Techcential International Ltd. · TPEX:6616
Techcential International — Q1 2022 Earnings Presentation
43 slides from Techcential International's earnings presentation, May 17, 2022
Slide 1: Techcential International Ltd
Line ID：til6616 TECHCENTIAL INTERNATIONAL LTD Company Website：www.techcential-international.com Updated: 17/05/2022 TIL-KY Stock Code：6616
Slide 2: Disclaimer
Disclaimer This briefing report is provided by Techcential International Ltd. We have not reviewed the content by an accountant or an independent and impartial third party. Users should refer to the reported by Techcential International declare to the competent authority while reading the briefing m
Slide 3: Contents
Contents: Company Profile Main business/product introduction Financial Information Market development overview 2022 business development plan Challenges and opportunities faced by enterprises TIL-KY Stock Code：6616
Slide 4: Company Profile
Company Profile Malaysia Johor Muar TIL-KY Stock Code：6616
Slide 5: Company Profile
Company Profile Company Name : Techcential International Ltd. Established : June 14, 2016 Founder : Eng Say Kuang Chairman : Eng Say Kaw (Ricky) General Manager : Eng Kai Pin (Gavin) Capital : NT$286 million Main business : Professional manufacturing and sales of American wooden bedroom furniture &
Slide 6: Board of Directors
Board of Directors Nationality or Qualification Title Name location Registered Chairman Eng Say Kaw Malaysia VI Industries Bhd., CEO Idealhope Furniture Sdn. Bhd., CEO Director Eng Synergy Management Sdn. Bhd. Malaysia Techcential International Ltd, CEO Representative: Eng Kai Pin TC Home Sdn. Bhd,
Slide 7: Company History
Company History 2001 Established Techcential Sdn Bhd., mainly developing the trading of furniture. Professional manufacturing and sales of American wooden bedroom furniture. 2008 The transformation focuses on customized bedroom furniture. 2013 Introduce the ERP system on the production line. 2015 Th
Slide 8: Group Structure
Group Structure (As of April 30, 2022) Techcential International Ltd (Cayman Islands) Professional 100% 100% furniture 84% manufacturing EHL Cabinetry Techcential Sdn. Bhd. TC Home Sdn. Bhd. Sdn. Bhd. (Malaysia) (Malaysia) (Malaysia) 100% Kitchen 100% cabinet ESK Biomass manufacturing Sdn Bhd TC Hom
Slide 9: Main business/product introduction
Main business/ product introduction TIL-KY Stock Code：6616
Slide 10: Techcential - Bedroom furniture Product Introduction
Techcential - Bedroom furniture Product Introduction Mirror Chest Dresser Night Stand Bed TIL-KY Stock Code：6616
Slide 11: Finishing
Finishing 特昇-KY Stock TIL-KY 股票代號：6616 Code：6616
Slide 12: PU Paper
PU Paper TIL-KY Stock Code：6616
Slide 13: ESK WP
Product Introduction ESK WP The related business of rubberwood TIL-KY Stock Code：6616
Slide 14: EHL Cabinetry Product Introduction
EHL Cabinetry Product Introduction Five-piece sets • Doors • Frames • drawer heads • drawer surface • cabinet bodies TIL-KY Stock Code：6616
Slide 15: Product raw materials and main sources
Product raw materials and main sources Rubberwood Main source Malaysia MDF Main source Malaysia CHIPBOARD Main source Malaysia TIL-KY Stock Code：6616
Slide 16: TC - The production process of Wooden furniture
TC- The production process of Wooden furniture TIL-KY Stock Code：6616
Slide 17: EHL - The production process of kitchen cabinets
EHL -The production process of of kitchen cabinets ❑ The products mainly include 5 piece sets of “doors, frames, drawer heads, drawer surfaces, and cabinet bodies”. ❑ The raw materials used are mainly solid wood-birch and plywood . ❑ The main production process of the company's kitchen cabinet produ
Slide 18: Product safety certification
Product safety certification ➢ Techcential focus on the quality of products: Kitchen cabinets have high requirements for product quality There are special requirements for the humidity of wood (hot and cold tests are required) The allowable error of horizontal calibration shall not exceed 0.1mm ➢ Th
Slide 19: The advantage of core competitive
The advantage of core competitive Raw material direct purchase R&D design Techcential and Tariff International Discount customization Ltd Flexible mass production TIL-KY Stock Code：6616
Slide 20: Financial Information
Financial Information TIL-KY Stock Code：6616
Slide 21: Target customers of TC
Target customers of TC Top 100 U.S. (2936.TW) Furniture Stores (8066.TW) Distributors Importers TIL-KY Stock Code：6616
Slide 22: TIL Group Sales (Customer) status
TIL Group Sales (Customer) status 2021 Jan-Mar 2022 Jan- Mar Others EIG Others 14% EIG 19% 20% 21% GLOBAL 5% ULC 3% COA 6% C.OAK 4% ASHLEY PRESTIGE.S 8% GLOBAL 8% 18% ASHLEY 20% T.CASTLE 8% CMI CMI SPLENDID 18% 11% 17% Operating Income：NT$ 272,652 thousand Operating Income：NT$ 365,531 thousand TIL-K
Slide 23: Financial data of most recent years
Financial data of most recent years: Unit: NT$ thousand 2022 2021 Project/year % % Jan-Mar Jan-Mar Operating revenues 365,531 100 272,652 100 Operating costs 285,515 78 229,575 84 Gross profit 80,016 22 43,077 16 Operating expenses 49,949 14 31,529 12 Operating income 30,067 8 11,548 4 Non-operating
Slide 24: Company's revenue overview of most recent years
Company's revenue overview of most recent years Turnover Unit：NT$ MIllion 1600 1,387 1400 1,260 1200 1,083 1000 876 894 800 600 400 366 200 0 Revenue 2017 2018 2019 2020 2021 2022Q1 TIL-KY Stock Code：6616
Slide 25: Company's quarterly revenue of most recent years
Company's quarterly revenue of most recent years Unit：NT$ MIllion TURNOVER BY QUARTER 450 400 350 300 250 200 150 100 50 Q1 Q2 Q3 Q4 - 2017 2018 2019 2020 2021 2022Q1 TIL-KY Stock Code：6616
Slide 26: Company's quarterly GP% performance in recent years
Company's quarterly GP% performance in recent years GP% BY QUATER 25% 24% 24% 22% 22% 22% 21% 21% 20% 20% 20% 19% 19% 18% 18% 17% 17% 16% 15% 15% 14% 12% 10% 9% 5% 0% Q1 Q2 Q3 -1% Q4 -5% 2017 2018 2019 2020 2021 2022Q1 TIL-KY Stock Code：6616
Slide 27: Company's EPS of most recent years
Company’s EPS of most recent years EPS 5.00 3.90 4.00 3.00 2.60 2.00 1.57 1.44 0.96 1.00 - EPS (1.00) -1.08 (2.00) 2017 2018 2019 2020 2021 2022Q1 TIL-KY Stock Code：6616
Slide 28: Techcential KY-Dividend distribution over the years
Techcential KY-Dividend distribution over the years Year EPS Cash dividend distributed 2017 1.44 NT$1 per share 2018 1.57 NT$1 per share First half of 2019 1.80 NT$0.8 per share EPS NT$3.9 in 2019, Cash dividend distributed Second half of 2019 2.10 NT$2.2 per share NTD 3 per share First half of 2020
Slide 29: The company's fundraising situation in recent years
The company's fundraising situation in recent years The funds raised by the Company in the present offering was used in full to enrich working capital in the 2021 Q4, exactly consistent with the planned purpose of use. -Repayment of the principal (including interest compensation) due for the first u
Slide 30: Market development overview
Market development overview TIL-KY Stock Code：6616
Slide 31: Global Major Furniture Importing Country 2015-2021
Global Major Furniture Importing Country 2015-2021 According to CSIL, the World furniture market has resumed in 2021, with furniture consumption level well above the pre-pandemic values, and it is expected to further increase in 2022 and 2023. Over one third of the world furniture consumption is pre
Slide 32: The sales of U.S. Furniture and Home Furnishing Stores
The sales of U.S. Furniture and Home Furnishing Stores 130 Units：US$ Billion 110 90 70 50 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 2022 Sources：U.S. Census Bureau, Monthly and Annual Retail Trade TIL-KY Stock Code：6616
Slide 33: Malaysia furniture exports in 2022 Jan-Mar
Malaysia furniture exports in 2022 Jan-Mar Furniture of other Parts of furniture materials 4.6 Seats and its parts 190.0 Unit:MYR Million 199.4 Plastics furniture 9.3 Metal furniture 200.0 Wooden furniture 3,093.9 • Malaysia‘s furniture exports reached 12,577.3 million MYR in 2021. Malaysia‘s furnit
Slide 34: 2022 Business Development Plan
2022 Business Development Plan TIL-KY Stock Code：6616
Slide 35: 2022 business development plan - Keep improving and increase profit
2022 business development plan -Keep improving and increase profit Bedroom Rubber Wood Furniture trading business Manufacturing Kitchen Cabinets and the (Painting & PU) Manufacturing development of alternative raw ( RTA ) materials TIL-KY Stock Code：6616
Slide 36: The new trend of shipping -- board furniture (RTA)
The new trend of shipping -- board furniture (disassembly type)(Ready To Assembly, RTA) TIL-KY Stock Code：6616
Slide 37: Challenges and opportunities in Y2022
Challenges and opportunities in Y2022 TIL-KY Stock Code：6616
Slide 38: Challenges and opportunities faced by enterprises
Challenges and opportunities faced by enterprises Russia-Ukraine war Global shipping/container circulation issues Trend of U.S. furniture market Malaysian labour laws TIL-KY Stock Code：6616
Slide 39: McKinsey heralds bad news for shippers
McKinsey heralds bad news for shippers TJ China Freight；2022-04-08；By tjchinafreight ivy : Shippers must prepare for events in which the tight container market may not normalize until 2024, according to a new analysis by McKinsey & Company. But the consultancy told Shipping Watch that shipping rates
Slide 40: 海運巨頭 看淡下半年運價
海運巨頭 看淡下半年運價 聯合新聞網；2022-05-16； 記者邱馨儀／台北報導導；節錄段落如下： 全球兩大海運巨擘看壞運價，根據外電報導，近期，赫伯羅德（Hapag-Lloyd）暗示， 下半年即期（現貨）運價可能「強烈下降」（strong reduction）；稍早，馬士基在首季 財報公布後的法人電話會議上，也透露不樂觀下半年即期運價的訊息。 特別的是，近期，部分航線的即期運價已掉到合約價格以下。以遠東到美西為例，各大 航商近一年與大型客戶或貨代簽署的合約價格多在每FEU（40呎標準櫃）8,000美元以上， 但近幾周，遠東到美西即期運價，已掉到此價格以下。 業內人士指出，導致即期運價續降的
Slide 41: Malaysia looks to ease migrant worker shortage as borders reopen
Malaysia looks to ease migrant worker shortage as borders reopen THE STRAITS TIMES；2022-04-14 ： Malaysia is looking to ease a pandemic-driven labour crunch that has choked its key plantation and manufacturing industries by hastening the hiring of migrant workers. The country is expected to hire near
Slide 42: Cabinet Sales Rise Sharply in March, KCMA Reports
Cabinet Sales Rise Sharply in March, KCMA Reports Kitchen Bath Design News；2022-05-09 ： According to the KCMA’s monthly Trend of Business Survey, released today, participating cabinet manufacturers reported an increase in overall cabinet sales 11.3% in March compared to March of 2021. Custom cabinet
Slide 43: Thanks for your attention Keep in touch
Line ID：til6616 Thanks for your attention Keep in touch Company Website：www.techcential-international.com TIL-KY Stock Code：6616
Techcential International — Q1 2022 Earnings Presentation on 6ix