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9781119391180

Value Investing in Asia The Definitive Guide to Investing in Asia

by ;
  • ISBN13:

    9781119391180

  • ISBN10:

    1119391180

  • Edition: 1st
  • Format: Paperback
  • Copyright: 2017-12-18
  • Publisher: Wiley

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Summary

A 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. Most value investing advice is geared toward US markets, leaving out the key guidance that pertains specifically to investing in publicly listed Asian companies — guidance that is critical for success. This book focuses on the opportunities and challenges of Asian markets, including current and historical case studies that illustrate various successes, risks and pitfalls. Step-by-step guidance helps you unearth great opportunities in Asia; from understanding the macroeconomic situation, to narrowing down on specific investment opportunities. Invaluable for both new and experienced investors, this practical reference shows you how to apply value investing principles specifically to Asian stocks.

Investing in Asia comes with an inherent set of unique challenges that must be understood before any decisions are made; some of these challenges are the result of operating practices, some are the result of regulatory issues and others come from the markets themselves — yet regardless of the source, value investors in particular bear the brunt of the obstacles. This book shows you what you need to know, and how to invest intelligently in Asian companies.

  • Step-by-step approach guides investors towards the practical application of value investing principles in Asia
  • Navigate the challenges unique to Asian investing
  • Examine real-life case studies that illustrate both risk and opportunity
  • Delve into the key markets in Greater China and South-East Asia
  • Includes exclusive interviews with well-known value investors in Asia

Despite the challenges and risks, Asian markets represent significant opportunity — especially for investors seeking value. Value Investing in Asia offers a practical reference for new and experienced investors, with real-world guidance toward intelligently investing in Asian markets.

Author Biography

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.

Table of Contents

Disclaimer 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

Supplemental Materials

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

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