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

APT Satellite Holdings / Equity Bottom-Up

<p>APT Satellite (APT) is an Asian satellite operator with stable revenue and earnings, a healthy financial position, and no significant corporate governance issues. Due to overcapacity and pricing pressure within the industry, it currently trades on an EV/EBITDA of roughly 3.0 times and at 0.57 times book value. There is 60.1% upside to a conservative replacement cost valuation of HKD5.12 per share making APT an attractive investment opportunity. The overcapacity and pricing pressure may continue in the short term but the company’s current valuation is pricing in too much pessimism limiting the downside.</p>

APT Satellite (APT) is an Asian satellite operator with stable revenue and earnings, a healthy financial position, and no significant corporate governance issues. Due to overcapacity and pricing pressure within the industry, it currently trades on an EV/EBITDA of roughly 3.0 times and at 0.57 times book value. There is 60.1% upside to a conservative replacement cost valuation of HKD5.12 per share making APT an attractive investment opportunity. The overcapacity and pricing pressure may continue in the short term but the company’s current valuation is pricing in too much pessimism limiting the downside.

Asia Satellite Telecom Holdings Ltd (1135 HK)

APT Satellite- Operating Efficiency and Cheap Valuation Creates an Attractive Investment Opportunity