1% 5.8% 40.0 6.0% 48.7 43.5 4.0% 42.9 20.0 38.1 32.2 29.5 25.2 29.6 2.0% 0.0 0.0% Q2FY16 Q
Slide 22: Market Capitalisation & Net Cash Balance
Market Capitalisation & Net Cash Balance HK’M 2000 1,919.4 1800 1600 1,592.6 1400 1200 1000 992.7 991.2 981.7 938.6 800 857.3 808.5 752.9 740.3 726.6 719.3 600 689.3 505.8 400 477.9 200 0 FY14 FY15 FY16 FY17 Q1 FY18 NAV Market Cap Net Cash balance 21
Slide 23: Earnings Per Share & Dividends Per Share
Earnings Per Share & Dividends Per Share HK cents We are committed to formal dividend policy of 30-50% payout ratio 40.0 14.0% 35.0 11.9% 36.8 36.4 11.8% 12.0% 36.9 30.0 10.0% 33.2 31.1 9.8% 29.0 25.0 9.8% 8.0% 20.0 23.2 7.7% 6.1% 6.0% 7.5% 7.7% 6.0% 15.0 19.9 5.3%* 15.2 4.0% 10.0 13.6 5.0 2.0% 20.0
Slide 24: Summary of Cash Flows
Summary of Cash Flows HK$’000 Q1FY18 Q1FY17 Operating Activities Net cash generated from operating activities 22,907 47,565 Investing Activities Net cash (used in)/generated from investing activities (58,219) 8,326 Financing Activities Net cash generated from financing activities 2,086 - Net (decrea
Slide 25: Balance Sheet & Key Ratios
Balance Sheet & Key Ratios HK$’M Q1 FY18 FY2017 Turnover Days Q1 FY18 FY2017 Working capital Inventory 55.3 55.1 Trade Inventories 358.1 291.9 73.8 78.0 Receivables Trade Trade 562.6 486.3 (88.0) (91.5) Receivables Payables Trade (570.1) (484.7) 41.1 41.6 Payables 350.6 293.5 Net Current 727.8 734.0
Slide 26: Key Financial Ratios
Key Financial Ratios Q1 FY18 FY2017 Q1 FY18 FY2017 Price (SGD) # 0.80 0.745 Current ratio 1.7 1.8 NAV per share 0.42 0.40* ROE 19.7% 16.4% (SGD)* Cash per share 0.30 0.32* ROA 9.8% 8.5% (SGD)* Cash to Mkt Cap 37% 47% PB ratio 1.92 1.68 ratio # Share price as at respective period or year end date *Re
Slide 27: Business Outlook
Business Outlook • Strong performance across all segments in Q1 Overview • Revenue increased by 45.7% • Profit attributable to owners of the Company rose 64.8% • Strong growth in Q1 mainly driven by the smart LED lighting Capturing CE products with IOT features opportunities • Remains optimistic on
Slide 28: Business Outlook
Business Outlook • Ride on successful penetration into the automotive industry to pursue further opportunities in this industry and expand Corporate product portfolio and customer base strategy & • Like most manufacturers, operating in an uncertain macro- Macro economic environment environment • Be
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