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 Applications For Nonwoven We foucs on 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 Company Profile Establishment: Dec, 1, 1978 Products: Capital: NT$726 MN Total employee: PP viscose pet 884 (as of Mar 31, 2018) Vertical Integration TW:294 ;China:590 Fabrics Air Through & Thermalbond Fabrics Spunlaced Fabrics Founder: Secondary Processing Disposable surgical gowns Fabrics Finish Products Baby Wet Wipes Cosmetics ( face masks ) Chairman MR. HUANG,CHIN-SAN Branded distributor Branded distributor CEO MR. HUANG,HUO-CUN 5

6 Industry Overview (Asia) 2016: Nanliu Thermalbond capacity (18,600ton /Y) around 9% in 2015 Asia) 2016: Nanliu spunlaced capacity (43,200 ton / Y ) around 6.65% in 2015 Asia Source:ANFA 2015 ( Nonwovens_Production_in_Asia_2015.pdf ) 6

7 Nonwovens Industry International Top 40 Companies company Sales$ country company Sales$ country Berry Plastic $2.00 bn US Jofo Nonwovens $247 mn China Freudenberg $1.70 bn Germany Pegas Nonwovens $236 mn Czech Kimberly-Clark $1.30 bn US Enterprise $213mn Taiwan Ahlstrom $1.25 bn Finland Mitsui Chemicals $207mn Japan DuPont $1.0 bn US Asahi Kasei $202 mn Japan Johns Manville $725 mn US Gulsan $200mn Turkey Fitesa $708 mn US Fibertex Nonwovens $200 mn Denmark Glatfelter $589 mn US Xingtai Nonwovens $176 mn China Suominen $475mn Finland Precision Custom Coatings $175 mn US TWE Group $440 mn Germany Tenowo $171 mn Germany Low & Bonar $407 mn Finland Hassan Group $171 mn Turkey Lydall $400 mn US Union Industries $170 mn Italy Georgia-Pacific $380 mn US KNH Enterprises $150 mn Taiwan Zhejiang Kingsafe $365 mn China Dalian Ruiguang $143 mn China Jacob Holm $350 mn Switzerland Spuntech $138 mn Israel Hollingsworth & Vose $350 mn US Toyobo $125 mn Japan Toray Advanced Materials $341 mn Korea Saudi German Nonwovens $125 mn Saudi Arabia Avgol Nonwovens $339 mn Israel Mogul $121 mn Turkey First Quality Nonwovens $300mn US Shalag Nonwovens $120 mn Israel Fibertex Personal Care $283 mn Denmark Unitika $93 mn Japan Sourcehttp:// 7

8 Revenue Split by Products Unit:NT$ million 5, % 5, % 6, % 6, % 23.2% Disposable Surgical gowns Fabrics 1, % 1, % 26.0% Spunlance Nonwoven Fabrics 2, % 2, % % % 1, % 24.3% 1, % 24.6% Wet wipes & Cosmetics 1,042 1, % 20.0% 20.9% % % 376 Air Through & Thermal Bond Nonwoven Fabrics Source: Company Filings % Q Q 40.0% 22.8%

9 Revenue Split by Country Unit:NT$ million 5,922 5, % 12.8% % % 966 2, % 2, % 6, , % 1, % 2, % 21.3% 15.9% 38.0% 6, , , % 20.2% 10.5% 46.3% 1, % 20.1% 14.7% 1, % 17.7% 10.9% Revenue 100% others Asia Japan China 1,342 1, % 26.9% 1, % 1, % % % % 20.9% Taiwan Q Q Source: Company Filings 9

10 Company Location SuZhou Shanghai Pudong HangZhou NingBo Vertical Integration Fabrics Secondary Processing Pinghu plant 1.100km away from Pudong airport (1.5 hour drive) 2.10 km away from Jiashan South Railway Station One stop shopping Cost Adventage Finish Products Economies Scale Qiaotou plant (Headquarters) Yenchao plant 10

11 Competitive Advantage Spunlace Fabrics Before fine tune After Nanliu s fine tune Baby wipes & Facial 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) 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. Disposable Surgical gown Fabrics Nanliu s one-stop production: From manufacture of spunlace NW to finishing processing Pros:Shorter lead-time Longer lead-time and more costly 11

12 Shipments of disposable surgical gowns fabrics unit:tons 資料來源 : 南六企業財務部彙整 12

13 Financial Highlights (by month) 2016.Jan ~ 2018.Apr Consolidated revenue Unit:NT$ million unit:nt$ million Con.revenue Jan Feb Mar Apr YOY 17.07% 10.24% 2.38% 6.99% Unit: NT$ million Acc.Sales Jan~Apr YOY (%) 8.88% Source: Company Filings 13

14 Potential drivers Taiwan new factory will be READY in Q~2018.3Q An estimated NT$3bn will be invested over time, Creating 100 employment opportunities

15 Potential drivers (I) New Product

16 Growth potential(inside) 1. Diversification operation (focus on disposable products) 2.Vertical Integration (add value) Vertical Integration Fabrics Air Through & Thermalbond Fabrics Spunlaced Fabrics 3.Innovation Pure cotton nonwoven fabrics Secondary Processing Disposable surgical gowns Fabrics Finish Products Baby Wet Wipes Cosmetics ( face masks ) 16

17 Growth potential(outside) in China Two child policy >18.46 Bn(F) Unit: % Urbanization rural urban Bn (F) Disposable income(per capita) Increasing 23,821 RMB 12,520 RMB Source:National Bureau of Statistics of China Source:National Bureau of Statistics of China

18 Business Strategy 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 We cotton are ready Fabrics to the Future plans 1978~1987 年 Startup 創業期 1988~1998 Development 1999~2007 Growth 2008~2018 Acceleraton 2018 and beyond Breakout 18

19 Eco-Friendly 4

20 Recycle Appendix Wooden pallet Recycle Wet wipes RO Recycle Water Recycle Wastewater Treatment 4

21 用水量 (T) 用水量 (T) Water Recycle Appendix A3 车间用水量对比 年 2014 年 2015 年 2016 年 2017 年 B3 车间用水量对比 年 2014 年 2015 年 2016 年 2017 年 4

22 Solar Panel Appendix Now Before 4

23 Revenue,GM, OPEXP, OPM Ratio yearly Trends Consolidated Revenue 100% ( unit:nt$ million) 5,343 5,922 6,090 6,434 4,568 3,519 3,700 1,677 1,904 2,315 2,858 1, % 18.34% 19.77% 19.45% 20.21% 19.28% 19.13% 16.91% 18.16% 13.30% 16.42% 9.16% 11.09% 11.20% 12.68% 11.39% 11.39% 9.91% 12.12% 11.98% 6.18% 6.63% 10.40% 11.08% 5.34% 3.54% 4.54% 8.58% 8.76% 9.18% 8.68% 8.25% 7.53% 7.89% 7.74% 7.00% Gross Margin OP Margin OPEX ratio Q Ramp-up period for China Factory Source: Company Filings 23

24 Net Profit, Net Margin Ratio yearly trends Net Profit (NT$ million) Net Margin % % 5.29% % 0.17% 3.96% % % 7.86% 9.82% 9.56% 8.42% 6.04% Q Ramp-up period for China Factory Source: Company Filings 1.Material price Soaring 2. Flooding hurt us 24

25 Dividend Policy,EPS,ROE, Cash flow Source: Company Filings EPS ROE 17.38% 15.22% 12.28% 19.32% 15.64% 13.72% 18.26% 16.72% 23.45% % % 21.62% % % % % (1Q) Q 1.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 48.4% 48.7% 60% 60.3% Selected Cash Flow Statement Items NT$ million Cash from Operating Activities Cash from Investing Activities (370) (363) (254) (1060) Cash from Financing Acvitities (252) (68) (285) 745 Effect of Exchange Rate changes on cash and cash equivalents NET INCREASE IN CASH AND CASH EQUIVALENTS 39 (7) (221) (14) (59) Capex (343) (358) (222) (1064) Depreciation & Amortization

26 The End Thank you Thanks for your attention. Have a great day. 26