HollySys Automation Technologies, Ltd. (NASDAQ:HOLI) Q1 2020 Earnings Conference Call - Final Transcript

Nov 13, 2019 • 08:00 pm ET

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HollySys Automation Technologies, Ltd. (NASDAQ:HOLI) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Your first question comes from the line of Kevin Luo from Morgan Stanley. Please ask your question.

Analyst
Kevin Luo

[Foreign Speech]

Executive
Baiqing Shao

[Foreign Speech]

Analyst
Kevin Luo

[Foreign Speech]

Executive
Arden Xia

And the first question for -- about this quarter compared the Railway Transportation compare decreased. So, what about this quarter will deliver of the ATP contract and also at end of this year in December around it, could you give us some hint about the delivering top line winning from your side of ATP on the rolling stock timeline. And also the differences between the rolling stock delivering and your ATP signalling control system delivering differences, I mean, it's well after for one month after delivering of the rolling stock or what kind of timeline.

And the second question for Industrial Automation backlog and current position is compared high within history. And could you give us the proposition breaking down by different sub verticals like in the thermal, the coal power, the chemical and petrochemical etc. And also please give us the prediction for the future trend within IA of the backlog. Thank you.

Executive
Baiqing Shao

[Foreign Speech]

Executive
Arden Xia

Let me finish the translation. The first question about ATP and actually it really depends on the CRC China Railway Corporation speed to require us to deliver sometimes at end of this year would catch up, sometimes not. So this really depends on the situation. And currently this year, we -- the CRC open bidding for 146 SaaS of ATP and we get 40 [Phonetic] SaaS ATP 30% and also it will be delivering for the coming months. The Industrial Automation actually will not provide the breaking down proportion for the backlog, but generally speaking for the new contract to separate by different industry like the power we take around 40% to 45%, chemical, petrochemical take around 40% to 45%.

And in future trend we still think the Industrial Automation will keep growth. And also we discussed just about the ATP whether or not will finish the delivering for the 40 SaaS of this time, but it still depends. And then finally CFO mentioned about, if considering the first quarter of this year and the second quarter together, we think the first half year of fiscal year 2020, the Railway Transportation should be compared increase because based on current backlog and the potential delivery, we think the revenue could catch up a positive growth.

Thank you, Kevin. Operator, next one please.

Operator
Operator

Your next question comes from the line of Alex Chang from Citi. Please ask the question.

Analyst
Alex Chang

[Foreign Speech]

Executive
Arden Xia

The question is for -- about Railway Transportation segment and also mentioned by Kevin, I want to continue to ask about the prediction for the performance of Rail Transportation for fiscal year 2020 because currently the CRC bidding process ended the market expectation. So what about the prediction for this fiscal year performance of Rail Transportation?

Executive
Baiqing Shao

[Foreign Speech]

Executive
Arden Xia

At end of this calendar year and the beginning of next