Feng Hsin iron

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Feng Hsin iron Steel 2015 TT Company
Presentation
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Company overview

• Founded on January 1969
• Both headquarter productions are in Houli,
  Taichung County
• Around 800 employees companywide
• Listed since May 25th, 1992
• Raised capital is NT5,838m

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Product/capacity

• Annual steel production 1.9m tons
• ( Main early stage product is billet )
• Annual steel rolling capacity 1.8m tons
• (Main finished products are structural steel,
  bar/bar in coil, and rebar)

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Historic annual sales, 1998-2007
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Main product mix
  2003   2003   2004   2004   2005   2005   2006   2006   2007   2007  
  k tons k tons k tons k tons k tons
Structural steel 395 27 394 26 388 26 397 25 413 25
Bar/Bar in coil 430 29 469 31 377 25 428 27 457 28
Rebar 635 43 653 43 724 49 737 47 784 47
Total 1460 100 1516 100 1489 100 1562 100 1654 100
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Export trend product mix
Export volume and of total sales
Export product breakdown, 2007
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Income statement, 2003-1H08
  2003   2003   2004   2004   2005   2005   2006   2006   2007   2007  
  NTm of rev NTm of rev NTm of rev NTm of rev NTm of rev
Revenue 16,843 100.0 24,921 100.0 23,569 100.0 25,337 100.0 31,479 100.0
COGS -14,100 -83.7 -18,994 -76.2 -19,177 -87.4 -20,607 -81.3 -26,849 -85.3
Gross profit 2,744 16.3 5,927 23.8 4,392 18.6 4,730 18.7 4,630 14.7
Operating profit 1,553 9.2 4,650 18.7 2,912 12.4 3,237 12.8 3,129 9.9
Non-core income 88 0.5 194 0.8 70 0.3 482 1.9 304 1.0
Pre-tax 1,641 9.7 4,844 19.4 2,982 12.7 3,719 14.7 3,433 10.9
Net income 1,243 7.4 3,712 14.9 2,202 9.3 3,031 12.0 2,594 8.2
EPS (NT) 2.19   6.55   3.88   5.35   4.58  
  1H07   1H08   YoY comparison YoY comparison
  NTm of rev NTm of rev NTm /-
Revenue 14,958 100.0 22,674 100.0 7,716 51.6
COGS -12,576 84.1 -17,893 -78.9 -5,317 42.3
Gross profit 2,382 15.9 4,781 21.1 2,399 100.7
Operating profit 1,647 11.0 3,868 17.1 2,221 134.9
Non-core income 187 1.3 127 0.6 -60 -32.1
Pre-tax 1,834 12.3 3,995 17.6 2,161 117.8
Net income 1,337 8.9 3,294 14.5 1,957 146.4
EPS (NT) 2.29   5.64   3.35  
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Dividend policy, 2003-2007
2008 shipment projection
  Shipment volume (k tons) Breakdown
Structural steel 464 26.9
Bar/Bar in coil 460 26.6
Rebar 804 46.5
Total 1,728 100.0
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2008 Operation Highlights

• We are currently undergoing an upgrade of our
  steel rolling production. In addition to rebar,
  the new facility is also capable of producing
  large-size round bars and flat bars. While
  expanding the product offerings, the upgrade is
  also increasing our annual capacity by 55k tons,
  which include 38k tons of large-size round bars
  (70mm-130mm) and 17k tons of flat bars
  (200mm-250mm).
• It is our commitment to continuously invest in
  production efficiency improvement and sustain our
  100 billet self-sufficiency.
• Feng Hsin has form a joint venture with China
  Steel and Sumitomo Metals to invest in a US574m
  cold rolling/galvanizing production plant in
  Vietnam. The stakes are 10, 51 and 35
  respectively in the steel mill with 1.5m tons of
  annual capacity.