Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — Investor Presentation (October 2024)
36 slides from Zhen Ding Technology's investor presentation, October 2024
Slide 1: Zhen Ding Technology Holding Investor Presentation
Zhen Ding Technology Holding (4958 TT) Investor Presentation October 2024
Slide 2: Safe Harbor Notice
Safe Harbor Notice ◼ Zhen Ding Technology Holding′s statements of its current expectations are forward looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. ◼ Except as required by law, we un
Slide 3: Zhen Ding (ZDT) at a Glance
Zhen Ding (ZDT) at a Glance NT$151.4bn NT$108.6bn 14.7% Revenue in 2023 Market Cap 10yr Average ROE No. 1 (-11.6% YoY) (as of Sep. 30, 2024) PCB Manufacturer Worldwide +9% Revenue Breakdown – By Applications 2013-2023年 +17.9% YoY NT$64.9bn Revenue CAGR NT$55.1bn 5.8% 5.9% 2006 Founded 5.1% (Former F
Slide 4: Why Invest in ZDT?
World’s largest PCB manufacturer with stable long-term growth: 1 ZDT has become the world’s largest PCB manufacturer since 2017. We have achieved a 9% revenue CAGR during 2013-2023. Leverage One ZDT synergies to further widen the market share gap: 2 With One ZDT as the core strategy, we will continu
Slide 5: World's Largest PCB Manufacturer with Stable Long-term Growth
World’s Largest PCB Manufacturer with Stable Long-term Growth 5
Slide 6: ZDT Outperforms Industry Average, Maintaining #1 Position
ZDT Outperforms Industry Average, Maintaining #1 Position 2023 Global Top 10 PCB Companies Revenue Trends ZDT Maintains a Leading Market Share in the 6000 Unit: US$ million PCB Industry 2023: ZDT -11.6% YoY Maintain at Global #1 for 7 Consecutive Years 5000 Industry Avg. -15.0% 7.0% 7.0% 6.8% 6.8% 4
Slide 7: Business Review and Outlook
Business Review and Outlook 1 2Q24 revenue increased by 37.7% YoY, ahead of previous expectation. All four major applications achieved double-digit YoY growth: We previously expected a sequential decline in 2Q24 revenue due to the impact of customer product transition. However, the reported 2Q24 rev
Slide 8: Leverage One ZDT Synergies to Further Widen the Market Share Gap
Leverage One ZDT Synergies to Further Widen the Market Share Gap Aim to Reach 10% Global PCB Market Share by 2030 8
Slide 9: All PCB Segments to Resume Growth in 2024
All PCB Segments to Resume Growth in 2024 100% 80% IC Substrate 60% HDI 40% FPC+SMA 20% RPCB 0% 2018 2019 2020 2021 2022 2023(E) 2024(F) 2025(F) 2026(F) 2027(F) 2028(F) 2023-2028 Product Item 2018 2019 2020 2021 2022 2023(E) 2024(F) 2025(F) 2026(F) 2027(F) 2028(F) CAGR Value 33,225 31,969 32,674 40,
Slide 10: One ZDT: We Offer A Full Range of PCBs for AI
One ZDT: We Offer A Full Range of PCBs for AI From AI Edge Devices to AI Servers – AI Increases Design Complexity for PCBs ZDT Offers the Most Comprehensive and Advanced PCBs for All Kinds of AI Applications Cloud High AI Server Edge Server Performance Memory HDI Mini FPC LED Module One ZDT SLP AI C
Slide 11: Continued Effort to Diversify Product Portfolio
Continued Effort to Diversify Product Portfolio ZDT’s 2Q24 Revenue for Automotive/Server/Base Station ZDT’s 2Q24 Revenue for IC Substrates Achieved 40.2% YoY Growth Continues to Reach a Record High +40.2% YoY 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1
Slide 12: Demand for High-end Mobile PCB continues to increase
Demand for High-end Mobile PCB continues to increase Global Foldable Phone Market Scale：ZDT has Global AI phone Market Scale：ZDT actively delivered to multiple customer collaborates with customers to develop new products (mm. pcs) non-foldable phone foldable phone (mm. pcs) non AI phone AI phone AI
Slide 13: Aim to Reach 10% Global PCB Market Share by 2030
Aim to Reach 10% Global PCB Market Share by 2030 1H24Revenue NT$64.9bn 2027 Target Revenue by Aim to Reach 10% Global Market Application Share by 2030 Automotive/Server/ 10.0% Base Station & Mobile IC Others, 5.8% Communication Substrate, 5.9% Others Computers and Consumer Electronics, 7.0% 27.5% Mo
Slide 14: Aggressive Expansion in IC Substrate
Aggressive Expansion in IC Substrate Aim to Become One of the Top Five in the World by 2030 14
Slide 15: IC Substrate Business Update
IC Substrate Business Update 1 IC substrate revenue again reached a record high for a single quarter in 2Q24, with revenue contribution increasing to 5.9% in 1H24. IC substrate revenue will maintain at rapid growth this year: • IC substrate revenue increased by 96.7% YoY in 1H24, and it is expected
Slide 16: Challenges on IC Substrates in Advanced Packaging
Challenges on IC Substrates in Advanced Packaging The complexity of IC substrates is increasing: High layer counts Large body size Flat surface Accurate product precision 2005 2020 2026 Body Size (mm) 31 x 31 75 x 60 120 x 140+ x20+ Layer count (L) 6 20 28+ x4+ Bump Count 1K 100K 300k+ ~ 500k+ x300+
Slide 17: AI Application – Chiplet Substrate
AI Application – Chiplet Substrate AI Chip Solution Chiplet Substrate Single SOC (System on Chip) High-speed Data Larger die size, more Computing Transmission complicated manufacturing HBM HBM process, and higher costs HBM SOC HBM AI applications require high-speed Chiplet computing capabilities and
Slide 18: Applications and Capabilities of IC Substrates
Applications and Capabilities of IC Substrates Intelligence DCU Chip Packaging ZDT’s IC Substrate • Autopilot DCU Autopilot AI Chip CMOS FCBGA • Cockpit DCU Smart Cockpit Chip Storage Chip Sensor DCU Chip ADAS Chip FCBGA • mmWave Radar CSP • Laser Radar • Camera 4~26L 12x12~102x102 mm Connectivity C
Slide 19: SEMICON Taiwan Technology Trends Overview
SEMICON Taiwan Technology Trends Overview Advanced Packaging ◼ As Chiplet and HBM increase, the designs of bump area will become more irregular, which requires tighter control on packaging yields. ◼ The demand for more complex designs with large body sizes and high layer counts will increase. ◼ As p
Slide 20: IC Substrate Capacity Expansion Plan
IC Substrate Capacity Expansion Plan 2023 2024 2025 2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Installation Fab 1 Sample certification SZ ABF (Mid-to high- Substrate end products) Full utilization, target yield: Mass production, target yield: comparable to tier 1 peers Plant comparable to
Slide 21: IC Substrate Goals
IC Substrate Goals NT$ 60 bn >50% 15%+/- TOP 5 IC Substrate Capex: IC Substrate Revenue: IC Substrate Revenue: IC Substrate Market Share: Plan to invest NT$60bn 2023~2027 Revenue Account for 15 %+/- of Aim to become one of the from 2022~2027 CAGR >50% company’s consolidated global top 5 companies in
Slide 22: Global Manufacturing Footprint
Global Manufacturing Footprint 22
Slide 23: Six Major Global Manufacturing Campuses
Six Major Global Manufacturing Campuses Multiple manufacturing campuses to fulfill clients’ needs China Qinghuangdao Qinghuangdao Park BT Substrate Park ► FPC & advanced ► FC-CSP/WB-CSP/Memory module/SLP High end HDI ► Phase 1 entered mass production in 2022 China Huai’an India Huai’an Park 1 Huai’a
Slide 24: Global Manufacturing Footprint Advancing with Thailand Construction
Global Manufacturing Footprint is advancing step by step with actively construction in Thailand according to the plan (currently) Thailand Prachinburi Park (Phase I)： (last Dec.) Phase I：high-end RPCB/HDI High-end RPCB/HDI ◼ The construction of the new fab in Prachinburi Province, Thailand is progre
Slide 25: Continued Capacity Expansion, Pursuing Stable Growth
Continued Capacity Expansion, Pursuing Stable Growth ◼ As the world’s largest PCB manufacturer, we keep positioning ourselves as a growth-oriented business, continually adopting early deployment of production capacity to meet customers’ need. ◼ Continually investing in Kaohsiung and Thailand, laying
Slide 26: Introduce Smart Manufacturing into Each Plant Step by Step
Introduce Smart Manufacturing into Each Plant Step by Step Advance Fabs Based on Industry 4.0 Unified identification Big data management Battle center AI Machine Learning CAD CAM CAE PDM PLM CRM SCM In Plan/In Cam Engineering design system Fault Detection and Classification (FDC) Run-to-Run Control
Slide 27: EPS + ESG – Improvement of ESG Ratings
EPS + ESG – Improvement of ESG Ratings ► Corporate Governance Evaluation Ranking ► ISS ESG Rating Ranked between 6% to 20% in the 2024 Corporate Governance ISS has upgraded Zhen Ding's ESG Rating from "C" to "C+," Evaluation for listed companies and re-selected for inclusion granting Zhen Ding "Prim
Slide 28: Financial Summary
&/ IEMA IE ‘Zhen Ding Tech. Holding Financial Summary
Slide 29: 2Q24 Financial Results
2Q24 Financial Results (Unit: NT$ million, unless otherwise stated) 2Q24 2Q23 YoY (%) Revenue 32,411 23,537 +37.7% Gross Profit 4,247 2,123 +100.1% Gross Margin 13.1% 9.0% +4.1ppts Operating Expense 4,891 4,011 +21.9% Operating Profit (644) (1,888) Operating Margin -2.0% -8.0% +6.0ppts Non-Operating
Slide 30: 1H24 Financial Results
1H24 Financial Results (Unit: NT$ million, unless otherwise stated) 1H24 1H23 YoY (%) Revenue 64,922 55,082 +17.9% Gross Profit 9,584 7,198 +33.2% Gross Margin 14.8% 13.1% +1.7ppts Operating Expense 9,485 7,867 +20.6% Operating Profit 99 (669) Operating Margin 0.2% -1.2% +1.4ppts Non-Operating Incom
Slide 31: Quarterly Operation Results
Quarterly Operation Results Revenue Gross Margin (%) 2023 2024 Unit: NT$ million 2023 2024 16.4% 21.5% 54,396 20.5% 13.1% 16.1% +38% YoY 41,919 +3% YoY 9.0% Net Margin (%) 32,411 31,545 32,510 9.3% 8.0% 23,537 4.4% 2.7% 2.1% 0.6% 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 31
Slide 32: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 1H24 Revenue NT$64.9bn 1H23 Revenue NT$55.1bn 1H24 Revenue Applications Automotive/Server/ YoY% Automotive/Server/ Base Station & IC IC Base Station & Mobile Others, 5.8% Substrate, 5.4% Substrate, Others, 5.1% Communication 3.5% 5.9% Computers and Computers and C
Slide 33: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices (Unit: NT$ million) 2024-6-30 2023-6-30 Change Amount % Amount % Amount % Cash and Cash Equivalents (2) 69,461 28.2% 59,916 26.8% 9,545 +1.4ppts Notes & Accounts Receivable 22,317 9.1% 17,496 7.5% 4,821 +1.6ppts Inventories 18,784 7.6% 13,784 5.9% 5,000 +1.
Slide 34: 2013-2023 Financial Summary
2013-2023 Financial Summary Unit: NT$ million Period 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue 64,483 75,954 85,738 82,393 109,238 117,913 120,068 131,279 155,022 171,356 151,398 Gross Profit 11,894 14,323 16,427 12,542 17,833 26,061 27,222 26,584 30,537 39,888 27,459 Net Income
Slide 35: Q&A
2 aie Q&A
Slide 36: Thank You
) BRL HE ~ Then Ding Tech. Holding THANK YOU
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