Enterex International Limited. (Stock Code:1592) 2Q16 IR Report

Transcription

1 Enterex International Limited (Stock Code:1592) 2Q16 IR Report 0

2 AGENDA Company Profile Introduction Holding structure and worldwide locations Main product Competitive Advantage Operating Summary Sales performance and analysis Top 5 customers Strategy and Layout Development China OE development Cambodia plant Japanese OE experts EU market 1

3 Introduction Stock Code: Enterex-KY 1592.TW Milestone: 1996 Established in Yangzhou city, Jiangsu, China 2014 Listed on October 16 th in Taiwan Stock Exchange Capital: NT$1,004,332,500 (100.4mn stocks;nt$10/per share) Manufacture Plant: Yangzhou plant( approximately 190,000 square meter) Cambodia plant(approximately 120,000 square meter ) Number of Employees: 1,580 Business:RD, manufacturing and sales of car radiator, heavy duty radiator and condenser Management Team: President and General Manager Wen-Chung, Wong China& Cambodia Subsidiary Company GM Toshimasa Yamane USA Subsidiary Company General Manager Kevin O'Connor 2

4 Holding Structure Enterex International Limited (Cayman) Capital USD 31,938,210 (NTD 1,004,332,500 元 ) 100% FRUITAGE INTERNATIONAL CO.,LTD (Belize) Capital USD 31,938, % MERIT WISE INTERNATIONAL YANGZHOU ENTEREX INDUSTRIAL CO., LTD Capital USD 19,700,000 LIMITED (HK) Capital USD 55,500, % 100% YANGZHOU ENTEREX AUTO PARTS MANUFACTURING CO.,LTD Capital USD 9,000, % YANGZHOU ENTEREX AUTOMOTIVE AIR- CONDITIONING INDUSTRIAL CO., LTD Capital USD 23,800,000 99% 100% ENTEREX AMERICA LLC (USA) Capital USD 1,966,344 AUTOMOTIVE PARTS DISTRIBUTION INTERNATION AL, LLC(USA) Capital USD 10,000, % ENTEREX (CAMBODIA) INDUSTRIAL CO. LTD Capital USD 20,000,000 FRUITAGE INTERNATIO NAL CO.,LTD TAIWAN BRANCH Capital NTD 30,000,000 3

5 Worldwide Organizations Manufacturing- Yangzhou Headquarter- Taiwan Design Center- Connecticut Distribution Center- Texas Manufacturing - Sihanoukville Sales flow Transaction model Subsidiaries 4

6 Factory Image in Yangzhou Area of land : 194,932.5 Square meter 5

7 Factory Image in Cambodia Area of land : 120,000 Square meter 6

8 Selling Center in North America Area of land: Approximately 350,000 square feet Distribution Center - Arlington, Texas 7

9 Main Products Radiator Air-conditioning system condenser 8

10 China OE Production Line 9

11 Competitive Advantage One-Stop Production R & D Team From product design to tooling's development and production, Enterex offers one stop solution with cost reduction and vertical integration. Set up R&D team both in China and in US to meet the requirement from customers for developing and adjusting products they need. Completed Production lines Exclusive Distribution in NA Build entry barrier by offering more than 2,300 AM radiator numbers and 900 condenser numbers. Set up NA distribution channel to establish long -term and stable relationship with customers, stands for approximately 25% market share of AM radiator market 10

12 AM Car Radiator Sales in North America Unit: Piece(thousand) AM Car Radiator volume in NA 7,723 7,963 8,228 Enterex Volume in NA 1,954 2,108 2,077 Market Share 25% 26% 25% Source: AUTOMOTIVE RADIATORS (Global Industry Analysts, Inc.) 11

13 Operating Summary Sales performance and analysis Top 5 customers 12

14 Consolidated P&L(A) 單位 : 新台幣千元 Q16 2Q16 1H16 Account Amount % Amount % Amount % QoQ Amount % Total Revenue 5,186, % 1,524, % 1,435, % -5.8% 2,959, % COGS 3,508, % 1,009, % 934, % -7.5% 1,943, % Gross Profit 1,677, % 514, % 501, % -2.6% 1,016, % Operating Exp. 1,337, % 335, % 321, % -4.2% 657, % Operating Profit 340, % 179, % 179, % 0.3% 358, % Other revenue and exp. (44,102) -0.9% (23,154) -1.5% (6,157) -0.4% -73.4% (29,311) -1.0% Profit Before Tax 296, % 155, % 173, % 11.3% 329, % Tax Exp. 104, % 34, % 45, % 33.4% 80, % Profit After Tax 191, % 121, % 127, % 5.0% 249, % EPS (NT$) % 2.52

15 Consolidated P&L(B) 2Q16 2Q15 1H16 1H15 Account Amount % Amount % Total Revenue 1,435, % 1,268, % YoY % Amount % Amount % 單位 : 新台幣千元 YoY % 13.2% 2,959, % 2,584, % 14.5% COGS 934, % 857, % 8.9% 1,943, % 1,750, % 11.0% Gross Profit 501, % 410, % 22.1% 1,016, % 834, % 21.8% Operating Exp. 321, % 344, % -6.7% 657, % 679, % -3.3% Operating Profit Other revenue and exp. Profit Before Tax 179, % 66, % 171.0% 358, % 154, % 132.3% (6,157) -0.4% (14,272) -1.1% -56.9% (29,311) -1.0% (24,447) -0.9% 19.9% 173, % 52, % 233.5% 329, % 130, % 153.4% Tax Exp. 45, % 10, % 339.8% 80, % 40, % 98.0% Profit After Tax 127, % 41, % 206.9% 249, % 89, % 178.5% EPS (NT$) % %

16 Sales Performance by Quarters 1Q16 and 2Q16 both have double digit growth NT$,000 1Q 2Q 3Q 4Q YTD ,107,301 1,011,401 1,125,632 1,064,223 4,308, ,225,609 1,346,186 1,132,767 1,094,181 4,798, ,316,321 1,268,332 1,343,497 1,257,858 5,186, ,524,337 1,435,484 2,959,821 15

17 GP Margin Performance GP margin performance is over 30% and continues to show positive trend since 2015

18 Sales Contribution by Region H16 1H15 NT$,000 Amount % Amount % Amount % America 4,406, ,376, ,204, Europe 302, , ,912 7 China 255, , ,315 4 Others 221, , ,448 4 Total sales 5,186, ,959, ,584,

19 Sales Contribution by Product H16 1H15 NT$,000 Amount % Amount % Amount % Car Radiator 4,291, ,344, ,110, Heavy Duty Radiator 168, , ,649 4 Condenser 364, , ,331 8 Others 361, , ,938 7 Total Sales 5,186, ,959, ,584,

20 Top 5 Customers Name Advance Auto Parts 2015 % of Sales 1H16% of Sales 32% 31% Summary Listing in NYSE from 2001 Top 1 auto parts chain store in NA, included Advance Auto Parts(AAP) Auto-part International(AI) B.W.P Distributors Inc.(BWP) and General Parts International(GPI)) DIY and DIFM customers oriented Over 5,000 stores worldwide and continue to open stores in 2016 O Reilly/Ozark 21% 18% Spectra Premium (SPI) 9% 11% RADIATOR NRF 7% 7% - 2% Listing in NASDAQ from 1993 Top 3 auto parts chain store in NA, with 4,660 stores DIY customers oriented Located in Montreal Canada Own manufacturing plants in Canada Distributor in North America(the main customer is AutoZone, the top 2 auto parts retailer Located in California US. Chain store of cooling system Chain stores in US and Canada, with more than 1000 stores Established in 1927 and the top2 channel brand in Europe has manufacturing background and the main production and development base in Western Europe Parent company is BANCO Holdings in India and listed in NSE Note: CARQUEST had merged with AAP since

21 Strategy and Layout Development China OE development Cambodia plant Japanese OE experts EU market 20

22 Development Develop China OE Market Growth and Risk diversification Japan Experts Team Management Cambodia Plant European AM Market Layout 21

23 Strategy and Layout: China OE Market First Stage Second Stage Third Stage Enter into small independent brand market Develop big independent brand market Cooperate with joint venture brands 22

24 Multi brands and Multi items Kubota Tailift Group Anhui Jianghuai-Yinlian Heavy Duty Kion Baoli Foton Lovol XGMA WORLD GROUP LONKING KOBELCO HANGCHA ZOOMLIAN HEAVY - DUTY RADIATOR Electric Vehicle Cooling System Electric Vehicle Cooling System HOWO Nanjing Yuhua Nanjing King Long Baic Motor Foton CRRC Times ELEC DONG FENG Bus Co. YANGTSE MEIHUA Bus Baic Motor Hunan Changfeng Motor Air-Conditioning Dandong Huanghai Motor Air-International Shanghai Chery Motor Calsonic Joylong Motor JAC Motor Brilliance Auto Nanjing King Long 23

25 Develop China OE Market Cooperate Items with Beijing Automotive Group Co., Ltd. It has been in the mass production stage 24

26 Japanese OE Professional Team Manufacturing and process improvement Japanese OE Professional team Technique level up Lower cost Higher Efficiency Technical Innovation and R&D 25

27 Strategy and Layout: Cambodia Plant Time:Board meeting approved Cambodia investment plan on 03/27/2015 Location:Cambodia Sihanoukville Special Economy Zone Land:120,000 square meters Plant : 90,000 square meters Capital:USD20,000,000 Product:Brazed radiator Mechanical Bonded radiator Condenser Intercooler Current Progress 26

28 Strategy and Layout: Cambodia Plant Location Sihanoukville is a coastal city located in the southwest of Cambodia and very close to the Gulf of Thailand. The only one port city in Cambodia and is 240 km to Phnom-Penh An emerging industrial city Advantage Political and economic conditions are more stable than other countries in South East Asia. Labor cost is much lower than that in China Duty free to Europe and America There is no foreign exchange control Enjoy a period of 5 to 8 years income tax exemption 27

29 Strategy and Layout: Cambodia Plant F u t u r e C o n s o l i d a t e d C a p a c i t y E s t i m a t i o n China plant Enterex Group Capacity Cambodia plant Total Other companies Product Lines Brazed radiator Mechanical Bonded radiator Heavy Duty Radiator Capacity (pcs) First Stage Capacity (pcs) Second Stage Capacity (pcs) Total Capacity 3,500, ,000 1,000,000 4,500, ,000 1,000,000 1,000,000 25,000 25,000 SPI:800,000 pcs KOYO: 700,000 ~800,000 pcs TOYO: 1,000,000 pcs Condenser 450, , , ,000 Intercooler 250, , , ,000 Evaporator 200, ,000 Cryomax: 600,000 ~700,000 pcs 28

30 Europe Market Features The usage age of automobile growth Popular for small cars and radiator size is getting smaller Mature market but fragmented and dispersed Radiator is mainly in Mechanical type and Brazed type 29

31 Strategy and Layout: EU market Cooperate with international distributors to meet customer needs Enter into Niche type OE market and large purchasing groups Establish products awareness 30

32 Investment Security Statement The information contained in this presentation, including prediction, forecast or other information of the forward-looking statements is subject to change without notice, whether as a result of new information or future events, therefore, actual results may differ materially from those expressed or implied in these forward-looking statements. 31

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