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CHIA TA Investor Presentation 2019
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佳大世界股份有限公司
CHIA TA WORLD CO.,LTD
2019
Briefing Session of Investment Outlook
1
Notes:
1. Company Profile
2. Industry Overview
3. Operation Overview
4. Financial Information
5. Future Outlook
6. Others
2
Notes:
- Company Profile
3
Notes:
Established: 1973/4/23
Over-the-Counter(OTC): MAY,1997.
Go Public: SEP,2009.
Authorized Capital Stock: NTD$ 1,200,000 thousand dollars.
Paid-Up Capital: NTD$ 806,945 thousand dollars.
3 Factories: ?YungKang 1st、YungKang 2nd、LinYuan Factory.
Employees: Approximately 150
4
Notes:
Business Concept
Operational Diversification
Managerial Institutionalization
Quality Internationalization
Talents Expertization
5
Notes:
MAIN PRODUCTS
Galvanized Steel Wire
For spring, wire ropes
Electrical cable wires
Hard Drawn Steel Wire
For spring, mattress
Rolling doors, suspensions
6
Low Relaxation Prestressed Concrete Steel Wire
For piles, poles & bridges.
Oil Tempered Wire
For automobile, bike suspensions & mechanical springs.
7
Low Relaxation Pre-stressed Concrete Steel Wire Strand
For buildings, infrastructures, beams and bridges.
Steel Bar for Pre-stressed Concrete (Ulbon / Deformed Bar)
For poles, piles, etc.
8
(Un) Galvanized Steel Wire Strand
For electrical cables, telegraph cables.
Wire Rope
For forestry, crane fishery uses.
9
- Industry Overview
Chart
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Notes:
Industry Status & Development
China-US Trade War
US: Section 232 Tariffs on Steel
EU: Trade Protectionism
China: Steel Restriction+ Belt&Road: Incentive Effects
Chart
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Notes:
Japan: 2020 Olympic Games
Taiwan: Weak Demand.
But TW’s government has Special Act for Forward-Looking Project may encourage domestic market.
If China-US trade war getting moderated, the industry will grow positively.
Chart
| Category |
|---|12
Notes:
Interrelationships among Upper, Middle and Lower Stream of Industry
Upper: Steelmaking (Billet,Bloom,Wire Rod)
Middle: Drawing (Wire, GI-wire, Rope, PCS, PCB)
Lower: Application (Mattress, Spring, Pile, Pole, Beam, Bridge, Cable)
Chart
| Category |
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Notes:
Product Development Trend & Competition
China&South East Asia: Cheap raw materials, Big economic scale, FTAs.
Need to explore more sources for competitive raw materials; cost down; improve production process with high quality to segment markets.
Chart
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Notes:
- Operation Overview
Chart
| Category |
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Notes:
Chart: Markets
| Category | Domestic | Japan | USA | Others |
|---|---|---|---|---|
| 2016 | 73.38 | 14.46 | 11.05 | 1.1 |
| 2017 | 78.18 | 16.2 | 5.16 | 0.47 |
| 2018 | 70.18 | 13.72 | 15.88 | 0.21 |
| 2019 | 67.95 | 17.28 | 14.51 | 0.26 |
Notes:
Chart: Main Raw Material Sources
| Category | Domestic | Overseas |
|---|---|---|
| 2016 | 88.7 | 11.3 |
| 2017 | 75.9 | 24.1 |
| 2018 | 74.8 | 25.2 |
| 2019 | 68.6 | 31.4 |
Notes:
Chart: Product Sales Ratio
| Category | Steel, Galvanized & Annealing Wire | Wire Rope & Strand | PC Bar & PC Strand | Others |
|---|---|---|---|---|
| 2016 | 44.0 | 10.4 | 42.7 | 2.9 |
| 2017 | 49.2 | 11.4 | 36.9 | 2.5 |
| 2018 | 43.8 | 10.200000000000001 | 45.2 | 0.8 |
| 2019 | 42.2 | 9.3 | 47.6 | 0.9 |
Notes:
- Financial Information
Chart
| Category |
|---|19
Notes:
Balance Sheet
(for the last 2yr including 2019 Q1-3)
Unit: NT$ thousand
2019/09 2018/12 2017/12
Amount % Amount % Amount %
Current assets 495,993 40 503,607 41 452,864 39
Non-current assets 724,248 60 730,751 59 705,820 61
Total Assets 1,220,241 100 1,234,358 100 1,158,684 100
Current liabilities 243,223 21 247,629 20 185,826 16
Non-current liabilities 19,410 1 14,352 1 13,999 1
Total Liabilities 262,633 22 261,981 21 199,825 17
Total Equity 957,608 78 972,377 79 958,859 83
Chart
| Category |
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Notes:
Income Statement
(for the last 2 yr including 2019 Q1-3)
Unit: NT$ thousand
2019/09 2018/12 2017/12
Amount % Amount % Amount %
Revenues 634,246 100 816,819 100 773,554 100
Gross profit 57,228 9 94,426 12 112,610 15
Operating income -3,938 - 11,387 1 34,586 4
Profit before tax 489 - 15,416 2 30,639 4
Profit 508 - 11,933 1 23,786 3
Earning Per Share (after tax) $0.01 $0.15 $0.56
21
Notes:
Financial Ratio Analysis
(for the last 2 yr including 2019 Q1-3)
2019/09 2018/12 2017/12
Debt ratio 21.52 21.22 17.25
Current ratio 203.93 203.87 243.70
Quick ratio 111.71 95.46 141.51
Time Interest Earned 1.22 6.75 14.25
Return on Assets 0.19 1.18 2.13
Return on Equity 0.05 1.24 2.48
22
Notes:
Gross Profit Margin
Chart
| Category | Gross Profit Margin |
|---|---|
| 2014 | 9.950000000000003 |
| 2015 | 9.860000000000003 |
| 2016 | 15.34 |
| 2017 | 14.56 |
| 2018 | 11.56 |
| 2019 | 9.02 |
Notes:
- Future Outlook
24
Notes:
【COMPANY】
Looking for wide diversity & cost-competitive raw material sources.
Strengthen production management, R&D and reducing defect rate.
Expanding overseas markets & reducing the risk of market concentration.
Enhancing the close relationship between upstream and downstream, to ensure good quality materials and sales channels.
25
Notes:
【CUSTOMER】
Enhance customer services by providing customized products to suit variety of client needs.
Exploiting new customers and markets.
26
Notes:
【SOCIAL RESPONSIBILITY】
Renew and strengthen the management of raw materials, waste water and gas equipment that may cause harmful environment in the process.
Prepare emergency response plans to minimize the possibility of damage.
Cooperate with the government's green energy policy, our solar-power equipment has been completed at FEB, 2018.
27
Notes:
【INVESTMENT】
Since the China-US trade war has continued, the prospect is full of uncertainty.
Although the company has no new investment plans for the time being, it still upgrading existing equipments and increasing the efficiency of production use.
28
Notes:
- Others
【N/A】
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