VALUE INVESTING IN ASIA
"The book is a great contribution to the investing society. Stanley and Mun Hong have been able to put together the valuable experiences and wisdom of many outstanding Asian fund managers!"
Dr. Tan Chong Koay, Executive Chairman, Pheim Asset Management Sdn Bhd
"This is not just a book about value investing. Instead, it is a manual for value investing with an Asian twist that investors with an eye on the fastest–growing region in the world will reach for whenever they have questions that need answers."
Dr. David Kuo, CEO, The Motley Fool Singapore Pte. Ltd.
"Stanley Lim and Mun Hong have skillfully woven three things together in this book for the Asian investor: the key principles of value investing, where to identify the investment opportunities and the mine fields to side step in Asia. With these skills, the investor can start investing in Asia."
Wong Kok Hoi, CFA, Founder & CIO, APS Asset Management Pte. Ltd.
"In the search for value in Asia, discipline is key. Through easy–to–understand concepts and plenty of real life case studies, Stanley and Mun Hong have concisely detailed an investing process, incorporating quantitative and also qualitative factors to aid investors in their navigation through these waters."
Tan Chin Hwee, CFA, CA, Author of Asian Financial Statement Analysis
"Investing in Asia is never easy because it′s like navigating through a jungle. Stanley and Mun Hong have penned down a road map on how you can get in and out of the jungle safelywith your treasure intact."
Victor Chng and Rusmin Ang, Co–founders of FifthPerson.com; Authors of Value Investing in Growth Companies
About the Authors xxi
Chapter 1 Value Investing in Asia 1
The Investor and the Market
Why Value Investing Works
Three Types of Value to Be Found
Chapter 2 Key Developments in Asia 11
What Is in Asia?
What Has Happened in Asia?
Chapter 3 Uniquely Asia 31
What Asia Has Going for It
Corporate Governance in Asia
Disclosure and Transparency
“Smart” Money Gets Hit Too
Government – The Elephant in the Room
Don’t Bet Your House on Legal Prosecution
Activism and Shorting
Chapter 4 The Future of Investing in Asia 75
ASEAN, Pushing Ahead
The Wall Street of Asia
From ‘‘Guanxi’’ to Transparency
The Future of Healthcare
The Asian Consumer Story Lives On
Chapter 5 Using the Right Process 89
Current Earning Power Value
Narrow Your Search – Screening
Screen Your Screens
The 5–Fingers Rule
The Importance of the 5–Fingers Rule
Chapter 6 Research Like a Businessman 115
Getting the Right Data
Annual Reports Are Your Best Friend
Making Sense of an Annual Report
Don’t Stop at One
Why Should I Read a Competitor’s Annual Report?
Who Do I Speak To?
It is More Than Just the Numbers
Chapter 7 Finding Red Flags 141
What are Red Flags?
Financial Red Flags
Non–Financial Red Flags
Chapter 8 Three Simple Valuation Techniques to Live By 161
Discounted Cash Flow
Always Remember Your Margin of Safety
Chapter 9 How Everything Comes Together 185
Value Through Assets – Hongkong Land Holdings Limited
Current Earning Power – Tingyi (Cayman Islands) Holdings Corporation
Growth in Cyclicality – First Resources Limited
Special Situation – Dalian Wanda Commercial Properties Co., Limited
High Growth – Tencent Holdings Limited Conclusion 221
An Interview with Wong Kok Hoi of APS Asset Management
An Interview with Tan Chong Koay of Pheim Asset Management
An Interview with Wong Seak Eng, Kevin Tok and Eric Kong of Aggregate Asset Management
An Interview with Yeo Seng Chong of Yeoman Capital Management
An Interview with David Kuo of Motley Fool Singapore
STANLEY LIM PEIR SHENQ, CFA, has worked in the investment industry for many years. Most recently, he was an analyst for The Motley Fool Singapore. He has written close to 2,000 investment articles online. Stanley is currently the chief editor for ValueInvestAsia.com.
CHEONG MUN HONG, CFA, started his career as an investment analyst at a Singapore–licensed Trust Company. Over the course of his work, he has dealt with investments involving public and privately held entities. Mun Hong sits on the boards of listed companies.