Valuetronics Holdings Limited · SGX:BN2
Valuetronics — FY2018 Earnings Presentation
27 slides from Valuetronics's earnings presentation, May 25, 2018
Slide 1: Financial Statements and Related Announcement: Full Yearly Results
Financial Statements and Related Announcement::Full Yearly Results http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Conten... Financial Statements and Related Announcement::Full Yearly Results Issuer & Securities Issuer/ Manager VALUETRONICS HOLDINGS LIMITED Securities VALUETRONICS HOLDINGS LIMITE
Slide 2: FY2018 Results Presentation
FY2018 Results Presentation Note: This presentation is to be read in conjunction with the announcement issued on SGXNET on 25 May 2018. 1
Slide 3: 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 4: Corporate Profile
Corporate Profile Shareholding Bloomberg Code VALUE.SP Reuters Code VLUE.SI 25% ISIN Code BN2 Index FTSE ST Small Cap, FT ST China Issued shares (M) 432.4 Mkt cap (SG$M) (24 May 2018) 346.0 5% Share price (SG$) (24 May 2018) 0.8 70% Average volume 3-mth ('000) 4,400 52 wk range (SG$) (24 May 2018) 0
Slide 5: 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 6: 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 7: 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 8: 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 9: Industrial & Commercial Electronics
Industrial & Commercial Electronics Printers Temperature Sensing Devices Nasdaq-listed Company Unit of a NYSE-listed MNC Transaction Printer for Slot, POS & Teller Station Machines Company owned by a UK PE Fund Cold Chain Temperature Monitor for Industrial & Commercial Use Company owned by a UK PE F
Slide 10: Industrial & Commercial Electronics (Cont'd)
Industrial & Commercial Electronics (Cont’d) Communication Products Toronto-listed Company Taiwan-listed Company Company Based in North America High Precision GPS for Industrial Use 9
Slide 11: Industrial & Commercial Electronics (Cont'd)
Industrial & Commercial Electronics (Cont’d) Electronic Products for Others Automotive Industry Tier 1 Automotive System Manufacturer In-vitro Diagnostic Medical Equipment Data and media connectivity module for Testing Human Tissue Samples 10
Slide 12: Consumer Electronics
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 11
Slide 13: Consumer Electronics (Cont'd)
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 12
Slide 14: FY2018 Financial Highlights
FY2018 Financial Highlights 13
Slide 15: Financial Highlights
Financial Highlights HK$’M FY18 FY17 % Change Revenue 2,853.7 2,274.9 25.4 Gross Profit 414.6 341.7 21.3 Gross Profit Margin 14.5% 15.0% -0.5% pt Net Profit for 204.7 154.1 32.9 the year Net Profit Margin 7.2% 6.8% 0.4% pt
Slide 16: Financial Highlights: Revenue Contribution
Financial Highlights Revenue Contribution FY18 51.0% 49.0% HK HK $1,456M $1,398M FY17 56.6% 43.4% HK HK $1,288M $987M Consumer Electronics Industrial and Commercial Electronics
Slide 17: Revenue Trend
Revenue Trend HK$’ M 2,853.7 2,900.0 2,433.3 2,429.3 2,400.0 2,274.9 2,210.2 1,952.9 1,455.6 780.0 1,900.0 628.8 956.3 1,287.8 1,400.0 1,128.3 900.0 1,581.4 1,653.3 1,473.0 1,398.1 987.1 400.0 824.6 -100.0 FY13 FY14 FY15 FY16 FY17 FY18 Consumer Electronics Industrial & Commercial Electronics 16
Slide 18: Quarterly Revenue
Quarterly Revenue HK$’ M 900 788.3 800 725.7 695.7 700 636.1 644.0 573.7 587.6 600 387.2 345.3 500 477.5 379.2 441.9 343.9 346.0 312.6 316.7 400 312.5 300 277.5 300.1 200 380.4 401.1 290.1 316.5 261.1 270.9 100 164.4 165.0 0 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Consumer Ele
Slide 19: Revenue by Shipment Destination
Revenue by Shipment Destination 100% 8.5% 10.0% 13.8% 90% 80% 37.3% 70% 42.7% 43.1% Europe 60% 50% China & Asia 40% Pacific 30% North 54.2% 47.3% 43.1% America 20% 10% 0% FY16 FY17 FY18 18
Slide 20: Gross Profit & Net Profit Trend
Gross Profit & Net Profit Trend 120 18.0% 16.2% 16.0% 15.5% 15.0% 16.0% 14.6% 14.2% 14.4% 14.4% 14.3% 100 113.7 14.0% 104.3 104.8 91.0 90.6 80 91.8 12.0% 83.5 76.6 71.5 10.0% 7.4% 60 7.3% 6.6% 6.9% 7.0% 7.0% 7.3% 8.0% 6.7% 6.2% 40 58.2 6.0% 50.8 48.7 4.0% 42.9 43.5 47.0 20 38.1 29.5 29.6 2.0% 0 0.0%
Slide 21: Market Capitalisation & Net Cash Balance
Market Capitalisation & Net Cash Balance HK’M 2800 2,794.3 2600 2400 2200 2000 1800 1600 1,592.6 1400 1200 1000 1062.0 992.7 981.7 938.6 800 857.3 808.5 752.9 740.3 726.6 600 689.3 671.1 592.2 400 505.8 479.3 477.9 221.6 200 0 FY13 FY14 FY15 FY16 FY17 FY18 NAV Market Cap Net Cash balance 20
Slide 22: Earnings Per Share & Dividends Per Share
Earnings Per Share & Dividends Per Share We are committed to formal dividend policy of 30-50% payout ratio FY18: interim dividend of 7 HK cents, final dividend of 15 HK cents & special HK cents dividend of 5 HK cents 50.0 14.0% 48.1 45.0 11.9% 11.8% 12.0% 40.0 9.8% 9.8% 10.0% 36.9 36.8 35.0 36.4 7.7
Slide 23: Summary of Cash Flows
Summary of Cash Flows HK$’000 FY18 FY17 Operating Activities Net cash generated from operating activities 63,529 160,536 Investing Activities Net cash used in investing activities (167,782) (23,210) - Net increase in short-term bank deposits (116,256) - - Others (51,526) (23,210) Financing Activitie
Slide 24: Balance Sheet & Key Ratios
Balance Sheet & Key Ratios HK$’M FY18 FY17 Turnover Days FY18 FY17 Working capital Inventories 57.7 55.1 Trade Inventories 385.6 291.9 74.5 78.0 Receivables Trade Trade 582.8 486.3 (72.3) (91.5) Receivables Payables Trade (482.9) (484.7) 59.9 41.6 Payables 485.5 293.5 Net Current 774.9 734.0 Assets
Slide 25: Key Financial Ratios
Key Financial Ratios FY18 FY17 FY18 FY17 Price (SGD) # 1.08 0.68* Current ratio 1.9 1.8 NAV per share 0.41 0.40* ROE 19.3% 16.4% (SGD)* Cash per share 0.26 0.32* ROA 10.4% 8.5% (SGD)* Cash to Mkt 24% 47% PB ratio 2.61 1.68 Cap ratio # Share price as at respective period or year end date *Restated/ad
Slide 26: Business Outlook
Business Outlook • Record breaking results for FY2018 driven by operational Overview excellence and strong demand from CE and ICE customers • Strong performance driven by consumer lifestyle products and smart LED lighting products with IOT features • Remains optimistic on growth prospects of consume
Slide 27: Business Outlook
Business Outlook • Strong performance with printers, and in-car connectivity modules used in the automotive industry • Automotive products expected to remain as main primary ICE driver for ICE growth with increasing demands for in-car connectivity • Pursue opportunities in the future of mobility by