Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — FY2010 Earnings Presentation
29 slides from Comba Telecom Systems's earnings presentation, Mar 25, 2011
Slide 1: Corporate Presentation Annual Results 2010
Corporate Presentation Annual Results 2010 V .01 updated on 25 Mar 2011 (IP & PC)
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Comba Telecom Systems Holdings Limited (the “Company’) for reference only. The information contained in this presentation has not been independently verified. The Company does not make any representation, warranty or undertaking, whether express or i
Slide 3: Agenda
Agenda Financial Overview Business Overview Financial Highlights Financial Review Customer Review Business Review Summary
Slide 4: Financial Overview
Financial Overview For the year ended 31 December 2010 Revenue 16.9% Gross profit margin 0.5% point Net profit margin 1.3% points Basic EPS 24.1% Operating cash flow HK$471M (2010) v. HK$485M (2009) Net cash HK$880M (2010) v. HK$707M (2009) 4
Slide 5: Business Overview
Business Overview For the year ended 31 December 2010 Revenue by customers 1. China Mobile 30.4% 2. China Unicom 1.0% 3. China Telecom 15.1% 4. International Customers & Core Equipment Manufacturers 6.7% Revenue by product segments 1. Services 39.4% 2. Wireless Enhancement 24.9% 3. Anten
Slide 6: Financial Highlights
Financial Highlights Financial Results Dividend and Bonus Share Financial Position Key Financial Indicators
Slide 7: Financial Results
Financial Results For the year ended 31 December HK$’000 2010 2009 Change Revenue 5,191,358 4,439,991 +16.9% Gross profit 1,939,700 1,681,923 +15.3% Gross profit margin 37.4% 37.9% (0.5%) pt Operating profit 877,520 765,331 +14.7% Operating profit margin 16.9% 17.2% (0.3%) pt Tax 119,540 142,291 (16
Slide 8: Dividend and Bonus Share
Dividend and Bonus Share For the year ended 31 December 2010 2009 Change Paid interim dividend per share (HK cents) 6.0 6.0 0% Proposed final dividend per share (HK cents) 8.0 8.0 0% Proposed special dividend per share (HK cents) 4.0 4.0 0% Total dividends (HK cents) 18.0 18.0 0% Issued bonus of sha
Slide 9: Financial Position
Financial Position As at 31 December HK$’000 2010 2009 Change Net cash 880,084 706,780 +24.5% Net current assets 3,061,004 2,337,037 +31.0% Total assets 7,262,426 5,725,107 +26.9% Total liabilities 3,953,401 3,131,992 +26.2% Net assets 3,239,524 2,536,342 +27.7% 1.97 NAV per share (HK$) 2.45 +24.4%
Slide 10: Key Financial Indicators
Key Financial Indicators For the year ended 31 December 2010 2009 Change Inventory turnover days 187 176 +11 A/R turnover days 176 139 +37 A/P turnover days 221 179 +42 Current ratio 1.9X 1.8X +0.1% pt Quick ratio 1.4X 1.3X +0.1% pt Gross gearing ratio 8.2% 7.7% +0.5% pt Dividend payout ratio * 32.4
Slide 11: Financial Review
Financial Review Revenue Breakdown by Customers Revenue Breakdown by Businesses Revenue (2006 - 2010) Profit & Margin (2006 - 2010) Cost Structure
Slide 12: Revenue Breakdown by Customers
Revenue Breakdown by Customers For the year ended 31 December 2010 China Unicom 1.0% 24.1% China Mobile China Telecom 52.0% 30.4% 15.1% 8.7% International Customers & 13.3% Others Core Equipment Manufacturers 50.4% 6.7% 1.9% = YOY change Moderate Growth in the PRC Customers 12
Slide 13: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses For the year ended 31 December 2010 Wireless Enhancement 33.1% Services 24.9% 31.5% 39.4% Antennas & Subsystems 27.6% Wireless Access (DMS & WLAN) 7.8% 0.7% 13.3% = YOY change Satisfactory Growth in Both Services & Wireless Enhancement 13
Slide 14: Revenue (2006 – 2010)
Revenue (2006 – 2010) For the year ended 31 December (HK$M) Strong Growth in Revenue 14
Slide 15: Profit & Margin (2006 – 2010)
Profit & Margin (2006 – 2010) For the year ended 31 December Gross Profit 15.3% Net Profit 28.3% (HK$M) (HK$M) Gross Profit Margin Net Profit Margin Stable Gross Profit Margin 15 Very Strong Growth in Net Profit
Slide 16: Cost Structure
Cost Structure For the year ended 31 December As % of Total Revenue = YOY change R & D costs 26.3% R&D efforts for future growth Selling and distribution costs 13.4% Expansion for global sales network Administrative expenses 15.3% Increased administrative supports for higher business volume Fi
Slide 17: Customer Review
Customer Review Global Customers China Business International Customers & Core Equipment Manufacturers
Slide 18: Global Customers
Global Customers Core Equipment China Vendors EMEA APAC Americas 18
Slide 19: China Business
China Business Review & Opportunities: Strong growth of 18% to HK$4,401 million Increased penetration as leading solutions partner to operators with innovations in product and services: Long term, multi-year 2G/3G projects with operators Development of new product lines to strengthen position Re
Slide 20: International Customers & Core Equipment Manufacturers
International Customers & Core Equipment Manufacturers Review & Opportunities: Sales rebounded by 7% to HK$691 million Direct sales to international operators recovering and driving division growth Penetration of service offering into international markets Indirect sales via core equipment manufactu
Slide 21: Business Review
Business Review Wireless Enhancement Antennas & Subsystems Wireless Access (DMS & WLAN) Services
Slide 22: Solutions for all Network Stages
Solutions for all Network Stages In-building Coverage Scenic Areas Stadium/Large Venues (Camouflaged Solutions) Wireless Backhaul (Digital Microwave Solutions) Base Station Solutions Rural Area Coverage Subways & Tunnels Urban Area Coverage 22
Slide 23: Solutions for all Network Stages
Solutions for all Network Stages In-Building Solutions Network Offload In-building Coverage Scenic Areas Stadium/Large Venues BTS Antennas (Camouflaged Solutions) Tower Mounted Solutions Network Optimization Solutions etc.. Outdoor Wireless Enhancement Installation commissioning etc. Wireless Backha
Slide 24: Wireless Enhancement
Wireless Enhancement Review & Opportunities: Increased 25% to HK$1,720 million China 2G and 3G network buildout and Active DAS (Med/Large Venue) enhancement driving demand for repeater Remote Radio Units solutions Promotion of new solutions into China and international markets to strengthen lead Rep
Slide 25: Antennas & Subsystems
Antennas & Subsystems Review & Opportunities: Revenues increased by 1% to HK$1,435 million Antennas Satisfactory growth seen in 2H and ongoing Maintained leading position as antenna Tower Mounted supplier in China Solutions Now a global supplier to major operators worldwide RF Front Ends Recogni
Slide 26: Wireless Access (DMS and WLAN)
Wireless Access (DMS and WLAN) Review & Opportunities: Decreased 13% to HK$404 million WLAN Solutions India-related indirect sales orders decreased but showed signs of improving in 2H Strategy of direct sales to customers showed positive results through 2H and expected to Digital Microwave Solutions
Slide 27: Services
Services Network Planning Network Project Consultancy Rollout Review & Opportunities: Installation Increased 39% to HK$1,632 million Network & Maintenance Commissioning Key differential element enabling the Comba to supply Network Optimization Network Commissioning total solutions to customers in Ch
Slide 28: Summary
Summary Solutions/Product Increase penetration Portfolio Development Global Wireless In China market Equipment Capex 2011: US$ 110 bn HSPA/ HSPA+ International Increasing demand for Expansion data services Wireless Antennas Wireless & Services Enhancement Access Subsystems 28
Slide 29: Open Forum
Comba Open Forum
Comba Telecom Systems Holdings — FY2010 Earnings Presentation on 6ix