Comfortable. Satisfactory. Joyful

Transcription

1 南六企業股份有限公司 Enterprise CO.,LTD Comfortable Satisfactory Joyful 股票代號 :6504 Stock Code:6504.TT 1

2 Disclaimer The above statements that pertain to future projections constitute the expectations, opinions, outlooks, or predictions of our company based on information available at the time the statements were made. Such statements may be affected by known and unknown risks and inherent uncertainties, the existence or emergence of facts or factors that differ from the assumptions, suppositions, or judgments of the Company, or other factors. Consequently, there may be significant discrepancies between actual results pertaining to the Company's future earnings, management results, financial conditions, and other matters as explicitly or implicitly referred to in the statements and the content of such statements. The presentation is run exclusively for the purpose of providing information and not for the purpose of soliciting investments or recommending the buying or selling of specific shares or products. Company makes no warranty concerning the accuracy or completeness of the information and will not be liable for any damages arising out of use of the Information. 免責聲明 以下報告係依公司現有資訊而做成, 內容中的財務或相關資訊包含一些對本公司未來前景的說明, 這些說明易受重大的風險和不確定性因素影響, 致使最後結果與原先的說明有差異, 因此本公司特此聲明, 本報告中的內容, 僅為資訊流通之目的而公佈, 並非投資建議, 本公司不對報告內容的正確性 完整性或任何使用本報告內容所產生的損害負任何責任 2

3 Company Profile Establishment: Dec, 1, 1978 Capital: NT$726 MN Market Capital: NT$ BN Total employee: 786 (as of Dec 31, 2015) TW:266 ;China:520 Products: Chairman: MR. HUANG,CHIN-SAN CEO: MR. HUANG,HUO-CUN Disposable surgical gowns Fabrics Spunlaced Fabrics Baby Wet Wipes Air Through & Thermalbond Fabrics Cosmetics ( face masks ) For Diapers For Napkins We do Consumer Hygiene Product Foucs on Women, Baby 3

4 Production Technology Carded Tech Wetlaid Tech Spunmelt Tech Airlaid Tech Hot Air Bonding Thermal Bonding Mechanical Bonding Chemical Bonding SpunBond Meltblown Electrostatic Spinning Needlepunch Spunlance Spunlace Nonwoven Fabrics Traditiona Woven Fabrics A disposable designed for a single use Superior strength and durability 4

5 Industry Overview (Asia) 2016: Nanliu Thermalbond capacity 18,600 ton / per year (around 9% in Asia) 2015: Nanliu spunlaced capacity 43,200 ton / per year (around 7.65% in Asia) Source:ANFA 2014 file:///d:/downloads/nonwovens_production_in_asia_2014.pdf 5

6 Vertical Integration PP plant Viscose plant PET plant Air Through & Thermal Bond Fabrics Plant Fabrics Plant New product development is focused on nonwoven fabrics to achieve diversification Spunlace Fabrics Plant 2 layer bonding 3 layer bonding Secondary Processing Plant Used multilayer processing to boost sales/gm Industrial wipes Disposable Fabrics Dust wipes 3D pattern Anti-virus mask Fabrics Finish Product Plant Products must be suitable for highly automated production No development of labor-intensive products Kitchen paper towels Branded distributor Branded distributor 6

7 Nonwovens Industry International Top 40 Companies company Sales$ country company Sales$ country Avintiv Specialty Materials(PGI) $2.00 bn US Pegas Nonwovens $252 mn Czech Freudenberg $1.54 bn Germany CECEP Costin New Materials Group $199 mn China-HK Kimberly-Clark $1.30 bn US Union Industries $176 mn Italy DuPont $1.25 bn US Gulsan $175 mn Turkey Ahlstrom $1.20 bn Finland Enterprise $174mn Taiwan Fitesa $755 mn US Tenowo $173 mn Germany Glatfelter $731 mn US Fibertex Nonwovens $171 mn Denmark Johns Manville $700 mn US Dalian Ruiguang Nonwoven Group $169 mn China Suominen $442 mn Finland Asahi Kasei $167 mn Japan TWE Group $415 mn Germany Precision Custom Coatings $163 mn US Bonar $407 mn Netherlands Hassan Group $162 mn Turkey Jacob Holm $400 mn Switzerland 日本 Vilene $159 mn Japan Georgia-Pacifi c $380 mn US Mitsui Chemicals $157 mn Japan Lydall $357 mn US Jofo Nonwovens $151 mn China Sandler $346 mn Germany 35 KNH Enterprises $150 mn Taiwan Toray Advanced Materials $342 mn Korea S Spuntech Industries $143 mn Israel Hollingsworth & Vose $335 mn US Propex Holdings $130 mn US First Quality Nonwovens $330 mn US Mogul $121 mn Turkey Avgol Nonwovens $319 mn Israel Toyobo $109 mn Japan Fibertex Personal Care $293 mn Denmark 40 Advanced Fabrics(SAAF) $83 mn Saudi Arabia Source: ;Nonwoven Industry magazine,

8 Revenue Breakdown Unit:NT$ million 4,568 5, % 5, % Disposable Surgical gowns Fabrics 3, % 506 1,293 11% 28.3% 1, % 1, % Spunlance Nonwoven Fabrics 1,369 37% 1,591 43% 1,914 42% 2, % 2, % Wet wipes & Cosmetics 18.7% 19.5% ,042 1,186 17% % Air Through & Thermal Bond Nonwoven Fabrics Source: Company Filings 8

9 Shipments of disposable surgical gowns fabrics Unit:tons Source: Company Filings 9

10 Revenue Breakdown (by country) Unit:NT$ million 5,922 5, % 3,700 3, % 16.4% 17.8% % 1,265 2% 15.4% 14.3% 34.2% 4, , % 15.8% 13.7% 43.9% % 12.8% 1, % 837 2, % 2, % 14.1% 36.9% Revenue 100% others Asia Japan China 25.1% 1,368 1,262 1,105 1,342 1, % 34.1% 24.2% 26.9% Taiwan Source: Company Filings 10

11 Company Location Baby Wipes, Facial Mask, ThermalBond line*1 Spunlace line*2 Qiaotou plant (Headquarters) Yenchao plant Surgical gowns Spunlace line*1 6.2m Spunlace line *1 Thermalbond line*2 Baby Wipes, Facial Mask SuZhou Shanghai Pudong New Thermalbond line*2 Pinghu plant HangZhou NingBo 1.Center of Shanghai and Hangzhou 2.100km away from Pudong airport (1.5 hour drive) 3.10 km away from Jiashan South Railway Station 11

12 PingHu factory (China) 4.8m Spunlace Line a.surgical gowns Fabrics b.industry wipes c.3d Dust removal dry wipes d.spunlace fabrics 6.2m Spunlace Line ThermalBonded Line ThermalBonded Line Wet wipes & Cosmetics Employee dormitory Office New Thermal Bonded Full run time 2015.Q4 One stop shopping Cost Adventage Economies Scale 12

13 Competitive Advantage Spunlace Fabrics Before fine tune After Nanliu s fine tune Nanliu's experienced senior engineers and RDs with over 20+ years in operations enjoying a very good reputation on quality and quick delivery around the world. Baby wipes & Facical mask 1.High Quality production: ,000 class Clean room 2.One-stop production: From NW to end product (mask, wet wipe) (we say one dragon style ) 3.EDI pure water lab (for wet wipe) 4.Automated production machines (for face mask and baby wipes) Disposable Surgical gown Fabrics Nanliu s one-stop production: From manufacture of spunlace NW to finishing processing Pros:Shorter lead-time Garment OEMs TOP1~5 in Asia Longer lead-time and more costly 13

14 Financial Highlights (by month) 2014.Jan ~ 2016.Feb Consolidated revenue Unit:NT$ million unit:nt$ million Unit: NT$ million Con.revenue Jan Feb Acc.Sales Jan~Feb YOY -9.31% -3.82% YOY (%) -6.95% Source: Company Filings 14

15 Revenue,GM, OPEXP, OPM Ratio yearly Trends Consolidated Revenue 100% ( unit:nt$ million) 5,343 5,922 YOY 10.82% 4,568 3,519 3,700 1,068 1,161 1,300 1,418 2,315 1,534 1,677 1,904 2, % 14.34% 21.09% 18.71% 18.16% 18.34% 19.77% 19.45% 20.21% 17.03%16.42% 19.38% 13.45% 14.19% 10.40% 12.12% 13.30% 11.98% 11.08% 11.09% 11.20%12.68% 10.17% 10.17% 9.18% 7.39% 8.76% 9.21% 8.58% 8.68% 8.25% 6.90% 6.95% 7.64% 6.63% 9.16% 7.53% 4.52% 6.18% 5.34% 4.54% 3.54% Gross Margin OP Margin OPEX ratio Ramp-up period for China site Source: Company Filings Economic scale 15

16 Net Profit, Net Margin Ratio yearly trends Net Profit (NT$ million) Net Margin % 581 YOY 38% % 5.23% 7.54% 8.37% 2.85% 6.51% 5.29% 2.05% 0.17% 3.96% 5.32% % 7.86% 9.82% Source: Company Filings Ramp-up period for China site 1.Material price Soaring 2. Flooding hurt us Economic scale 16

17 Dividend Policy,EPS,ROE, Cash flow 19.32% 17.38% 15.22% 12.28% 15.64% 13.72% 18.26% 16.72% % 19.35% (4Q) 23.20% (4Q) 1.82 (3Q) Dividend Policy:around 45~55% 2.We don t like to take money from shareholders. ( ex. Cash capital increase, CB ) Dividend % EPS CASH STOCK Payout Ratio 41.8% 40.8% 48.4% % % (3Q) 1.49 (2Q) 1.34 (1Q) 2.19 (2Q) 2.08 (1Q) Source: Company Filings Selected Cash Flow Statement Items NT$ mm Cash from Operating Activities Cash from Investing Activities (134) (173) (207) (687) (387) (370) (363) Cash from Financing Acvitities (20) 168 (137) (252) (68) Effect of Exchange Rate changes on cash and cash (7) equivalents NET INCREASE IN CASH AND CASH EQUIVALENTS 188 (59) 190 Note : 2012 and 2013 be used IFRS;* is Net profit before tax Capex (115) (150) (169) (592) (474) (343) (358) Depreciation & Amortization

18 Company History Startup: household products (e.g., dish scrubber) Development: daily supplies (e.g., surface material for sanitary pad, diaper) Growth: spunlace nonwoven fabrics for sanitary supplies, diversification into biotech segment (facial masks, skincare products) Acceleration: pulp/spunlace nonwoven fabrics, built and expanded Pinghu plant at Zhejiang Breakout: research and innovation leader shaping client demand Flushable Fabrics Pure cotton Fabrics 1978~1987 年 Startup 創業期 1988~1998 Development 1999~2007 Growth 2008~2018 Acceleraton 2018 and beyond Breakout 18

19 Potential drivers (I) New Product Taiwan new factory will be in 2Q~3Q An estimated NT$1.5bn will be invested over time, Creating 100 employment opportunities 19

20 Potential drivers (I) New Product New Plant is bigger than Pinghu Plant (China) 20

21 The End Thank you Thanks for your attention. Have a great day. 21