Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — FY2011 Earnings Presentation
36 slides from Comba Telecom Systems's earnings presentation, Mar 22, 2012
Slide 1: Corporate Presentation Annual Results 2011
Corporate Presentation Annual Results 2011 V .01 22 Mar 2012 (IPPC)
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Comba Telecom Systems Holdings Limited (the “Company”) for reference only. The information contained in this presentation has not been independently verified. The Company does not make any representation, warranty or undertaking, whether express or i
Slide 3: Agenda
Agenda Financial Overview Business Overview Financial Highlights Financial Review Customer Review Business Review Open Forum Appendix 3
Slide 4: Financial Overview
Financial Overview For the year ended 31 December 2011 ▶ Revenue 22.4% • 2G revenue 16.1% • 3G revenue 38.1% ▶ Gross profit margin 0.8% point ▶ Net profit margin 3.6% points ▶ Exceptional items: • Stock provision of HK$27.3 million • R&D expenses HK$151 million • Awarded shares expenses
Slide 5: Business Overview
Business Overview For the year ended 31 December 2011 ▶ Revenue by customers 1. China Mobile 32.8% 2. China Unicom 6.6% 3. China Telecom 6.0% 4. International Customers & Core Equipment Manufacturers 23.3% ▶ Revenue by product segments 1. Services 29.6% 2. Antennas and Subsystems 25.1% 3.
Slide 6: Financial Highlights
Financial Highlights Financial Results Dividend Exceptional Items Pro-forma Financial Results Financial Position Key Financial Indicators 6
Slide 7: Financial Results
Financial Results For the year ended 31 December HK$’000 2011 2010 Change Revenue 6,354,218 5,191,358 +22.4% Gross profit 2,326,697 1,939,700 +20.0% Gross profit margin 36.6% 37.4% (0.8%)pt Operating profit 805,919 877,520 (8.2%) Operating profit margin 12.7% 16.9% (4.2%)pts Tax 121,772 119,540 +1.9
Slide 8: Dividend
Dividend For the year ended 31 December 2011 2010 Change Paid interim dividend per share (HK cents) 5.0 6.0 (16.7%) Proposed final dividend per share (HK cents) 7.0 8.0 (12.5%) Proposed special dividend per share (HK cents) 0.0 4.0 N.A. Total dividend per share (HK cents) 12.0 18.0 (33.3%) Weighted
Slide 9: Exceptional Items
Exceptional Items Stock Provision Increase of R&D costs Awarded Shares Expenses Gain Arising from the Acquisition 9
Slide 10: Exceptional Items
Exceptional Items Amount in Detail 2011 Remark (HK$ Mn) 1 Stock ▸ Stock provision for obsolete 27 provision ▸ One-off expense inventory ▸ Some innovative products to be launched in 2012 2 Increase of ▸ Heavy spending in R&D for long 151 ▸ Include expenses of HK$15Mn R&D costs term growth arising fro
Slide 11: Pro-forma Financial Results
Pro-forma Financial Results (Assuming NO increase of R&D costs, stock provision, awarded shares expenses and gain arising from the acquisition in 2011) For the year ended 31 December HK$’000 2011 2010 Change Revenue 6,354,218 5,191,358 +22.4% Operating profit 1,066,251 887,861 +20.1% Operating profi
Slide 12: Financial Position
Financial Position As at 31 December HK$’000 2011 2010 Change Net cash / (debt) (9,603) 880,084 N.A. Total current assets 8,402,635 6,531,582 +28.6% Total assets 9,581,332 7,262,426 +31.9% Total liabilities 5,498,508 3,953,401 +39.1% Net assets 4,014,064 3,239,524 +23.9% NAV per share (HK$) 2.63 2.2
Slide 13: Key Financial Indicators
Key Financial Indicators For the year ended 31 December 2011 2010 Change Inventory turnover days 188 187 +1 A/R turnover days 209 176 +33 A/P turnover days 233 221 +12 Gross gearing ratio 11.7% 8.2% +3.5% pts Dividend payout ratio * 27.3% 32.4% (5.1%)pts Return on average equity 18.2% 25.1% (6.9%) p
Slide 14: Financial Review
Financial Review Revenue Breakdown by Customers Revenue Breakdown by Businesses Revenue Trend Gross Profit and GP Margin Trend Net Profit and NP Margin Trend Cost Structure 14
Slide 15: Revenue Breakdown by Customers
Revenue Breakdown by Customers For the year ended 31 December 2011 China Unicom 6.6% 21.0% China Mobile China Telecom 56.4% 32.8% 6.0% 6.7% International Customers & 13.4% Core Equipment Manufacturers Others 23.3% 2.5% 60.6% = YOY change Moderate Growth in the PRC Market with Rapid Expansion in Over
Slide 16: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses For the year ended 31 December 2011 Wireless Enhancement 30.7% Services 13.2% 33.3% 29.6% Antennas & Subsystems 28.2% Wireless Access 7.8% 25.1% 22.6% = YOY change Satisfactory Growth in All Business Segments 16
Slide 17: Revenue Trend
Revenue Trend (HK$Mn) 7,000 6,354.2 6,000 5,191.4 5,000 4,440.0 3,809.1 4,000 3,189.1 3,000 2,525.9 2,672.6 2,000 1,768.4 1,690.4 1,000 990.6 2,545.1 1,767.4 2,002.3 777.8 835.5 0 2007 2008 2009 2010 2011 1H 2H Sustainable revenue growth over the years & back-end loaded revenue model 17
Slide 18: Gross Profit & GP Margin Trend
Gross Profit & GP Margin Trend (HK$Mn) 2,500 44% 41.5% 41.1% 1,681.9 1,939.7 2,326.7 40.2% 2,000 41.3% 40% 38.5% 37.9% 38.0% 37.5% 37.4% 35.6% 35.6% 36.6% 1,500 36.2% 35.7% 36% 35.6% 952.6 1,134.6 1,360.3 946.0 1,000 32% 681.3 602.3 500 358.7 966.4 28% 729.3 805.1 322.6 343.7 0 24% 2007 2008 2009 20
Slide 19: Net Profit & NP Margin Trend
Net Profit & NP Margin Trend (HK$Mn) 1,000 16% 14.0% 14.0% 564.5 724.3 800 13.9% 14% 13.1% 12.7% 659.1 12.5% 600 11.6% 12.4% 12% 10.8% 445.3 341.9 227.5 10.4% 400 9.2% 332.3 10% 9.8% 9.0% 9.0% 191.6 8.6% 200 8% 279.0 317.2 115.2 155.5 232.2 76.4 72.0 0 6% 2007 2008 2009 2010 2011 1H 2H FY NPM 1H NPM
Slide 20: Cost Structure
Cost Structure For the year ended 31 December As % of Total Revenue = YOY change 30% R & D costs 71.6% 28.1% Expansion of R&D team and development of new product offerings 25% 24.0% 5.7% 4.1% Selling and distribution costs 64.6% 20% Increase in staff salaries and benefits, and 6.9% awarded share
Slide 21: Customer Review
Customer Review Global Customers China Business International Customers & Core Equipment Manufacturers 21
Slide 22: Global Customers
Global Customers Core China Equipment Vendors EMEA APAC Americas 22
Slide 23: China Business
China Business Review & Opportunities: Revenues increased 21% to HK$ 5,342 million Continued market growth in 2011 and beyond: PRC expected to exceed 1 billion subscribers by end March 2012* Deeper penetration as leading solutions partner: Long term, multi-year 2G/3G projects with operators Expa
Slide 24: International Customers & Core Equipment Manufacturers
International Customers & Core Equipment Manufacturers Review & Opportunities: ▶ Revenues up by 23% to HK$ 851 million ▶ Significant growth in sales to international operators & success in penetrating core equipment vendors ● Diversified the customer portfolio ● Strategy of cross-selling/up-selling
Slide 25: Business Review
Business Review Wireless Enhancement Antenna & Subsystems Wireless Access & Transmission Services 25
Slide 26: Solutions for all Network Stages
Solutions for all Network Stages In-building Solutions Scenic Areas Stadium/Large Venues (Camouflaged Solutions) Wireless Backhaul Base Station Solutions Rural Area Solutions Subways & Tunnels Urban Area Solutions 26
Slide 27: Solutions for all Network Stages
Solutions for all Network Stages Network Optimization Solutions etc.. In-Building Solutions In-building Solutions Scenic Areas Stadium/Large Venues BTS Antennas (Camouflaged Solutions) Tower Mounted Solutions Femtocell Solutions Outdoor Wireless Enhancement Installation, Wireless Backhaul Commission
Slide 28: Wireless Enhancement
Wireless Enhancement Review & Opportunities: ▶ Revenues increased by 13% to HK$ 1,948 million ▶ China 2G and 3G network buildout and enhancement driving demand for enhancement Active DAS solutions (Med/Large Venue) Remote Radio Units ▶ Deeper promotion of DAS solutions to strengthen lead ● Recognize
Slide 29: Antennas & Subsystems
Antennas & Subsystems Review & Opportunities: ▶ Revenues increased by 25% to HK$ 1,795 million ▶ Maintained leading position as the number one antenna supplier in China Antennas ▶ Recognized as one of the world’s leading base station antennas vendor* Tower Mounted Solutions ▶ Continued portfolio exp
Slide 30: Wireless Access & Transmission
Wireless Access & Transmission Review & Opportunities: Femtocell ▶ Revenues increased by 23% to HK$ 495 million Solutions ▶ R&D investment in development of new solutions to WLAN Solutions address increased capacity requirements WIRELESS ACCESS (WLAN Solutions + Femtocell Solutions) ▶ Strong market
Slide 31: Wireless Access & Transmission
Wireless Access & Transmission WIRELESS TRANSMISSION (Digital Microwave Systems & Satellite Solutions) Digital Microwave ▶ Expanded digital microwave solution sales to Systems international markets around the world ● IP backhaul solutions for LTE requirements ● Market acceptance for cost-effective s
Slide 32: Services
Services Network Planning Network Project Consultancy Rollout Review & Opportunities: Network Installation & Maintenance Commissioning ▶ Revenues increased by 30% to HK$ 2,116 million ▶ Growth reflecting strategy of solution sales Network Network Optimization Commissioning ▶ Key differential element
Slide 33: Summary
Summary Key 2011 Data** 133% …average growth in mobile data to 597 PB/month (1 PB = 1000 TB) 6% …by allLTEmobile data was generated users (0.2% of ALL users) HSPA/ HSPA+ 33% …wireless of mobile traffic offloaded from network Capacity Crunch: Driving Solutions/Product Wireless Solutions Portfolio Dev
Slide 34: Open Forum
Open Forum 34
Slide 35: Appendix
Appendix 35
Slide 36: Awarded Shares Expenses
Awarded Shares Expenses 1H 2H FY Vesting shares Expenses Vesting shares Expenses Vesting shares Expenses (Mn) (HK$Mn) (Mn) (HK$Mn) (Mn) (HK$Mn) (1) (2) (3) (4) (1) + (3) (2) + (4) 2011 Nil 87 8.9 58 8.9 145 2012 5.7 34 Nil 20 5.7 54 2013 5.7 15 Nil 8 5.7 23 2014 5.7 4 Nil Nil 5.7 4 Total 26 226 36
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