computime corporate presentation...computime | corporate presentation | december 2018 key financial...

Computime

Corporate Presentation Stock code: 320

December 2018

By attending this presentation, or by reading the presentation materials, you agree to be bound by the following limitations:

The information in this presentation has been prepared by representatives of Computime Group Ltd. (the “Company”) for use at investor presentations by the

Company.

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of

the information, or opinions contained herein. Neither the Company nor any of the Company’s advisors or representatives shall have any responsibility or liability

whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with

this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change

materially.

This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent

developments may affect the information contained in this presentation, which neither the Company nor its advisors or representatives are under an obligation to

update, revise or affirm.

The information communicated in this presentation contains certain statements that are or may be forward looking. These statements typically contain words

such as "will", "expects" and "anticipates" and words of similar import. By their nature forward looking statements involve risk and uncertainty because they

relate to events and depend on circumstances that will occur in the future. Any investment in securities issued by the Company will also involve certain risks.

There may be additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware.

Against the background of these uncertainties, readers should not rely on these forward-looking statements. The Company assumes no responsibility to update

forward-looking statements or to adapt them to future events or developments.

This presentation and the information contained herein do not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer

to buy or subscribe for any securities of the Company. The securities of the Company have not been and will not be registered under the U.S. Securities Act of

1933, as amended (the "Securities Act"), and may not be offered, sold or delivered within the United States absent registration under or an applicable exemption

from the registration requirements of the United States securities laws.

This presentation and the information contained herein are being furnished to you solely for your information and may not be reproduced or redistributed to any

other person, in whole or in part. In particular, neither the information contained in this presentation nor any copy hereof may be, directly or indirectly, taken or

transmitted into or distributed in the United States or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any

failure to comply with this restriction may constitute a violation of U.S. or other national securities laws. No money, securities or other consideration is being

solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted.

No invitation is made by this presentation or the information contained herein to enter into, or offer to enter into, any agreement to purchase, acquire, dispose of,

subscribe for or underwrite any securities or structured products, and no offer is made of any shares in or debentures of a company for purchase or subscription,

except as permitted under the laws of Hong Kong.

Who We Are

A success Hong Kong story in transforming from traditional

manufacturing into a global technology enterprise

4

Opens 1st factory in

Guangzhou, China

Opens offices in Europe

& Japan

Listed on

Hong Kong Stock

Exchange

(Stock code: 320)

40th Anniversary

1980 1982 2000 2004 2006 2014 1974

Wins Bloomberg “Listed

Enterprises of the Year” &

Economic Digest “HK

Outstanding Enterprises”

awards

2018

Launches SALUS

Controls Expands into US

Founded in Hong

Kong

2017

Wins Gold at HK ICT

Awards & Technological

Achievement Award at

HKAI; Relocates to

Science Park

Computime | Corporate Presentation | December 2018

Factory-centric

• OEM

• Commodity

• Cost focus

Technology-driven

• Connected solutions

• Branded products

• CMS with smart

enhancement

Strong

Corporate

Foundation

6

Competitive Advantage

Long track

record of quality

and reliability

Continuous innovation

through superb R&D and

engineering capabilities

Extensive

multi-channel global

distribution network

Strong

manufacturing

heritage with full

scope testing

expertise

Experienced

management

team with

diversified

expertise


7

Over 40+ years of track record has earned us…

• Reputation for quality, reliability and innovation

Able to win increasingly strong partnership with customers not relying only on

price-competitiveness

Some of our biggest customers are among the largest global multinational

companies with well-known brands

• Loyal customer base and increasing market penetration

Majority of our customers have been doing business with us for more than 10

years with widened scope of strategic collaboration

Continuous expansion into multi-channel distribution network across the globe


Strong manufacturing heritage with full scope testing

expertise

• Invested in internal reliability labs to perform a comprehensive range of quality

assurance tests across 3 categories (reliability, electromagnetic compatibility, and

safety & regulatory), e.g.:

Temperature &

humidity

Optical microscope

PCB Micro-

sectioning

Stress Thermal shock NEMA chamber Vibration Ionic

contamination

Salt fog EMC immunity

Electrostatic

discharge

Energy Dispersion

Fluorescence X-

Ray Spectrometer

8 Computime | Corporate Presentation | December 2018

9

Experienced management team with diversified expertise

Auyang Ho Founder, Chairman, and Executive

Director

Founded Computime with a vision of

creating a first-class technology company

to explore new markets

King Owyang Chief Executive Officer and Executive

Director

40 years experience in electronics and

semiconductor industries. Global

managerial experience and proven track

record of leading multinational companies

to increased and sustainable growth

Matthew Au Chief Operating Officer

25 years of finance and accounting

experience in multinational US-listed

enterprises

Wai Leung Ha Executive Vice President of

Technologies

30 years experience in engineering,

research and development. Instrumental

in developing the Company’s R&D

capabilities

George Poon Chief Financial Officer

Over 20 years of corporate finance,

commercial and strategic development

experience in leading conglomerates and

multinational listed companies


Technology Core Competencies

Extensive R&D capabilities with unique competitive

advantages in areas of Cloud and Analytics & HVAC

Cloud and Analytics

Radio Frequency

Advanced User

Interface and User

Experience

Advanced Standard Protocol

Home Automation

Heating, Ventilation &

Air Conditioning

(“HVAC”)


Definite competitive edge in our cloud and analytics

Intelligent Layer – Machine Learning

Big Data Fault

Detection

Predictive

Maintenance

Energy

Saving

Adaptive Algorithm

Application Layer

• Comprehensive set of intelligent modules enriching our smart solutions

Cloud database

support


IoT specific cloud technologies applied in our

smart solutions

13

• Scalable and expandable

• Supporting home automation

rules with distributed rule

engines residing in gateway

• Supporting analytics

• Supporting multiple gateways


Capturing Growth Potentials

15

Computime is well-equipped with strong position to tap

into the IoT industry with huge addressable market size

• Increasing popularity of cloud

technology further fuels advancements in

connected device

• Estimated number of connected IoT

devices1:

2017 2030

27 billion devices

125 billion devices

1) Source: IHS Markit

2) Source: MarketsandMarkets

Increasing Use of Smart Home Devices

• Rapid growth in use of connected

devices, including thermostats, sensors

and alarms to control aspects of living

environment

• Smart home market by 20232

1.5 billion devices

16% CAGR

(2017-2023)

Cloud Capabilities and IoT


Tremendous opportunities in applying IoT technologies

in multiple market segments

16

Smart Energy

Smart Home

Intelligent

Building

Healthcare

Intelligent

Community

Tele Diagnosis

Intelligent

Agriculture

Asset Management

Tracking

Intelligent

Manufacturing Launched and

well-positioned

IoT Unique

competitive

edge in HVAC

control, smart

solutions and

wireless

technologies

Development

in progress


Innovative and award-winning technologies

continuously launched into market

Smart home winning entry

INNOVATION

• First-to-market IoT solution for home

comfort

• Compatible with all major

heating/cooling systems

• Home automation rules through

cloud-based distributed rule engine

BENEFITS

• 25% energy saving

• Predictive maintenance

• Peace of mind

FUNCTIONALITY

• Intuitive app

• Voice control

• Flexibility

MARKET

• Address a fast

growing market of

>US$14b1

QUALITY

• Computime track record

• Internal reliability lab

• UL, FCC, ISO

1) Source: IHS (estimated smart home device revenue in 2017)


18

Industry leading hydronic heating system control

leveraging our cloud and analytics capabilities

Hydronic

radiator

Smart thermostatic

radiator valve equipped

with self-learning

optimization

Gateway

Big data analytics on

heating system utilizing

past performance patterns

• Industry leading

performance in

energy efficiency

• Enhanced user comfort

KEY BENEFITS


19

First-to-market industry leading Auto Balancing

Actuator for underfloor heating

Automatically balances and optimizes system

performance, eliminating uneven heating and

increasing comfort and efficiency in the home

UFH Installer

Quick to

install & less

service calls

Property Owner

Efficient

system

optimizing fuel

consumption

Property Resident UFH Manufacturer

Constant

comfortable

temperature

Less user

complaints


20

Contract Manufacturing Services (CMS)

• Focus: Products and total solutions within

IoT space

• Nature: Technology and market-driven,

design intensive, need innovation, fast

moving business decision and agile

execution

• Focus: Driving profitability, key account

management, factory operational efficiencies

and cost savings

• Nature: Cost sensitive, service driven,

attention to details, consistency and

discipline in business execution

Smart Solutions (SS)

Connected Solutions (Non-branded)

SALUS (Branded) • Businesses

Catalysts for growth:

• Expanded into new sales channels (e.g.

insurance companies; utilities companies)

• Wider application of smart technologies into

different market segments (e.g. elderly care;

smart buildings; smart vehicles)

• Large scale projects/products (e.g. large

solution providers)

Catalysts for growth:

• Continuous improvement in productivity and

operating efficiency

• Smart enhancement – adding connected

features to products especially high growth

categories (e.g. health & fitness; medical;

smart home; power tool; POS)

Realigned business into 2 segments to best leverage

core competencies and resources


21

Why Invest in Computime

Strong financial track record

• Net profit 5-year CAGR1: 39.0%

• Net cash position2: HK$40.3 million

Attractive returns and valuation

• Dividend yield3: 9.0%

• Total return since FY13/144: 186.1%

• P/E ratio3: 7.1 2

1

Great growth potentials to be realized

• Well-positioned to capture the IoT trend through expertise in

HVAC control, smart solutions and wireless connectivity

• Expanding into multiple sales channels and industry segments 3

1 FY13/14 – FY17/18 2 As at 30 Sep 2018

3 As at 30 Nov 2018 4 Source: Bloomberg (dividend reinvested, investment period from 2 Apr 2013 to 30 Nov 2018)


Key Financial

Summary

23

Revenue and Net Income

3,868 3,684

3,522

3,164

126 126

98

76

2,814

34

Revenue (HK$ m) Net Profit (HK$ m)


1,912

1,532 54

25

24

Financial Position

Cash and Cash Equivalents (HK$ m)

FY14/15 FY15/16 FY16/17 FY17/18 1HFY18/19

40.8% 36.4%

20.1%

772

640

39.2%

544

730

Debt (HK$ m)

FY14/15 FY15/16 FY16/17 FY17/18 1HFY18/19

265 276

267 251


273 232

25

Dividend and Returns

Dividend Per Share (HK cents) and Payout Ratio

FY13/14 FY14/15 FY15/16 FY16/17 FY17/18

7.5

Dividend Per Share

4.5

2.0

5.8

48.8% 48.9% 49.6% 49.7% 49.8%

Payout Ratio

• Stable payout ratio

~50%

• Dividend yield1

9.0%

• Total return since FY13/142

186.1%

1 As at 30 Nov 2018

2 Source: Bloomberg (dividend reinvested, investment period from 2 Apr 2013 to 30

Nov 2018)

7.5


Thank You

computime corporate presentation...computime | corporate presentation | december 2018 key financial...

Documents