Techcential International Ltd. · TPEX:6616
Techcential International — Investor Presentation (December 2020)
54 slides from Techcential International's investor presentation, Dec 10, 2020
Slide 1: Techcential International Ltd. Investor Briefing
Line ID：til6616 特昇國際 股份有限公司 Updated: 09/12/2020 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 Techcential Sdn. Bhd., mainly developing the trading of wooden furniture. The main business items include planning the wood processing industry and furniture manufacturing. 2008 TC started focus on customized American bedroom furniture. 2013 Introduce the ERP system
Slide 7: Group Structure
Group Structure (As of November 30, 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 Chest Mirror Dresser Night Stand Bed 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: TC- 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 complying the safety standards of products. Our products meet below regulations: - The California Air Resources Board (CARB) established ATCM (Airborne Toxic Control)-formaldehyde emission s
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.KINGDOM2% 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$ 833,38
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 Unit：NT$ Million Turnover 1,600 1,387 1,400 1,200 1,083 1,000 876 Sales 833 Accumulated 800 till Nov’ 2020 - 600 1,132 400 200 - Revenue 2017 2018 2019 2020 (Q3) 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 -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 in recent years
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 passed a resolution to buy back and cancel t
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 to improve quality of their homes. This is driving the sales of home furnishing exceeding its expectation. TIL-KY Stock Code：6616
Slide 35: Bedroom another 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 36: 美國房市14年來最熱
美國房市14年來最熱 新冠肺炎疫情肆虐， 雖然重創美國商業活動，但卻意外點燃房市買氣， 成為美國經濟的一大亮點。 工商時報 蕭麗君報導 2020.10.04 節錄段落如下： ■ 預期疫情短期間不會結束，遠距工作型態還將持續一段時間，加上房貸利 率迄今仍處在低檔，激勵許多民眾加快買房腳步，或是考慮首次購屋。 ■ 根據美國商務部發布最新數據顯示，8月新屋銷售已連續四個月揚升，經 季調後月增4.8％，換算成年率為101萬戶，為2006年來首見衝破百萬大關， 創下14年新高。 ■ 另外同月成屋銷售也接連第三個月出現增長，總數達600萬戶，同樣也締 造14年高點紀錄。 ■ 美國房市供給吃緊的情況已持續多
Slide 37: 低利助長房市 美國Q3房貸逼近10兆美元
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 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: 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 40: 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 41: Malaysia Movement Control Order (MCO)
Malaysia Movement Control Order (MCO) 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 contr
Slide 42: 同業(客戶)近期新聞
同業(客戶)近期新聞 居家辦公需求增！ 客思達-KY 第三季每股賺1.08元 中時新聞網—財經新聞，節錄段落如下： ■ 美國家具經銷商客思達-KY（2936）13日公布財報，受 惠美國房市交易熱絡、以及居家辦公、遠端教學需求， 增添民眾購買家具意願增溫，帶動整體出貨動能逐季 升溫，第三季合併營收新台幣28.69億元，較上季成長 17.47％；此外，在有效控管倉儲人事費用下，第三季 稅後淨利0.82億元、EPS為1.08元，已連續兩季繳出獲 利成績單；累計前三季稅後淨利1.34億元、EPS為1.76 元。 ■ 展望第四季，客思達-KY表示，隨著全美居家裝修需求 持續熱絡，且第四季適逢感恩節、黑色
Slide 43: 2021 Business Development Plan
2021 Business Development Plan TIL-KY Stock Code：6616
Slide 44: 2021 business development plan
2021 business development plan -Keep improving and increase profit Focus on TC the PU paper Expected TCH products, to start which the Start the EHL will business manufac become of turing Developme ESKW the main “KD business growth nt and furniture of trading of of the The ESKB (Detacha kitchen rubbe
Slide 45: Challenges and opportunities in Y2021
Challenges and opportunities in Y2021 TIL-KY Stock Code：6616
Slide 46: 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 47: 美國貿易制裁大棒揮向越南
美國貿易制裁大棒揮向越南 （文章来源：贸易夜航 ） ■ 節錄段落： ■ 美國貿易代表辦公室10月2日晚宣布：對越南木材和匯率相關政策 發起“301調查”。此舉可能會升級美越經貿摩擦,並導致美國隊從越 南進口的產品徵收懲罰性關稅。 ■ 美國貿易代表辦公室發表聲明說,按照美國總統特郎普的指示,美國 貿易代表將調查越南與進口或使用”非法采伐或非法貿易”木材相 關的行為、政策和實踐,以及可能導致越南貨幣貶值和對美國商業 造成損害的行為、政策和實踐。這些調查將根據美國<<1974年貿 易法>>第301條款進行,同時美國貿易代表將就貨幣估值和匯率政 策問題諮詢美國財政部。 特昇-KY 股票代號：6616
Slide 48: 避免美祭關稅 美國安顧問：越南需阻中國產品「洗產地」
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: 3D行業準聘非法外勞 業者表歡迎
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。 ■ 馬來西亞家具同業聯合總會副總會長拿督謝和平碩士局紳表示，家具領域一直 以來均屬3D行業，本地員工不太願意受聘這樣的工作，家具同業只能依靠外勞 填補空缺。 ■ “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
Slide 50: Container shortage crisis spreads to intra-Asia trades
Container shortage crisis spreads to intra-Asia trades, driving prices higher The Loadstar; 2020-11-11；Reporter:Sam Whelan; Excerpted paragraph as below： ■ “Carriers are implementing yield management and prioritising containers for high- yield cargo, primarily on the transpacific eastbound, but also
Slide 51: Container shortage in Asia pushes up shipping costs
Container shortage in Asia pushes up shipping costs. Nikkei Asia, International News 2020-11-28;Reporter: Kazuto Shimada; Excerpted paragragh as below： ■ As of mid-November, the cost to ship a 20-foot container from Shanghai to Singapore was around $802, up 370% from $170 a month ago, according to d
Slide 52: Containers spend 45 days stuck in depots, shortage continues
Containers spend 45 days stuck in depots, shortage continues Seatrade Maritime News; 2020-12-03；Reporter: Marcus Hand; Excerpted paragraph as below： ■ Container availability in China remains at record lows and at its extreme Container xChange’s container availability index shows that 40-foot High Cu
Slide 53: Global container shortage drives spike in shipping rates
Global container shortage drives spike in shipping rates, but brings windfall for Chinese manufacturers South China Morning Post; 2020-12-14；Reporter:Sidney Leng and Micheal Tatarski; Excerpted paragraph as below： ■ Freight carriers are facing a shortage of shipping containers amid a wave of demand
Slide 54: 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 (December 2020) on 6ix