AAPICO HITECH PLC [AH]
Presentation for Q1 2019 financial statements Opportunity Day
29 May 2019
AAPICO HITECH PLC [AH] Presentation for Q1 2019 financial statements - - PowerPoint PPT Presentation
AAPICO HITECH PLC [AH] Presentation for Q1 2019 financial statements Opportunity Day 29 May 2019 Disclaimer The information contained in this material has been prepared by AAPICO Hitech PLC (AH or AAPICO) solely for information
29 May 2019
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The information contained in this material has been prepared by AAPICO Hitech PLC (“AH” or “AAPICO”) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in AAPICO. Some statements made in this material are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that are not a statement of historical fact is a forward-looking statement that involves various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs. These statements are based on our management assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct and exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no
affecting these statements. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of AAPICO or any of its shareholders, directors,
whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by AAPICO. The information contained in this presentation is
to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance, accuracy, and adequacy
for such purpose. The presentation should not be construed as legal, tax, investment or other advise. ir@aapico.com | +66-(0)-2613-1504
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AAPICO HITECH PUBLIC COMPANY LIMITED
Thailand with global operations through strategic partnerships in India, Portugal, USA, and China.
Car Dealerships and IoT Connectivity & Mobility.
million, comprising of 322,583,844 ordinary shares at par value of Baht 1 each.
Family holding 39.32% of total capital.
Index : SET / THSI Industry/Sector : Auto Current price : Baht 19.10* Market Cap : Baht 6,161 million* P/E (YTD) : 4.65* P/BV : 0.79* Dividend yield** : 6.81%* TRIS / CG Rating : BBB+ /
* Data as of May 14, 2019 ** Dividend yield is calculated based on current share price
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Where do we want to go? How do we want people to remember us?
MANUFACTURING RESEARCH & DEVELOPMENT CAR RETAILING
TO BECOME A LEAN, GREEN, HAPPY, DIGITAL WORLD-CLASS CORPORATION
(Focus Digital)
and Country
Responsibility
Happy Employees Happy Shareholders Happy Public Happy Customers AAPICO Key Fundamental Values
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Auto Part Manufacture Car Dealerships IoT Connectivity & Mobility
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Manufacture of Auto Parts
(Thailand & China)
Car Dealerships
(Thailand & Malaysia)
IoT Connectivity
(Thailand) ~64% of total revenue ~36% of total revenue <1% of total revenue
Thailand Malaysia
Stamping & Assemblies Forging & Machining Plastic Jigs and Dies
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Thailand 73% Malaysia 23% China 4%
2018
Sales by Country
CHINA
Kunshan Production: Connecting rods and Copper Forging
MALAYSIA
Kajang & Petaling Jaya Car dealers: Honda car
THAILAND
Ayutthaya, Chonburi, Rayong, Samutprakarn
Hitech Industrial Estate
Production: Stamping parts and Stamping Dies & Jigs
Amata City Industrial Estate Chonburi
Production: Stamping & Chassis Frames and Forging & Machining Parts
Bangpli Industrial Estate
Production: Plastic Parts
Amata City Industrial Estate Rayong
Production: Stamping Parts Plastic Washers & Fuel Tanks
Mitsubishi Dealers
Navanakorn & Ramindra
Ford Dealers
Samutprakarn & Ladprao
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Strategic Partner Technical Partner
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AAPICO Group has been widely recognized for its excellence in product quality, efficiency in its production processes, and continuous improvements over the years. The Company has repeatedly received awards from its customers and partners in recognition for excellent quality and delivery and contribution to growth.
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276 264 302 288 310 295 313 332 200 192 214 213 220 212 224 221
486 465 527 511 540 517 548 564
200 300 400 500 600 700
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Pick-Up/PPV Passenger Others Domestic Sales Export Sales
310 328 220 223
540 561 Q1 2018 Q1 2019
Total Car Production by Quarter
Jan-Mar Car Production
‘000 Units
+4.0% yoy
Source: The Federation of Thai Industry (Automotive Industry)
118 133 90 103
29 28
237 264 Q1 2018 Q1 2019
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Domestic Car Sales by Quarter
Jan-Mar Domestic Sales
107 94 102 121 118 119 123 151 80 81 83 102 90 100 101 109
23 24 25 28 29 33 34 35
210 199 211 251 237 252 257 295
200 300 400
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1-Ton Pick-Up/PPV Passenger cars Other vehicles
‘000 Units
+11.2% yoy
Source: The Federation of Thai Industry (Automotive Industry)
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Export Volume by Quarter
Jan-Mar Export Volume
295 300 Q1 2018 Q1 2019 284 252 314 290 295 267 297 282
200 300 400
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Export Volume
‘000 Units
+1.6% yoy
Source: The Federation of Thai Industry (Automotive Industry)
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#
Maker January – March
2018 2019 %
1 Toyota
64,094 86,131 +34.4%
2 Isuzu
44,316 44,922 +1.4%
3 Honda
28,435 30,004 +5.5%
4 Mitsubishi
20,696 23,991 +15.9%
5 Nissan
16,965 18,958 +11.7%
6 Mazda
16,586 16,579 0.0%
7 Ford
17,235 14,330
14 Hyundai
1,245 1,409 +13.2%
Others
27,521 27,225
Total
237,093 263,549 +11.2%
Source: Toyota
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#
Maker January – March
2018 2019 %
1 Perodua
55,568 60,659 +9.2%
2
Honda
24,182 22,190
3 Proton
12,843 18,281 +42.3%
4 Toyota
12,683 13,722 +8.2%
5 Nissan
5,310 5,166
6 Mazda
3,439 3,311
7 Mercedes
3,395 3,018
14 BMW
2,520 2,565 +1.8%
Others
15,200 14,152
Total
135,140 143,064 +5.9%
Source: MAA
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partly offset by growth in auto parts sales and higher interest income.
and cost reduction and profit from tooling sales.
core businesses.
debts and the completion of BOI tax incentive.
Net profit was impacted by share loss from SGAH.
Q1 2019 Key Financials
In Million Baht
Q1 2018 Q1 2019 Revenues
Growth%
4,496
+13.9%
4,479
Gross Profit
GP Margin (%)
308
7.2%
375
8.9%
EBIT 302 368 Interest & Tax (59) (126) Core profit
Profit Margin (%)
238
5.3%
242
5.4%
Associate 159 (26) Net Profit
NP Margin (%)
397
8.8%
216
4.8%
D/E (x) 0.60 0.80
4,496 4,479
Q1 2018 Q1 2019
Jan-Mar Revenue
21 3,946 3,903 4,284 4,509 4,496 4,283 4,416 4,576
3,000 3,500 4,000 4,500 5,000 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18
Total Revenues by quarter
Sales Other income Interest income
lower car sales in Thailand and Malaysia. These decreases were partly offset by growth in auto parts and higher interest income.
THB million
yoy
Thailand 79% Malaysia 18% China 3%
Q1 2019
22
2,470 2,286 2,511 2,432 2,685 2,473 2,582 2,901
8.3% 4.9% 3.5% 5.6% 7.8% 9.6% 7.3% 10.9%
2,000 3,000 4,000 5,000 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18
Sales and EBIT by quarter
Thailand China EBIT% 2,685 2,995 7.8% 9.2%
Q1 2018 Q1 2019
Jan-Mar Sales & EBIT
THB million
+11.5% yoy
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1,355 1,340 1,539 1,834 1,578 1,528 1,587 1,388
1.1% 1.3% 1.2% 1.3% 1.3% 1.5% 1.5% 1.5%
2,000 3,000 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18
Sales and EBIT by quarter
Thailand Malaysia EBIT% 1,578 1,233 1.3% 1.5%
Q1 2018 Q1 2019
Jan-Mar Sales & EBIT
THB million
yoy
24 321 451 339 396 461 512 468 560
400 600 800 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Unit: THB Million
EBIT Depreciation 461 517
Q1 2018 Q1 2019
EBIT Depreciation 3.9% 7.5% 4.3% 5.5% 6.7% 8.0% 6.9% 10.0% 8.1% 11.6% 7.9% 8.8% 10.3% 11.9% 10.6% 12.2% 0% 5% 10% 15%
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Unit: as % of revenue
EBIT% EBITDA% 6.7% 8.2% 10.3% 11.5%
Q1 2018 Q1 2019
EBIT% EBITDA% +12.1% yoy
25 224 315 243 376 397 305 302 295
(200) (100)
200 300 400 500 600 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Unit: THB Million
Profit to equity holders from operations Associate income 397 216
Q1 2018 Q1 2019
Operations Associate 5.7% 8.1% 5.7% 8.3% 8.8% 7.1% 6.8% 6.4%
0% 5% 10% Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Unit: as % of revenue
Net Profit % 8.8% 4.8%
Q1 2018 Q1 2019
Net Profit %
yoy
26 10.1% 13.0% 14.8% 17.8% 19.5% 18.9% 19.8% 17.7% 14.4%
0% 10% 20% 30%
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
Return on Equity (ROE)
ROE (In the Quarter) ROE (Seasonally adjusted)
5.5% 6.3% 7.3% 9.1% 10.3% 9.0% 9.2% 8.2% 6.8%
0% 5% 10% 15%
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
Return on Asset (ROA)
ROA (In the Quarter) ROA (Seasonally adjusted)
6.4 8.1 8.4 9.2 9.1 8.5 8.8 7.7 6.5
0.0 4.0 8.0 12.0
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
Interest Coverage Ratio (ICR)
ICR (In the Quarter) ICR (Seasonally adjusted)
2.2 3.2 2.9 2.5 2.1 2.9 2.7 2.8 2.7
0.0 2.0 4.0 6.0
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
Debt to EBITDA
Debt/EBITDA (In the Quarter) Debt/EBITDA (Seasonally adjusted)
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compared to 0.60x as of Q1 2018, and was within the Company’s target
was 1.21x, which was still within the financial covenant target of less than 2.00x.
ST Loan 10% CPLTD 22% LT Loan 43% LT Bond 25%
Interest-bearing Debt
Interest-bearing debts as
Billion, mainly used for investment and new project.
0.85 0.67 0.55 0.40 0.69 0.60 0.56 0.62 0.80 0.80 1.26 1.07 0.87 0.74 0.99 0.92 0.91 1.01 1.18 1.21
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 0.0 2.0 4.0 6.0 8.0 10.0 2013 2014 2015 2016 2017 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Unit: in THB Billion
Debts Equity D/E (L-C)/E
29 0.46 0.58 0.75 0.93 1.13 1.19 1.29 1.39 1.00 1.65 1.46 2.45 2.46 1.88 1.91 1.94 1.99 2.17 2.15
1.0 1.5 2.0 2.5 3.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 …. Production Forecast Domestic Export
Unit: Million
Global Financial Crisis Flood First car campaign
Source: The Federation of Thai Industry (Automotive Industry)
Thailand automotive industry expects to maintain production volume at 2.15 million cars, of which 1.05 million cars to be sold locally and 1.1 million cars for export.
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100 200 300 400 500 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21 Y22 Y23 Y24 Y25 Y26 Y27 Y28
Global Financial Crisis Flood First car campaign
Unit: in thousand Previous model Current model New model
Sample of automotive parts sales orders for current and new models
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Confirmed orders – 5 years for cars and 10-12 years for pick-up truck
ISUZU
D-Max Mu-X
Nissan
Navara Terra
TOYOTA
Hilux Revo Fortuner
FORD
Ranger Rapter Everest
Mitsubishi
Triton Pajero Sport
Honda
City Brio HRV BRV
Toyota
HRV Camry Altis Vios Yaris
Mazda
Mazda 2 CX3 BT-50 PRO
Nissan
Teana Almera Syphy Note March
FORD
Fiesta Focus Eco Sport
Indonesia #16 Thailand #11 France #10 Spain #9 Brazil #8 S.Korea #7 Mexico #6 Germany #5 India #4 Japan #3 USA #2 China #1 Unit : Millions 2018 2017
32 China 29% Japan 10% India 6%
Thailand 2%
Rest of Asia 8%
Europe 22% America 22% Africa 1%
Source: OICA
Top 10 Motor Vehicle Production Country in 2018
2018 Global Production Volume was 96 million units Major OEM Brands in Thailand Thailand Volume 2 Million
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CHINA INDIA EUROPE USA JAPAN THAILAND MALAYSIA
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Taking steps toward globalization 2017-2018
global partnership with Sakthi Group and invested US$100 million for 25.1% stake in Sakthi Global Auto Holding Limited (SGAH).
VINFAST to set up assembly plant in Haiphong, Vietnam for the first 2 models of VINFAST vehicles.
24.89% equity in SGAH.
2013-2016 2008-2012 2005-2007 2002-2004
frame factory from Dana Corporation.
global partnership with Sojitz Corp.
Mitsuike Corp.
business from KPN.
Minth Corporation.
Takagi Seiko.
construction of 3S showroom in Malaysia.
Kunshan (China) started operation.
in the start-up business.
Training Center.
BBB+ credit rating.
rating.
35 Detroit, USA Durango, México Coimbatore/Erode, India Rushan, China Porto, Portugal Thailand Malaysia Singapore Vietnam Kunshan, China London, UK AAPICO Facilities Sakthi Facilities Other JV partners
Japan Taiwan Germany
New York, USA
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