Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — Q1 2024 Earnings Presentation
22 slides from Zhen Ding Technology's earnings presentation, May 10, 2024
Slide 1: Zhen Ding Technology Holding First Quarter of 2024 Investor Conference
Zhen Ding Technology Holding (4958 TT) First Quarter of 2024 Investor Conference May 10th, 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: Agenda
1 1Q24 Financial Results Eddie Chiang, Chief Financial Officer 2 Company Strategy AGENDA Charles Shen, Chairman IC Substrate Business Update 3 D.J. Lee, Director & Chief Operating Officer 3
Slide 4: 1Q24 Financial Results
1Q24 Financial Results Eddie Chiang, Chief Financial Officer 4
Slide 5: 1Q24 Financial Results
1Q24 Financial Results (Unit: NT$ million, unless otherwise stated) 1Q24 1Q23 YoY (%) Revenue 32,510 31,545 3.1% Gross Profit 5,337 5,075 5.2% Gross Margin 16.4% 16.1% +0.3ppts Operating Expense 4,594 3,857 19.1% Operating Profit 743 1,219 -39.1% Operating Margin 2.3% 3.9% -1.6ppts Non-Operating Inc
Slide 6: Quarterly Operation Results
Quarterly Operation Results Revenue Gross Margin (%) 2023 2024 Unit: NT$ million 2023 2024 16.4% 21.5% 54,396 20.5% 16.1% 41,919 +3% YoY 9.0% Net Margin (%) 31,545 32,510 9.3% 8.0% 23,537 4.4% 2.7% 0.6% 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 6
Slide 7: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 1Q24 Revenue NT$32.5bn 1Q23 Revenue NT$31.5bn 1Q24 Revenue Applications YoY% Automotive/Server Automotive/Server/ /Base Station & Base Station & IC Substrate, Others, 5.5% IC Substrate, Others, 4.5% Mobile Communication -10.1% 5.7% 2.4% Computers and Computers and
Slide 8: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices Unit: NT$ million 2024-3-31 2023-3-31 Change Amount % Amount % Amount % Cash and Cash Equivalents (2) 72,995 30.0% 68,703 29.7% 4,292 6.25% Notes & Accounts Receivable 20,856 8.6% 19,062 8.2% 1,794 9.41% Inventories 15,858 6.5% 13,985 6.0% 1,873 13.39% Prop
Slide 9: 2014-2023 Financial Summary
2014-2023 Financial Summary Unit: NT$ million Period 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue 75,954 85,738 82,393 109,238 117,913 120,068 131,279 155,022 171,356 151,398 Gross Profit 14,323 16,427 12,542 17,833 26,061 27,222 26,584 30,537 39,888 27,459 Net Income 6,735 7,731 3,456
Slide 10: Company Strategy
Company Strategy Charles Shen, Chairman 10
Slide 11: 1Q24 Review and Outlook
1Q24 Review and Outlook 1 1Q24 revenue increased by 3.06% YoY, resuming growth in operations: In 1Q24, our revenue for Computers and Consumer Electronics and Automotive/Server/Base Station both achieved double-digit YoY growth, while revenue for IC substrates delivered triple-digit growth, reaching
Slide 12: One ZDT: One Stop Shopping Synergies
One ZDT：One Stop Shopping Synergies FPC (+Module) HDI (+mSAP+Mini LED) HDI Mini FPC LED AI PC AI Smart- AR/VR Wearable NEV/ Next Gen AI Smart- AR/VR Wearable Smart phone Metaverse Devices Battery Display phone Metaverse Devices Cockpit One Module SLP ZDT RPCB (+Base Station + Automotive + Server) IC
Slide 13: Continued Effort to Diversify Product Portfolio
Continued Effort to Diversify Product Portfolio ZDT’s 1Q24 Revenue for Automotive/Server/Base ZDT’s 1Q24 Revenue for IC Substrates Continues to Station Achieved 26.5% YoY Growth Reach a Record High +26.5% YoY 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 1
Slide 14: High-end PCB Demand for Smartphones is on the Rise
High-end PCB Demand for Smartphones is on the Rise Global Foldable Smartphone Market: Global AI Smartphone Market: ZDT has Shipped Products to Multiple Customers ZDT is Actively Developing New Products with Customers Non-Foldable phone Foldable phone Penetration Rate Non-AI Smartphone AI Smartphone
Slide 15: Construction of New Fab in Thailand is Progressing According to Plan
Construction of New Fab in Thailand is Progressing According to Plan (Dec 2023) Thailand Prachinburi Park (Phase 1)： (Current) Thailand Prachinburi Park (Phase 1)： High-end RPCB/HDI High-end RPCB/HDI ◼ The construction of the new fab in Prachinburi Province, Thailand is progressing according to plan
Slide 16: Continued Capacity Expansion, Pursuing Stable Growth
Continued Capacity Expansion, Pursuing Stable Growth ◼ As the world's largest PCB manufacturer, we position ourself as a growth-oriented company. Adhering to our strategy of “Early Deployment”, we proactively deploy our production capacity to meet customers’ need. ◼ This year, we continue to invest
Slide 17: IC Substrate Business Update
IC Substrate Business Update D.J. Lee, Director & Chief Operating Officer 17
Slide 18: IC Substrate Business Update
IC Substrate Business Update 1 IC substrate revenue marked a record high for a single quarter in 1Q24, entering a phase of rapid growth: • In 1Q24, revenue contribution from IC substrates increased to 5.7% of total revenue. We maintain our goal of achieving a >50% revenue CAGR for IC substrate durin
Slide 19: 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 20: 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 21: Q&A
GD BE RAT HE Zhen Ding Tech. Holding Q&A 21
Slide 22: Thank You
- H) ean THANK YOU
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