Description
Book SynopsisA practical, step-by-step guide to value investing in Asian stocks Value Investing in Asia offers a uniquely targeted guide to investors seeking new opportunities in Asian markets.
Table of ContentsDisclaimer vii
Foreword xiii
Preface xv
Acknowledgments xix
About the Authors xxi
Chapter 1 Value Investing in Asia 1
Finding Value
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
Shareholder Structure
Succession
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
Asset Value
Current Earning Power Value
Growth Value
Special Situations
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?
Auditor’s Opinion
Financial Red Flags
Non-Financial Red Flags
Chapter 8 Three Simple Valuation Techniques to Live By 161
Price-to-Book Ratio
Price-to-Earnings Ratio
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
Interviews 225
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
Index 265
