南六企業股份有限公司Nan Liu Enterprise CO.,LTD
股票代號:6504Stock Code:6504.TT
Comfortable
Satisfactory
Joyful
1
Nan Liu
This report and released message contains information about corporate prospects, financial updates and sales forecasts, established on the basis of internal resources and external reference sharing. The actual performance may be different from expressed or implied predictions due to uncontrollable and/or unpredictable risks.
•All prospects reflect Nan Liu’s expectations toward the future, and may be subject to change and Nan Liu reserves the right to alter, update and change relevant information from time to time without prior notice.
Disclaimer
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Nan Liu
About Nan Liu
Establishment: Dec, 1, 1978
Chairman: MR. HUANG,CING-SHAN
President: MR. HUANG,HUO-CUN
Paid in Capital: NT$726 million
Total Employee: 821 (as of Nov 30, 2014)
TW:290 ;China:531
Production sites:Qiaotou (Kaohsiung), YenChao
(Kaohsiung), Pinghu (Zhejiang, China)
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Nan Liu
Carded Tech
Mechanical Bonding
Hot Air BondingThermal Bonding
SpunlanceNeedlepunch
Chemical Bonding
Spunmelt Tech Airlaid TechWetlaid Tech
SpunBond
Production Technology
Meltblown ElectrostaticSpinning
Spunlace
Nonwoven Fabrics
Traditiona
Woven Fabrics
A disposable designed
for a single use
Superior strength
and durability 4
48.11
2014.1~11
6.29 8.68 7.29
15.91
19.19
16.09
13.69
11.88
9.76
1.11
5.94
5.44
2012 2013 2014.1~9
3%
17%
37%
43%
13%
19%
26%
42%
18.9%
14.1%
41.7%
25.3%
37
45.68
38.58
211
533
266358 358
688805
912
1081
1359 13201303
1208
Nan Liu
Revenue Breakdown
Source: Company Filings
Unit:ton
Disposable Surgical gowns Fabrics
SpunlanceNonwoven Fabrics
Air Through & Thermal BondNonwoven Fabrics
Wet wipes & Cosmetics
5
Unit:NT$ hm
Spunlace
Thermal Bond
2014.1~11
Nan Liu
6
Revenue Breakdown (by country)
Source: Company Filings
13.7 12.6 11.3 9.6
8.9 12.7 19.8
18.1
6.3 5.3
6.3
4.8 5.8
5.7
7.2
5.0 0.7 0.7
1.1
1.1
2011 2012 2013 2014.1~9
2%
25.1%
16.4%
17.8%
38.7%
2%
34.2%
15.4%
14.3%
34.1%
2.4%
43.3%
15.8%
13.8%
24.7%
2.8%
46.9%
12.9%
12.4%
25.0%
37
45.7
38.635.4others
Asia
Japan
China
Taiwan
Revenue 100%
48.11
Nan Liu
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Location
Qiaotou plant
(Headquarters)Yenchao plant
Shanghai PudongSuZhou
NingBoHangZhou
1.Center of Shanghai and Hangzhou
2.100km away from Pudong airport (1.5 hour drive)
3.10 km away from Jiashan South Railway Station
Pinghu plant
PingHu factory (China)
Office
Employee dormitory
6.2m Spunlace Line4.8m Spunlace Line
ThermalBondedLine
New Thermal Bond
a.Surgical gowns Fabricsb.Industry wipesc.3D Dust removal dry wipesd.Spunlace fabrics
Full run time Apr 2015
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Wet wipes & Cosmetics
ThermalBondedLine
Nan Liu
Industry Overview
Source:ANFA 2011
Chemicalbonded
5%Thermalbonded
6%
Needlepunched
25%
Spunlaced
13%
Spunbonded/MB
45%
Other/Dry-
laid
4%
Wet-laid
2%
Nan Liu
Industry View
Source: http://www.nonwovens-industry.com/issues/2014-09/ ;Nonwoven Industry magazine, 2014
2011 2012 2013 company Sales$ country 2011 2012 2013 Nonwovens Sales Sales$ country
1 1 1 Freudenberg $1.65 bn Germany 31 41 21 Lydall $226 mn US
2 2 2 DuPont $1.40 bn US 13 23 22 Japan Vilene $204 mn JP
5 3 3 Ahlstrom $1.35 bn FI 16 24 23 Asahi Kasei $200 mn JP
3 4 4 Kimberly-Clark $1.30 bn US 17 24 CECEP Costin New Materials Group $199 mn HK
4 5 5 Polymer Group, Inc. (PGI) $1.20 bn US 20 26 25 Mitsui Chemicals $186 mn JP
8 7 6 Glatfelter $835 mn US 24 25 26 Union Industries $181 mn Italy
7 6 7 Fitesa $697 mn US 29 27 Gulsan $180 mn Turkey
6 8 8 Johns Manville $670 mn US 35 28 Dalian Ruiguang Nonwoven Group $176 mn CHINA
33 9 9 Suominen $515 mn FI 23 27 29 Jacob Holm $171 mn FR
12 10 Bonar $407 mn NL 35 28 30 Fibertex Nonwovens $166 mn Denmark
11 11 TWE Group $402 mn Germany 37 40 31 Jofo Nonwovens $162 mn CHINA
14 16 12 Companhia Providencia $394 mn Brazil 38 38 32 Nan Liu Enterprise $152 mn Taiwan
27 30 13 Georgia-Pacifi c $380 mn US 31 32 Tenowo $152 mn Germany
11 13 14 Sandler $367 mn Germany 34 33 34 Hassan Group $150 mn Turkey
10 14 15 Avgo l Nonwovens $342 mn Israel 32 34 34 Precision Custom Coatings $150 mn US
12 15 16 Hollingsworth & Vose $322 mn US 30 35 36 Propex Holdings $140 mn US
15 19 17 First Quality Nonwovens $310 mn US 25 37 37 Toyobo $129 mn JP
19 18 18 Toray Advanced Materials $290 mn JP 28 32 38 Andrew Industries $127 mn UK
22 20 19 Pegas Nonwovens $269 mn US 39 39 38 Spuntech Industries $127 mn Israel
18 21 20 Fibertex Personal Care $263 mn Denmark 40 Mogul $113 mn Turkey
Nonwovens Industry International Top40 Companies
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Nan Liu
Competitive Advantage
Plup/Spunlace nonwoven fabrics
account for 20% of overall medical
use nonwoven. DuPont is the major
supplier with 75-78% of market
share, followed by Nanliu’s 20%.
SMMS Nonwoven still accounts for
80% of medical use nonwoven
market given lower price
Source:CNITA 2012
outsourcing Finishing Processing
Longer lead-time and more costly
Garment OEMs
Nanliu’s one-stop production:From manufacture of spunlace NW
to finishing processing
Pros:Shorter lead-time
Nan Liu
Core Competance (on Spunlace Fabric)
Before fine tune
Nanliu's experienced senior engineers and RDs with over
20+ years in operations enjoying a very good reputation
on quality and quick delivery around the world.
After Nanliu’s fine tune
What is
Nanliu’s
advantage if
competitors
in China
purchase the
same
equipments?
High Quality production:
100-10,000 class Clean room
One-stop production:
From NW to end product (mask, wet wipe)
(we say “one dragon style”)
EDI pure water lab (for wet wipe)
Spunlace NW:
Application includes surgical gown and repetitive use wipes
The widest Spunlace production line of 6.2M of the world
Automated production machines
(for face mask and baby wipes)
Nan Liu
Core Competance (on Spunlace Fabric、Wet wipes)
Nan Liu
Industry Overview
Source:ANFA 2011
Nan Liu
Industry Overview
Rural couples in
Shanghai and
Guangzhou have
been entitled to have
a second child
Potential National
DeploymentDebate Over One-Child Policy
Source:Frost & Sullivan
China's urban population 0-3 years old, 2006~2015
Unit:people
Nan Liu
Industry Overview
16
According to China regulations, name and
address of the local manufacturer must be
highlighted on the outer packing, which
helps Nanliu to gain increasing traction
from new customers.
Nan Liu
Industry Overview
Diaper sales Diaper Consumer structure
2011 China’s Diaper Consumer Ratio
BabyDiaper
AdultDiaper
Baby Diaper Adult Diaper
Unit:hundred million piece
source:China paper Association、GF securities
Nan Liu
Industry Overview
source:China paper Association、GF securities
source:China paper Association、GF securities
Baby Diaper Market penetration
Adult Diaper Market penetration
China
Japan
North America
2011 TOP 10 Baby Diaper brand name in China2011 Diaper Market penetration
Nan Liu
Financial Highlights (by month)
2012.Jan ~ 2014.Nov Consolidated revenue
Unit:NT$ hundred million
unit:NT$ hundred million
Consolidated revenue
Jan Feb Mar Apr May June July Aug Sep Oct NovJan~No
v
2014 3.96 3.8 4.83 4.07 4.5 4.75 3.88 3.93 4.84 4.52 5.01 48.11
YOY 11.86% 45.04% 36.44% 6.96% 12.74% 16.30% 8.91% 3.28% 31.35% 12.84% 16.29% 17.42%
3.54
2.62
3.54 3.81 3.99
4.08 3.57
3.80 3.68 4.00
4.30 4.71
3.96 3.80
4.83
4.07 4.50
4.75
3.88 3.93
4.84 4.52
5.01
0.69 0.6
0.981.19
0.43
1.09 1
0.47
0.052
1.39
1.96
3.7679
2.64
3.03
Nan Liu
Source: Company Filings
Financial Highlights (by year)
YOY 12.9%
Net profit(unit:NT$ hundred million)
Ramp-up period for China site
1.Material price Soaring2. Flooding hurt us
2.33 1.86
2.81 3.09
1.03
2.58 2.38
1.45
0.10
2.32
3.19
5.39
3.75 4.17
EPS
Earnings Per share (NT$)
Nan Liu
Source: Company Filings
Financial Highlights (by year)
YOY 11.2%
10.6811.66
13.0714.25
15.3916.95
19.04
23.06
28.67
35.3337
45.68
38.58
17.07%14.33%
19.38%21.05%
18.71% 18.11% 17.51%19.80%
13.72%12.11%
14.35%
19.77% 19.72%
6.46% 5.15%7.50% 8.35%
2.79%6.43% 5.25%
2.04%0.18%
3.93% 5.30%8.25% 7.85%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
0
4
8
12
16
20
24
28
32
36
40
44
48
Nan Liu
Source: Company Filings
Financial Highlights
Consolidated Revenue ( unit:NT$ hundred million)
Gross Margin %
Net Margin % (after tax)
188254
217 245 256 268 237
89
122
9491 98 109
107100
131
123153
158159
13096
123
109
153156
160
12563
77
124
11397
108
97
102.1Q 102.2Q 102.3Q 102.4Q 103.1Q 103.2Q 103.3Q
7.7%
8.46%
9.91%
10.24%
18.7%
8.14%
8.15%
11.99%
11.95%
20.1%
7.7%
7.79%
12.38%
12.55%
20.34%
8.68%
7.03%
11.77%
11.76%
18.79%
11.18%
8.6%
9.9%
11.1%
19.6%
6.48%
10.31%
10.39%
11.03%
21.34%
6.49%
9.15%
9.89%
10.24%
19.39%
9.72
11.1811.06
13.0212.6
13.33
12.66
Income(Before Tax)
Income fromOperations
Operating Expenses
Gross Profit
Net Income(After Tax)
Revenue(100%)
Nan Liu
Source: Company Filings
Financial Highlights
Nan Liu
12.04%
8.45%
15.22%
12.28%
17.38%
19.32%
7.06%
15.64%
13.72%
6.12%
0.69%
16.72%18.26%
23.45%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Return on Equity (ROE)
1.Material price Soaring2. Flooding hurt us
Ramp-up period for China site
Source: Company Filings
Financial Highlights (by year)
Nan Liu
Financial Highlights (by year) Source: Company Filings
Source: Company Filings
Selected Cash Flow Statement Items
NT$ mm 2009 2010 2011 2012 2013 2014.09.30
Net profit 47 53 139 272* 482* 441*
Cash from Operations 52 182 279 471 692 365
Cash from Investing (134) (173) (207) (687) (387) (232)
Cash from Financing 106 81 (20) 168 (137) (245)
Effect of Exchange Rate changes on cash and cash
equivalents19 5
Cash and Cash Equivalents,end of period 398 291
Capex (115) (150) (169) (592) (474) (211)
Depreciation & Amortization 150 145 157 193 216 191
Note : 2012 and 2013 be used IFRS;* is Net profit before tax
Selected Balance Sheet Items
NT$ mm 2009 2010 2011 2012 2013 2014.09.30
Cash and Cash Equivalents 136 201 260 210 398 291
Short-Term Borrowings 744 743 780 452 688 481
Long-Term Debt 656 722 713 1121 467 608
(Short+Long) term Debt 1400 1465 1493 1573 1155 1089
Net Debt (1264) (1264) (1233) (1363) (757) (798)
Total Equity 784 738 929 1217 1996 2153
Net Debt / Total Equity 161.22% 171.27% 132.72% 112.00% 37.93% 37.06%
Note : 2012 and 2013 be used IFRS;
Business strategy
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Undertaking period :Household goods
Developing period :Hot Air & Thermal Bonding Fabrics
Growing period :Spunlace Fabrics, Baby wet wipes, Facial
maskForward period:Start Running in China, Disposable Surgical
gowns fabricsExcellence period: Research and innovation leader
1978~1987年 1988~1998 1999~2007 2008~20181978~1987 2018~
A New Plant in Taiwan
2014.09.26 2014.09.26
2014.11.19 2014.11.19
Nan Liu
Thank you for your attention.
Have a great day.
The End
Thank you