2Q2009 Results Briefing - Hi-P International · 2015-01-16 · 2Q2009 Results Briefing 3 August...

Hi-P International Limited

2Q2009 Results Briefing 3 August 2009

11

2Q2009 Results Briefing

3 August 2009



2Q2009 Overview

Mr. Yao Hsiao Tung

Executive Chairman



33

(S$m) 2Q09 2Q08YOY

% Chg

Revenue 177.6 281.5 -36.9%

Gross Profit 40.5 50.4 -19.6%

Pretax Profit 18.2 30.1 -39.5%

Tax expense -2.5 -3.1 -18.0%

Net profit (PATMI) 16.0 27.1 -41.0%

EPS (S cts) 1.82 3.05 -40.3%

NAV/Share (S cts) 65.78 55.84 17.8%

YE : Dec

YOY Key Financial Highlights



44

(S$m) 2Q09 1Q09QOQ

% Chg

Revenue 177.6 244.0 -27.2%

Gross Profit 40.5 50.7 -20.1%

Pretax Profit 18.2 27.3 -33.2%

Tax expense -2.5 -4.8 -47.2%

Net profit (PATMI) 16.0 22.6 -29.3%

EPS (S cts) 1.82 2.55 -28.6%

NAV/Share (S cts) 65.78 68.49 -4.0%YE : Dec

QOQ Key Financial Highlights



5

Revenue by Geographical Segmentation

43%

45.2%

$80.3m

51.4%

$125.4m 40.3%

$113.3m

26.0%

$46.1m

23.9%

$58.2m

27.8%

$78.2m

28.8%

$51.2m

24.7%

$60.4m

31.9%

$90.0m

0

50

100

150

200

250

300

2QFY08 1QFY09 2QFY09

Reven

ue (

S$m

)

America Europe Asia

$281.5m

$244.0m

$177.6m

* Based on shipping destination.



49 50

43

5551

41

25 27 26 25 2316

18.1% 17.9%16.9%

20.3% 20.8%

9.1% 9.6% 10.1% 9.2% 9.3%

22.8%

9.0%

0

10

20

30

40

50

60

Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09

Pro

fita

bil

ity

(S

$m

)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Gross Profit Net Profit (PATMI) Gross Profit Margin Net Profit Margin

6

Profitability Maintained



77

Positive cash-generating business

Category2Q2009

S$ m

2Q2008

S$ m

Net cash generated from operations

75 27

Net cash used in investing activities

-4 -4

Net cash used in financing activities

-21 -5



88

Strong Balance Sheet

Category30 Jun 09

S$ m

31 Dec 08

S$ m

Gross Cash 256 132

Net Cash 251 126

Gross Gearing 0.8% 1.0%



Investment in FPCB and Rigid-Flex PCB Capability



Investment Rationale

�In line with the Group's integrated electro-mechanics strategy

�Demand for FPCB and rigid-flex from key customers

�Provide the Group with a cost and time effective solution to address

immediate customer demand in the wireless market

�Jia Mao has been identified to best suit our needs:

� Certified by our key customers and has a good reputation

� The company has leading edge technology, which improves

size, weight and speed for smartphones and wireless devices



Investment Rationale: Hi-P Vision

Vertically Integrated

Solution

Tool Design

&

Fabrication

Plastic Injection

Molding

Surface

Decoration

Precision

Stamping

Product &

Technology

DevelopmentAssemblies

& Testing

Windows

Cosmetic

Stamping

3D

IML

Repair & Services

Modules

(Key Pad,

Antenna etc)

PCBA /

FPCBAIntegrated Mechanics

Integrated Electro-Mechanics

Product Development



Transaction StructureHi-P will acquire:-

Jiamao

(Share Purchase Agreement – RMB 129.5m + RMB 76.4m)

� FPCB business licence; and

� Land, building & waste water treatment plant

From Jiatong

(Assets Purchase Agreement – RMB 70m)

� FPCB equipment

� Technology, Key staff, Suppliers' database, Customers' database,

Drawings, Intellectual Property



Post-Transaction Structure

Global Flex Holdings (Cayman Islands/HK)

Global Technology(BVI/Taiwan)

Global Flex JiaTong(PRC)

Global Flex JiaMao(new plant)

& FPCB Equipment(PRC)

100%

100%

Hi-P International Ltd(Singapore)

Hi-P Flex Pte Ltd(Singapore)

80%

100%

Target

Seller

Buyer

20%

� In transition period, JiaMao will use JiaTong’s plant (free of charge) for manufacturing

and assembly of flex and rigid PCB for up to 1 year.

FPCB Equipment



Outlook



1515

Earnings Outlook

�3Q-2009 vs 3Q-2008 much lower revenue and

profit are expected

�Mass production for new projects will start

in 4Q-2009

�Despite good cost control, outlook for

FY2009 still dependent on global market

conditions



Future Plans & Summary



1717

Future Plans

� Drive for customer-base diversification

� Further strengthen cost control

� Pursue new value-added processes

� Source for potential acquisitions



1818

Summary

� Profitability maintained for 2Q2009�Net margin of 9.0%

� Strong balance sheet�S$251 million net cash with low gearing of 0.8%

�Generated S$50 million net cash for 2Q2009

� Outlook for 2009 uncertain�Continued improvement on cost control

�Dependent on global market conditions



Thank You

Q & A

For Investor Relations Enquiries, please contact:

Tel: (65) 6438 2990Fax: (65) 6438 0064

Email: [email protected]

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