Pacific Hospital Supply Co., Ltd 3Q2018 Company Report

Transcription

1 Pacific Hospital Supply Co., Ltd 3Q2018 Company Report

2 Our Milestone PAHSCO was Ranked Top 5% for Corporate Governance from 2014to 17 & has been awarded with Best Rankings for Information Transparency and Disclosure for 7 consecutive years since New Factory obtained GMP certification in January New Factory obtained pharmaceutical manufacturer & ISO Certification New Factory constructed at Tong Lo Science Park in December Implemented BPM system Obtained 11,997m 2 of production capacity and expanded Tong Lo (F3) 2009 Tong Lo (F1) constructed in November The automatic warehousing system was officially implemented in August 2005 Tong Lo (F0 ) formed to expand the production of sterilize medical product 2004 PAHSCO became a public listed company in the stock market 2002 Tong Lo (F0) received GMP Certification 2001 Tong Lo Factories received ISO9001 & CE Certification 1987 Established mold department in the subsidiary company Established a subsidiary company - Pacific Precision Technology Co., Ltd. Implemented Oracle ERP systems Issued series of secured domestic convertible bonds & obtained 7,085 m 2 of land Tong Lo Factory constructed & expanded the production of gas piping products (F2) 1980 Started the production & trading of central medical gas equipment 1977 PAHSCO formed with a stock Capital of NT$ 1 Million 2

3 Company News Common Wealth Magazine Ranked PAHSCO No in Top 2000 Enterprise (2017) No in Top 2000 Enterprise (2016) No in Top 2000 Enterprise (2015) No. 10 in Precision Instrument Industry No. 711 for Sales Growth No. 530 for After Tax Profit No. 159 Most Profitable Manufacturer

4 Our Location Miaoli Taipei Headquarter 3 Factories at Tong-Lo Industrial Park Taiwan Taichung Office New Factory at Tong-Lo Science Park Kaohsiung Office

5 Current Factories Land Area Floor Area Number of Workers 23,500 m² Factories 33,650 m² (Full capacity of 1.8B TWD Sales) AS/RS 1,650 m² (2,400 storage spaces) Dorm 2,100 m² (150 people capacity) Total of 37,400 m² 876 people (3Q2018) 5

6 New Factory Land Buildings Capacity 46,000 m² Factory 44,900 m² AS/RS 4,500m² (8,100 storage spaces) Dorm 6,300m² (380 people capacity) Total of 55,700 m² Max. 12 Sterilizer 4.3B TWD sales With full capacity *Calculation base: Each sterilizes 30M TWD per month 6

7 Our Certificate

8 Introduction to Medical Product Industry and Future Global Market for Medical Device and Equipment: Middle East and Africa CAGR forecast 6.4% 7.2% 6.9% Other Europe Market size in 2016 and 2020(f) Unit:Billion (USD) 6.6% 7.5% % CAGR 6.4% Asia Pacific Western Europe America Global Source: 2016 ITA Medical Devices Top Markets Report 8

9 9 Introduction to Medical Product Industry and Future Global Market for Medical Device and Equipment: Unit:Billion (USD) CAGR Decline Source: Medical Devices Industry Yearbook (2016); IEK(2017)

10 Introduction to Medical Product Industry and Future Global Medical Product Market Share Estimated percentage by Country Estimated percentage by Category Others 31.8% U.S. 43.9% 2016 Market Size 336 B (USD) Orthodontic Product 7.1% Others 28.2% Diagnostic Imaging Product 24.6% France 3.8% China 5.6% Germany 6.9% Japan 8.0% Orthopodic & Implantable Product 11.9% Assistive Device 12.5% Medical Disposal Devices 15.7% Source: Medical Devices Industry Yearbook (2016); IEK(2017) 10

11 Market of Aging Population Due to global low birth rate, the population structure is aging at a fast rate. % of health expenditure increased as people aged. Age % of health expenditure <25 3.4% 25~34 5.4% 35~44 6.5% U.S. Europe China Japan 45~54 6.8% 55~64 8.8% > % 11 *Source: Franklin Templeton(2016); Council for Economic Panning and Development(2008); United Nations(2006)

12 Market of Aging Population WWII Baby Boom: U.S births increased rapidly Aging Boom: Baby boomers start to enter age of ~70 Period 1980~2010 Period 2010 Period Childhood Adulthood Elder Global Population of Children vs. Elders (%) Under 5 Over65 It is estimated global population age over 65 will surpass age under 5 after 2020 and the difference will continue to grow. *Source: Franklin Templeton(2016); United States Census Bureau (2016); United Nations(2013) 12

13 Overall Index of Geographic Areas Developed Countries with Subcontract Manufacturing Focus (ODM/OEM) Emerging Countries with Self-Branding Focus (OBM) US Japan Germany China Taiwan 2017 Population (Million) Overall Index Medical Industry Index Age (0~14:15~64:65up) 19:65:16 13:59:28 13:65:22 17:22:11 13:73:14 Birth Rate:Death Rate 13 : 8 8 : 10 9:12 12:8 8:7 Fertility Rate Life Expectancy at Birth GDP (Billion USD) 18,624 4,940 3,478 11, GDP per Capita(USD) 57,638 38,901 42,070 8,123 22,453 GDP Growth Rate 1.5% 1.0% 1.9% 6.7% 1.4% Health Expenditure per Capita(USD)2015 Change of Health Expenditure per Capita (2011 ~ 2015) 9,536 3,733 4, ,315 2 ~ 5% Steady -17 ~ 22% Fluctuated -13% ~ 7% Fluctuated 11 ~ 18% Fast Growing -2 ~ 3% Fluctuated Health Expenditure / GDP 16.3% 9.5% 13.0% 5.2% 5.9% Hospital Beds per 1000 persons (unit) Source: CIA The World Factbook; World Bank; Ministry of Health and Welfare of Taiwan 13

14 Sales Distribution (By Country) PAHSCO 2016 PAHSCO 2017 Germany 6.3% Latin America 5.1% North America 7.4% Other Europe 10.3% Other Asia 11.4% Middle East & Others 5.7% China 11.5% Japan 25% Taiwan 17.3% Germany 8.4% Latin America 4.9% North America 7.6% Other Europe 10.9% Other Asia 12.1% Middle East & Others 5.7 % China 11.6% Japan 21.5% Taiwan 17.3% 14

15 Sales Distribution (By Currency Type) PAHSCO 2016 PAHSCO 2017 TWD 17% Euro & Others CNY 5% 12% JPY 18% USD 48% TWD 17% Euro & CNY Others 10% 5% JPY 17% USD 50% 15

16 Sales Distribution (By Country) PAHSCO 3Q2017 PAHSCO 3Q2018 Germany 9.3% Latin America 4.5% North America 7.8% Other Europe 11.7% Middle East & Others 5.6% Other Asia 11.8% Japan 20.7% China 11.0% Taiwan 17.6% Latin America 4.7% Germany 8.2% North America 8.8% Other Europe 10.0% Other Asia 12.1% Middle East & Others 3.6 % China 11.4% Japan 23.2% Taiwan 18.0% 16

17 Sales Distribution (By Currency Type) PAHSCO 3Q2017 PAHSCO 3Q2018 Euro & Euro & TWD 18% CNY Others 10% 5% JPY 16% USD 51% Others CNY 5% 10% TWD 18% JPY 19% USD 48% 17

18 Percentage of Product Categories Medical Device Medical Equipment Piping System 3Q % 6.7% 0.3% % 6.1% 1.1% % 6.8% 0.3% % 8.50% 1.10% % 7.00% 2.10% % 7.0% 2.1% % 6.9% 2.6% % 5.9% 3.1% % 5.00% 2.9% 85% 90% 95% 100% 18

19 Disposable Medical Device Wound Drainage System, 10% PAHSCO 2016 Respiratory Bottles, 2%, 2% Tubes, 26% Tubes Sales Revenue:434 Million(NTD) % of Product TR: 26% (1 st ) Closed Suction System (CSS) Sales Revenue:427 Million(NTD) % of Product TR: 25% (2 nd ) Others, 23% Bags Sales Revenue:204 Million(NTD) % of Product TR: 12% (3 rd ) Bags, 12% CSS, 25% Wound Drainage System Sales Revenue:162 Million(NTD) % of Product TR: 10% (4 th ) 19

20 Disposable Medical Device Wound Drainage System, 11% PAHSCO 2017 Respiratory Bottles, 2%, 2% Tubes, 26% Others, 23% Closed Suction System (CSS) Sales Revenue:448 Million(NTD) % of Product TR: 26% (1 st ) Tubes Sales Revenue:443 Million(NTD) % of Product TR: 26% (2 nd ) Wound Drainage System Sales Revenue:189 Million(NTD) % of Product TR: 11% (3 rd ) Bags, 10% CSS, 26% Bags Sales Revenue:179 Million(NTD) % of Product TR: 10% (4 th ) 20

21 Disposable Medical Device Wound Drainage System, PAHSCO 3Q2017 Respiratory Bottles, 2%, 2% Closed Suction System (CSS) Sales Revenue:355 Million(NTD) % of Product TR: 26% (1 st ) 11% Tubes, 25% Tubes Sales Revenue:337 Million(NTD) % of Product TR: 25% (2 nd ) Others, 24% Bags, 10% CSS, 26% Wound Drainage System Sales Revenue:144 Million(NTD) % of Product TR: 11% (3 rd ) Bags Sales Revenue:137 Million(NTD) % of Product TR: 10% (4 th ) 21

22 Disposable Medical Device PAHSCO 3Q2018 Wound Drainage System, Bottles, 2% Respiratory, 2% Closed Suction System (CSS) Sales Revenue:324 Million(NTD % of Product TR: 25% (1 st ) 12% Tubes, 24% Tubes Sales Revenue:320 Million(NTD % of Product TR: 24% (2 nd ) Others, 26% Wound Drainage System Sales Revenue:154 Million(NTD) % of Product TR: 12% (3 rd ) Bags, 9% CSS, 25% Bags Sales Revenue:124 Million(NTD) % of Product TR: 9% (4 th ) 22

23 Sales Distribution (By Domestic & Export) 2016 & 2017 PAHSCO Domestic 17% Export 83% Export 0% 15% 38% 81% 82% Domestic 100% 85% 62% 19% 18% 3Q2018 Domestic 18% Export 82% 23

24 Sales Distribution (By Customer Type) PAHSCO 2016 PAHSCO 2017 OEM/ODM 52% OBM 48% OEM/ODM 49% OBM 51% OEM/ODM OBM Total OEM/ODM OBM Total 871M 818M 1.69B TWD 873M 861M 1.73B TWD 24

25 Sales Distribution (By Customer Type) PAHSCO 3Q2017 PAHSCO 3Q2018 OEM/ODM 51% OBM 49% OEM/ODM 52% OBM 48% OEM/ODM OBM Total OEM/ODM OBM Total 694M 646M 1.34B TWD 679M 635M 1.31B TWD 25

26 Historical Sales 1800 Unit: Million(NTD) The 12 th consecutive year with sales growth since Year Sales (NTD) 531M 1.13B 1.69B 1.73B 26

27 27 Sales by Quarter Unit: Thousand (NTD) YEAR Q1 299, , , , , , , , ,839 Q2 319, , , , , , , , ,293 Q3 310, , , , , , , , ,033 Q4 318, , , , , , ,710 Total 1,248,302 1,343,619 1,438,708 1,443,896 1,506,664 1,621,564 1,689,664 1,734,971 1,314,165 Growth 10.0% 7.7% 7.1% 0.4% 4.4% 7.6% 4.2% 2.7% -1.9% Gross Margin 41.1% 38.7% 39.2% 37.5% 36.1% 36.9% 36.5% 29.7% 26.3%

28 Financial Information * Ignore the evaluation loss of financial liabilities ITEM Q17 3Q18 EPS ROE % ROA % Net Profit Margin Net Cash per Share *2011Pay-out: $3 Cash Dividend and $1.00Stock Dividend presented at the Shareholders Meeting. *2012Pay-out: $4 Cash Dividend presented at the Shareholders Meeting. *2013 to 2017 Pay-out: $2.5 Cash Dividend presented at the Shareholders Meeting. 28

29 Medical Device Market Size in China Unit: Million (USD) Market size & Market growth rate CAGR 9.6% Source: BMI Espicom; IEK(2017) 29

30 Our Sales in China Unit: Million (NTD) 38% yoy 83 14% % % % % 4.1% % Sales (NTD) PAHSCO Total (Billion) Q17 3Q Q17 3Q China (Million) China % 6.7 % 8.6 % 9.0 % 9.9% 11.0% 12.0% 11.5% 11.6% 11.0% 11.4% 30

31 Thank you for your attention & patience! *For your information, PAHSCO presentation will be updated quarterly on the official website: 31