Investor Conference - Rechi · ★A/C and Dehumidifier Energy Star in USA ★A /C Five Star...
Transcript of Investor Conference - Rechi · ★A/C and Dehumidifier Energy Star in USA ★A /C Five Star...
Investor Conference
1. Company Introduction
2. Financial Highlights
3. Market Opportunity and Competitive Advantage
4. Future Prospects
Agenda
2
Company Introduction
3
Data as of June 2, 2016
Main shareholders
SAMPO Corporation 27.03%
China Steel Corporation 4.91%
Sharp Corporation 4.86%
Porite Taiwan Co., Ltd 2.09%
National Electric Appliance Co., Ltd 1.71%
4
RECHI PRECISION CO., LTD
25%67.86%
77.78%
50%
100%
100%
100%
100%
100% 45%
RechiHoldings Co., Ltd.
100%
50%
Qingdao Rechi
Electric Machinery
Sales Company
Dyna RechiHoldings Co., Ltd.100%100%
Dongguan Rechi
Compressor Co., Ltd.
Rechi Investments
Co., Ltd.
100%
100%
GR Holdings
(Hong Kong) Limited
100%
Rechi Investments Holdings
Co., Ltd.
Dyna Rechi Co., Ltd.
Dyna Rechi Jiujiang Co.,
Ltd.
Rechi Precision(Jiujiang)
Electric Machinery
Limited
Rechi Refrigeration
Dongguan Co. Ltd.
Rechi Precision
(Huizhou)Mechanism
Company
TCL Rechi (Huizhou)
Refrigeration Equipment
Company Limited
Rechi
Precision(Qingdao)Elect
ric Machinery Limited
RechiInternational
Holdings Co., Ltd.
Organization structure
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Cover area: 151,016m2
Qingdao factory: compressor
Humen factory: compressor and motor
占地面積: 160,000m2
Cover area : 29,652m2
Kwanyin factory: HQ and R&D center
QR
TR
KR
India Office
America Office
Cover area : 34,194m2
Huizhou factory: compressor
Cover area: 20,000m2
Pingtung factory: BLDC motor
HR DNR
DC compressor and BLDC motor
JR/DRJCover area: 298,149m2
Location of facilities
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RECHI milestone
2006
2013
2014
2015
1989
Target:Accumulative
Sales Quantity reached
200 million sets.
2020
Accumulative Sales Quantity
reached 100 million sets.
2014
Annual Sales Quantity exceed
10million sets.
2011 2020
2011
2016
2016
Developed 39F with R134a and R410a Application
R Project with ITRI
Developed 44F DC Compressor with R410A Application
Developed 44F / 50F with R32 Application
Developed 39Fwith R290 Application
Developed 20F/28F DC Compressor with R134a Application
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Accumulative Quantity of July 31, 2016
Sales:129,538,887 sets
Production :130,675,435 sets
Financial Highlights
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SE Asia
Europe
15%
5%
3%
13%
28%
24%
8%
Taiwan
Japan
China
N American
2%India
2%Middle East
RECHI Sales : Geographic distribution
S American
data statistics : 2015
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The sales quantity of Heat-Pump Dryer compressor
0
50
100
150
200
250
300
'10 '11 '12 '13 '14 '15 '16(F) '17(F) '18(F) '19(F)
46
75
106
131
196
233
★ Market Share: more than 80% in Europe
(Unit: 10k)
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Revenue growth
Margins
(Unit: NT$mn)
11
ROE and ROA
Operating CF & CAPEX(Unit: NT$mn)
12
* Based on share price on following year closing before ex-dividend day
2011 2012 2013 2014 2015
EPS (NT$) 2.03 2.21 2.02 2.30 1.86
Stock DPS (NT$) 0.3 0.3 0.3 - -
Cash DPS (NT$) 1.2 1.5 1.5 2 1.6
Payout ratio (%) 59.1 67.9 74.3 87 86
Cash yield (%)* 5.1 5.6 5.1 8.6 6.2
Dividend policy
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Income statement
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Balance sheet
Unit in Thousand NT$ 2016H1 % 2015H1 % YoY %
Cash and equivalents 3,098,466 15 4,222,599 19 -1,124,133 -27
Accounts receivable,net 3,449,333 16 4,062,194 18 -612,861 -15
Inventories 1,765,102 8 1,793,366 8 -28,264 -2
Property,plant and equipment,net 5,994,509 28 5,776,715 26 217,794 4
Total assets 21,088,180 100 22,338,752 100 -1,250,572 -6
Total current liabilities 10,069,208 48 10,944,819 49 -875,611 -8
Long-term liabilities 251,028 1 925,800 4 -674,772 -73
Total liabilities 12,054,624 57 12,852,982 58 -798,358 -6
Total stockholders' equity 9,033,556 43 9,485,770 42 -452,214 -5
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Cash flow statement
Unit in Thousand NT$ 2016H1 2015H1
Cash, beginning of year 4,242,008 4,598,024
Net cash provided by operating activities640,519 526,567
Cash flow from investment activities-362,347 -1,271,210
(Decrease) increase in short-term loans, net-644,096 425,486
(Decrease) increase in long-term loans, net-72,853 0
others -704,765 -56,268
Cash, end of year 3,098,466 4,222,599
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Market Opportunity and Competitive Advantage
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Global A/C market trend
Reference : IOL, HENGTA, GI
RY : August-July
(Unit: 10k)
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China top 10 A/C makers
(Unit: 10k)
Maker2016年
(H1)
Growth
(H1)2015 Growth 2014 Growth 2013 Growth 2012
GREE 1572 -23.6% 3620 -7.8% 3927 2.0% 3851 3.1% 3734
MIDEA 1383 -27.3% 2712 -6.7% 2906 8.3% 2684 11.0% 2419
HAIER 416 -13.4% 754 -13.3% 869 2.3% 850 14.1% 745
CHIGO 349 5.2% 495 -8.2% 539 -1.1% 546 13.6% 480
AUX 420 45.9% 479 8.5% 441 5.8% 417 -2.0% 425
TCL 394 25.2% 465 -4.6% 487 11.3% 438 23.8% 354
HISENSE 188 -8.6% 309 -16.2% 369 11.9% 330 16.9% 282
LG 146 -28.7% 258 -4.1% 270 -12.6% 309 -7.5% 333
PANASONIC 133 -24.6% 253 -11.2% 285 1.4% 281 -25.8% 379
CHANGHONG 172 14.3% 220 3.7% 212 8.8% 195 15.6% 168
OTHERS 624 -6.8% 1091 -16.2% 1302 7.2% 1214 11.0% 1094
TOTAL 5796 -14.5% 10655 -8.2% 11606 4.5% 11112 6.7% 10412
Reference : IOL
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Maker2016年
(H1)
Growth
(H1)2015 Growth 2014 Growth 2013 Growth 2012
GMCC 2740 -5.4% 4241 -3.8% 4408 25.9% 3502 35.1% 2593
LANDA 1305 -16.6% 3055 -15.4% 3613 32.8% 2721 14.3% 2381
HIGHLY 1005 9.0% 1511 -16.5% 1811 9.7% 1650 7.1% 1540
RECHI 771 13.3% 1238 -8.4% 1351 9.3% 1236 13.0% 1094
PANASONIC 492 -8.6% 887 -19.4% 1101 6.5% 1034 -5.1% 1089
LG 373 4.7% 554 -11.8% 628 9.4% 574 -17.6% 697
MITSUBISHI 335 1.5% 545 -11.8% 618 13.4% 545 2.8% 530
SAMSUNG 217 6.9% 320 -31.3% 466 -4.1% 486 -1.0% 491
QINGAN 175 10.4% 320 -23.2% 416 8.0% 385 -35.8% 600
SANYO 157 14.1% 239 -16.9% 287 -23.1% 374 2.0% 366
OTHERS 232 -4.7% 452 -18.3% 553 14.7% 482 36.2% 354
TOTAL 7802 -2.9% 13362 -12.4% 15252 17.4% 12989 10.7% 11736
China top 10 rotary compressor makers
(Unit: 10k)
Reference : IOL
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Competitive advantage-marketing
service 28 countries,148 Clients
★ Owns complete global marketing channels
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Kuanyin factory
pump 3 million
Humen factory
motor 5 million
Qingdao factory
compressor 9 million
pump 6 million
motor 6 million
Huizhou factory
( TCL Rechi)
compressor 6 million
pump 6 million
motor 3.6 million
Jiujiang factory( DynaRechi)
compressorPreliminary capacity 2 million
Final capacity 6 million
BLDC motorPreliminary capacity 1.5 million
Final capacity 21 million
Pingtung factory
BLDC
motor
Preliminary capacity 1.5 million
Final capacity 3 million
Qingdao
Huizhou
Humen
Jiujiang
Pingtung
Taoyuan
Competitive advantage - production
★Excellent Manufacturing technology and efficiency
★More cost effective
★High product performance
-RECHI products was deeply trusted by DAIKIN, MIELE
and so on.
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Competitive advantage - products
★ A/C and Dehumidifier Energy Star in USA
★ A /C Five Star Standards in INDIA
★Pump dryer in EUROPE
A+++ -20%
★TAIWAN CSPF and CHINA class 1
Inverter high
frequence
62%
50/60 Hz
15~120 r.p.s.
A/C 3.5kW application
Roof-Top A/C
Heat Pump Water HeaterUnitary A/C
Portable A/C
Split A/C , VRFHeat Pump dryer
Dish Washer
Tumbling-box
Washing Machine
Dehumidifier
High energy-efficiency Less noise
Application Smaller size
Weight
※Acoustic analysis and design
※Flow induced noise analysis and design
※Optimal Muffler design
※Structure modal analysis and design
Energy Efficiency Standards
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Competitive advantage – R&D capability
YearR&D
Engineer%
2015 305 5.7%
2014 275 5.3%
2013 242 4.3%
2012 157 3.2%
2011 113 2.3%
2010 95 2.2%
2009 81 2.0%
2008 78 3.3%
292,680
420,020
467,373
1.09%
1.40%
0.93% 0.93%
1.31%
1.78%
2.32%
2.99%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
'08 '09 '10 '11 '12 '13 '14 '15
R&D Expense R&D vs. Revenue(Unit: NT$k)
★Professional R&D Team: average more than 7years of experience(Master
and PHD 33%)
★High precision test device and laboratory:Calorimeter26 sets、Vibration &
noise test chamber 11 sets、Reliability test lab 18 sets、Locked-rotor test lab
14 sets.
★Industry-university cooperative:ITRI、NCSIST、NIRDC、NCTU、NCU、NCKU、NIIC、 NPUST and so on.
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Future Prospects
25
Development strategy
Value InnovationStrategy
New Energy Saving market
opportunity
New Energy
Saving products
Technology
Innovation
Market
Demand
Pursue Create
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-
500
1,000
1,500
2,000
2,500
'12 '13 '14 '15 '16(F) '17(F) '18(F) '19(F) '20(F)
BLDC MotorCompressor
(Unit: 10k) (Unit: 10k)
Mid-term and long-term plan - sales
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Target:Accumulative
Sales Quantity reached
200 million sets.
Other business2020 target revenue 7.5%
Heat Pump
Water Heater
business
Compressor
motor
business
Precision
machining
business
Module
business
★Builds leader brand
in Taiwan market
★Horizontal alliances
★Develops oversea
market
★Develops new markets
for compressor motor
★Builds module
products channels
-Compressor products
-BLDC motor products
★Develops
Automobile parts
precision machining
★Develops innovation
precision machining
products
Mid-term and long-term plan - sales
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BLDC MotorCompressor
(Unit: 10k) (Unit: 10k)
Mid-term and long-term plan -
production capacity
★Raise production capacity quickly in Jiujiang factory
★Become Intelligence factory
★Builds module products lines in KR
★The key area in the future - INDEA
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Develops VRF compressor
Develops compressor for 3rd generation of refrigerant
Develops mini compressor
Develops BLDC motor (for A/C) series
Develops BLDC motor (for non A/C)
Develops Subversive innovation end products and module
products
Mid-Term and Long-Term plan -
product development
30
Organization improvement
process and system
improvement
Intelligence factory
Raise company's competitiveness
Upgrades RECHI management systems
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Create unlimited possibilities for the Energy Saving Industry.
Become the top provider of proactive Energy Saving Product.
Thank you