comfortable satisfactory joyful · 2012 2013 2014 3% 17% 37% 43% 13% 19% 26% 42% 19.5% 13.6% 42.1%...
TRANSCRIPT
南六企業股份有限公司 Nan Liu Enterprise CO.,LTD
股票代號:6504 Stock 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
2
Nan Liu
Company Profile
Establishment: Dec, 1, 1978
Chairman: MR. HUANG,CHIN-SAN
CEO: MR. HUANG,HUO-CUN
Capital: NT$726 million
Total employee: 808 (as of Jan 31, 2015)
TW:270 ;China:538
Factory Location:Qiaotou (Kaohsiung), YenChao (Kaohsiung),
Pinghu (Zhejiang, China)
Main products:Disposable surgical gowns Fabrics
Spunlance Nonwoven Fabrics
Wipes & Cosmetics( face masks…)
Air Through & Thermal BondNonwoven Fabrics 3
Nan Liu
Carded Tech
Mechanical Bonding
Hot Air Bonding Thermal Bonding
Spunlance Needlepunch
Chemical Bonding
Spunmelt Tech Airlaid Tech Wetlaid Tech
SpunBond
Production Technology
Meltblown Electrostatic Spinning
Spunlace
Nonwoven Fabrics
Traditiona
Woven Fabrics
A disposable designed
for a single use
Superior strength
and durability 4
211
533
266
358 358
688
805
912
1081
1359
1320 1303
1208
1271
514
6.29 8.68 10.44
15.91
19.19
22.49
13.69
11.88
13.23
1.11
5.94
7.27
2012 2013 2014
3%
17%
37%
43%
13%
19%
26%
42%
19.5%
13.6%
42.1%
24.8%
Thermal Bond
Spunlace
37 hm
45.7 hm
53.4 hm
Nan Liu Revenue Breakdown
Source: Company Filings 5
Unit:NT$ hundred million
Disposable Surgical gowns Fabrics
Spunlance Nonwoven Fabrics
Air Through & Thermal Bond Nonwoven Fabrics
Wet wipes & Cosmetics
Spunlace
Thermal Bond
Unit:ton
13.7 12.6 11.3 13.4
8.9 12.7 19.8
25.6 6.3 5.3
6.3
6.3
5.8 5.7
7.2
6.6
0.7 0.7
1.1
1.5
2011 2012 2013 2014
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%
48.0%
12.3%
11.8%
25.1%
37 hm
45.7 hm
53.4 hm
35.4 hm
Nan Liu
6
Revenue Breakdown (by country)
Source: Company Filings
others
Asia
Japan
China
Taiwan
Revenue 100% Unit:NT$ hundred million
Nan Liu
7
Location
Qiaotou plant
(Headquarters) Yenchao plant
Shanghai Pudong SuZhou
NingBo HangZhou
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 Line 4.8m Spunlace Line
ThermalBonded Line
New Thermal Bond
a.Surgical gowns Fabrics b.Industry wipes c.3D Dust removal dry wipes d.Spunlace fabrics
Full run time Apr 2015
8
Wet wipes & Cosmetics
ThermalBonded Line
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
10
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 Competitiveness(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
Deployment Debate 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
Baby Diaper
Adult Diaper
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 China 2011 Diaper Market penetration
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 5.33 5.28
Nan Liu
Financial Highlights (by month)
2013.Jan ~ 2015.Jan Consolidated revenue
Unit:NT$ hundred million
unit:NT$ hundred million
Consolidated revenue Jan
2014 5.28
YOY 33.38%
0.69 0.6
0.98 1.19
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 Soaring 2. 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$)
Nan Liu
Source: Company Filings
Financial Highlights (by year)
YOY 11.2%
10.68 11.66
13.07 14.25
15.39 16.95
19.04
23.06
28.67
35.33 37
45.68
38.58
17.07% 14.33%
19.38% 21.05%
18.71% 18.11% 17.51% 19.80%
13.72% 12.11%
14.35%
19.77% 19.72%
6.46% 5.15% 7.50% 8.35%
2.79% 6.43% 5.25%
2.04% 0.18%
3.93% 5.30% 8.25% 7.85%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
0
4
8
12
16
20
24
28
32
36
40
44
48
Nan Liu
Source: Company Filings
Financial Highlights
Consolidated Revenue ( unit:NT$ hundred million)
Gross Margin %
Net Margin % (after tax)
2014.1~12
53.4
188 254
217 245 256 268 237
89
122
94 91 98 109
107 100
131
123 153
158 159
130 96
123
109
153 156
160
125 63
77
124
113 97
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
11.18 11.06
13.02 12.6
13.33
12.66
Income (Before Tax)
Income from Operations
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 Soaring 2. 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
26
Undertaking period :Household goods
Developing period :Air through & Thermal Bonding
Fabrics Growing period :Spunlace Fabrics, Baby wet wipes, Facial
mask Forward period:Start Running in China, Disposable Surgical
gowns fabrics Excellence period: Research and innovation leader
1978~1987年 1988~1998
1999~2007
2008~2018
1978~1987
2018~
A New Plant in Taiwan (Excellence period 2018~)
2014.09.26 2014.09.26
2014.11.19 2014.11.19
2015.01.22 2015.01.22
A New Plant in Taiwan (Excellence period 2018~ )
2015.01.22
1 min ; don’t move
Will move to new plant
Nan Liu
Thank you for your attention.
Have a great day.
The End
Thank you