Quality-Value Investing

Marc Melendez, CFA

Emerging Market Small and Mid Cap Equities

Reperio Capital

Reperio Capital Research was founded in 2013 with the goal of better serving the investment community with in-depth, high quality, value oriented research.

Reperio means to discover in latin. Using value investing principles, we aim to discover a minimum of 12 investment opportunities per year within the Emerging Markets Small and Mid Cap universe.

We take a business owners perspective with a long term investment horizon. We conduct bottom up, fundamental research. We focus on downside risks and require a significant margin of safety in any investment to prevent the permanent loss of capital. All factors differentiating our research from the short term, trading focus of traditional research providers.

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/17340" target="_blank" data-smartkarma-citation="entities:17340:1">Goldpac (3315 HK)</a> is the largest financial integrated circuit (IC) card manufacturer in China with a 15% market share. The company’s revenue is declining due to macroeconomic weakness, financial regulation, and pricing pressures. Despite the top line weakness, Goldpac continues to invest in R&amp;D to create new revenue streams and recently constructed a Fintech Hub to develop additional opportunities.
Despite the core business weakness, the company is profitable with an average ROIC of 72.0% since 2012 and no losses over the same period. It has a net cash position, a 2017 payout ratio of 100%, and no corporate governance concerns.
Using conservative assumptions, the company has 50% upside on both an asset valuation and earnings valuation, and limited downside due to its share price trading at its liquidation value. With a 10% dividend yield, you are adequately compensated to wait for the market to realize Goldpac’s value making the company a very attractive investment opportunity.

Goldpac (3315 HK) is the largest financial integrated circuit (IC) card manufacturer in China with a 15% market share. The company’s revenue is declining due to macroeconomic weakness, financial regulation, and pricing pressures. Despite the top line weakness, Goldpac continues to invest in R&amp;D to create new revenue streams and recently constructed a Fintech Hub to develop additional opportunities.
Despite the core business weakness, the company is profitable with an average ROIC of 72.0% since 2012 and no losses over the same period. It has a net cash position, a 2017 payout ratio of 100%, and no corporate governance concerns.
Using conservative assumptions, the company has 50% upside on both an asset valuation and earnings valuation, and limited downside due to its share price trading at its liquidation value. With a 10% dividend yield, you are adequately compensated to wait for the market to realize Goldpac’s value making the company a very attractive investment opportunity.

Goldpac- 10% Dividend Yield, 50% Upside with Limited Downside

Netherlands

Gemalto N.V. designs and manufactures security software for e-identity documents, chip payment cards, network authentication devices, and wireless modules. The Company also provides and operates systems to manage confidential data and secure transactions. Gemalto serves the telecommunications, financial services, e-government, and information technology security markets.

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Gemalto NV (GTO NA)

Goldpac- 10% Dividend Yield, 50% Upside with Limited Downside

Goldpac (3315 HK) is the largest financial integrated circuit (IC) card manufacturer in China with a 15% market share. The company’s revenue is...

Reperio Capital

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