Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — FY2014 Earnings Presentation
26 slides from Comba Telecom Systems's earnings presentation, March 2015
Slide 1: 2014 Annual Results Corporate Presentation
2014 Annual Results Corporate Presentation IPPC V.01_2015.3.25
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 Highlights Financial Review Customer Review Business Review 3
Slide 4: Financial Highlights
Financial Highlights Financial Results Dividend & Bonus Share Exceptional Items Proforma Financial Results Financial Position Key Financial Indicators 4
Slide 5: Financial Results
Financial Results For the year ended 31 December For the six months HK$’000 2014 2013 Change ended 30 Jun 2014 Revenue 6,733,214 5,720,599 17.7% 3,023,575 Gross profit 1,760,010 1,365,586 28.9% 851,668 Gross profit margin 26.1% 23.9% 2.2 pp 28.2% Operating profit / (loss) 263,199 (104,725) 351.3% 13
Slide 6: Dividend & Bonus Share
Dividend & Bonus Share For the year ended 31 December 2014 2013 Paid interim dividend per share (HK cents) 1.2 - Proposed final dividend per share (HK cents) 1.3 - Total dividends (HK cents) 2.5 - Issue bonus of shares (interim) 1 for 10 - Proposed bonus issue of shares 1 for 10 - 6
Slide 7: Exceptional Items
Exceptional Items For the year ended 31 December For the HK$’000 six months Margin Margin ended Items Details 2014 2013 Impact Impact 30 Jun 2014 1 Cost of sales Inventories written-off (66,739) GPM▼1.0 pp 0 N.A. (14,319) Impairment Certain 2 of trade overseas (57,719) OPM▼0.9 pp (31,831) OPM▼0.6 pp
Slide 8: Proforma Financial Results
Proforma Financial Results (Assuming NO Exceptional Items) For the year ended 31 December For the six months HK$’000 2014 2013 Change ended 30 Jun 2014 Revenue 6,733,214 5,720,599 17.7% 3,023,575 Gross profit 1,826,749 1,365,586 33.8% 865,987 Gross profit margin 27.1% 23.9% 3.2 pp 28.6% Operating pr
Slide 9: Financial Position
Financial Position As at 31 December As at HK$’000 2014 2013 Change 30 June 2014 Net (debt) / cash (17,113) 108,575 (115.8%) (687,514) Total assets 10,136,732 10,318,277 (1.8%) 10,486,904 Total liabilities 6,370,777 6,590,386 (3.3%) 6,764,634 Net assets 3,709,791 3,673,796 1.0% 3,668,049 2.19 2.18 N
Slide 10: Key Financial Indicators
Key Financial Indicators For the six months For the year ended 31 December ended 2014 2013 Change 30 June 2014 Inventory turnover days 164 188 (24) Days 200 A/R turnover days 244 294 (50) Days 293 A/P turnover days 267 298 (31) Days 323 Gross gearing ratio 16.3% 15.1% 1.2 pp 14.8% Dividend payout ra
Slide 11: Financial Review
Financial Review Revenue Breakdown by Customers Revenue Breakdown by Businesses Cost Structure 11
Slide 12: Revenue Breakdown by Customers
Revenue Breakdown by Customers For the year ended 31 December 2014 Revenue (HK$Mn) China Mobile 6,733 China Unicom 7.6% 5,721 1,348 14.0% 14.1% 47.7% 1,113 1,138 735 16.9% 947 831 China Telecom 20.0% 1.3% 54.8% Others 3,209 2,982 International Customers and Core Equipment Manufacturers = YOY change
Slide 13: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses For the year ended 31 December 2014 Revenue (HK$Mn) Wireless 6,733 Enhancement Services 16.5% 5,721 2,638 7.5% 17.0% 2,454 337 39.2% 421 2,616 38.8% 1,866 5.0% Antennas Wireless Access 980 1,142 & Subsystems & Transmission 40.2% FY13 FY14 20.0% Enhancement Antennas Ac
Slide 14: Cost Structure
Cost Structure For the year ended 31 December As % of Total Revenue = YOY change 28.7% R&D costs 6.8% 3.6% Stringent costs control measures 23.8% Selling and distribution expenses 0.8% 2.9% 8.8% Enhanced operation efficiency to achieve more scale of economies 7.6% Administrative expenses 0.1%
Slide 15: Customer Review
Customer Review Global Customers China Business International Customers & Core Equipment Manufacturers 15
Slide 16: Global Customers
Global Customers Core China Equipment Vendors EMEA APAC Americas 16
Slide 17: China Business
China Business Review & Opportunities: Revenues increased 16.4% to HK$ 5,295 million China 4G market flourishing 2015 and beyond FDD-LTE license issuance to operators Operators investments in TDD network enhancement and FDD rollout drives demand Comba solutions are well-positioned to address: Networ
Slide 18: International Customers & Core Equipment Manufacturers
International Customers & Core Equipment Manufacturers Review & Opportunities: Revenues increased 21.1% to HK$ 1,348 million New milestone: International & Core Equipment is now the 2nd largest group revenue contributor Completion of major projects globally (e.g. 2014 World Cup and Winter Games) and
Slide 19: Business Review
Business Review Antenna & Subsystems Wireless Enhancement Wireless Access & Transmission Services Summary 19
Slide 20: Antennas & Subsystems
Antennas & Subsystems Review & Opportunities: Revenues increased 40.2% to HK$ 2,616 million Strong investment on 2G/3G/4G macrocell infrastructure: LTE antenna deployment for China 4G network rollout Antennas International operator demand for antennas and subsystems RF Front Ends 2015 and beyond Com
Slide 21: Wireless Enhancement
Wireless Enhancement Review & Opportunities: Revenues increased 16.5% to HK$ 1,142 million Completion of wireless enhancement solutions for key projects – e.g. 2014 World Cup, Sochi Winter Games, HK MTR Express Rail (ongoing), Taiwan High Speed Rail Huge sales growth of wireless enhancement Active D
Slide 22: Wireless Access & Transmission
Wireless Access & Transmission Review & Opportunities: Revenues decreased 20% to HK$ 337 million Small Cell Solutions WIRELESS ACCESS WLAN (WLAN Solutions + Small Cell Solutions) Solutions Deployment of 3G and 4G small cell solutions in China International trials of small cell solutions Deployment o
Slide 23: Wireless Access & Transmission
Wireless Access & Transmission WIRELESS TRANSMISSION (Digital Microwave Systems & Satellite Solutions) Digital Overall growth for wireless transmission solutions Microwave Systems driven by IP networks Development of innovative integrated solutions Integration of satellite solutions to create comple
Slide 24: Services
Services Network Planning Network Project Consultancy Rollout Network Installation Review & Opportunities: Maintenance & Commissioning Revenues increased 7.5% to HK$ 2,638 million Network Network Key differential element enabling the Comba to supply Optimization Commissioning total solutions Service
Slide 25: Summary
Summary Positive market conditions and outlook for the industry and company China 4G network rollouts (FDD and TDD) Long term opportunities for high-end solutions Continued international growth LTE-related spending is the fastest growing segment Opportunities in 3G wireless solutions for developing
Slide 26: Open Forum
Open Forum 26
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