HALCYON TECHNOLOGY PLC. 'HTECH' - OPPORTUNITY DAY Q1/2021 - IR Plus
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
HALCYON TECHNOLOGY PLC. 'HTECH' OPPORTUNITY DAY Q1/2021
PART 1
Halcyon Company Background
Table of
PART 2
Halcyon Group Performance
Q1/2021
Contents PART 3
Market & Outlook
Part 1 Halcyon Company Background
Our Business
New items
Halcyon is a cutting tool solution
Customer
provider. We are a companion to Requirements Product
Design
our customers to help them
achieve highest productivity with Trouble-
One-Stop
Service
great efficiency. Shooting
Manufacture
Test &
Application
Our History
Since 1993 - Present
1993 2002 2009 2010 2015 2017 2020
Halcyon Metal Co., Halcyon Technology Expanded across Southeast 2nd factory building at Acquired
Ltd. first established Co., Ltd. established Asia in Philippines, headquarter manufacturing
as a manufacturing for new segment of Singapore, Malaysia, (Bangkok) and new company in USA to
shop for jigs & fixtures PCD cutting tools at IPO under Vietnam, Indonesia factory in Hanoi; expand distribution
and other metal current location in symbol “HTECH” consolidated revenue and servicing network,
fabricated products Minburi, Bangkok, TH reached 1 billion THB as well as gain
exposure to new
technologies
1BN
Our Global Network
Manufacturing
Distributing
• 3 manufacturing plants
• Sales and service offices in
7 countries across the world
• Customers in 16 countries
Our Products PCD MCD PCBN CARBIDE Polycrystalline Diamond Monocrystalline Diamond Polycrystalline-Cubic Boron Nitride Tungsten Carbide Applications: Cutting non-ferrous materials Applications: Super-finishing and critical Applications: cutting super-hard materials Applications: General purpose cutting Materials: aluminum, brass, copper, CFRP, applications Materials: cast iron, hardened steels Materials: Steel, aluminum, plastic, abrasive materials, wood, plastics, etc. Materials: brass, copper, aluminum, acrylic (>50 HRc), sintered powder, etc. wood, etc. Industry: HDD, Automotive, Aerospace, Industry: Lens, Jewelry, Watch, Automotive Industry: Automotive, Heavy machinery, etc. Industry: Used in most industries Medical, Jewelry, Oil & Gas, etc.
Our Customer Sector in 2020
Other
• More than 2/3 of our 24%
demand comes from HDD
and Automotive sectors HDD
• 1/4 is from other sectors 40%
such as Aerospace, Heavy
machinery, Oil & Gas, Lens, Trading
etc. 5%
Automotive
31%
Part 2 Our Performance Q1/2021
Yearly Performance
Decent outcome in 2020 despite COVID-19 with growing overseas sales
Sales Revenue Gross Profit & Margin Thailand vs. Overseas Sales
1,200 800 50% 100%
THB Millions
THB Millions
700 45%
1,000 ▼1.4% 33%
38.4% 80% 39% 44%
600 40%
800 33.2%
500 30.8% 35% 60%
600 400 30%
▲6.2%
962 949 300 25% 40%
400 67%
61% 56%
200 20%
297 315 20%
200
252 100 15%
97
0 0 10% 0%
Y2019 Y2020 Q1/2021 Y2019 Y2020 Q1/2021 Y2019 Y2020 Q1/2021
Gross Profit Gross Profit Margin Thailand Overseas
• -1.4% YoY in 2020 • Continuously improving • Larger portion of overseas
• Q1/2021 pro-rata sees ~6% margins due to cost-reducing sales from new subsidiary
growth from Y2020 measures from first outbreak of MDP (USA)
COVID-19 in ThailandQuarterly Performance
Continuously improving margins from Q2/20 onwards
Sales Revenue Gross Profit & Margin Net Profit & Margin
300 160 45% 100 17.0% 20%
38.4%
THB Millions
37.9%
THB Millions
THB Millions
90
140 35.1% 40% 15%
250
80 9.3% 9.4% 9.1%
120 29.9% 35% 10%
28.4% 70
200 30% 3.2%
100 60 5%
25%
150 80 50 0%
275
239 252 20%
230 40
100 203 60
104 15%
-5%
97 30
84
40
69 10% 45 -10%
50 58 20
20 5% 10 22 22 25 -15%
0 6
0 0% 0 -20%
Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21
Gross Profit Gross Profit Margin Net Profit Net Profit Margin
• Overall declined in Q2/20 from • Continuously improving gross • NPM jumped to 17% in Q1/21
COVID-19, but had additional margins mainly due to MDP’s loan
sales from MDP to support • New subsidiary MDP (USA) forgiveness of THB 8.2 million
• Sales picked up in Q3-4/20 since Q2/20 (without this effect, NPM ~13%)
due to higher demand from • Closing of Philippines
HDD sector factory - reduction in labor
and overhead costsPerformance by Segment (Q1 YoY)
Special Cutting Tools segment shows high growth from previous year, while other
segments are still recovering
Special Cutting Tools Standard Cutting Tools Metal Fabrication
(HT, HP, HV, MDP) (FDM, HENG, HS, HY, HI) (HM)
160 ▲41.3%
Sales Revenue
THB Millions
120
▼9.6%
80 152.7
108.0 101.7 91.9 ▼62.5%
40 20.7
7.8
0
Q1/20 Q1/21 Q1/20 Q1/21 Q1/20 Q1/21
▲224%
40
Net Profit
THB Millions
20 ▼14.2%
37.1 ▼54.1%
7.3 6.3
11.5 3.3 1.5
0
Q1/20 Q1/21 Q1/20 Q1/21 Q1/20 Q1/21
• Additional revenue/profit from • Revenue from 5 trading • Revenue from Halcyon Metal only
MDP (USA) in Q1/21 companies (customers mainly • Major overseas customer in
• Without MDP, this segment still in automotive sector) aerospace sector – heavily
had +5% sales growth and affected by COVID-19
+112% NP • Starting to pick up in March’21Part 3 Market & Outlook
HDD Market in Thailand
Thailand is the leading exporter of HDD
• HDD is an essential part of the global computer supply chain
due to continuous foreign investments in the country
• Requires technology and skilled workers
• 90-95% HDD produced in Thailand are for exports
• Almost 30% of Thailand’s electronics export value
Source: Krungsri ResearchData Storage Demand
Data storage demand is increasing exponentially due to cloud technology and IoT
World Capacity Shipments
(2020-2025 Projection)
Exabytes shipped
• Demand for data storage continues to increase
at 32.2% CAGR from 2021-2026
• High adoption rate of cloud technology and IoT
⚬ Consumer Electronics: smartphone, laptops,
PCs, video games, VR/AR, AI
⚬ Enterprise: nearline storage, and data centers
Source: Coughlin (Forbes, 29 May 2020)HDD Demand
High-capacity HDD leads the demand growth
• Number of pieces of HDD shipped will • “Consumer” HHD will decrease and switch to
increase at a slower rate due to advances SSD for smaller units
in technology for data storage density • “Enterprise” HDD will increase from nearline
• 9.3% CAGR for server application data storage
(2019-2026) • Cryptocurrency farming?
Source: Coughlin (Forbes, 29 May 2020)Automotive & EV Market Overview
Automotive sector is steadily recovering. EV disruption will not be significant in the
next 5 years
• New projects and improvement trials are
being implemented for mass production
• New projects for EV parts are starting to
emerge in Thailand
• EV brings more demand for materials with
high strength-to-weight ratio; usually
requires PCD cutting tools
• Automotive industry in Thailand will persist
in the next 5 years as infrastructure and
costs must be advantageous for the
feasibility of EV
Source: ING Economics Department+7% Target sales
growth in 2021
Recovery after the
pandemic
In all manufacturing industries
Operating
in ASEAN and North America
Increase capacity in
Plans for
Halcyon Vietnam
HV has potentials for high
2021-2022
growth and opportunities
but currently has limited
production capacity
New production line
in USA (MDP)
Synergies allow for increased
competitiveness in the North
American marketThank you! Q&A
You can also read
