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CHROMA — Call Transcript 2023
Feb 23, 2023
52029_rns_2023-02-23_49b55f15-219b-4ba0-865f-2bde320f942e.pdf
Call Transcript
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CHROMA ATE INC.
2022.3Q Earnings Conference Call
Paul Ying, CFO
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31[st] October, 2022
1
Disclaimer
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This presentation contains some forward-looking statements that are subject to substantial risks and uncertainties. Typically, these statements contain words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “plan”, “forecast”, “project”, “predict”, “potential”, “continue”, “may”, “should”, “will”, and “would” or similar words. You should consider these forward-looking statements carefully because such statements are only our expectations or projections about future events, and actual results may differ materially from those expressed or implied by such statements. The forward-looking statements in this presentation include, but are not limited to, growth rates for various markets estimated by third party sources, future products and technology development, widespread market acceptance of the hosted delivery model, future revenue growth and profitability. You should be cautioned that the forward-looking statements are no guarantee of our future performance. The forward-looking statements contained in this presentation are made only as of the date of this presentation and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances, except as required by law.
This presentation and the information contained herein are the property of Chroma Ate Inc.
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Agenda
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-
Financial Review
-
• Operation Highlights
-
• Q&A
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FINANCIAL REVIEW
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| Year 2022.1~3Q Condensed Consolidated Income Statement Condensed Consolidated P&L (In Million NTD, except for EPS in NTD) 2022.1~3Q % 2021.1~3Q % YoY % Net Sales 15,994 100% 12,994 100% 23% Consolidated Sales of Testing Equipment Business 14,459 90% 10,020 77% 44% Consolidated Sales of MAS 642 4% 509 4% 26% Consolidated Sales of New Material 635 4% 2,139 16% (70%) Others 258 2% 326 3% (21%) Cost of Goods Sold (7,410) (46%) (6,678) (51%) 11% Gross Profit 8,584 54% 6,316 49% 36% Operating Expenses: General & Administration (3,231) (20%) (2,869) (22%) 13% Research & Development (1,368) (9%) (1,103) (9%) 24% Operating Income 3,985 25% 2,344 18% 70% Non-Operating Income (Expenses), net 1,337 8% 2,046 16% (35%) Income (Loss) Before Tax 5,322 33% 4,390 34% 21% Income Tax (1,014) (6%) (800) (6%) 27% Net Income 4,308 27% 3,590 28% 20% Other Comprehensive Income (Losses) 679 4% 38 - n/a Comprehensive Income $ 4,987 31% $ 3,628 28% 37% Net Income (Losses) Attributable To: Shareholders of the Parent 4,243 27% 3,521 27% 21% Noncontrolling Interests 65 - 69 1% (6%) $ 4,308 27% $ 3,590 28% 20% EPS (Basic) $ 10.09 $ 8.39 20% EPS (Diluted) $ 10.01 $ 8.34 20% |
Year 2022.1~3Q Condensed Consolidated Income Statement Condensed Consolidated P&L (In Million NTD, except for EPS in NTD) 2022.1~3Q % 2021.1~3Q % YoY % Net Sales 15,994 100% 12,994 100% 23% Consolidated Sales of Testing Equipment Business 14,459 90% 10,020 77% 44% Consolidated Sales of MAS 642 4% 509 4% 26% Consolidated Sales of New Material 635 4% 2,139 16% (70%) Others 258 2% 326 3% (21%) Cost of Goods Sold (7,410) (46%) (6,678) (51%) 11% Gross Profit 8,584 54% 6,316 49% 36% Operating Expenses: General & Administration (3,231) (20%) (2,869) (22%) 13% Research & Development (1,368) (9%) (1,103) (9%) 24% Operating Income 3,985 25% 2,344 18% 70% Non-Operating Income (Expenses), net 1,337 8% 2,046 16% (35%) Income (Loss) Before Tax 5,322 33% 4,390 34% 21% Income Tax (1,014) (6%) (800) (6%) 27% Net Income 4,308 27% 3,590 28% 20% Other Comprehensive Income (Losses) 679 4% 38 - n/a Comprehensive Income $ 4,987 31% $ 3,628 28% 37% Net Income (Losses) Attributable To: Shareholders of the Parent 4,243 27% 3,521 27% 21% Noncontrolling Interests 65 - 69 1% (6%) $ 4,308 27% $ 3,590 28% 20% EPS (Basic) $ 10.09 $ 8.39 20% EPS (Diluted) $ 10.01 $ 8.34 20% |
Year 2022.1~3Q Condensed Consolidated Income Statement Condensed Consolidated P&L (In Million NTD, except for EPS in NTD) 2022.1~3Q % 2021.1~3Q % YoY % Net Sales 15,994 100% 12,994 100% 23% Consolidated Sales of Testing Equipment Business 14,459 90% 10,020 77% 44% Consolidated Sales of MAS 642 4% 509 4% 26% Consolidated Sales of New Material 635 4% 2,139 16% (70%) Others 258 2% 326 3% (21%) Cost of Goods Sold (7,410) (46%) (6,678) (51%) 11% Gross Profit 8,584 54% 6,316 49% 36% Operating Expenses: General & Administration (3,231) (20%) (2,869) (22%) 13% Research & Development (1,368) (9%) (1,103) (9%) 24% Operating Income 3,985 25% 2,344 18% 70% Non-Operating Income (Expenses), net 1,337 8% 2,046 16% (35%) Income (Loss) Before Tax 5,322 33% 4,390 34% 21% Income Tax (1,014) (6%) (800) (6%) 27% Net Income 4,308 27% 3,590 28% 20% Other Comprehensive Income (Losses) 679 4% 38 - n/a Comprehensive Income $ 4,987 31% $ 3,628 28% 37% Net Income (Losses) Attributable To: Shareholders of the Parent 4,243 27% 3,521 27% 21% Noncontrolling Interests 65 - 69 1% (6%) $ 4,308 27% $ 3,590 28% 20% EPS (Basic) $ 10.09 $ 8.39 20% EPS (Diluted) $ 10.01 $ 8.34 20% |
|---|---|---|
| Condensed Consolidated P&L (In Million NTD, except for EPS in NTD) |
2022.1~3Q % |
2021.1~3Q % YoY % |
| Net Sales | 15,994 100% |
12,994 100% 23% |
| Consolidated Sales of Testing Equipment Business | 14,459 90% |
10,020 77% 44% |
| Consolidated Sales of MAS | 642 4% |
509 4% 26% |
| Consolidated Sales of New Material | 635 4% |
2,139 16% (70%) |
| Others | 258 2% |
326 3% (21%) |
| Cost of Goods Sold | (7,410) (46%) |
(6,678) (51%) 11% |
| Gross Profit | 8,584 54% |
6,316 49% 36% |
| Operating Expenses: General & Administration Research & Development |
(3,231) (20%) (1,368) (9%) |
(2,869) (22%) 13% (1,103) (9%) 24% |
| Operating Income | 3,985 25% |
2,344 18% 70% |
| Non-Operating Income (Expenses), net | 1,337 8% |
2,046 16% (35%) |
| Income (Loss) Before Tax Income Tax |
5,322 33% (1,014) (6%) |
4,390 34% 21% (800) (6%) 27% |
| Net Income | 4,308 27% |
3,590 28% 20% |
| Other Comprehensive Income (Losses) | 679 4% |
38 - n/a |
| Comprehensive Income | $ 4,987 31% |
$ 3,628 28% 37% |
| Net Income (Losses) Attributable To: Shareholders of the Parent Noncontrolling Interests |
4,243 27% 65 - |
3,521 27% 21% 69 1% (6%) |
| $ 4,308 27% |
$ 3,590 28% 20% |
|
| EPS (Basic) | $ 10.09 | $ 8.39 20% |
| EPS (Diluted) | $ 10.01 | $ 8.34 20% |
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2022/2Q included the gain from disposal of investment (ADLINK) of NTD 414 million plus revert the gain from disposal of property to ADLINK of NTD 90m.
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2021/1Q included the gain from disposal of property and plant (Hua-ya HQ) of NTD 1,730 million with Capital gain tax of NTD 200 million.
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Year 2022.3Q Condensed Consolidated Income Statement
Condensed Consolidated P&L 2022.3Q % 2022.2Q % QoQ % 2021.3Q % YoY %
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| Condensed Consolidated P&L | 2022.3Q % |
2022.2Q % QoQ % 2021.3Q % YoY % |
2022.2Q % QoQ % 2021.3Q % YoY % |
|---|---|---|---|
| (In Million NTD, except for EPS in NTD) | |||
| Net Sales | 6,660 100% |
4,935 100% 35% 4,276 100% 56% |
|
| Consolidated Sales of Testing Equipment Business | 6,341 95% |
4,644 94% 37% 3,315 78% 91% |
|
| Consolidated Sales of MAS | 233 4% |
188 4% 24% 145 3% 61% |
|
| Consolidated Sales of New Material | 0 0% |
17 - n/a 682 16% n/a |
|
| Others | 86 1% |
86 2% - 134 3% (36%) |
|
| Cost of Goods Sold | (3,163) (47%) |
(2,033) (41%) 56% (2,132) (50%) 48% |
|
| Gross Profit | 3,497 53% |
2,902 59% 21% 2,144 50% 63% |
|
| Operating Expenses: General & Administration Research & Development |
(1,192) (18%) (524) (8%) |
(1,093) (22%) 9% (922) (22%) 29% (443) (9%) 18% (357) (8%) 47% |
|
| Operating Income | 1,781 27% |
1,366 28% 30% 865 20% 106% |
|
| Non-Operating Income (Expenses), net | 475 7% |
696 14% (32%) 148 4% 221% |
|
| Income (Loss) Before Tax Income Tax |
2,256 34% (491) (7%) |
2,062 42% 9% 1,013 24% 123% (376) (8%) 31% (191) (4%) 157% |
|
| Net Income | 1,765 27% |
1,686 34% 5% 822 20% 115% |
|
| Other Comprehensive Income (Losses) | 229 3% |
161 3% 42% (168) (5%) n/a |
|
| Comprehensive Income | $ 1,994 30% |
$ 1,847 37% 8% $ 654 15% 205% |
|
| Net Income (Losses) Attributable To: Shareholders of the Parent Noncontrolling Interests |
1,731 26% 34 1% |
1,661 34% 4% 793 19% 118% 25 - 36% 29 1% 17% |
|
| $ 1,765 27% |
$ 1,686 34% 5% $ 822 20% 115% |
||
| EPS (Basic) | $ 4.11 | $ 3.95 4% $ 1.89 117% |
|
| EPS (Diluted) | $ 4.07 | $ 3.92 4% $ 1.87 118% |
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2022/2Q included the gain from disposal of investment (ADLINK) of NTD 414 million plus revert the gain from disposal of property to ADLINK of NTD 90m.
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Balance Sheet Highlights & Financial Ratio
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| Consolidated (In Million NTD) |
2022. Sept | 2021. Dec | + / - % | ||
|---|---|---|---|---|---|
| Balance Sheet Highlights | |||||
| Cash & Short Term Investments | 5,480 | 4,947 | 11% | ||
| Inventory | 4,783 | 3,916 | 22% | ||
| Short Term Debt | 3,774 | 2,114 | 79% | ||
| Long Term Debt | 1,272 | 1,447 | - | 12% | |
| Shareholders Equity | 21,128 | 18,947 | 12% | ||
| Total Assets | 34,364 | 29,546 | 16% | ||
| Inventory Turnover (Day) | 158 | 139 | |||
| AR Turnover (Day) | 75 | 98 | |||
| AP Turnover (Day) | 106 | 114 | |||
| Net Debt to Equity (%) | Net Cash | Net Cash | |||
| ROE (%) | 28% | 24% | |||
| ROA (%) | 18% | 15% | |||
| Cash Position | 2022.1~3Q | 2021.1~3Q | YoY | ||
| EBITDA | 5,867 | 4,838 | 21% | ||
| Cash Flow from Operation | 2,681 | 1,303 | 106% | ||
| Free Cash Flow | 2,597 | 3,224 | (19%) |
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All ROE + ROA has been annualized.
Free Cash Flow = Net Cash Provided by Operating Activities + (Net Cash used by Investing Activities)
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Quarterly Highlights
2022.3Q Key Points
-
Sales Revenue: $ 4,170 million,
-
up 12% QoQ, up 50% YoY
-
Gross Margin: 54%
-
Operating Margin: 29%
-
Net Income: NT$ 1,731 million, up 4% QoQ, up 118% YoY
-
2022.3Q Highlights:
− The major growth in third quarter is mainly contributed from Test Instruments & ATS and Semiconductor / Photonics sectors, which presented a growth of 31% and 78% YoY
respectively.
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Sales Revenues Gross Margin Operating Margin
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4,170
3,720
2,867
2,774
2,666
2,449 2,419
53% 54% 52% 51% 54%
51%
48%
29%
28%
26% 25% 25%
22%
18%
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2021.1Q 2021.2Q 2021.3Q 2021.4Q 2022.1Q 2022.2Q 2022.3Q
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Year 2022.3Q Condensed Income Statement
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Condensed P&L – Parent Only 2022.3Q % 2022.2Q % QoQ 2021.3Q % YoY
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| 2022.3Q % |
2022.3Q % |
|
|---|---|---|
| (In Million NTD, except for EPS in NTD) | % % |
|
| Net Sales | 4,170 100% |
3,720 100% 12% 2,774 100% 50% |
| Cost of Goods Sold | (1,911) (46%) |
(1,810) (49%) 6% (1,355) (49%) 41% |
| Gross Profit | 2,259 54% |
1,910 51% 18% 1,419 51% 59% |
| Operating Expenses: General & Administration Research & Development |
(590) (14%) (465) (11%) |
(490) (13%) 20% (386) (14%) 53% (380) (10%) 22% (334) (12%) 39% |
| Operating Income | 1,204 29% |
1,040 28% 16% 699 25% 72% |
| Non-Operating Income (Expenses), net | 883 21% |
902 24% (2%) 243 9% 263% |
| Income (Loss) Before Tax | 2,087 50% |
1,942 52% 7% 942 34% 122% |
| Income Tax | (356) (9%) |
(281) (7%) 27% (149) (5%) 139% |
| Net Income | $ 1,731 42% |
$ 1,661 45% 4% $ 793 29% 118% |
| Other Comprehensive Income | 211 5% |
154 4% 37% (167) (6%) n/a |
| Comprehensive Income | $ 1,942 47% |
$ 1,815 49% 7% $ 626 23% 210% |
| EPS (Basic) | $ 4.11 | $ 3.95 4% $ 1.89 117% |
| EPS (Diluted) | $ 4.07 | $ 3.92 4% $ 1.87 118% |
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100% owned subsidiaries’ income - MAS: NTD 134m.
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2022/2Q included the gain from disposal of investment (ADLINK) of NTD 414 million plus revert the gain from disposal of property to ADLINK of NTD 90m.
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Year 2022.1~3Q Condensed Income Statement
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2022.1~3Q % 2021.1~3Q % YoY
Condensed P&L – Parent Only
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| 2022.1~3Q % |
2022.1~3Q % |
|
|---|---|---|
| (In Million NTD, except for EPS in NTD) | % | |
| Net Sales | 10,757 100% |
7,890 100% 36% |
| Cost of Goods Sold | (5,219) (48%) |
(3,741) (47%) 40% |
| Gross Profit | 5,538 52% |
4,149 53% 33% |
| Operating Expenses: Selling and General & Administration Research & Development |
(1,469) (14%) (1,187) (11%) |
(1,133) (15%) 30% (1,011) (13%) 17% |
| Operating Income | 2,882 27% |
2,005 25% 44% |
| Non-Operating Income (Expenses), net | 2,094 19% |
2,173 28% (4%) |
| Income (Loss) Before Tax | 4,976 46% |
4,178 53% 19% |
| Income Tax | (732) (7%) |
(657) (8%) 11% |
| Net Income | $ 4,244 39% |
$ 3,521 45% 21% |
| Other Comprehensive Income | 644 6% |
46 - n/a |
| Comprehensive Income | $ 4,888 45% |
$ 3,567 45% 37% |
| EPS (Basic) | $ 10.09 | $ 8.39 20% |
| EPS (Diluted) | $ 10.01 | $ 8.34 20% |
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100% owned subsidiaries’ income - MAS: NTD 160m.
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Balance Sheet Highlights & Financial Ratio
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| Parent Only (In Million NTD) Balance Sheet Highlights 2022. Sept 2021. Dec + / - % Cash & Short Term Investment 1,021 1,274 - 20% Inventory 3,356 2,989 12% Short Term Debt 3,100 1,400 121% Long Term Debt 1,050 1,250 - 16% Shareholders Equity 20,618 18,514 11% |
|
|---|---|
| Total Assets 29,483 25,359 16% |
|
| Inventory Turnover (Day) 164 199 AR Turnover (Day) 93 89 AP Turnover (Day) 79 95 Net Debt to Equity (%) 15% 8% |
|
| ROE (%) 29% 24% |
|
| ROA (%) 21% 17% |
|
| Cash Position 2022. 1~3Q 2021. 1~3Q YoY EBITDA 5,339 4,457 20% Cash Flow from Operation 926 775 20% |
|
| Free Cash Flow 1,305 3,155 (59%) |
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All ROE + ROA has been annualized.
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Free Cash Flow = Net Cash Provided by Operating Activities + (Net Cash used by Investing Activities)
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OPERATION HIGHLIGHT
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2022.3Q & 1~3Q Product Mix and Consolidated Sales Breakdown
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| (Unit: Million NTD) Test Instruments & Automatic Testing System (ATS) Semiconductor / Photonics Test Solutions Turnkey Solutions Service & Others Total of Parent Company Sales + Sales from Overseas Operations & Related Subsidiaries Chroma Consolidated Testing Equipment Business MAS New Material Other Subsidiaries Consolidated Sales |
(Unit: Million NTD) Test Instruments & Automatic Testing System (ATS) Semiconductor / Photonics Test Solutions Turnkey Solutions Service & Others Total of Parent Company Sales + Sales from Overseas Operations & Related Subsidiaries Chroma Consolidated Testing Equipment Business MAS New Material Other Subsidiaries Consolidated Sales |
(Unit: Million NTD) Test Instruments & Automatic Testing System (ATS) Semiconductor / Photonics Test Solutions Turnkey Solutions Service & Others Total of Parent Company Sales + Sales from Overseas Operations & Related Subsidiaries Chroma Consolidated Testing Equipment Business MAS New Material Other Subsidiaries Consolidated Sales |
2022.3Q % QoQ YoY 2022.1~3Q % YoY |
2021 % |
|---|---|---|---|---|
| Test Instruments & Automatic Testing System (ATS) Semiconductor / Photonics Test Solutions Turnkey Solutions Service & Others Total of Parent Company Sales + Sales from Overseas Operations & Related Subsidiaries Chroma Consolidated Testing Equipment Business |
Test Instruments & Automatic Testing System (ATS) |
2,032 49% 26% 31% 5,206 48% 29% |
5,531 54% |
|
| Semiconductor / Photonics Test Solutions | 1,652 40% 13% 78% 3,982 37% 43% |
3,589 35% |
||
| Turnkey Solutions | 59 1% (79%) 119% 514 5% 89% |
347 3% |
||
| Service & Others | 427 10% 16% 58% 1,055 10% 31% |
841 8% |
||
| Total of Parent Company Sales | 4,170 100% 12% 50% 10,757 100% 36% |
10,308 100% |
||
| + Sales from Overseas Operations & Related Subsidiaries |
2,171 135% 301% 3,702 74% |
3,247 | ||
| 6,341 95% 37% 91% 14,459 90% 44% |
13,555 77% |
|||
| 233 4% 24% 61% 642 4% 26% 0 - n/a n/a 635 4% (70%) 86 1% - (36%) 258 2% (21%) |
780 4% 2,804 16% 445 3% |
|||
| 6,660 100% 35% 56% 15,994 100% 23% |
17,584 100% |
|||
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Thank You!
Get more information in the APP
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