SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-01/DiSa-CEO.jpg' alt='DiSa CEO' />
 </figure>
 <div class='content-caption'>DiSa CEO</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
It all began with a shoplifting incident in a German supermarket.

SGX-listed digital security firm DiSa Ltd was born from a germ of an idea in entrepreneur Eddie Chng’s mind 10 years ago after seeing a thief in action. “It was September 2009, and we were in Berlin for the IFA consumer electronics trade show,” he recalled.

“On our way to dinner, we had stopped by a supermarket to buy batteries. That was when I saw a man slip some SD cards into the pockets of his winter jacket, and walk out of the store without paying.”

A pithy comment then by a friend – “Shoplifting is rampant in Europe, and if anyone can solve this problem, it will be big business!” – lingered in Chng’s mind long after the incident.

“As an engineer, my inspiration has always been fixing a problem with a solution that no one has thought of yet,” he said. “So a year later, after much research, we came up with an anti-theft technology for retailers that makes electronic devices non-functional, until they are activated by a PIN code at the point of purchase.”

However, getting retailers to adopt the technology proved to be an uphill battle. The small retail stores in Germany were reluctant to pay, and after nearly two years of fruitless cold calls and knocking on doors, Chng turned his attention to the US market.

DiSa charges manufacturers and suppliers for the technology, but to get manufacturers to sign on, the company focused on reaching out to retailers, since the latter stand to lose most from theft. If retailers are keen to use the technology, their manufacturers will have to include it in their products, Chng reasoned.

“We changed our strategy to focus on the big boys in the US – it was a tough journey, but it was the right decision. As the Chinese proverb goes, first the bitter, then the sweet,” he smiled. 
 

Overcoming Hurdles

It took a year of pitching and canvassing before he secured a meeting with the country’s largest retailer, and another 12 months before the first proof-of-concept testing took place in September 2016. Finally, in May 2017, after proving the technology worked, the retail giant implemented DiSa’s Point-of-Sale Activation (PoSA) solution in its 5,000 stores across the US, for products ranging from tablets and GPS devices to digital cameras and TV sets.

“You have to overcome a myriad of obstacles to succeed in the US, and for a Chinaman like me entering the market, it’s been really fulfilling and gruelling at the same time,” Chng said.

“We believe that if we can secure the top five retailers in the US as our clients, we will be able to set the standard for retail security in the country.”

Retail theft – known as shrink – has a huge financial impact on the world’s largest economy. In 2018, the average shrink rate was 1.38%, costing the US an estimated US$50.6 billion. About two-thirds of shrink came from shoplifting, organised retail crime and employee theft, according to data from the 2015-2019 National Retail Security Survey.

“DiSa has essentially reinvented the retail experience for customers, suppliers and retailers, as our technology enables a true open-sell experience, reduces shrink and eliminates return fraud,” he noted.

This also allows for better product placement in stores, as the items are not encumbered by physical locks, bulky cables or glass cabinets. Traditional locks and cables can also be broken easily with the right tools. “Stores that have implemented this open-sell experience effectively see a 20% average sales lift,” he added.

“While it may be too early to say that DiSa has succeeded, we certainly have secured a ticket to embark on a successful journey in this market.”

Making A Comeback

This could constitute the beginnings of a comeback for Chng, who faced several setbacks with his business ventures two decades ago. In 2003, he emerged as a white knight for financially troubled garment retailer and property developer Heshe Holdings. The company was subsequently renamed Equation Summit, and then DiSa.

This milestone marked a new chapter in his entrepreneurial journey. “Basically, in this brutal world of entrepreneurship, you need tenacity, perseverance and belief in what you can do.”

“Passion keeps you going, yes. But at the end of the day, it’s all about your product having commercial value,” he added.

DiSa’s name is coined from the first two syllables of the word “digital safety”. Listed on SGX Catalist since 1992, it has a current market capitalisation of about S$20 million. Chng, who has held leadership roles in diverse fields spanning product research and development, innovation, marketing and sales, was appointed DiSa’s Managing Director and Chief Executive Officer in February 2005.

The Group’s PoSA solution, which incorporates Smart Barcodes, fully protects a product from manufacturing through to point-of-sale, making the device non-functional until purchased and activated. Its Smart Gates sensors allow retailers to set alarms and display unpaid items, while Smart Checkout lets shoppers complete their purchases by digitally scanning their products without having to remove items from their cart.

The Group has also introduced Smart Barcodes to the food retail sector. This tool empowers both retailers and consumers to track expiry dates, production batches and ingredients, so as to prevent food spoilage.

So far, DiSa has made good progress in its efforts to boost adoption of its asset protection technology. In 2018, South Korea’s Samsung Electronics equipped its state-of-the-art Galaxy Tab A 8.0 model with the DiSa Smart Lock protection, which renders stolen tablets non-operational. Swagtron, a maker of electric rideables in the US, also uses DiSa’s Smart Barcode technology in its classic hoverboards to combat retail theft and return fraud.

Last March, US organic produce supplier Bailey Produce tagged its bananas with Smart Barcode technology, which tracks each fruit bunch from farm to table. Singapore telco M1 has also partnered with DiSa to roll out the first-of-its-kind mobile phone warranty programme protecting phone users against cyber theft. If phone users suffer financial losses from theft of their e-wallets, they can make a claim on DiSa’s website for an amount up to the retail cost of the phone. Every device under the warranty programme will also be equipped with DiSa’s Smart Barcode system.

Dreaming Big

 

Looking ahead, the Group plans to proliferate its technology and platform across US retail stores to build its footprint. “We want to be the standard for asset protection in the country. It’s a very big dream, it’s a very tough dream, but I think we have a good shot at achieving it.”

“There are also high barriers of entry to this market, and we have the first-mover advantage,” he added.

Another factor in DiSa’s favour is that, despite the rapid acceleration of e-commerce sales, the US market remains dominated by brick-and-mortar retail stores. “The majority of consumers still prefer to drive to stores to shop. There’s also the P-U-T or Pick Up Today trend, where shoppers buy online and collect their items offline,” Chng noted.

With the roll-out of 5G wireless networks gaining traction globally, the disruption of normal routines is inevitable. “DiSa is ready to harness opportunities arising from disruptive technologies,” he added.

And with greater deployment of artificial intelligence in all aspects of daily life, DiSa remains optimistic that adoption rates for PoSA, serialisation – an anti-theft solution for non-electronics items like apparel, shoes and bags – as well as other asset protection solutions, will grow.

“We’ve disrupted retail shrink with our technology, and we’re confident it will see widespread adoption in the US.”

The biggest challenge, however, is stemming the flow of red ink, Chng admitted. “We’re in investment mode and still burning cash. With our existing cash resources, we’re confident that the 2020/2021 financial year will be a better one.”

For the financial year ended 30 June 2019, DiSa reported a net loss attributable to shareholders of S$17.0 million. Cash and cash equivalents stood at about S$13 million, which includes S$50,000 in pledged deposits.

Outside the office, Chng can be found with his two daughters, aged 21 and 23, and his son, 25. “I want my kids to grow up to be well-rounded and holistic individuals. I don’t need them to score straight As or be overly focused on grades – education is about progression, not perfection.”

He emphasises simple values – don’t judge, always respect others. “I always believe that you must focus on the fundamentals first,” he said.

“You will be able to accomplish the bigger things only after you get the basics right.”

DiSa Ltd

DiSa, listed on SGX Catalist since 1992, focuses on leveraging in-house R&amp;D capabilities to innovate and digitalise new products and services using disruptive technologies. Since 2006, the Group, which has offices in Singapore, China and the US, has actively reviewed its businesses to focus on high-value services with long-term potential, while divesting non-core segments to complement its growth. Its technology solutions for the retail industry include the Point-of-Sale Activation (PoSA) Smart Lock, the world’s first digital asset-protection solution that discourages theft by making consumer electronics products non-functional until purchased and activated.  
The company website is: <a href="https://digital-safety.com/">digital-safety.com.</a> 
Click <a href="https://www2.sgx.com/securities/equities/532">here</a> for the company's StockFacts page. 
For the three months ended 30 September 2019 financial results, click <a href="https://links.sgx.com/1.0.0/corporate-announcements/CGWODPEXR8KU1XGQ/2019-11-08%20-%20DL%20-%201Q2020%20Results.pdf">here</a>.

About kopi-C: the Company brew

Text: Jennifer LH Tan Photo: Company file kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations. 
For previous editions of kopi-C: the Company brew, please click <a href="http://edm.sgx.com/a/hBd-CspB86%24MfB90noBAABR54ZH/link10">here</a>.   
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to <a href="jennifer.t@sgx.com">jennifer.t@sgx.com</a>.
</body></html>


      
    
    DiSa CEO


It all began with a shoplifting incident in a German supermarket.

SGX-listed digital security firm DiSa Ltd was born from a germ of an idea in entrepreneur Eddie Chng’s mind 10 years ago after seeing a thief in action. “It was September 2009, and we were in Berlin for the IFA consumer electronics trade show,” he recalled.

“On our way to dinner, we had stopped by a supermarket to buy batteries. That was when I saw a man slip some SD cards into the pockets of his winter jacket, and walk out of the store without paying.”

A pithy comment then by a friend – “Shoplifting is rampant in Europe, and if anyone can solve this problem, it will be big business!” – lingered in Chng’s mind long after the incident.

“As an engineer, my inspiration has always been fixing a problem with a solution that no one has thought of yet,” he said. “So a year later, after much research, we came up with an anti-theft technology for retailers that makes electronic devices non-functional, until they are activated by a PIN code at the point of purchase.”

However, getting retailers to adopt the technology proved to be an uphill battle. The small retail stores in Germany were reluctant to pay, and after nearly two years of fruitless cold calls and knocking on doors, Chng turned his attention to the US market.

DiSa charges manufacturers and suppliers for the technology, but to get manufacturers to sign on, the company focused on reaching out to retailers, since the latter stand to lose most from theft. If retailers are keen to use the technology, their manufacturers will have to include it in their products, Chng reasoned.

“We changed our strategy to focus on the big boys in the US – it was a tough journey, but it was the right decision. As the Chinese proverb goes, first the bitter, then the sweet,” he smiled. 
 

Overcoming Hurdles

It took a year of pitching and canvassing before he secured a meeting with the country’s largest retailer, and another 12 months before the first proof-of-concept testing took place in September 2016. Finally, in May 2017, after proving the technology worked, the retail giant implemented DiSa’s Point-of-Sale Activation (PoSA) solution in its 5,000 stores across the US, for products ranging from tablets and GPS devices to digital cameras and TV sets.

“You have to overcome a myriad of obstacles to succeed in the US, and for a Chinaman like me entering the market, it’s been really fulfilling and gruelling at the same time,” Chng said.

“We believe that if we can secure the top five retailers in the US as our clients, we will be able to set the standard for retail security in the country.”

Retail theft – known as shrink – has a huge financial impact on the world’s largest economy. In 2018, the average shrink rate was 1.38%, costing the US an estimated US$50.6 billion. About two-thirds of shrink came from shoplifting, organised retail crime and employee theft, according to data from the 2015-2019 National Retail Security Survey.

“DiSa has essentially reinvented the retail experience for customers, suppliers and retailers, as our technology enables a true open-sell experience, reduces shrink and eliminates return fraud,” he noted.

This also allows for better product placement in stores, as the items are not encumbered by physical locks, bulky cables or glass cabinets. Traditional locks and cables can also be broken easily with the right tools. “Stores that have implemented this open-sell experience effectively see a 20% average sales lift,” he added.

“While it may be too early to say that DiSa has succeeded, we certainly have secured a ticket to embark on a successful journey in this market.”

Making A Comeback

This could constitute the beginnings of a comeback for Chng, who faced several setbacks with his business ventures two decades ago. In 2003, he emerged as a white knight for financially troubled garment retailer and property developer Heshe Holdings. The company was subsequently renamed Equation Summit, and then DiSa.

This milestone marked a new chapter in his entrepreneurial journey. “Basically, in this brutal world of entrepreneurship, you need tenacity, perseverance and belief in what you can do.”

“Passion keeps you going, yes. But at the end of the day, it’s all about your product having commercial value,” he added.

DiSa’s name is coined from the first two syllables of the word “digital safety”. Listed on SGX Catalist since 1992, it has a current market capitalisation of about S$20 million. Chng, who has held leadership roles in diverse fields spanning product research and development, innovation, marketing and sales, was appointed DiSa’s Managing Director and Chief Executive Officer in February 2005.

The Group’s PoSA solution, which incorporates Smart Barcodes, fully protects a product from manufacturing through to point-of-sale, making the device non-functional until purchased and activated. Its Smart Gates sensors allow retailers to set alarms and display unpaid items, while Smart Checkout lets shoppers complete their purchases by digitally scanning their products without having to remove items from their cart.

The Group has also introduced Smart Barcodes to the food retail sector. This tool empowers both retailers and consumers to track expiry dates, production batches and ingredients, so as to prevent food spoilage.

So far, DiSa has made good progress in its efforts to boost adoption of its asset protection technology. In 2018, South Korea’s Samsung Electronics equipped its state-of-the-art Galaxy Tab A 8.0 model with the DiSa Smart Lock protection, which renders stolen tablets non-operational. Swagtron, a maker of electric rideables in the US, also uses DiSa’s Smart Barcode technology in its classic hoverboards to combat retail theft and return fraud.

Last March, US organic produce supplier Bailey Produce tagged its bananas with Smart Barcode technology, which tracks each fruit bunch from farm to table. Singapore telco M1 has also partnered with DiSa to roll out the first-of-its-kind mobile phone warranty programme protecting phone users against cyber theft. If phone users suffer financial losses from theft of their e-wallets, they can make a claim on DiSa’s website for an amount up to the retail cost of the phone. Every device under the warranty programme will also be equipped with DiSa’s Smart Barcode system.

Dreaming Big

 

Looking ahead, the Group plans to proliferate its technology and platform across US retail stores to build its footprint. “We want to be the standard for asset protection in the country. It’s a very big dream, it’s a very tough dream, but I think we have a good shot at achieving it.”

“There are also high barriers of entry to this market, and we have the first-mover advantage,” he added.

Another factor in DiSa’s favour is that, despite the rapid acceleration of e-commerce sales, the US market remains dominated by brick-and-mortar retail stores. “The majority of consumers still prefer to drive to stores to shop. There’s also the P-U-T or Pick Up Today trend, where shoppers buy online and collect their items offline,” Chng noted.

With the roll-out of 5G wireless networks gaining traction globally, the disruption of normal routines is inevitable. “DiSa is ready to harness opportunities arising from disruptive technologies,” he added.

And with greater deployment of artificial intelligence in all aspects of daily life, DiSa remains optimistic that adoption rates for PoSA, serialisation – an anti-theft solution for non-electronics items like apparel, shoes and bags – as well as other asset protection solutions, will grow.

“We’ve disrupted retail shrink with our technology, and we’re confident it will see widespread adoption in the US.”

The biggest challenge, however, is stemming the flow of red ink, Chng admitted. “We’re in investment mode and still burning cash. With our existing cash resources, we’re confident that the 2020/2021 financial year will be a better one.”

For the financial year ended 30 June 2019, DiSa reported a net loss attributable to shareholders of S$17.0 million. Cash and cash equivalents stood at about S$13 million, which includes S$50,000 in pledged deposits.

Outside the office, Chng can be found with his two daughters, aged 21 and 23, and his son, 25. “I want my kids to grow up to be well-rounded and holistic individuals. I don’t need them to score straight As or be overly focused on grades – education is about progression, not perfection.”

He emphasises simple values – don’t judge, always respect others. “I always believe that you must focus on the fundamentals first,” he said.

“You will be able to accomplish the bigger things only after you get the basics right.”

DiSa Ltd

DiSa, listed on SGX Catalist since 1992, focuses on leveraging in-house R&amp;D capabilities to innovate and digitalise new products and services using disruptive technologies. Since 2006, the Group, which has offices in Singapore, China and the US, has actively reviewed its businesses to focus on high-value services with long-term potential, while divesting non-core segments to complement its growth. Its technology solutions for the retail industry include the Point-of-Sale Activation (PoSA) Smart Lock, the world’s first digital asset-protection solution that discourages theft by making consumer electronics products non-functional until purchased and activated.   
The company website is: digital-safety.com.  
Click here for the company's StockFacts page.  
For the three months ended 30 September 2019 financial results, click here.

About kopi-C: the Company brew

Text: Jennifer LH Tan Photo: Company file  kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  
For previous editions of kopi-C: the Company brew, please click here.    
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to jennifer.t@sgx.com.



Actionable Insights, Assured Alpha, ANTYA Investments

ANTYA Investments

Actionable Insights, Assured Alpha

Investing That Empowers You

ANTYA Investments Inc., regulated by the Ontario Securities Commission, is registered to provide wealth management services in Canada. ANTYA manages institutional, and high net-worth client portfolios on a discretionary basis. Our investment philosophy embraces a Core-Satellite approach.  The core of the portfolio is chosen from a group of fifteen asset classes. A few stock specific asymmetrical investment opportunities comprise the satellite segment. ANTYA invests only in global, large capitalization, and investment grade companies.  

In ANTYA’s view, <a href="https://www.smartkarma.com/entities/24409" target="_blank" data-smartkarma-citation="entities:24409:1">Xiaomi Corp (1810 HK)</a> (“Xiaomi” or the “Company”) is a reluctant low-margin device and electronic hardware manufacturer, masquerading as a high-margin subscription-based Internet Services (“IS”) provider. Accordingly, the Company sports a stretched valuation.We believe that it is now an opportune time to place bearish bets on Xiaomi not only because of global macro backdrop, but more importantly due to the notice issued by the Chinese Ministry of Education on August 30, 2018, titled “Implementation Plan for the Prevention and Control of Children and Adolescent’s Myopia”, which could materially dent growth and margins in the Company’s IS segment, its bread and butter.

In ANTYA’s view, Xiaomi Corp (1810 HK) (“Xiaomi” or the “Company”) is a reluctant low-margin device and electronic hardware manufacturer, masquerading as a high-margin subscription-based Internet Services (“IS”) provider. Accordingly, the Company sports a stretched valuation.We believe that it is now an opportune time to place bearish bets on Xiaomi not only because of global macro backdrop, but more importantly due to the notice issued by the Chinese Ministry of Education on August 30, 2018, titled “Implementation Plan for the Prevention and Control of Children and Adolescent’s Myopia”, which could materially dent growth and margins in the Company’s IS segment, its bread and butter.

Xiaomi Corporation–50% Downside Conceivable Given “One Foot,One Punch,One Inch” Initiative of China

Equity Capital Markets

According to various media reports, <a href="https://www.smartkarma.com/entities/24409" target="_blank">Xiaomi Corp (1810 HK)</a> has successfully priced its IPO for HK$ 17/share, at the low-end of its proposed pricing range. We believe that there is 50% downside from the current levels, over the next twelve months, unless Xiaomi can come up with a miracle cure for "something". It has already ridden the incestuous wave of China internet investments including fair value gains on <a href="https://www.smartkarma.com/entities/26755" target="_blank">iQIYI Inc (IQ US)</a> and on its investments in Ant Technologies of <a href="https://www.smartkarma.com/entities/787" target="_blank">Alibaba Group Holding Ltd (BABA US)</a> fame.One caveat to our outlook remains the uncertainty surrounding the fate of <a href="https://www.smartkarma.com/entities/6922" target="_blank">Zte Corp H (763 HK)</a> because the longer ZTE stays on the sidelines, the longer is the runway of success for Xiaomi.

According to various media reports, Xiaomi Corp (1810 HK) has successfully priced its IPO for HK$ 17/share, at the low-end of its proposed pricing range. We believe that there is 50% downside from the current levels, over the next twelve months, unless Xiaomi can come up with a miracle cure for "something". It has already ridden the incestuous wave of China internet investments including fair value gains on iQIYI Inc (IQ US) and on its investments in Ant Technologies of Alibaba Group Holding Ltd (BABA US) fame.One caveat to our outlook remains the uncertainty surrounding the fate of Zte Corp H (763 HK) because the longer ZTE stays on the sidelines, the longer is the runway of success for Xiaomi.

Xiaomi Inc. – IPO Priced at the Bottom of Range – 50% Downside Forthcoming

Partner, River Valley Asset Management

River Valley Asset Management

Partner

Singapore-based boutique asset management firm

River Valley Asset Management is a Singapore-based boutique asset management firm. Our team at RVAM strongly believes in being a trusted steward of our clients' wealth across generations.

Each of our fund managers has years of rich portfolio management experience over multiple market cycles at world-class investment houses. We bring our clients the combined strength of our investment team to manage their financial portfolios and to provide bespoke guidance on all aspects of their financial health.

We offer multi-asset class expert investment advice to accredited investors who are family offices, high net worth individuals and institutional investors to preserve and grow our clients' wealth.

The fund management team of the company includes Homiyar Vasania, Anand Ramachandran and Jamshed Desai.

MSCI Emerging Markets ESG Leaders Index / ESG

In a period where the financial press is inundated by coverage of rising global uncertainty, whether due to a recalcitrant northern regime playing with forbidden toys or the rapidly falling hopes of an investment-led US boom or the catch-22 bind European policy makers find themselves while setting monetary policy, we are focusing on a more mundane but pertinent issue for day-to-day investments: corporate governance in Asia.Recent events in various Asian markets have brought to focus the differing levels of governance and the implications for investor returns. Last month we saw a de-facto board-level coup in one of the most respected Indian companies - a flagbearer of corporate governance with one of the highest ranks in the region: Infosys. Then we heard that the Vice-Chairman and heir apparent to one of the largest and most successful companies in Asia, Samsung Electronics, was indicted and sentenced to five years in prison. In Hong Kong the news headlines were about how the Chinese communist party had successfully enshrined itself in the articles of association of more than thirty Chinese State-Owned Enterprises listed on the Hong Kong stock exchange.Investors have, many a time, asked us how we deal with corporate governance issues. Our usual response is that Asia has a diverse set of companies with varying issues so there is no one-size-fits-all answer. The investment team at <a href="http://www.rivervalleyasset.com/the-team" target="_blank">RVAM</a>, with over seventy years of combined experience, has experienced multiple market cycles and observed corporate governance in Asia evolving over time to fit the changing ecosystem. Ultimately, as investors, we look at all issues through the classic lens of expected return versus the risk being taken to achieve that return. Corporate governance concerns either lower the potential of cashflow returning to investors and/ or often increase the risk attributable to achievement of that potential return, which in turn may make a great business look poor from an investment attractiveness perspective.

In a period where the financial press is inundated by coverage of rising global uncertainty, whether due to a recalcitrant northern regime playing with forbidden toys or the rapidly falling hopes of an investment-led US boom or the catch-22 bind European policy makers find themselves while setting monetary policy, we are focusing on a more mundane but pertinent issue for day-to-day investments: corporate governance in Asia.Recent events in various Asian markets have brought to focus the differing levels of governance and the implications for investor returns. Last month we saw a de-facto board-level coup in one of the most respected Indian companies - a flagbearer of corporate governance with one of the highest ranks in the region: Infosys. Then we heard that the Vice-Chairman and heir apparent to one of the largest and most successful companies in Asia, Samsung Electronics, was indicted and sentenced to five years in prison. In Hong Kong the news headlines were about how the Chinese communist party had successfully enshrined itself in the articles of association of more than thirty Chinese State-Owned Enterprises listed on the Hong Kong stock exchange.Investors have, many a time, asked us how we deal with corporate governance issues. Our usual response is that Asia has a diverse set of companies with varying issues so there is no one-size-fits-all answer. The investment team at RVAM, with over seventy years of combined experience, has experienced multiple market cycles and observed corporate governance in Asia evolving over time to fit the changing ecosystem. Ultimately, as investors, we look at all issues through the classic lens of expected return versus the risk being taken to achieve that return. Corporate governance concerns either lower the potential of cashflow returning to investors and/ or often increase the risk attributable to achievement of that potential return, which in turn may make a great business look poor from an investment attractiveness perspective.

Corporate Governance and Asian Challenges

South Korea

COSMOAM&T Co., Ltd. manufactures, sells, and exports blank video & audio recording tapes including back-coated tapes, high speed recordable tapes, and video head cleaners.  The Company also produces recordable and rewritable optical discs, such as compact discs (CD), mini discs (MD), and digital video discs (DVD).

Hyundai IBT Co., Ltd. develops and manufactures various monitors. The Company'sproducts include thin film transistor-liquid crystal display (TFT-LCD), plasma display panel (PDP), and color display tubes (CDT) monitors. Imagequest also produces thin client (window based terminal) products and markets notebook computers.

E-Investment&Development Co., Ltd. develops and manufactures mobile modules. The Company produces slide hinge module of cellular phone and mock-up for cellular phone.

Sindoh Co., Ltd. manufactures office equipment such as copiers, facsimiles, printers, and copier related products.  The Company also offers financial services through its subsidiaries.

Kona I Co., Ltd. develops and provides electronic purse cards, called smartcards , which can be used for online and offline settlements and payments.  The Company also sells smart card readers, automatic teller machines, integrated transportation systems, and chips on board (COB) used in electronic cards.

Spigen Korea Co Ltd manufactures phone accessories.  The Company's main products include mobile phone cases, screen protectors and bags.

Samsung SDI Co., Ltd. specializes in developing Lithium Ion Battery (LIB) technology.  The Company also manufactures cathode ray tubes (CRTs) for televisions and computer monitors.  Samsung SDI also produces liquid crystal display (LCD) components and rechargeable batteries for cellular phones , personal digital assistants (PDAs), Energy Storage Systems and solar panels.

Samsung Electro-Mechanics Co., Ltd. manufactures a variety of electronic components used in computers, audio and video products, industrial electronics, and telecommunication equipment. The Company's products include multi-layer boards and capacitors, optical Pick Ups, deflection yokes (DY), keyboards, speakers, and light emitting diode (LED) products.

Samsung Electro Mechanics Co, Ltd. (009150 KS)

LG Display Co., Ltd. develops and manufactures digital display products.  The Company's products include thin film transistor-liquid crystal displays (TFT-LCD) for notebook and desktop computer monitors, TVs, mobile phones, and medical equipment.  LG Display provides its products mainly to overseas markets.

LG Innotek Co., Ltd. develops and produces cellular phone parts such as mini vibration motors, LCD modules, light emitting diode (LED), camera modules, protection circuit modules. The Company also manufactures liquid crystal displays (LCD) and plasma display panels (PDP) parts such as inverters, intelligent power modules, multi chip modules, and tuners.

Canon Inc. is a professional and consumer imaging solutions company and patent-holder of digital imaging technologies. The Company's products include networked multifunction devices, digital and analog copiers, computer peripherals, facsimile machines, image filing systems, camcorders, cameras and lenses, semiconductor, and broadcast and medical equipment.

Western Digital Corporation is a global provider of solutions for the collection, storage, management, protection and use of digital content, including audio and video. The Company's products include hard drives, solid-state drives, and home entertainment and networking products.

Quanta Computer Inc. manufactures and markets notebook computers and related peripheral equipment.

HP Inc. provides imaging and printing systems, computing systems, mobile devices, solutions, and services for business and home. The Company offers products which includes laser and inkjet printers, scanners, copiers and faxes, personal computers, workstations, storage solutions, and other computing and printing systems. HP sells its products worldwide.

Super Micro Computer, Inc. designs, develops, manufactures and sells server solutions based on modular and open-standard x86 architecture. The Company's products include servers, motherboards, chassis, and accessories.

Seagate Technology Holdings Public Limited Company offers computer hardware products. The Company designs, manufactures, and markets hard disk drives for enterprise applications, client compute applications, client non-compute applications, personal data backup systems, portable external storage systems and digital media systems.

FUJIFILM Holdings Corporation develops, sells and services Imaging, Information, and Document Solutions.  Its products include color films, digital cameras, photofinishing products and equipment.  The Group also manufactures medical and graphic art use equipment and materials, FPD materials, and optical devices, and provides services on office copy machines, printers, and related equipment.

NEC Corporation manufactures and markets computers, telecommunication equipment, electronic devices, semiconductors, and software.  The Company's products include printers, modems, cellular phones, plasma display panels (PDP), network systems, memory, integrated circuits (IC), thin film transistor-liquid crystal display (TFT-LCD), and printed circuit boards (PCB). NEC operates worldwide.

NetApp, Inc. provides storage and data management solutions. The Company's storage solutions include specialized hardware, software, and services that provide storage management for open network environments. NetApp  serves enterprises, government agencies, and universities worldwide.

BOE Technology Group Co., Ltd. manufactures display products. The Company produces display panels, sensor devices, and other products. BOE Technology Group supplies its products in mobile phones, tablets, notebooks, monitors, and other fields.

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Samsung Electronics (005930 KS)

DiSa: Redefining the Retail Experience

It all began with a shoplifting incident in a German supermarket. SGX-listed digital security firm DiSa Ltd was born from a...

Singapore Exchange Ltd (SGX)

Xiaomi Corporation–50% Downside Conceivable Given “One Foot,One Punch,One Inch” Initiative of China

In ANTYA’s view, Xiaomi Corp (1810 HK) (“Xiaomi” or the “Company”) is a reluctant low-margin device and electronic hardware manufacturer,...

ANTYA Investments

Xiaomi Inc. – IPO Priced at the Bottom of Range – 50% Downside Forthcoming

According to various media reports, Xiaomi Corp (1810 HK) has successfully priced its IPO for HK$ 17/share, at the low-end of its proposed pricing...

ANTYA Investments

Corporate Governance and Asian Challenges

In a period where the financial press is inundated by coverage of rising global uncertainty, whether due to a recalcitrant northern regime playing...

River Valley Asset Management

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)