CHPT Company Profile for Investor November, 2017 Chunghwa Precision Test Tech. Co., Ltd.
Disclaimer Certain of this release includes forward-looking statements, these forward-looking statements are based on our current expectations, projections and beliefs as of the date of this release and are subject to known and unknown risks, uncertainties and assumptions that may cause actual results to differ materially from what may be expressed or implied by such statements. All statements other than statements of historical fact in this release regarding our future performance, revenues, margins, market share and any future events or prospects, are forwardlooking statements. We undertake no obligation to update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. 2
Outline Operating Results Outlook Achievements Q&A 3
CHPT Quarterly Revenue Trend YoY 22.1% (unit: TWD mn) QoQ 11.4% 1000 900 935 800 700 600 500 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 2017 4
精測 6510 CHPT s Products and Services Wafer Fabrication Wafer Probe Packaging IC Testing Shipment Tester Test Head PCB TFMLO Probe Head Wafer Probe Card Tester Handler IC Socket Load Board Prober Test Head Industry s only company provides In House, One Stop Shop Service 5
Business Model & Sales by Customer Type Fabless Foundr y OSAT Probe Card Vender CHPT 6
精測 6510 Outlook Semiconductor Market Mobile computing High Performance Computing Automotive electronics CHPT Focus Filed AP RF GPU IoT AI & 5G PMIC 7
Semiconductor s and Foundry s Revenue and Growth Rate 500 450 400 350 300 335 Semiconductor Revenue($B) and Growth Rate 344 411 427 423 432 456 25% 20% 15% 80 70 60 50 49 54 Foundry Revenue($B) and Growth Rate 58 62 64 68 73 12% 10% 8% 250 10% 40 6% 200 150 100 50 5% 0% 30 20 10 4% 2% 0 15 16 17(e) 18(f) 19(f) 20(f) 21(f) -5% 0 15 16 17(e) 18(f) 19(f) 20(f) 21(f) 0% 2017 ~ 2021 s CAGR 2.6% 2017 ~ 2021 s CAGR 5.5% 8
精測 6510 Foundry s process Revenue Trend mn USD 80,000 70,000 60,000 50,000 40,000 7 nm 10 nm 14/16 nm 20 nm 28/32 nm 40/45nm and above CAGR of under 10 nm s Advanced process will surge up to 30% in 2017-2012 30,000 20,000 10,000 0 15 16 17(e) 18(f) 19(f) 20(f) 21(f) 9
精測 6510 CHPT AP Revenue by Process Nodes 100% 80% 60% 40% 20% 7nm 10nm 14/16nm 20nm 28nm 0% 2015 2016 2017 Q1 2017 Q2 2017 Q3 10
Financial Results 3Q17 Financial Results Net Revenue $935,584 K (vs. $839,680 k Prior Qtr) Gross Margin 56.9 % (vs. 55.4 % prior Qtr) Operating Exp. Ratio 26% (vs. 26% Prior Qtr) $766,405 7% 11% $839,680 $935,584 8% 5% 11% 9% in NT$ Thousand Service & Others Load boards Probe Cards Operating Margin 30% (vs. 30% Prior Qtr) Net Income $ 231,659 K (vs. 203,895 k Prior Qtr) 82% 86% 81% Net Profit Margin 25% (vs. 24% Prior Qtr) EPS $7.49 (vs. $6.62 Prior Qtr) 3Q16 2Q17 3Q17 11
Annual Financial Results Net Revenue YoY 50% Net Income YoY 46% 3,000,000 60% 2,500,000 2,000,000 37% 41% 48% 52% 52% 50% 40% 1,500,000 2,595,197 30% 1,000,000 1,725,149 20% 500,000 1,064,966 559,526 705,739 - NT$ thounsand 2012 2013 2014 2015 2016 Net Revenue 559,526 705,739 1,064,966 1,725,149 2,595,197 Gross margin 37% 41% 48% 52% 52% Net Income 39,940 55,950 196,419 413,483 604,779 EPS(NT$) 1.94 2.62 8.35 14.77 20.04 10% 0% Jan.-Sep. 2017 Financial Results Net Revenue 2,564,753k YoY 34% Net Income 623,650k YoY 34% Gross Margin 55.7 % YoY 3.2% EPS 20.23 YoY 4.67 12
Balance Sheets & Key Indices ( in NT$ thousand) 9/30,2016 6/30,2017 9/30,2017 Balance Sheets Amount % Amount % Amount % Cash and cash equivalents 1,182,018 37 1,125,702 29 3,561,558 56 Accounts receivable, net 423,439 13 425,884 11 498,521 8 Inventories 402,136 13 278,296 7 210,945 3 PP&E 1,102,845 35 1,926,476 50 2,004,359 32 Total Assets 3,163,749 100 3,828,960 100 6,348,718 100 Total current liabilities 585,177 19 967,291 25 696,749 11 Total noncurrent liabilities 847-1,305 0 1,305 0 Total Liabilities 586,024 19 968,596 25 698,054 11 Capital stock 307,890 9 307,890 8 327,890 5 Additional Paid-In Capital 1,388,597 44 1,388,597 36 3,926,735 62 Retained earnings 882,997 28 1,167,091 30 1,398,750 22 Total Equity 2,577,725 81 2,860,364 75 5,650,664 89 Key indices A/R Turnover Days 53 46 48 Inventory Turnover Days 90 88 77 ROE 34% 28% 20% 13
Cash Flow ( in NT$ Thousand) 3Q16 2Q17 3Q17 Beginning Balance 1,276,175 821,357 1,069,608 Cash generated from operations 93,771 473,715 327,455 Income tax paid (48,453) (91,897) (66,498) Net cash provided operating activities 45,318 381,818 260,957 Land & Buildings (126,909) (7,856) (6,922) Equipment & Others (86,065) (79,938) (127,000) Capital expenditures (212,974) (87,794) (133,922) Cash dividends (184,734) - (246,312) Issuance of common stocks - - 2,557,053 Investments and others 125,160 (45,773) (1,896) Ending Balance 1,048,945 1,069,608 3,505,488 Free Cash Flow (167,656) 294,024 127,035 Depreciation 26,004 38,482 41,915 14
Outlook Short term Due to deferred orders, 4Q17 revenue may be equivalent to 4Q16. CHPT still remains cautiously optimistic about 2018 outlook. Medium term Global top 5 AP chipset makers are all CHPT s clients. 2018 major models are all in the stages of engineering evaluation or trial run, would expect AP orders continue to expand. CHPT taps into more than 10 customers supply chain, would grow its probe card business opportunities. Long term PCB and probe card business opportunities in non-ap field. Develop satellite communication PCB. 15
Global Probe Card Market CHPT focuses on the logic probe card sector with approximately NTD 30 billion (or USD 1,130 million) market value. CHPT targets all types of chip which require High Pin Count and Fine Pitch solution. Million USD 1200 1000 800 898 1139 2017 2021 Probe Card Market CAGR 5.3% 600 400 200 328 365 201 249 Logic CAGR 6.1% Flash CAGR 5.5% DRAM CAGR 2.7% 0 Logic DRAM Flash Source : VLSI Research ; CHPT (2017/08) 16
Our Prospects in Satcom Industry We work with one of the satellite leaders on making satellite PCB after contract signed at the end of June 2017. The estimated market value of satellite PCB is around USD 240 million per year. Reduce the risk of singlesegment concentration Expand to new client base in aerospace Synergy Allocate the utilization rate between peak and off-peak season In preparation of PCB for the large scale of ATE s demand 17
Achievements Demonstrated the first ever 30um pitch TFMLO at 2017 SEMICON Taiwan High speed electric current replenish technology conducted at manufacturing level Achieve PCB aspect ratio to 50 Marketing successfully in Northeast Asia, and won orders from a well-known high-end chip maker Optimistic about the IoT RF probe card market Collaborate with clients in developing the ultra fine pitch to meet the demand below 50um 18
Q & A Chunghwa Precision Test Tech. Co., Ltd.