2013 q1-q3 company report - pahsco · 2017-01-13 · 6 . introduction to the . medical product...
TRANSCRIPT
Presented by Tim Chiang
2013 Q1-Q3 Company Report
2
Our Milestone
1977 PAHSCO formed with a stock Capital of NT$ 1 Million 1980 Started the production & trading of central medical gas equipment
2001 Tong Lo Factories received ISO9001 & CE Certification
2002 Tong Lo (F0) received GMP Certification 2004 PAHSCO became a public listed company in the stock market 2005 Tong Lo (F0’) formed to expand the production of sterilize medical product 2006 The automatic warehousing system was officially implemented in August
1987
2009 Expanded 11,997m2 of production capacity (F3)
2008 Constructed New factory (F1) on January 15th
2008
2010
Obtained 7,085 m2 of land
Issued its second series of secured domestic convertible bonds
Implemented Oracle ERP systems 2011
Implemented BPM system
Since 2009, PAHSCO has been awarded with Top-Ten ranking
for information transparency and disclosure for 5 consecutive years. 2012
Tong Lo (F2) constructed & expanded the production of gas piping products
Taichung Office
4 Factories in Tong-Lo Industrial Park
Taipei Headquarter
Kaohsiung Office
Location
Miaoli
Taiwan
Certificate
224,103 245,633 256,253 270,349 284,126
0
50,000
100,000
150,000
200,000
250,000
300,000
2009 2010 2011(e) 2012(e) 2013(f)
5
Introduction to the Medical Product Industry and Future
Global Market for Medical Device and Equipment – Steady growth year by year
Source: Espicom Business Intelligence(2011); IEK(2011/04)
Percentage of Global Market (2010)
Prediction of Global Market
Growth rate maintained between 5%-6% in recent years.
America, 44%
Asia, 19%
Western Europe,
28%
Eestern Europe,
5%
Middle East and
Africa, 3%
Unit
:Million (U
SD
)
6
Introduction to the Medical Product Industry and Future
Prediction of Global Medical Product Market
Source: Espicom Business Intelligence(2011); IEK(2011/04)
Estimated percentage by category
Estimated percentage of Global Market by country
Medical Disposal Device
17% Diagnostic Imaging Products
24%
Orthodontic Products
6%
Orthopodic and
Implantable Products
17%
Others 36%
2012(e) USD 270.3B
United States 38%
Japan 10% Germany
8%
France 4%
Others 40%
2011(e) USD 256.3B
7
Medical Device and Equipment Industry in Mainland China
Market Proportion Analysis U
nit
:Million (U
SD
)
China market has maintained over 10% of the growth rate in recent years.
Resource: IEK(2011/04)
6,695 7,446
8,590
9,748 11,013
0%
5%
10%
15%
20%
0
2,000
4,000
6,000
8,000
10,000
12,000
2009 2010 2011E 2012F 2013F
市場規模 Market Proportion 年均成長率 Avg. Annual Growth Rate
8
Main Geographic Areas of Global Medical Device Market
4~5X
5X
9
Overall Index of Geographic Areas
Developed Countries with Subcontract Manufacturing Focus
Countries with Self-Branding Focus
US Japan Germany China Taiwan
Overall Index
Population (Million) 310 127 81.6 1350 23
Age (0~14:15~64:65up) 20 : 67 : 13 13 : 65 : 22 14 : 66 : 20 17.6:73.6:8.9 16 : 73 : 11
Birth Rate:Death Rate 14 : 8 9 : 9 8 : 10 12 : 7 9 : 7
Fertility Rate 2.1 1.4 1.4 1.8 0.94
GDP (Million USD) 14,582,400 5,497,812 3,309,669 5,878,629 430,096
GDP per Capita(USD) 47,084 43,161 40,542 4,393 17,660
Economic Growth Rate 2.90% 5.10% 3.60% 10.3% 4.21%
Medical Industry Index
Health Expenditure per Capita(USD) 7,410 3,321 4,629 169 1,260
Health Expenditure / GDP(%) 16.20% 8.30% 11.30% 4.6% 6.00%
Change of Health Expenditure per Capita
3~4% Steady Growth
Rate
Adjusting (Negative growth approx. in every 5
years)
Positive growth (Growth Rate not
steady)
15% and above High-speed Growth Rate
2~3% Growth Rate
Hospital Beds per 1000 persons (unit) 3.10 13.80 8.20 2.45 6.78
Source: World Bank, Espicom, IEK
10
Population Structure of Geographic Areas Due to the low
birth rate in Taiwan, the population
structure is aging. Population of age above 65
Country Percentage of population above age 65 Period of time expected
7% 10% 14% 20% 30% 7%→14% 10%→20% 20%→30%
Taiwan 1993 2005 2017 2025 2040 24 20 15
Singapore 2000 2010 2016 2023 2034 16 13 11
South Korea 2000 2007 2017 2026 2040 17 19 14
Japan 1970 1985 1994 2005 2024 24 20 19
China 2001 2010 2026 2036 - 25 20 -
United States 1942 1972 2015 2034 - 73 62 -
Germany 1932 1952 1972 2009 2036 40 57 27
UK 1929 1946 1975 2026 - 46 80 -
Italy 1927 1966 1988 2007 2036 61 41 29
Switzerland 1887 1948 1972 2015 - 85 67 -
France 1864 1943 1979 2020 - 115 77 -
Source:
1. Council for Economic Planning and Development
2.United Nations, World Population Prospects:The 2006 Revision.
11
Others 26%
Japan 28%
Taiwan 19%
China 9%
U.S. & Canada
9%
Germany 6%
Saudi Arabia
3%
Major Exporting Countries
PAHSCO 2012
Japan 23%
Taiwan 18%
China 10%
Germany 8%
U.S. & Canada
8%
Saudi Arabia
5%
PAHSCO 2013 Q1-Q3
Others 28%
12
80% 85% 90% 95% 100%
2009
2010
2011
2012
2013 Q1-Q3
87.30%
90.50%
91.03%
90.50%
91.06%
5%
6.60%
5.85%
6.90%
6.95%
7.70%
2.90%
3.12%
2.60%
1.99%
Medical Device Medical Equipment Piping System
Percentage of Product Categories
13
Tubes, 28%
CSS, 27% Bags, 13%
Others, 23%
Wound Drainage
System, 5% Bottles, 2%
Respiratory, 2%
Disposable Medical Device
Closed Suction System (CSS) Sales Revenue:382 Million(NTD) % of Product TR: 27% (2nd )
Tubes Sales Revenue:400 Million(NTD) % of Product TR: 28% (1st )
Respiratory Sales Revenue:25 Million(NTD) % of Product TR: 2%
Bags Sales Revenue:185 Million(NTD) % of Product TR: 13% (3rd)
PAHSCO 2012
14
Disposable Medical Device
Tubes Sales Revenue:272 Million(NTD) % of Product TR: 25% (2nd )
Closed Suction System (CSS) Sales Revenue:312 Million(NTD) % of Product TR: 29% (1st )
Respiratory Sales Revenue:22 Million(NTD) % of Product TR: 2%
Bags Sales Revenue:131 Million(NTD) % of Product TR: 12% (3rd)
PAHSCO 2013 Q1-Q3
CSS, 29%
Tubes, 25% Bags, 12%
Others, 23%
Wound Drainage
System, 7% Bottles, 2%
Respiratory, 2%
15
Client Types of Medical Device & Equipment Unit: Thousand (NTD)
2012
Domestic: 18.80% Export: 81.20 %
2013 Q1-Q3
Domestic: 18.41 % Export: 81.59%
ITEM OBM ODM/OEM Total OBM ODM/OEM Total
Device 536,250 765,485 1,301,735 449,213 545,074 994,287
Equipment 78,414 20,742 99,156 57,163 18,751 75,914
Total 614,665 786,226 1,400,891 506,376 563,825 1,070,201
% 43.88% 56.12% 100.00% 47.32% 52.68% 100.00%
16
Sales by Quarter Unit: Thousand (NTD)
YEAR 2006 2007 2008 2009 2010 2011 2012 2013 Q1-Q3
Q1 131,736 192,669 222,680 246,505 299,794 325,890 342,607 357,542
Q2 204,176 218,285 221,649 282,752 319,461 372,298 341,626 382,503
Q3 236,581 204,471 240,016 294,085 310,737 342,243 369,016 351,901
Q4 166,433 217,421 276,562 311,086 318,310 303,188 385,459
Total 738,926 832,847 960,906 1,134,428 1,248,302 1,343,619 1,438,708 1,091,946
Growth 39.2% 12.7% 15.4% 18.1% 10.0% 7.64% 7.08% 3.67%
Gross Margin
27.26% 28.92% 33.25% 39.37% 41.07% 38.67% 39.24% 38.66%
17
Financial Information
ITEM 2006 2007 2008 2009 2010 2011 2012 2012Q1-Q3
2013Q1-Q3
EPS 2.03 2.45 2.73 (0.23) 5.49 5.39 4.75 3.58 3.84
ROE % 14.52 19.13 19.27 (1.4) 28.14 22.62 19.89 15.60 15.69
ROA % 10.43 14.24 12.88 (0.93) 22.20 18.93 16.68 13.02 12.97
Pay-out % 79 28.5 56.4 Nil 75 74.21 84.21 - -
Net Profit Margin 10.7 14.1 13.6 (1.12) 27.55 24.06 21.79 22.46 23.20
Net Cash per Share 4.9 4.2 7.2 8.0 9.8 10.4 12.4 10.86 11.23
*2010EPS 5.49 in the weighted average capital ; 2010EPS 6.37 in the year-end capital
*2010Pay-out: $3 Cash Dividend and $1.12 Stock Dividend presented at the Shareholders’ Meeting.
*2011Pay-out: $3 Cash Dividend and $1 .00Stock Dividend presented at the Shareholders’ Meeting. *2012Pay-out: $4 Cash Dividend presented at the Shareholders’ Meeting on June 11, 2013
18
Financial Information * Ignore the evaluation loss of financial liabilities
*2010EPS 5.44 in the weighted average capital ; 2010EPS 6.31 in the year-end of capital
*2010Pay-out: $3 Cash Dividend and $1.12 Stock Dividend presented at the Shareholders’ Meeting.
*2011Pay-out: $3 Cash Dividend and $1.00Stock Dividend presented at the Shareholders’ Meeting. *2012Pay-out: $4 Cash Dividend presented at the Shareholders’ Meeting on June 11, 2013
ITEM 2006 2007 2008 2009 2010 2011 2012 2012Q1-Q3
2013Q1-Q3
EPS 2.03 2.45 2.73 4.24 5.49 5.39 4.75 3.58 3.84
ROE % 14.52 19.13 19.27 22.71 28.14 22.62 19.89 15.60 15.69
ROA % 10.43 14.24 12.88 16.15 22.20 18.93 16.68 13.02 12.97
Pay-out % 79 28.5 56.4 Nil 75 74.21 84.21 - -
Net Profit Margin 10.7 14.1 13.6 20.69 27.55 24.06 21.79 22.46 23.20
Net Cash per Share 4.9 4.2 7.2 8.0 9.8 10.4 12.4 10.86 11.23
Medical Device Market Revenue – World
19
Source: Frost & Sullivan, 2010
Total Revenue Unit: Billion(USD)
5.94
6.53
8.9
12.47
14.25
18.4
20.48
21.07
23.45
24.34
37.1
48.08
55.8
0 10 20 30 40 50 60
Cosmetic Surgery & Lifestyle Products
Neurology & Neuromuscular Devices
Intravenous & Infusion Devices
Urology & Gynecology Devices
Ophthalmic & Optical Devices
General Surgical Therapeutic Devices
Single Use Surgical & Disposables
Minimally Invasive Surgical Devices
Wound Care and Biomaterials
Others
Orthopedic and Prosthetic Devices
Anesthetic and Respiratory Devices
Cardiology and Thoracic Surgery
20
Respiratory Disposable Market Size – Facts And Figures in China
Inpatients % of Respiratory System Diseases
City
Hospital
County-level
Hospital Average
2009 12.23% 16.46% 14.35%
2010 12.41% 16.43% 14.42%
Medical Device Market Revenue – China
21
6.7 7.4 8.9
10.2 11.6
13.2 14.9
02468
10121416
2009 2010 2011(e) 2012(e) 2013(f) 2014(f) 2015(f)
Total Revenue Unit: Billion(USD)
Resource: IMS Health, Espicom, 2011醫材年鑑, IEK
22
PAHSCO 2008 2009 2010 2011 2012 2012 Q1-Q3
2013 Q1-Q3
Total Revenue
(NTD) 0. 96 B 1.13 B 1.25 B 1.34 B 1.44 B 1.05 B 1.09 B
China 5.1 % 6.5 % 6.7 % 8.5 % 9.0 % 9.2% 10.2%
49 M
73 M 83 M
115 M 130 M
97 M 111 M
2008 2009 2010 2011 2012 2012 Q1-Q3
2013 Q1-Q3
(NTD) 14%
50%
13% 38%
Our Sales Revenue in China
14%
Information about the Leading Firms
23
Kimberly Clark Covidien Resmed CareFusion
Headquarter Irving,TX
Dublin
SD,CA
SD,CA
Stock Exchange NYSE, BMV NYSE NYSE, ASX NYSE 07/01/2013 Stock Price 97.17 57.17 44.69 37.35 Market Cap
(USD) 37.63 B 28.59 B 6.57 B 8.39 B EPS (ttm) 4.70 3.85 2.13 1.66
Source: Yahoo Finance, FR of the companies, *Estimated Data
2012 Revenue (USD) 21,063 M 11,852 M 1,369 M 3,598 M
Profit Margin 32.00% 57.49% 59.97% 50.14% Net Profit Margin 8.68% 16.07% 18.62% 8.14%
Revenue of Respiratory
Devices (% of TR)
541M* (2.57%)
743M (6.27%)
632M (46.17%)
266M (7.39%)
Mask and Tubing for NIV
Related Products for Invasive Ventilation
For Delivering Humidified or Warm Gas
Mask
& Tubing
Anesthetic
Oxygen Therapy
Aerosol Therapy
Sleep Therapy
Emergency Care
Airw
ay
Laryngeal Mask
Closed Suction Set
ET tube
Tracheostomy Tube
Guedel Airway
Laryngoscope
Filter/ Hum
idifier
Filter
Artificial Nose
Nebulizer
Active / Passive Humidifier
24
PAHSCO existing products
Respiratory Devices
25
Thank you for your attention & patience!