Valuetronics Holdings Limited · SGX:BN2
Valuetronics — Q1 2020 Earnings Presentation
29 slides from Valuetronics's earnings presentation, Aug 14, 2019
Slide 1: Financial Statements and Related Announcement: First Quarter Results
Financial Statements and Related Announcement::First Quarter Results Page 1 of 2 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: Financial Statements and Related Announcement Page 2
Financial Statements and Related Announcement::First Quarter Results Page 2 of 2 Total size =1744K MB https://links.sgx.com/1.0.0/corporate-announcements/IE3ZE67UF5R6R... 14-Aug-19
Slide 3: Q1FY20 Results Presentation
Q1FY20 Results Presentation Note: This presentation is to be read in conjunction with the announcement issued on SGXNET on 14 August 2019. 1
Slide 4: 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 5: Corporate Profile
Corporate Profile Bloomberg Code VALUE.SP Shareholding Reuters Code VLUE.SI 25% Stock Code BN2 Index FTSE ST Singapore, FT ST China, FTSE Global MicroCap Issued shares (M) 434.0 Mkt cap (SG$M) (7 Aug 2019) 271.3 75% Share price (SG$) (7 Aug 2019) 0.63 Average volume 3-mth ('000) 1,698 Executive Dire
Slide 6: 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 7: 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 8: 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 9: 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 10: Industrial & Commercial Electronics: Printers
Industrial & Commercial Electronics Printers Nasdaq-listed Company Company owned by a UK PE Fund Barcode and Transaction Printing Solution Provider for Retail, Transaction Printer for Slot, POS & Teller Station Machines Banking, Manufacturing, Logistics and Healthcare industries Global Brand owned b
Slide 11: Industrial & Commercial Electronics: Sensing Devices
Industrial & Commercial Electronics Sensing Devices Unit of a NYSE-listed MNC Company owned by a UK PE Fund Cold Chain Temperature Monitor for Industrial Electronic Thermostats & Commercial Use Biotechnology company based in United States and Canada Networked Chemical Dispenser 9
Slide 12: Industrial & Commercial Electronics: Communication Products
Industrial & Commercial Electronics (Cont’d) Communication Products United States based Company Taiwan-listed Company Captioning phone for the hearing loss Company Based in North America High Precision GPS for Industrial Use 10
Slide 13: Industrial & Commercial Electronics: Automotive
Industrial & Commercial Electronics (Cont’d) Electronic Products for Automotive Industry Tier 1 Automotive System Manufacturer Data and media connectivity module 11
Slide 14: Consumer Electronics: Consumer Lifestyle Products
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 12
Slide 15: Consumer Electronics: Smart Lighting
Consumer Electronics (Cont’d) Smart Lighting with IOT Features Wireless lighting contain various LED specially chosen to produce wide range of intensities and over 16 million colours; Wirelessly controlled by mobile application 13
Slide 16: Q1FY20 Financial Highlights
Q1FY20 Financial Highlights 14
Slide 17: Financial Highlights
Financial Highlights HK$’M Q1FY20 Q1FY19 % Change Revenue 654.3 704.0 -7.1 Gross Profit 99.0 102.8 -3.7 Gross Profit Margin 15.1% 14.6% 0.5% pt Net Profit for 48.1 49.7 -3.2 the period Net Profit Margin 7.4% 7.1% 0.3% pt 15
Slide 18: Financial Highlights: Revenue Contribution
Financial Highlights Revenue Contribution Q1FY20 36.9% 63.1% HK$241M HK$413M Q1FY19 38.0% 62.0% HK$267M HK$437M Consumer Electronics Industrial and Commercial Electronics 16
Slide 19: Revenue Trend
Revenue Trend HK$’ M 2,900.0 2,853.7 2,828.8 2,429.3 2,400.0 2,274.9 1,455.6 1,952.9 1,667.6 1,900.0 956.3 1,287.8 1,400.0 1,128.3 900.0 704.0 654.3 1,473.0 1,398.1 1,161.2 987.1 436.8 413.5 400.0 824.6 267.2 240.8 -100.0 FY15 FY16 FY17 FY18 FY19 Q1FY19 Q1FY20 Consumer Electronics Industrial & Comme
Slide 20: Quarterly Revenue
Quarterly Revenue HK$’ M 900 788.3 800 725.7 704.0 716.2 729.6 700 679.0 654.3 644.0 600 387.2 345.3 500 419.3 434.4 343.9 436.8 377.1 413.5 400 300 200 380.4 401.1 300.1 267.2 296.9 295.2 301.9 100 240.8 0 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Consumer Electronics Industrial & Com
Slide 21: Revenue by Shipment Destination
Revenue by Shipment Destination 100% 13.8% 13.7% 17.4% 90% 80% 70% 43.1% 41.3% Europe 38.1% 60% 50% China & Asia Pacific 40% 30% North America 20% 43.1% 45.0% 44.5% 10% 0% FY18 FY19 Q1FY20 19
Slide 22: Gross Profit & Net Profit Trend
Gross Profit & Net Profit Trend 140 18.0% 15.9% 14.9% 15.4% 15.1% 16.0% 120 14.4% 14.3% 14.6% 14.4% 113.7 115.8 104.6 14.0% 107.1 99.0 100 104.8 12.0% 91.8 102.8 80 10.0% 8.2% 7.4% 7.0% 7.4% 7.3% 7.1% 8.0% 60 6.7% 6.2%# 6.0% 40 59.7 48.1 58.2 49.7 45.8 4.0% 50.8 47.0 44.3# 20 2.0% 0 0.0% Q2FY18 Q3FY
Slide 23: Market Capitalisation & Net Cash Balance
Market Capitalisation & Net Cash Balance HK’M 2800 2,794.3 2600 2400 2200 2000 1800 1600 1,716.9 1,708.9 1,592.6 1400 1200 1,206.2 1,159.3 1000 1,062.0 993.0 981.7 938.6 930.4 800 857.3 752.9 600 689.3 671.1 400 200 0 FY16 FY17 FY18 FY19 Q1FY20 NAV Market Cap Net Cash balance 21
Slide 24: Earnings Per Share & Dividends Per Share
Earnings Per Share & Dividends Per Share We are committed to formal dividend policy of 30-50% payout ratio HK cents FY19: interim dividend of 5 HK cents, final dividend of 15 HK cents & 50.0 special dividend of 5 HK cents 14.0% 48.1 45.0 11.9% 46.2 11.8% 12.0% 40.0 9.8% 9.8% 35.0 10.0% 36.8 36.9 36.
Slide 25: Summary of Cash Flows
Summary of Cash Flows HK$’000 Q1FY20 Q1FY19 Operating Activities Net cash generated from operating activities 73,940 88,540 Investing Activities Net cash generated from investing activities - Changes in short-term bank deposits 155,000 116,256 - Purchase of PPE (17,564) (5,018) - Others 5,714 2,723
Slide 26: Balance Sheet & Key Ratios
Balance Sheet & Key Ratios HK$’M Q1FY20 FY19 Turnover Days Q1FY20 FY19 Working capital Inventories 42.3 46.0 Trade Inventories 257.5 302.0 70.6 56.4 Receivables Trade Trade 506.3 436.8 (67.5) (59.6) Receivables Payables Trade (411.0) (391.5) 45.4 42.8 Payables 352.8 347.3 Net Current 934.3 850.5 Ass
Slide 27: Key Financial Ratios
Key Financial Ratios Q1FY20 FY19 Q1FY20 FY19 Price (SGD) # 0.69 0.68 Current ratio 2.1 2.0 NAV per share 0.48 0.46 ROE 16.0% 17.2% (SGD)* Cash per share 0.40 0.37 ROA 9.2% 9.9% (SGD)* Cash to Mkt 58% 54% PB ratio 1.42 1.47 Cap ratio # Share price as at respective period or year end date *SGD/HKD Ex
Slide 28: Business Outlook
Business Outlook • Escalation of trade tensions between US and China show no immediate signs of abatement; the Group’s operations will continue to be affected negatively • In Q1FY20 approx. 45% of the Group’s revenue was shipped to the US and around half of the Group’s US Macro shipment from China w
Slide 29: Business Outlook
Business Outlook • Vietnam expansion progressing as planned • Leased site in Vietnam has been qualified by customer and mass production has begun since June 2019, with Strategy shipments made from Vietnam to US market • Intends to acquire a plot of land in an industrial park to build the Group’s own
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