Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — H1 2007 Earnings Presentation
17 slides from Solomon Systech (international)'s earnings presentation, Sep 6, 2007
Slide 1: 2007 Interim Results
www.solomon-systech.com 6 September 2007 Hong Kong 2007 Interim Results 6 Sep 2007 P. 1
Slide 2: Table of contents
www.solomon-systech.com Table of contents • Summary • Financial review • Business review • Outlook 2007 Interim Results 6 Sep 2007 P. 2
Slide 3: Summary
www.solomon-systech.com Summary 2007 Interim Results 6 Sep 2007 P. 3
Slide 4: Results summary
www.solomon-systech.com Results summary • Unit shipment close to 100mu • Sales US$103.4 million • Net profit US$9.8 million • Basic EPS 3.1 HK cents • Dividend per share 1.0 HK cent • Book to Bill ratio @ 30 Jun-07 was 0.67 • Global market share in mobile phone display ICs ranged 13-15% 2007 Interim
Slide 5: Financial Review
www.solomon-systech.com Financial Review 2007 Interim Results 6 Sep 2007 P. 5
Slide 6: Profit and loss
www.solomon-systech.com Profit and loss Six months ended 30 June YoY (US$ million) 2007 2006 Change Sales 103.4 149.4 -31% Gross profit 25.0 37.0 -32% Gross margin 24.1% 24.8% Net profit 9.8 17.9 -45% Net margin 9.5% 11.9% (HK cents) Earnings per share* 3.1 5.7 Dividends per share 1.0 2.0 Book to Bi
Slide 7: Balance sheet
www.solomon-systech.com Balance sheet As at 30 As at 30 YoY (US$ million) Jun 2007 Jun 2006 Change Total assets 219.8 230.2 -5% Total borrowings Nil Nil N/A Shareholders’ funds 177.5 180.1 -1% Net cash 153.8 105.9 45% (HK cents) Shareholders’ funds per share 56 56 0% Net cash per share 49 33 48% * P
Slide 8: Financial remarks
www.solomon-systech.com Financial remarks Key Factors Sales 31% Unit shipment 21% YoY Blended ASP 13% YoY Net profit 45% Gross profit 32% YoY -- Gross profit margin 24.1% (1H06: 24.8%) Operating expense 3% YoY -- Raised R&D 17% while lowered SG&A 18% YoY Capex US$2.2m US$0.4m Plant / Property /Equip
Slide 9: Business Review
www.solomon-systech.com Business Review 2007 Interim Results 6 Sep 2007 P. 9
Slide 10: Blended average selling price
www.solomon-systech.com Blended average selling price • 1H07 blended ASP = US$1.05, down 13% YoY – Sequential decline rate moderating HoH YoY 2.0 1.69 1.71 Blended ASP (US$) Blended ASP Change 1.5 1.20 50% 1.05 1.0 0.5 0% 1H04 2H04 1H05 2H05 1H06 2H06 1H07 - 1H04 1H05 1H06 1H07 -50% 2007 Interim Res
Slide 11: Unit shipment by product line
www.solomon-systech.com Unit shipment by product line • Mono & Color STN: Declined as more mobile phones switched to m-TFT • m-TFT: Up 42% YoY as design-wins ramped • OLED: Up 63% YoY with sustained leadership as the industry stablized • New Display: Shipped 9mu bistable driver IC • L-TFT: Kept desi
Slide 12: Examples of 1H07 design-wins
www.solomon-systech.com Examples of 1H07 design-wins New Customers, New Products, New Applications Mobile Display (STN, TFT) OLED Mobile MP4 GPS Mobile Mobile Phone Bluetooth Automotive mirror with Phone Phone Keypad Earpiece GPS / Radio Locator New Display Display System MP4 – Digital Photoframe -
Slide 13: Outlook
www.solomon-systech.com Outlook 2007 Interim Results 6 Sep 2007 P. 13
Slide 14: 2H 2007 Outlook
www.solomon-systech.com 2H 2007 Outlook • Sales year-on-year – Challenging based on Book to Bill ratio • Gross profit margin – Still under pressure with market ASP erosion • Operating expenses – Overall under control, keep investing in R&D • New businesses or customers – Continue developing, take ti
Slide 15: Future Growth Enablers
www.solomon-systech.com Future Growth Enablers New Customers, New Products, New Applications • Mobile Display – STN, TFT ! Minimize cost and target more top-tier brand names – m-TFT ! Leverage MIPI leadership to establish closer customer ties – OLED ! Launch more products for mobile display, wireles
Slide 16: Future Growth Enablers (Cont'd)
www.solomon-systech.com Future Growth Enablers (Cont’d) New Customers, New Products, New Applications • Other IC Products – E-paper display ! Aim mobile phones, IC card, price tag & other applications – MIPI interface ICs ! Make early availability for 3G phones – MM processor ! Offer total solutions
Slide 17: Thank You
www.solomon-systech.com Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com 2007 Interim Results 6 Sep 2007 P. 17
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