investor conference · 1973 yc founded with initial production of welded pipes & tubes ... 2016...
TRANSCRIPT
2019.11.12
Investor Conference
Chan Lieh-LinFINANCIAL DEPT. DEPUTY GENERAL MANAGER
Table of Contents
Company Profile
Performance
Advantage
Prospect
Company Profile
1973 YC founded with initial production of welded pipes & tubes
1999 Listed in Gre Tai Securities Market (GTSM) (TPE: 2034)，
Capital: USD 32 million
2001 Shijou mill launched and increased the production of welded tubes
2004 CR service center launched
2005 HR service center launched
2007 Douliou mill 1 CR/HR service center launched
2012 Rebranded from Yeun Chyang to YC INOX
2016 Capital increased to USD 136 million
2017 YC INOX new trademark registered
2019 Douliou mill 2 new welded pipe factory launched
2019 Establishment of YC INOX TR
Company Profile
Established : 31/01/1973
Number of Employees: Around 900
Capital: NT$ 4,071 million (USD 136 million)
Date of listed in Taiwan Stock Exchange Corporation
:17/09/2001
Main Products:
Stainless Steel Coil / Sheet / Plate
Stainless Steel Tube / Pipe
Stainless Steel Flat Bar / U Channel / Angle
TAIPEI OFFICE
KAOHSIUNG
OFFICE
Shijou Mill (2001)
Head Office
Tube
Square meters around 47,000 m²
Puoshing Mill (1973)
Pipe
Square meters around 45,000 m²
Douliou Mill 1 (2007)
CR & HR Coil Service Center
Square meters around 73,000 m²
Location
Douliou Mill 2 (2019)
Pipe
Square meters around 68,000 m²
Main Product
COILSHEET/PLATE
PIPE TUBE
Capacity
Total Capacity = 35,800 Ton/M
No.1 in Taiwan
Top 5 welded stainless steel
pipe/tube producer worldwide*
No.1 in Taiwan
Top 5 stainless steel
coil service center worldwide
Pipe/Tube
15,800 Ton/M
Sheet/Plate/Coil
20,000 Ton/M
* Rated by Austria SMI (Steel Market Intelligence) magazine in 2017
Material Supplier
TISCO / FUXIN
BAHRU STAINLESS (ACERINOX)
YUSCO / TANG ENG / WALSIN / YYS
OUTOKUMPU
POSCO
TSINGSHAN
Slitting Machine
Coil Polish Machine
CR Cut-to-Length Line
HR Cut-to-Length Line
Blank Cut-to-Length Line
Mirror Polish Machine
Plasma Cutting Line
Shearing Machine
Equipments (Sheet / Plate / Coil)
Laser Welding
Press Brake Machine
20” Continuous Pipe Mill
14”-84” Forming Roller
On-line MF Induction Solid
Solution Annealing Furnace
Solid Solution Annealing
Furnace ~ up to 52”
Equipments (Pipe / Tube)
Global Sales Channels
Quality Assurance
Global Sales - Geography
Performance - Ratio by Product
Year 2017 2018 2019Q1~Q3
Stainless Steel Tube / Pipe
46.5% 48.9% 49.1%
Stainless Steel Coil / Sheet / Plate
53.5% 51.1% 50.9%
Net Sales(in billions)
19.27 19.13 12.58
Performance – Stainless Steel Tube / Pipe
YC's Market Share in Taiwan
Year 2016 2017 2018
Export 43.9% 44.4% 46.5%
Domestic 23.7% 24.4% 23.2%
Performance - Profitability
Amounts in millions of NTDItem\Year 2017 2018 2019Q1~Q3Net Sales 19,266 19,130 12,577
GROSS PROFIT 1,995 2,020 1,381 OPERATING INCOME 1,092 1,131 801
NET INCOME 816 910 653
Performance - Profitability (cont’)
Item\Year 2017 2018 2019Q1~Q3
Gross Margin 10.4% 10.6% 11.0%
Operating Expense Ratio 4.7% 4.7% 4.6%
Operating Income Ratio 5.7% 5.9% 6.4%
Earnings Per Share 2.00 2.23 1.60
Performance - Profitability (cont’)
Dividend policy for last five years
Year EPS(NT$)Cash
Dividend(NT$)Stock
Dividend(NT$)Sum(NT$)
Annual Avg. Stock Price
Yield Rate
2014 2.66 2.00 - 2.00 26.31 7.60%
2015 1.30 1.00 1.00 2.00 21.48 9.31%
2016 1.95 1.80 - 1.80 23.48 7.67%
2017 2.00 1.80 - 1.80 25.88 6.96%
2018 2.23 1.80 - 1.80 25.98 6.93%
0
1
2
2014 2015 2016 2017 2018
2.00
1.00
1.80 1.80 1.80
1.00
Div
ide
nd
/NT
$
Cash Dividend(NT$) Stock Dividend(NT$)
Advantage
Well knowledge and control of raw material
sourcing and market information
Innovative and matured production technical
Products of each mill are clearly distinguished
Worldwide marketing channels
One stop purchasing with abundant products
Prospect
Douliou mill II operation started
Oversea production mill planning
New product development with high value-added
and economics of scale
Establishment of diversified business for
sustainable operation
Your Choice
For Stainless
Thank you, please advise