ITEQ Corporation
Transcript of ITEQ Corporation
www.iteq.com.tw
ITEQ Your Partner of Advanced Materials & Mass Lam Service
Company Presentation
ITEQ Corporation
www.iteq.com.tw
Disclaimer Statement
⚫ This presentation and release contain “forward-looking statements” which may include
projections of future results of operations, financial condition or business prospects based
on our own information and other sources.
⚫ Our actual results of operations, financial condition or business prospects may differ from
those expressed or implied in these forward-looking statements for a variety of reasons,
including but not limited to market demand, price fluctuations, competition, international
economic conditions, supply chain issues, exchange rate fluctuations and other risks and
factors beyond our control.
⚫ The forward-looking statements in this release reflect the current belief of ITEQ as of the
date of this release. ITEQ undertakes no obligation to update these forward-looking
statements for events or circumstances that occur subsequent to such date.
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⚫ Establishment :April 10th, 1997
⚫ Headquarter :Hsin Pu, Taiwan
⚫ Capital :US$ 110 millions
⚫ Employees :2,906
⚫ Chairman :Mr. John Tsai
⚫ CEO :Mrs. Audrey Tsai
⚫ Products :- Copper Clad Laminate & Prepreg
- Masslam service (4~16L / 2+N+2 HDI)
- Flexible CCL
- Metal CCL
Company Overview
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CCL & Prepreg Manufacturing Flow
Glass
FabricTreating
Mixing
(Compounding)
PrepregPly-up Cutting
Copper
Foil
LaminationCCL
Resin(s)
Filler(s)
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Smartphone
Networking
Cloud
Computing
Consumer
Electronics
Automotive Electronics
Material Science
Process Engineering
Low Dk
FR-4
Halogen Free
Anti-CAF
Low Df
Core Technology
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Manufacturing Plant
Distributor / Agent
Manufacturing Plant
Distributor / Agent
USA
Japan
Korea
Wuxi
Europe
Israel
Singapore
DG/HJ/GZ Taiwan
Manufacturing Plant
Distributor / Agent
New Plant
WuxiLaminate:1,800 K sheets
Prepreg :8,500 K meters
Hsin Pu(Taiwan)Laminate:450 K sheets
Prepreg :1,800 K meters
Dong GuanLaminate:1,000 K sheets
Prepreg :4,500 K meters
Huang JiangMass lam:500 K SQFT
Guang Zhou(Flexible CCL)3 Layer FCCL:750 K SQM
2 Layer FCCL:140 K SQMJiangXi (First stage)Laminate:600 K sheets
Prepreg :4,500 K meters
Investment:2.1 Billion NTD
Mass Production:3Q, 2019
New Production Site - JiangXi
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(Million NTD)
4,5504,345
5,021 5,161
4,6464,818
5,0275,190 5,124
4,851
5,562 5,677 5,694 5,6975,862
11.29%10.81%
13.21%
14.11%
16.02%
13.92%14.70%
13.73%
15.75%15.06% 14.75%
13.06%13.71%
14.50%
15.81%
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
Revenue Gross Margin Rate
Revenue & Gross Margin Rate
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49% 48% 47% 46% 44% 42%
30% 31% 32% 34% 36% 38%
10% 10% 10% 10% 10% 10%
11% 11% 11% 10% 10% 10%
2015 2016 2017 1Q18 2Q18 3Q18
Consumer Electronics Networking
Smartphone Automotive
Product Mix
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44% 42%
36%38%
10% 10%10% 10%
0
500
1,000
1,500
2,000
2,500
3,000
2Q18 3Q18
SALES ( NT$ MILLION)
(Total 5,697 M) (Total 5,862 M)
QoQ Change
Consumer Electronics
↓ 1.8%
Networking
↑ 8.6%
Smartphone
↑ 2.9%
Automotive
↑ 2.9%
Total Revenue
QoQ +2.9%
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46% 42%
32%
38%
10% 10%12% 10%
0
500
1,000
1,500
2,000
2,500
3,000
3Q17 3Q18
SALES ( NT$ MILLION)
(Total 5,561 M) (Total 5,862 M)Consumer Electronics
↓ 3.8%
Networking
↑ 25.2%
Smartphone
↑ 5.4%
Automotive
↓ 12.2%
Total Revenue
YoY +5.4%
YoY Change
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2017Q3 & 2018Q3 Income Statement
NT$ Million 2017Q3 2018Q3
Revenue 5,562 5,862
Gross Profit 821 927
Operating Expenses 356 353
Selling 151 137
Administrative 150 136
R&D 55 80
Operating Profit 465 575
Non-Op Income/ Loss 55 (34)
Income Before Tax 519 540
Tax Expenses 157 141
Net Income to Parent 362 399
EPS(NT$) 1.20 1.31
Key Financial
Ratio(%)2017Q3 2018Q3
Gross Margin 14.75 15.82
Operating Expense
Ratio6.40 6.01
Operating Margin 8.35 9.80
Effective Tax Rate 30.28 26.18
Net Margin 6.51 6.81
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2017Q3 & 2018Q3 Balance Sheet
NT$ Million 2017Q3 2018Q3
Total Assets 18,334 19,001
Cash 3,624 3,536
Marketable Securities 538 27
NR/AR 7,875 8,941
Inventories 1,662 2,145
Fixed Assets 2,932 2,753
Total Liabilities 11,316 11,600
Short-term Debt 3,457 3,389
NP/ AP 4,600 5,409
Long-Term Debt 1,153 1,035
Total Equities 7,019 7,401
Key Financial
Ration(%)2017Q3 2018Q3
A/R Turnover Days 137 137
Inventory Turnover
Days32 36
A/P Turnover Days 94 96
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⚫ Key contributors to data demand include
- Ultra-High-Definition Video streaming
- Connected Home, Work, Health and Car
- Analytics, Big Data, and AI applications
- Cloud computing and Cloud Storage
- Virtual Reality (VR) and Augmented Reality (AR)
Global Data Traffic
(Source: Cisco VNI, 2017)
The rapid growth of internet traffic will bring the demand to upgrade equipment
from operators .
(Exabytes per month)
Market Trend
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⚫ The growth of data throughput
⚫ 5G networking commercialization
Market Trend
- The interconnect performance bandwidth of PCIe 4.o is double that of the PCIe 3.0 specification
achieving 16Gbps..
- PCIe 5.0 is still in the process, which been estimated will deliver up to 32Gbps, 4x higher data rate
than PCIe 3.0.
- Data rate would up to 1-10 Gbps, 10-100 times faster than 4G.
- The high data rate and small coverage of 5G would bring increasing demand of infrastructure.
- Massive MIMO and mmWave - the number of antenna on base station will increase from dozens to
hundreds
High Speed Material Application- Lower Dielectric constant (Dk) and Dissipation factor (Df)
- Higher reliability and consistency over temperature, frequency, and humidity
- High Thermal durability and conductivity
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Central
Cloud
Edge
Cloud
5G Opportunities for ITEQ - Network
Building Baseband Unit(BBU)• Low latency requirements• Including Macro Cell, Micro Cell to Small Cell
Core Network (Telecom Data Center):• Including Server, Storage, Switch
High Speed Material
IOT(Internet of Things):
High Speed Material
High Speed Material
High Speed/ Frequency Material
Remote Radio Unit (RRU)+ Antenna• Including Antenna, LNA, RF Network
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⚫ ITEQ Solution for Networking
- Middle Low Loss: Server、Industrial PC
- Low Loss: Whitley Platform、AMD Rome
- Ultra Low Loss: 5G base station、Optical Module、RF Board
- RF Microwave: 5G Antenna、PA Module、RF Board
Networking
Typical Phased Array Modular Units
⚫ ITEQ solution for smartphone
- Standard : Standard smartphone
- Low Dk Material: Middle to high-end smartphone
- High Tg, Low Dk Material: mSAP Process
- Low Dk Low Loss Material: 5G smartphone
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⚫ Continuous Growing
– Output value of automotive PCB:
USD 4.9 Billion/2015 USD 7.5 Billion/2020
⚫ Complete Anti-CAF Product Line
Automatic Driving
• Safety-Driving
• ADAS
Connected Mobility
• Infotainment
• Networking
Powertrain
• Energy-Saving
• Power Charging
• 77~79GHz Radar
• Antenna Module • Multilayer HDI
• Large Current
• High Voltage
• Heavy Copper
(Source: NTI Information)
(S
High Frequency MaterialHDI Material
High Speed Material
High Tg Material
5G Opportunities for ITEQ - Automotive