Techcential International Ltd. · TPEX:6616
Techcential International — Investor Presentation (January 2021)
53 slides from Techcential International's investor presentation, Jan 18, 2021
Slide 1: Techcential International Ltd
Line ID：til6616 TECHCENTIAL INTERNATIONAL LTD Updated: 18/01/2021 Company Website：www.techcential-international.com 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
Slide 3: Contents
Contents: ❖ Company Profile ❖ Main business/product introduction ❖ Financial Information ❖ Market development overview ❖ 2021 business development plan ❖ Challenges and opportunities faced by enterprises TIL-KY Stock Code：6616
Slide 4: Company Profile
Malaysia Johor Muar Company Profile 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$236 million ■ Main business : Professional manufacturing and sales of American wooden bedroo
Slide 6: Company History
Company History 2001 Established TC Home Sdn. Bhd., mainly developing the trading of furniture. The main business items include planning the wood processing industry and furniture manufacturing. 2008 The transformation focuses on customized bedroom furniture. 2013 Introduce the ERP system on the pro
Slide 7: Group Structure
Group Structure (As of December 31, 2020) Techcential International Ltd (Cayman Islands) Professional 100% KD furniture 100% 70% furniture manufacturing EHL Cabinetry Techcential Sdn. Bhd. TC Home Sdn. Bhd. Sdn. Bhd. (Malaysia) (Malaysia) (Malaysia) 100% Kitchen 100% cabinet ESK Biomass manufacturin
Slide 8: Main business/product introduction
Main business/product introduction TIL-KY Stock Code：6616
Slide 9: Techcential - Bedroom furniture
Product Introduction Techcential - Bedroom furniture Mirror Chest Dresser Bed Night Stand TIL-KY Stock Code：6616
Slide 10: Finishing
Finishing TIL-KY Stock Code：6616
Slide 11: Finishing
Finishing TIL-KY Stock Code：6616
Slide 12: PU Paper
PU Paper TIL-KY Stock Code：6616
Slide 13: PU Paper
PU Paper TIL-KY Stock Code：6616
Slide 14: TC Home – KD furniture (Detachable)
Product Introduction TC Home – KD furniture (Detachable) TIL-KY Stock Code：6616
Slide 15: ESK Biomass ESK WP
Product Introduction ESK Biomass ESK WP Fuel pellets The related business of rubberwood TIL-KY Stock Code：6616
Slide 16: EHL Cabinetry
Product Introduction EHL Cabinetry TIL-KY Stock Code：6616
Slide 17: 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 18: The production process of wooden furniture
TC- The production process of Wooden furniture White body Assembly Grinding Painting Packaging Store processing TIL-KY Stock Code：6616
Slide 19: Product safety certification
Product safety certification ■ Techcential has not only focusing on the quality of products but also strictly controls the safety standards of products. Our products meet: - The California Air Resources Board (CARB) established ATCM (Airborne Toxic Control)-formaldehyde emission standards for wood p
Slide 20: 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 21: Financial Information
Financial Information TIL-KY Stock Code：6616
Slide 22: Target customers of TC
Target customers of TC Top 100 U.S. Furniture Stores Distributors (8066.TW) (2936.TW) Importers TIL-KY Stock Code：6616
Slide 23: TIL Group Sales (Customer) status
TIL Group Sales (Customer) status January-September 2019 January-September 2020 Others Others 18% 23% ULC 2% ASHLEY ASHLEY C.OAK 42% EIG 43% T.CASTLE 2% 2% C.H. Tey 3% P.KINGDOM 2% 2% EIG LF 3% 8% CMI 6% COA 8% COA 9% CMI IFM 10% 17% Operating Income：NT$ 1,016,751 thousand Operating Income：NT$ 833,3
Slide 24: Financial data of most recent two years
Financial data of most recent two years: Unit: NT$ thousand 2020 2019 2020 2019 Project/year % % % % Jul-Sep Jul-Sep Jan-Sep Jan-Sep Operating revenues 377,426 100 354,099 100 833,382 100 1,016,751 100 Operating costs 295,716 78 270,827 76 665,490 80 785,150 77 Gross profit 81,710 22 83,272 24 167,8
Slide 25: Company's revenue overview of most recent years
Company's revenue overview of most recent years Turnover Unit：NT$ MIllion 1,600 1,387 1,400 1,260 1,200 1,083 1,000 876 800 600 400 200 - Revenue 2017 2018 2019 2020 TIL-KY Stock Code：6616
Slide 26: Company's EPS of most recent years
Company’s EPS of most recent years EPS 5.00 3.90 4.00 3.00 2.00 1.44 1.57 1.52 1.00 - EPS 2017 2018 2019 2020 (Q3) TIL-KY Stock Code：6616
Slide 27: Company's quarterly revenue of most recent years
Company's quarterly revenue of most recent years Turnover by Quarter Unit：NT$ Million Record 450 -High Record -High 400 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 2017 2018 2019 2020 TIL-KY Stock Code：6616
Slide 28: Company's quarterly GP% performance
Company's quarterly GP% performance in recent years GP% by Quarter 25% 24% 24% 22% 22% 21% 21% 20% 20% 20% 19% 18% 17% 17% 15% 15% 14% 10% 9% 5% 0 0% Q1 Q2 Q3 Q4 2017 2018 2019 2020 TIL-KY Stock Code：6616
Slide 29: Product sales status of TC
Product sales status of TC Products 2020 Q1-Q3 Revenue ratio 2019 Q1-Q3 Revenue Y2020 (MYR mil) (MYR mil) ratio Compared with last year's revenue Finishing 82,560 77.54% 96,222 85.35% -14.20% PU 22,902 21.51% 16,520 14.65% +38.63% Others 1,007 0.95% - - subtotal 106,469 100% 112,742 100% -5.56% Prod
Slide 30: First convertible corporate bond issued in 2019
In 2019, Techcential International issued the first convertible corporate bond ■ The projects are as follows, and the funds have been used up. -Repayment of bank loans -Reinvestment in subsidiary EHL -Enrich working capital ■ On August 14, 2020, the board of directors passed a resolution to buy back
Slide 31: Market development overview
Market development overview TIL-KY Stock Code：6616
Slide 32: Global Major Furniture Importing Country
Global Major Furniture Importing Country • CSIL preliminary data for 2020 show substantial decreases in furniture imports for all the major countries. • In the last ten years, the international trade of furniture has consistently amounted to about 1% of the international trade of manufactures. • Aft
Slide 33: Top countries of household furniture imports in U.S. 2019
Top 10 countries of household furniture imports in U.S. 2019 Sources：https://www.statista.com/ TIL-KY Stock Code：6616
Slide 34: The increase of U.S. furniture sales during May 2020
The increase of U.S. furniture sales during May 2020 • Due to the pandemic, more people are staying home and spending money on their home at high level than normal. This is driving the sales of Home Furnishing exceeding its expectation TIL-KY Stock Code：6616
Slide 35: US Q3 mortgage debt nears US$10 trillion
低利助長房市 美國Q3房貸逼近10兆美元 刷新高 鉅亨網新聞，節錄段落如下： ■ 拜史上超低利率之賜，美國房地產市場蓬勃發展，房貸也一路膨脹，最新數 據顯示，美國第 3 季的抵押貸款激增，一路逼近 10 兆美元、改寫歷史新 高。 ■ 紐約聯準銀行周二 (17 日) 公布的統計顯示， 7 到 9 月美國家庭負債達 到 14.35 兆美元，比前一季增加 0.6% 或 870 億美元，以抵押貸款占比最 高。抵押貸款第 3 季攀抵 9.86 兆美元，創新高。 ■ 這份報告中有許多數字逼近或是打破歷史紀錄，例如第 3 季新屋貸款和再 融資合計 1.05 兆美元，是史上次高紀錄，追平 2003 年再融資熱
Slide 36: Bedroom case goods category seeing high demand
Bedroom another case goods category seeing high demand from consumers ■ HIGH POINT — Demand to fill retail floors is causing a bit of an upheaval of sorts on the bedroom side of the business. ■ The challenge is that the demand causes inventory to be depleted on certain groups almost as soon as they
Slide 37: December furniture sales see increase, but overall 2020 sales fall
December furniture sales see increase, but overall sales in 2020 fall ■ WASHINGTON – Falling slightly below November levels, furniture sales continued its year-over- year climb in December 2020, up for the month for the fifth month in a row, closing out the year with strong sales, although the secto
Slide 38: The sales of U.S. Furniture and Home Furnishing Stores
The sales of U.S. Furniture and Home Furnishing Stores Units：US$ Billion Sources：U.S. Census Bureau, Monthly and Annual Retail Trade TIL-KY Stock Code：6616
Slide 39: Techcential pushes online sales (news excerpt)
《百貨股》客思達-KY拚線上銷售 拉抬營收、品牌形象 ■ 客思達-KY今天(12/23)舉行線上法說會，客思達-KY為家具廠，營 運模式為自大陸及馬來西亞等亞洲地區進口家具，在美國地區銷售， 中美貿易戰自2018年開打後雙方互祭關稅，且全球新冠肺炎疫情肆 虐，致使全球供應鏈遷移重組，供應鏈某種程度的拆解重整，為美 國家具業帶來很多不確定性，而疫情亦加速電商網路銷售興起，因 應市場快速變化，客思達-KY近兩年積極發展公司數位資訊能力， 一方面建立供應鏈平台，強化供應鏈管理，並運用創新的工具做行 銷及通路分析，把不賺錢的做法及通路進行調整，強化公司競爭力。 ■ 展望明年，客思達-KY財務長潘敏行表
Slide 40: Malaysia furniture exports in 2019
Malaysia furniture exports in 2019 Unit:MYR Million • Malaysia‘s furniture exports reached 11.138 billion MYR in 2019, an increase of 13.25% from 2018 (98.3 billion MYR). Sources：Furniture News March 2020, MFC TIL-KY Stock Code：6616
Slide 41: Malaysia's exports of furniture in 2020
Malaysia’s exports of furniture in 2020 As of September 2020, Malaysia's furniture exports reached MYR 8.8 billion. This is an increase of 13% over the same period last year. The total value of furniture exports to the United States increased by 70.3% over the same period last year. MALAYSIA’S EXPOR
Slide 42: Malaysia Movement Control Order (MCO)-2020
Malaysia Movement Control Order (MCO)-2020 Date Movement Control Order The operation of Techcential 18/03/2020 – First-phase of movement Total shutdown. 31/03/2020 control order 01/04/2020 – Second-phase of movement Complete shutdown. Negotiate "50% unpaid leave" with employees to reduce 14/04/2020
Slide 43: Subsidiary TC received Temporary Suspension Notice
Employee infected with COVID-19 Subsidiary TC received “Temporary Suspension Notice” ■ 29/12/2021-TC received an employee infected with COVID-19. The company immediately suspends work autonomously and conducts disinfection on December 30 and 31. During this period, we arrange all employees for an in
Slide 44: 2021 Business Development Plan
2021 Business Development Plan TIL-KY Stock Code：6616
Slide 45: 2021 business development plan
2021 business development plan -Keep improving and increase profit Focus on TC the research Expected TCH and developme to start nt of PU the Start the EHL paper business manufact products, of uring which will Developmen ESKW become “KD business t and the main furniture of trading of (Detacha kitchen
Slide 46: Challenges and opportunities in Y2021
Challenges and opportunities in Y2021 TIL-KY Stock Code：6616
Slide 47: Challenges and opportunities faced by enterprises
Challenges and opportunities faced by enterprises ❖ COVID-19 Pandemic ❖ Global shipping/container circulation issues ❖ U.S.-China trade war ❖ The U.S. retail industry challenges ❖ Malaysian labour laws ❖ Rising raw material costs ❖ USD currency fluctuations TIL-KY Stock Code：6616
Slide 48: US tariffs on Vietnam (news excerpt)
避免美祭關稅 美國安顧問：越南需阻中國 產品「洗產地」 自由財經，國際財經新聞 2020-11-23；節錄段落如下： ■ 〔財經頻道／綜合報導〕美國本月初以「越南盾被低估」為由，對 越南輸美輪胎課徵初步的反補貼關稅。美國國家安全顧問歐布萊恩 （Robert O'Brien）22日表示，他已告訴越南領導人，要想避免美 國關稅，必須遏制中國出口產品非法轉運，並買入更多美國產品， 例如液化天然氣和軍事設備。 ■ 《彭博》報導，歐布萊恩受訪時透露，他上週末訪問河內時已告知 越南政府高層，取締中國出口轉運，並降低美國對越南的貿易逆差， 「可能是扭轉關稅的基礎」。 特昇-KY 股票代號：6616
Slide 49: US Section 301 investigation result on Vietnam
美國公佈對越南匯率政策“301調查”結果 來源：新華網 ■ 新華社華盛頓1月15日電（記者高攀 許緣） ■ 美國貿易代表辦公室15日公佈對越南匯率政策的“301調查”結果，稱與越 南貨幣估值相關的行為和政策整體看來“不合理”且限制美國商業活動。但 美方未宣布關稅懲罰措施。 ■ 美國財政部上月曾發布報告，將越南列為“匯率操縱國”，指責越南干預匯 率以在國際貿易中獲取不公平競爭優勢。越南央行回應稱，越南管理匯率是 為確保宏觀經濟穩定。 ■ 美國貿易代表辦公室說，美方目前不會針對上述調查結果採取任何具體措施， 但會繼續評估所有可用政策選項。 ■ 美國貿易代表萊特希澤在聲明中說，導致貨幣價值低估的“不
Slide 50: Malaysia allows illegal foreign workers in 3D industries
3D行業準聘非法外勞 業者表歡迎 光華網，北馬新聞 2020-11-14；節錄段落如下： ■ 政府將從本月16日起落實“重置非法外勞計劃”，讓非法外勞可選擇自 願回國；4個被歸類為3D（辛苦、危險、骯髒）的行業，則獲准聘用非法 外勞，對於政府這項計劃，渴求外勞人力資源的行業包括廠商、家具業 及農業等業者皆表示歡迎，並且鬆了口氣。 ■ “家具業海外定單在中國及美國反傾銷稅下，定單增加出口額增10%，但 廠家卻因缺外勞員工動彈不了。政府在行管令下給予民眾的援助讓民眾 購買力增加，內需銷售量也增加，但家具業者還是面對員工短缺問題。” 家具業運作不能完全靠機械自動化，還是需要員工勞力運作，而本地人 卻
Slide 51: MCO 2.0 announced for states in Malaysia
MCO 2.0 Announced For 6 States In Malaysia From 13 Jan 2021: Full List Of Confirmed SOP KLOOK；2021-01-12；Reporter：Eunis Ong. ■ In a special announcement on 11 Jan 2021, Prime Minister Tan Sri Muhyiddin Yassin began by stressing how bad the COVID-19 third wave is affecting Malaysia, with daily 4 digi
Slide 52: Container shipping demand through first half of 2021
貨櫃海運 旺到明年上半年 2020-12-27 00:41 經濟日報 / 記者黃淑惠／台北報導 ■ 全球貨櫃海運市場搶櫃搶到完全失控，市場運價與預估值完全脫鉤， 今年出現飆漲走勢。國內航運專家指出，「缺船、缺櫃及碼頭缺工」 等三缺情況如無法改善，海運市場需求熱絡情況明年上半年都看俏。 ■ 海運專家認為，針對報告可看出，對明年海運貨櫃市場貨量需求展 望偏樂觀，需求量較今年增加，雖然新船也增加，然新造櫃訂單都 是9月以後才較熱絡，新船必須有櫃搭配，新年度貨量增加，恐怕也 會因缺櫃無法消化，要等新造櫃加入，市場才會緩解，就目前情況 研判，明年三缺情況上半年都無法立即解決。 ■ 另外，之前很熱絡的北美
Slide 53: Thanks for your attention
Line ID：til6616 Thanks for your attention Keep in touch Company Website：www.techcential-international.com Techcential-KY Stock Code：6616
Techcential International — Investor Presentation (January 2021) on 6ix