OPPORTUNITY DAY Q2/2014
Transcription
OPPORTUNITY DAY Q2/2014
The Stock Exchange of Thailand OPPORTUNITY DAY Q2/2014 AAPICO HITECH PLC [AH] Financial Performance for the 2nd quarter of 2014 Ms. Yeap Xin Rhu August 28th, 2014 Agenda 1. Company Profile 2. Industry Overview 3. Financial Performance 4. Strategy and Direction 3 Company Profile [AH] AAPICO HITECH PUBLIC COMPANY LIMITED • Established in 1996 and listed on SET in 2002. Industry/Sector : Auto Average price : Baht 16.70* 52 weeks range : Baht 12.80 – 17.80 Market Cap : Baht 5,387 million P/E (YTD) : 13.52x* P/BV : 0.99x Dividend yield : 2.93% * Data as of August 15th, 2014 • Main businesses are the manufacturing of automobile parts, design, produce and install assembly jigs and stamping dies, as well as car dealership and car navigation businesses. • Comprised of 35 companies (24 subsidiaries and 11 associates) in Thailand, Malaysia and China. • Registered and paid-up capital of Baht 322.58 million, comprised of 322,583,844 ordinary shares at par value of Baht 1 each. 4 Shareholding Structure Yeap Family 39.8% Sojitz Corp. 15.8% AH’s main shareholders are Mr. Yeap Swee Chuan and family holding 39.75% of total outstanding shares and Sojitz Corporation holding 15.76% of total outstanding shares. Freefloat 44.5% Thai 86.7% * Data as of March 28th, 2014 Thai institutions 9.9% Foreign institutions Foreign 3.2% 0.1% 5 Company Milestones 1985 Started as Ford Assembler and Distributor. 1995 Produced fuel tanks for Ford and Mazda pick ups. 1997 Established 1st JV with Sanoh Japan and a factory in Hitech Industrial Estate, Ayutthaya. 2002 2004 Expanded to China with Kunshan Chaitai-Xincheng Precision Forging acquisition. 2005 Strategic partnership with Sojitz Corp., Japan 2006 Acquired Able ITS and set up AAPICO Hitech Parts 2007 2009 Established AAPICO Structural Products. 2010 AAPICO 25th Anniversary and established JV with Thai Takagi Seiko. 2011 Completed Honda 3S showroom in Malaysia. Listed on SET. Acquired KPN and renamed AAPICO Forging. 2012 2003 2008 2013 Purchased AAPICO Amata from Dana Corp., USA. Established JV with Minth Corp., China. 6 Kunshan new factory in operation. Establish 4 JVs with Lemtech, Edscha, Sumino and Sodecia. AAPICO’s Vision Where do we want to go? How do we want people to remember us? MANUFACTURING RESEARCH & DEVELOPMENT CAR RETAILING Happy Customers S – Safety Q – Quality C – Cost D – Delivery E – Engineering M - Management LEAN, GREEN AND HAPPY WORLD-CLASS CORPORATION Happy Employees Happy Shareholders Profitability Reasonable Dividend Teamwork Mutual Respect Loyalty and Honesty Look at problems as opportunities Love Family, Company and Country 7 Happy Public Corporate Social Responsibility Business Segment 1 2 Sales and Service Income Manufacturing of Automobile Parts 6M14 39% Car Dealership 6M13 26% 6M12 21% 6M12 79% 6M13 3 74% 6M14 61% Car Navigation Auto Parts 8 Car Dealers Navigation Business Segment 1 Manufacturing of Automobile Parts 2 Car Dealership OEM Automobile Parts Assembly Jigs and Stamping Dies (Project base) 3 Car Navigation 9 Business Segment 1 Manufacturing of Automobile Parts 2 Car Dealership 3 Car Navigation Ford dealers Thailand Mitsubishi dealers Thailand Honda dealers Malaysia 10 Business Segment 1 Manufacturing of Automobile Parts 2 Car Dealership 3 Car Navigation 11 Global Operations CHINA Sales & Service Income Production: 2 factories Process: Forged & Machined parts Products: Connecting rods 5% 6M13 5% 6M14 15% 9%6% 26% Malaysia 6M12,85% 6M13, 80% TH MY CN 6M14, 69% Productions: 5 companies Process: Car dealership & Navigation Products: Honda, POWERMAP 12 Locations in Thailand Production : 5 factories Products : Stamping Dies, Jigs, and Stamping parts, and Car navigation Production : 3 factories Products : Chassis Frames, Forged and machined parts. Ayutthaya Bangkok Chonburi Samutprakan Rayong Mitsubishi Dealers: Ramindra Navanakorn Ford Dealers: Ladprao Samutprakarn Production :1 factory Products : Plastic parts 13 Production : 2 factories Products : Stamping parts and Plastic parts Our Partners Strategic Shareholder Joint Ventures 14 Technical Partners Our OEM Customers Top Customer Profile OTHERS PARTS TOYOTA SGMW2 Jan-Jun 201 4 ISUZU NISSAN AAT1 1. Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda. 2. SAIC-GM-Wulling Automobile – a JV between SAIC, GM and Liuzhou Wuling, based in China. 15 Agenda 1. Company Profile 2. Industry Overview 3. Financial Performance 4. Strategy and Direction 16 Thailand Automotive Production Unit: Million Forecast 3.0 Others Passenger Car 1 -Ton Pick-up/PPV 2.5 Global Financial Crisis 2.0 1.5 1.0 0.5 0.0 0.28 0.1 6 0.29 0.1 7 0.38 0.25 0.47 0.30 0.32 0.55 0.40 0.60 0.87 0.95 0.97 0.67 1 .07 0.96 1 .07 2.2 0.54 0.31 0.30 0.82 Flood -29.0% 0.59 1 .45 0.37 1 .33 0.90 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F 0.72 0.57 6M13 6M14 Thailand vehicle production volume for the first half of 2014 was 952,685 units, compared to 1,340,930 units produced in 1H 2013. The year-on-year production decline was in both 1-Ton pick-up/PPV (-20.6%) and passenger car (-37.1%). Source: The Federation of Thai Industry (Automotive Industry Club) 17 Thailand Automotive Production Unit: Million Others 0.8 Passenger Car 1 -Ton Pick up / PPV -29.7% 0.7 0.6 0.28 0.5 0.4 0.3 0.11 0.13 0.15 0.16 0.18 0.18 0.12 0.2 0.1 0.0 0.26 0.25 0.28 0.28 0.28 0.21 0.29 0.14 0.32 0.33 0.27 0.22 0.26 0.22 0.21 0.17 Flood 2011 0.06 0.35 0.33 0.37 0.40 0.38 0.34 0.32 0.30 0.31 0.26 0.11 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 In Q2 2014, total vehicle production volume was 435,193 units, a 29.7% drop compared to 619,423 units produced in Q2 2013. The production of 1-Ton pick-up/PPV and passenger car declined compared to Q2 2013 by 21.6% and 37.2% respectively. Source: The Federation of Thai Industry (Automotive Industry Club) 18 Thailand Domestic Car Sales Unit: Million Forecast 1.6 Others Passenger Car 1 -Ton Pick up/PPV 1.4 1.2 0.8 0.6 0.4 0.2 0.0 Flood Global Financial Crisis 1.0 0.1 0 0.1 7 0.1 3 0.24 0.1 8 0.31 0.21 0.37 0.1 9 0.47 0.1 9 0.45 0.1 7 0.41 0.35 0.23 0.28 0.63 1.0 0.35 0.67 0.39 -40.5% 0.36 0.23 0.33 0.67 0.59 0.37 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F 0.1 8 0.33 0.21 6M13 6M14 For the first half of 2014, Thailand Domestic car sales were 440,911 units, a 40.5% decline compared to 740,795 units sold in 1H 2013. The Jan-Jun sales of 1-Ton pick-up/PPV and passenger cars were lower than 1H 2013 by 35.0% and 47.8% respectively. Source: The Federation of Thai Industry (Automotive Industry Club) 19 Thailand Domestic Car Sales Unit: Million Others 0.5 Passenger Car 1 -Ton Pick up/PPV 0.5 0.4 -33.8% 0.4 0.3 0.19 0.3 0.10 0.2 0.2 0.1 0.1 0.0 0.11 0.07 0.09 0.09 0.09 0.09 0.09 0.12 0.11 0.11 0.09 0.09 0.22 0.20 0.16 0.15 0.11 0.11 0.06 0.16 0.15 0.05 0.18 0.19 0.18 0.15 0.15 0.12 0.13 0.14 0.09 0.09 0.11 0.10 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Domestic car sales in Q2 2014 were 216,740 units, which was 34% below the sales volume of 327,539 units in Q2 2013. Both sales of 1-Ton pick-up/PPV and passenger cars were lower than Q2 2013 by 32.5% and 37.7% respectively. Source: The Federation of Thai Industry (Automotive Industry Club) 20 Thailand Export Car Sales Unit: Million 1.4 1.2 Global Financial Crisis 1.0 0.8 0.6 0.69 0.54 0.4 0.44 1.13 1.2 1.03 0.90 +3.6% 0.74 0.54 0.54 0.56 0.33 0.2 0.0 0.78 Flood 0.18 0.18 0.24 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F 6M13 6M14 Export car volume during Jan-Jun 2014 increased 3.6% to 560,047 units, compared to 540,604 units in Jan-Jun 2013. Source: The Federation of Thai Industry (Automotive Industry Club) 21 Agenda 1. Company Profile 2. Industry Overview 3. Financial Performance 4. Strategy and Direction 22 Financial Highlights Jan-Jun 2012 Jan-Jun 2013 Jan-Jun 2014 Revenues 7,223 8,732 7,561 Growth% +28% +21% -13% 478 670 329 GM% 6.9% 7.9% 4.6% SG&A 395 438 389 Associate 170 135 85 Int. & Tax 162 182 117 Net Profit 376 473 261 5.2% 5.4% 3.5% ROE (%) -3.5% 19.1% 7.5% ROA (%) -1.1% 7.4% 3.3% 1.19 0.97 0.77 In Million Baht GM NP% D/E (x) Jan-Jun 2014 Highlights • Revenues fell 13.0% y-o-y, lower than industry decline of 29%, thanks to strong growth in dealership in Malaysia. • Gross margin (GM) % declined y-o-y, attributable to lower sales, high fixed costs and increases in car dealership sales which has low margins. • SG&A decreased y-o-y, in line with lower sales. • Interest and tax expenses declined, due to lower debt and lower taxable income. • Net profit margin declined from 5.4% in Jan-Jun’13 to 3.5% in Jan-Jun’14. 23 Revenues & Net Profit Overview Unit: Million Baht Total Revenues Net Profit 22,000 Global Financial Crisis 1 7,000 1 2,000 Flood 11,758 16,998 16,811 10,786 9,513 8,732 7,366 7,561 7,000 2,000 (116) (3,000) 927 394 230 634 473 261 (392) 2008 2009 201 0 201 1 201 2 201 3 6M1 3 Net Profit % 2.4% -1.6% 3.4% -3.6% 5.5% 3.7% 5.4% 3.5% Sales Growth% -2% -23% +60% -8% +56% +1% +21% -13% 6M1 4 Note: 2013 results included Bt.903 m. insurance income and Bt.852 m. impairment loss; 2012 results included Bt.145 m. insurance income. 24 Total Revenues : AAPICO Group Unit: Million Baht Auto Parts Dealers Other income Insurance 10,000 Dealers 8,732 9,000 7,561 8,000 7,000 6,000 5,000 4,000 Auto Parts 4,049 3,173 4,561 5,028 4,685 6M14, 6M13, 39% 26% 6M12, 4,047 3,927 4,338 21% 3,692 3,869 6M14, 6M12, 6M13, 61% 79% 74% 3,000 2,000 1,000 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 6M13 6M14 For the first half of 2014, total revenues were 13% lower than Jan-Jun 2013, compared to the industry decline of 29%, as strong growth of car dealership in Malaysia helped compensate the decline of auto parts sales in Thailand and China. Q2 Revenues declined by 4% compared to Q2’13, despite the 29.7% decline of industry. The auto parts sales decline was largely offset by growth in dealership Malaysia and Thailand. Compared to Q1’14, sales grew 5% driven by continued growth in car dealership. 25 Sales & Profit : Automobile Parts Unit: Million Baht Sales 8,000 EBIT 6,214 6,000 4,000 2,469 3,032 2,943 3,559 4,422 3,295 2,919 2,708 2,139 2,336 2,000 2,086 479 230 1Q12 2Q12 CN 8% TH 92% Jan-Jun 201 4 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 6M13 6M14 During Jan-Jun’14, sales of auto parts declined by 28.8% compared to Jan-Jun’13. Sales in Thailand dropped 29.6%, in line with the industry decline of vehicle production volume. EBIT for the first 6 months decreased Baht 249 million compared to the same period last year, largely due to lower sales. As percentage of sales, EBIT margin declined from 7.7% in 1H’13 to 5.2% in 1H’14. 26 Sales & Profit : Car Dealership Unit: Million Baht Sales EBIT 4,000 2,786 3,000 2,231 2,000 1,000 1,361 902 534 1,320 1,248 1,104 983 1,231 1,238 1,548 1Q12 2Q12 TH 33% MY 67% Jan-Jun 201 4 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 41 63 6M13 6M14 Car dealership sales during Jan-Jun 2014 grew 24.9% compared to the same period last year, driven by good growth in Malaysia (+50.9%). Sales of dealers in Thailand were 7.4% below last year as 1H’13 had positive impact from the 1st car buyer scheme carried over from 2012. EBIT for the first 6 months increased Baht 22 million, driven by higher sales. EBIT margin improved from 1.8% in 1H’13 to 2.3% in 1H’14. 27 EBITDA Unit: Million Baht or as % of revenues EBIT 1,200 Insurance/Impairment Depreciation 1,000 892 800 600 400 436 478 538 470 646 422 334 243 341 305 1Q14 2Q14 274 200 - 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 EBIT% 4Q13 6M13 6M14 EBITDA% 16.0% 10.8% 12.0% 8.0% 10.7% 7.7% 4.5% 4.0% 10.5% 5.4% 5.8% 10.0% 6.2% 10.4% 9.2% 8.5% 6.3% 5.0% 4.4% 3.7% 2.1% 10.2% 7.9% 5.6% 3.3% 8.5% 3.9% 1.1% 0.0% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 28 4Q13 1Q14 2Q14 6M13 6M14 Net Profit Unit: Million Baht or as % of revenues Net Profit (Core) 800 Associate Income Insurance/Impairment 600 200 377 276 400 473 284 174 100 261 189 154 150 11 107 1Q12 2Q12 3Q12 4Q12 1Q13 Net Profit% 2Q13 3Q13 4Q13 1Q14 2Q14 6M13 6M14 Net Profit% (excl. insurance/impairment) 12.0% 9.0% 6.0% 7.5% 6.8% 6.1% 4.7% 3.8% 3.2% 3.8% 3.0% 5.4% 4.2% 3.5% 2.8% 0.3% 0.0% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 29 4Q13 1Q14 2Q14 6M13 6M14 Return on Equity ROE (In the Quarter) ROE (Seasonally adjusted) 60% 40% 20% 9.0% 7.1 % 1 8.7% 21 .4% 1 9.1 % 1 8.5% 8.0% 0% -9.5% -9.1 % 4Q11 1Q12 -3.5% -2.7% 2Q12 3Q12 1 1 .6% 9.0% 7.5% 4Q13 1Q14 2Q14 -20% -40% -60% -80% 1Q11 2Q11 3Q11 4Q12 1Q13 2Q13 3Q13 Return on Equity (ROE) decreased from 9.0% in Q1’14 to 7.5% in Q2’14, which was about the same level as in Q2’11 before flood at 7.1%. The ratio decline compared to Q2’13 was due to lower profit, following the slowdown of automotive industry. 30 Return on Assets ROA (In the Quarter) ROA (Seasonally adjusted) 30% 20% 10% 3.6% 2.8% 3.0% 0% -3.4% -2.9% -1 .1 % 4Q11 1Q12 2Q12 -0.9% 3Q12 6.7% 8.0% 7.4% 7.6% 4Q12 1Q13 2Q13 3Q13 5.0% 4.0% 3.3% 4Q13 1Q14 2Q14 -10% -20% -30% 1Q11 2Q11 3Q11 Return on Asset (ROA) as of Q2’14 was 3.3%, compared to 4.0% as of Q1’14 and 7.4% as of Q2’13. Lower profit was the main reason of the ratio decline. 31 Interest Coverage Ratio Interest Coverage Ratio (In the Quarter) Interest Coverage Ratio (Seasonally adjusted) 10.0 5.0 3.80 3.1 6 3.30 (0.25) (0.26) 0.0 0.61 0.70 2Q12 3Q12 4.34 5.00 4Q12 1Q13 4.77 4.69 2Q13 3Q13 3.59 3.1 7 2.94 4Q13 1Q14 2Q14 -5.0 -10.0 1Q11 2Q11 3Q11 4Q11 1Q12 Interest Coverage Ratio decreased from 4.77x as of Q2’13 and 3.17x as of Q1’14 to 2.94x as of Q2’14. The main reason for the ratio decline was the decrease of profit, which was more than the lower financing costs. 32 Capital Structure Unit: Million Baht Net interest-bearing debt to equity ratio as end of Jun’14 continued to decline to 0.77x compared to 0.97x in Q2’13 and 0.85x in Q4’13. This was in line with the plan to reduce loan outstanding with banks. Interest-bearing Debt Longterm 43% Short -term 27% CPLTD 37% Total bank debt decreased Baht 17 million during Q2 to Baht 4,336 million at end of Jun’14, which was Baht 893 million lower than Q2’13. Cash & Current Inv. Debt Equity D/E (L-C)/E 6,000 2.5 5,000 2.06 2,000 1.36 1.20 2.0 2.00 1.74 1.72 4,000 3,000 1.99 1.25 0.93 1.19 1.24 1.07 1.64 1.00 1.52 0.97 1.41 0.91 1.5 1.25 0.85 1.23 0.78 1.18 1.0 0.77 0.5 1,000 - 2010 2011 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 33 Capital expenditures Capex Forecast 1,800 1,600 1,400 Capital expenditures for the first 6 months of 2014 were Baht 230 million, which was Baht 117 million lower than capex in JanJun ’13 at Baht 347 million. 1,649 1,200 1,000 1,145 1,237 800 600 734 400 200 347 230 2010 2011 2012 2013 2014F 230 6M13 6M14 Capex 300 Capex in Q2’14 were Baht 34 million compared to Baht 197 million in Q1’14 and Baht 181 million in Q2’13. 250 243 200 150 167 197 181 143 100 34 50 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 34 Agenda 1. Company Profile 2. Industry Overview 3. Financial Performance 4. Strategy and Direction 35 Business Strategy THAILAND MALAYSIA INDONESIA PHILLIPPINES CHINA To be a leading automobile parts manufacturer in Asia, a Thailand footprint for world-class global manufacturer. JAPAN AMERICA ASIA INDIA EUROPE 36 Finance Strategy Shareholder portfolio and generate return to shareholders Equity Profitability Improve profitability through margin management Maximize shareholder value Portfolio diversification Liquidity 37 Cash flow management Thailand Automotive Outlook Production Forecast Domestic Export 3.5 3.0 3.0 2.5 2.5 2.0 Global Financial Crisis 1.5 1.0 0.5 0.0 0.5 0.6 0.8 0.9 1.1 1.2 1.3 1.4 1.0 Flood 1.6 2.6 2.5 1.2 2.4 1.5 1.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Forecasted vehicle production volume for 2014 remains at about 2.2 million units, with estimated full year domestic car sales at around 950,000-1,000,000 units and export car sales at around 1,200,000 units. Source: The Federation of Thai Industry (Automotive Industry Club) 38 Disclaimer Some statements made in this material are forward-looking statements with the relevant assumptions, which are subjected to various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs and other statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “intend”, “estimate”, “continue”, “plan” or other similar words. The statements are based on our management’s assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Please note that the company and executives/staffs do not control and cannot guarantee the relevance, timeliness, or accuracy of these statements. AAPICO HITECH PLC [email protected] Tel: 66 (0) 2613-1504 39