Looking for No-Brainers in the Micro-Cap Space, The Mikro Kap

The Mikro Kap

Looking for No-Brainers in the Micro-Cap Space

Private investor from Croatia focused on finding no-brainer opportunities in the global micro-cap space

Equity Bottom-Up

<ul><li><p>The company is headquartered in Singapore and listed under the ticker $TCU.SI</p></li><li><p>As the name implies, CBA is a credit bureau business that operates across Asia.</p></li><li><p>It currently has operations in Singapore, Malaysia, Cambodia, and Myanmar, with plans to expand in China and Vietnam shortly.</p></li></ul>

The company is headquartered in Singapore and listed under the ticker $TCU.SIAs the name implies, CBA is a credit bureau business that operates across Asia.It currently has operations in Singapore, Malaysia, Cambodia, and Myanmar, with plans to expand in China and Vietnam shortly.

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.

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;</strong>SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
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<h2>Credit Bureau Asia Ltd</h2>
<h3>Initiatives in the pipeline</h3>
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<li>CBA declared its inaugural interim dividend of 1.7 Scts (implying a c.100% dividend payout ratio), ahead of its FY21F-22F guidance of at least 90%.</li>
<li>The Credit Bureau Act has come into effect. Winning the sole licence to collect and use FI commercial credit information is a key re-rating catalyst.</li>
<li>Reiterate Add. A gradual economic reopening could bolster volumes.</li>
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<p><strong>Softer 1H21 results due to slower Non-FI data growth and one-offs</strong><br>CBA delivered a 1H21 revenue growth of 8.5% to S$22.3m, but missed our expectations by 8%. Adjusting for one-off items (listing expenses, job support scheme grants, disposal of Credit Bureau Malaysia), 1H21 PAT rose 15% yoy to S$8.8m, forming 43% of our full- year FY21F forecast. The miss came mainly from a relatively slower pace of revenue growth in the non-FI data business, which expanded 4.9% yoy to S$12.6m in 1H21 nonetheless. Earnings growth from the FI data segment rose comparably faster at 13.4% yoy to S$9.7m in 1H21, supported by stronger demand for new credit applications and reviews. CBA declared its inaugural interim DPS of 1.7 Scts, implying a c.100% dividend payout ratio — ahead of management’s c.90% guidance for FY21F-22F. However we cut our DPS estimates to 3.7Scts in FY21F, in line with our lower earnings estimates.</p>
<p><strong>Sustained volumes and new initiatives to drive stronger 2H21F</strong><br>We expect a stronger 2H21F for CBA from: 1) sustained volume growth in bulk risk reviews and new credit applications from its FI data business (higher profit margins), and 2) new initiatives, such as cross-selling credit information and product development using data from the Moneylenders Credit Bureau, and leveraging on its current data pool to develop analytics solutions. Also, a resurgence in Covid-19 cases across CBA’s regional markets could sustain bulk risk review volumes from both FIs and non-FIs.</p>
<p><strong>Continuing to forge regional alliances via joint ventures</strong><br>The Credit Bureau Act came into effect in May 21, allowing the Monetary Authority of Singapore to license and supervise credit bureaus in Singapore. To this end, CBA will apply (by end-2021) for the sole licence to collect and use commercial credit information from FIs. Further, discussions are underway to sign on all four new digital banks in Singapore as members of Credit Bureau Singapore. While providing volume upside, we are cognisant that two of the four new licences issued are digital wholesale banks, which would garner lower (although higher-valued) volumes. CBA’s Cambodian operations continued to execute well in 1H21, with higher credit report sales. In Myanmar, CBA has signed up c.30 FIs as bureau members and hopes to be operational by end-FY21F.</p>
<p><strong>Reiterate Add with a lower DCF-based TP of S$1.43</strong><br>We cut FY21-23F EPS by 7%-12% as we lower our growth assumptions for the Non-FI data business, and lower our DCF-based TP to S$1.43 (LT growth: 1.2%, WACC: 7.0%, risk-free rate: 1.5%, beta: 0.9). Re-rating catalyst: winning the licence to collect commercial credit information. Downside risk: prolonged political situation in Myanmar.</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.




Credit Bureau Asia Ltd
Initiatives in the pipeline





CBA declared its inaugural interim dividend of 1.7 Scts (implying a c.100% dividend payout ratio), ahead of its FY21F-22F guidance of at least 90%.
The Credit Bureau Act has come into effect. Winning the sole licence to collect and use FI commercial credit information is a key re-rating catalyst.
Reiterate Add. A gradual economic reopening could bolster volumes.





Softer 1H21 results due to slower Non-FI data growth and one-offs CBA delivered a 1H21 revenue growth of 8.5% to S$22.3m, but missed our expectations by 8%. Adjusting for one-off items (listing expenses, job support scheme grants, disposal of Credit Bureau Malaysia), 1H21 PAT rose 15% yoy to S$8.8m, forming 43% of our full- year FY21F forecast. The miss came mainly from a relatively slower pace of revenue growth in the non-FI data business, which expanded 4.9% yoy to S$12.6m in 1H21 nonetheless. Earnings growth from the FI data segment rose comparably faster at 13.4% yoy to S$9.7m in 1H21, supported by stronger demand for new credit applications and reviews. CBA declared its inaugural interim DPS of 1.7 Scts, implying a c.100% dividend payout ratio — ahead of management’s c.90% guidance for FY21F-22F. However we cut our DPS estimates to 3.7Scts in FY21F, in line with our lower earnings estimates.
Sustained volumes and new initiatives to drive stronger 2H21F We expect a stronger 2H21F for CBA from: 1) sustained volume growth in bulk risk reviews and new credit applications from its FI data business (higher profit margins), and 2) new initiatives, such as cross-selling credit information and product development using data from the Moneylenders Credit Bureau, and leveraging on its current data pool to develop analytics solutions. Also, a resurgence in Covid-19 cases across CBA’s regional markets could sustain bulk risk review volumes from both FIs and non-FIs.
Continuing to forge regional alliances via joint ventures The Credit Bureau Act came into effect in May 21, allowing the Monetary Authority of Singapore to license and supervise credit bureaus in Singapore. To this end, CBA will apply (by end-2021) for the sole licence to collect and use commercial credit information from FIs. Further, discussions are underway to sign on all four new digital banks in Singapore as members of Credit Bureau Singapore. While providing volume upside, we are cognisant that two of the four new licences issued are digital wholesale banks, which would garner lower (although higher-valued) volumes. CBA’s Cambodian operations continued to execute well in 1H21, with higher credit report sales. In Myanmar, CBA has signed up c.30 FIs as bureau members and hopes to be operational by end-FY21F.
Reiterate Add with a lower DCF-based TP of S$1.43 We cut FY21-23F EPS by 7%-12% as we lower our growth assumptions for the Non-FI data business, and lower our DCF-based TP to S$1.43 (LT growth: 1.2%, WACC: 7.0%, risk-free rate: 1.5%, beta: 0.9). Re-rating catalyst: winning the licence to collect commercial credit information. Downside risk: prolonged political situation in Myanmar.













(Non-SGX Report) Credit Bureau Asia Ltd: Initiatives in the Pipeline

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX</strong>.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
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<h2>Credit Bureau Asia Ltd</h2>
<h3>Venturing into Vietnam</h3>
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<li>CBA announced it will be entering into a JV with FiinGroup in its inaugural foray into Vietnam, aiming to provide analytics and data solutions to FIs.</li>
<li>The JV aims also to set up a credit bureau in Vietnam. CBA sees significant potential as c.38% of Vietnam’s 97m-strong population remain underbanked.</li>
<li>Reiterate Add with TP of S$1.53. We expect S$4.7m PATMI in 1H21F (+17% yoy) to be sustained by risk review volumes and a pick-up in credit growth.</li>
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<p><strong>Enroute to establishing a private credit bureau in Vietnam</strong></p>
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<li>CBA announced that it has signed a Memorandum of Understanding (MOU) with FiinGroup JSC (FG) to form a joint venture (JV) in Vietnam to provide analytics and data solutions to banks and non-bank financial institutions (FIs). The JV will also explore establishing a private credit bureau in Vietnam. CBA aims to finalise the contractual details of the MOU by end-2021.</li>
<li>The JV’s scope of operations will include facilitating and supporting the data analytics capabilities of FIs, credit granting agencies, payment services providers, ‘Buy Now Pay Later’ players, as well as mass market service providers such as telcos.<br>The JV’s goal of establishing a full-service private credit bureau will incorporate traditional data (e.g. bank-lending data) and alternative data points (e.g. behavioural payment patterns, supply chain data) in its approach. CBA sees significant potential in penetrating the Vietnam market as the company estimates that c.38% of its c.97m population are unbanked and underserved. We understand that there are currently two credit bureaus in operation in Vietnam – Credit Information Centre Vietnam (state- owned) and Vietnam Credit Information Joint Stock Company (PCB).</li>
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<p><strong>Positioning MLCB as an additional avenue of growth</strong></p>
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<li>CBA’s expansion into Vietnam continues its streak of establishing new business opportunities. In Jun, the company announced that it had been designated as the new operator of the Moneylenders Credit Bureau (MLCB). As a central data repository of borrowers’ loans and repayment records with licensed moneylenders, CBA aims to eventually incorporate these data points into its broader FI Data Business, creating cross-selling opportunities. Currently, data from the MLCB and FIs do not commingle. We estimate that revenue contributions from MLCB are relatively small at this stage.</li>
<li>Launched in 1Q21, the development of CBA’s operations in Myanmar remain sluggish given the ongoing political situation. We understand that c.30 FIs have signed on as members but the onboarding process has been disrupted. Note that we have not factored in contributions from Myanmar for FY21F.</li>
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<p><strong>We expect 1H21F earnings to be supported by risk review volumes</strong></p>
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<li>We expect CBA to record PATMI of S$4.7m in 1H21F (+17% yoy on PATMI adjusted for listing expenses), supported by sustained volumes of bulk risk reviews (subscription packages of these reviews are generally drawn down over 1-2 years) and a pick-up in new credit applications (Domestic Banking Unit [DBU] consumer loan growth in 1H21: +2.9%, 1H20: -3.2%).&nbsp;</li>
<li>CBA will be releasing its 1H21 results after-market hours on 5 Aug .Our TP of S$1.53is based on DCF methodology (LT growth: 1.2%, WACC: 7.0%, risk-free rate: 1.5%, beta: 0.9). Stronger-than-expected credit growth in Singapore as the economy reopens is a re-rating catalyst. A prolonged political situation in Myanmar is a downside risk</li>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.




Credit Bureau Asia Ltd
Venturing into Vietnam






CBA announced it will be entering into a JV with FiinGroup in its inaugural foray into Vietnam, aiming to provide analytics and data solutions to FIs.
The JV aims also to set up a credit bureau in Vietnam. CBA sees significant potential as c.38% of Vietnam’s 97m-strong population remain underbanked.
Reiterate Add with TP of S$1.53. We expect S$4.7m PATMI in 1H21F (+17% yoy) to be sustained by risk review volumes and a pick-up in credit growth.





Enroute to establishing a private credit bureau in Vietnam





CBA announced that it has signed a Memorandum of Understanding (MOU) with FiinGroup JSC (FG) to form a joint venture (JV) in Vietnam to provide analytics and data solutions to banks and non-bank financial institutions (FIs). The JV will also explore establishing a private credit bureau in Vietnam. CBA aims to finalise the contractual details of the MOU by end-2021.
The JV’s scope of operations will include facilitating and supporting the data analytics capabilities of FIs, credit granting agencies, payment services providers, ‘Buy Now Pay Later’ players, as well as mass market service providers such as telcos. The JV’s goal of establishing a full-service private credit bureau will incorporate traditional data (e.g. bank-lending data) and alternative data points (e.g. behavioural payment patterns, supply chain data) in its approach. CBA sees significant potential in penetrating the Vietnam market as the company estimates that c.38% of its c.97m population are unbanked and underserved. We understand that there are currently two credit bureaus in operation in Vietnam – Credit Information Centre Vietnam (state- owned) and Vietnam Credit Information Joint Stock Company (PCB).





Positioning MLCB as an additional avenue of growth





CBA’s expansion into Vietnam continues its streak of establishing new business opportunities. In Jun, the company announced that it had been designated as the new operator of the Moneylenders Credit Bureau (MLCB). As a central data repository of borrowers’ loans and repayment records with licensed moneylenders, CBA aims to eventually incorporate these data points into its broader FI Data Business, creating cross-selling opportunities. Currently, data from the MLCB and FIs do not commingle. We estimate that revenue contributions from MLCB are relatively small at this stage.
Launched in 1Q21, the development of CBA’s operations in Myanmar remain sluggish given the ongoing political situation. We understand that c.30 FIs have signed on as members but the onboarding process has been disrupted. Note that we have not factored in contributions from Myanmar for FY21F.





We expect 1H21F earnings to be supported by risk review volumes





We expect CBA to record PATMI of S$4.7m in 1H21F (+17% yoy on PATMI adjusted for listing expenses), supported by sustained volumes of bulk risk reviews (subscription packages of these reviews are generally drawn down over 1-2 years) and a pick-up in new credit applications (Domestic Banking Unit [DBU] consumer loan growth in 1H21: +2.9%, 1H20: -3.2%).&nbsp;
CBA will be releasing its 1H21 results after-market hours on 5 Aug .Our TP of S$1.53is based on DCF methodology (LT growth: 1.2%, WACC: 7.0%, risk-free rate: 1.5%, beta: 0.9). Stronger-than-expected credit growth in Singapore as the economy reopens is a re-rating catalyst. A prolonged political situation in Myanmar is a downside risk

































(Non-SGX Report) Credit Bureau Asia Ltd: Venturing into Vietnam

<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2021-03/CBA-COO.png" class="editor-image img-responsive"></figure>
<div class="content-caption">CBA-COO</div>
<p></p>
<p>With more than two decades of sales and operations experience under her belt, Audrey Chia is a dynamic self-starter focused on the values of care, sacrifice and service.</p>
<p>“My greatest inspiration are my parents, who owned a provision shop. Life was far from smooth-sailing as they had to support four children,” recalled the Chief Operating Officer (COO) of SGX-listed Credit Bureau Asia Ltd (CBA).</p>
<p>“It came to a point when my parents had to sell their shop to support an overseas education for some of us – that was a huge sacrifice for them.”</p>
<p>Even after that, they continued to adapt, and re-entered the workforce to continue supporting the family – her father as a delivery driver, her mother as a factory worker.</p>
<p>“Having learned diligence, determination and perseverance from them, I would like my children and staff to develop the same values, to be self-motivated and strive for excellence, while being a trustworthy and caring person,” Chia added.</p>
<p>“Such values are also interwoven into CBA’s core culture, and form the foundation of the way we do business and conduct ourselves.”</p>
<p>A Bachelor of Commerce graduate from the University of Tasmania, Chia has been with CBA for more than two decades. In her role as COO, Chia oversees the Non-Financial Institution (FI) Data Business, and is responsible for the operations of Dun &amp; Bradstreet Singapore and Dun &amp; Bradstreet Malaysia. She is also a director of group subsidiaries Infocredit International Sdn Bhd and Myanmar Credit Bureau.</p>
<p>Looking back on her journey, Chia derives the greatest sense of achievement from setting up CBA’s Singapore Commercial Credit Bureau (SCCB) in 2005.</p>
<p>“The SCCB is a proprietary platform that we built from scratch - I was involved from development to launch, and all the way to the acquisition of clients,” she recalled. “It took us a year to get it off the ground, as we focused on ensuring the quality of reports, and built up our sales team. But it was worth it.”</p>
<p>Today, SCCB, which provides a suite of services and products ranging from commercial information and company profiles to payment indexes and financial stress ratings, is a key contributor to CBA’s Non-FI Data Business with a 30% revenue share.</p>
<p>Listed on SGX Mainboard in December 2020, CBA is a leading player in the credit and risk information solutions market in Southeast Asia. Its clientele comprises financial institutions, multinational corporations, government bodies, public agencies, local enterprises and individuals across Singapore, Malaysia, Cambodia and Myanmar.</p>
<p><strong>On the Cutting Edge</strong></p>
<p>CBA’s business has two core segments - the FI Data Business and the Non-FI Data Business, covering consumer and commercial credit risk information. The Group, together with its joint ventures, is the dominant market leader in Singapore’s FI Data Business, and the sole market player in the FI Data Business of Cambodia and Myanmar.</p>
<p>For its Non-FI Data Business, the Group has more than 6,000 customers, including multinational corporations and small and medium enterprises, as well as access to a database spanning more than 330 million business records globally.</p>
<p>CBA’s Non-FI Data Business operates in Singapore and Malaysia, where customers can access a wide range of business information, risk management services, and commercial insights, using data from a variety of sources, including publicly accessible registries, as well as Dun &amp; Bradstreet’s extensive international network.</p>
<p>Looking ahead, CBA continues to invest in the digitalisation of its businesses to deliver leading-edge client experiences. “With increased technology adoption globally, I believe digitalisation of our products is the way for CBA to move forward,” Chia noted.</p>
<p>“Digitalisation allows customers to communicate their requirements to us, while we in turn customise the reports and present the data in any format that customers require, so it can be seamlessly integrated with their processes, and accessed as and when required.”</p>
<p>CBA is also developing a proprietary integrated credit bureau platform software that supports cross-industry information uploads to better meet user needs. “We want to develop the technology that will facilitate the integration and sharing of data, and eventually create full-service, multi-industry credit bureau platforms, which are customisable in accordance with permitted regulatory environments,” she added.</p>
<p>The Group is also exploring opportunities to expand into other ASEAN markets over the next three to five years, through acquisitions, joint ventures, and/or partnerships.</p>
<p>In the short term, organic growth in existing markets remains a priority. “For Singapore, we plan to expand our credit bureau membership base to include insurance companies, utilities, moneylenders and leasing companies, as well as upcoming digital banking businesses,” Chia said.</p>
<p>In October 2020, CBA won a tender by Singapore’s Ministry of Law to develop, establish and operate the Moneylenders Credit Bureau.</p>
<p>For its Non-FI Data Business, CBA plans to increase market penetration of risk diligence solutions in its SCCB platform. In addition to its Telco Credit Bureau platform, the Group is also exploring data collection from other sectors.</p>
<p><strong>Due Diligence Demand</strong></p>
<p>Elsewhere in ASEAN, CBA aims to diversify and introduce additional offerings in Cambodia, in tandem with growth in the country’s economy, credit industry and credit penetration rates, to meet evolving customer and industry needs.</p>
<p>“We also recently commenced credit bureau operations in Myanmar, and will work on getting our operations off the ground in the next two years,” Chia added.</p>
<p>The bright outlook for the credit and risk information solutions industry augurs well for CBA. “Increased governmental and industry regulations on financial institutions has raised risk management requirements,” she pointed out.</p>
<p>“Likewise, greater global recognition of the importance of data in making sound decisions has resulted in the embedding of credit reports in decision-making processes, while the proliferation of global trade, and growing need for compliance in trade transactions, have spurred demand for due diligence on counter-parties.”</p>
<p>COVID-19 has also stoked appetite for credit and risk data services. “We’ve seen heightened credit vigilance and increased due diligence among our customers during the pandemic, which has led to a growth in ad-hoc reviews being conducted during these difficult times,” Chia said.</p>
<p>And CBA, possessing the key competitive strengths of industry leadership and a defensive business model, is well-positioned to weather market volatility and ride on these growth trends.</p>
<p>“We have a proven financial track record, resilient revenue streams and strong cash flows. Our extensive, high-quality database forms the foundation for our product and service offerings, and accounts for our captive portfolio of customers,” she added.</p>
<p>Despite rosy prospects, challenges abound, and there is much to keep the 46-year-old up till the wee hours.</p>
<p>“Our business is dependent on the amount of information we collect, consolidate, analyse and organise, which is fuelled by the growing use of computers and mobile devices by corporations and individuals, so data security is crucial, and one of the major issues we worry about,” she admitted.</p>
<p>“We want to ensure our data security is resilient against cyber hacks and breaches, so that we can proactively incorporate new technologies into our platforms, improve our internal processes and databases, as well as allow our customers more flexibility in visualising and consuming the data - which ultimately improves the user experience.”</p>
<p>At the end of the day, family remains a focus for Chia, who has two boys, aged 10 and 15.</p>
<p>“My parents’ acts of sacrifice and commitment to the family have taught me that nothing is impossible when we have an optimistic outlook, and truly put our soul into pursuing our dreams,” she said.</p>
<p>“It has inspired me to focus my energy on building a better future for not only my children, but my staff as well, to allow them to reach their full potential.”</p>
<p><br><strong>Credit Bureau Asia Ltd</strong></p>
<p>SGX Mainboard-listed Credit Bureau Asia (CBA) is a leading player in the credit and risk information solutions market in Southeast Asia, providing credit and risk information solutions to an extensive client base of banks, financial institutions, multinational corporations, telecommunications companies, government bodies and public agencies, local enterprises and individuals across Singapore, Malaysia, Cambodia and Myanmar. CBA’s business has two core segments, the FI Data Business and the Non-FI Data Business, covering both consumer and commercial credit risk information. The Group, together with its joint ventures, is currently the dominant market leader in Singapore’s FI Data Business and the sole market player in Cambodia’s and Myanmar’s FI Data Business.</p>
<p>The company website is: <a href="https://creditbureauasia.com/" target="_blank" rel="noopener"><strong>creditbureauasia.com</strong></a><br><br>Click&nbsp;<a href="https://www.sgx.com/securities/equities/TCU" target="_blank" rel="noopener"><strong>here</strong>&nbsp;</a>for the company's StockFacts page.<br><br>For the IPO prospectus, click&nbsp;<a href="https://creditbureauasia.com/files/2020/11/App1A.CreditBureauAsiaLimited-Prospectus-261120.pdf" target="_blank" rel="noopener"><strong>here</strong></a>.<br><br>&nbsp;</p>
<p><strong>About&nbsp;kopi-C: the Company brew</strong></p>
<p><strong>Text: Jennifer Tan-Stanisic</strong><br><strong>Photo: Company file</strong><br><br><em>kopi-C&nbsp;</em>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.<br><br>For previous editions of&nbsp;<em>kopi-C: the Company brew,</em>&nbsp;please click&nbsp;<a href="https://www.sgx.com/research-education/market-dialogues" target="_blank" rel="noopener">here</a>. &nbsp;<br><br>For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;<a href="https://www.sgx.com/jennifer.t@sgx.com" target="_blank" rel="noopener">jennifer.t@sgx.com</a>.</p>


CBA-COO

With more than two decades of sales and operations experience under her belt, Audrey Chia is a dynamic self-starter focused on the values of care, sacrifice and service.
“My greatest inspiration are my parents, who owned a provision shop. Life was far from smooth-sailing as they had to support four children,” recalled the Chief Operating Officer (COO) of SGX-listed Credit Bureau Asia Ltd (CBA).
“It came to a point when my parents had to sell their shop to support an overseas education for some of us – that was a huge sacrifice for them.”
Even after that, they continued to adapt, and re-entered the workforce to continue supporting the family – her father as a delivery driver, her mother as a factory worker.
“Having learned diligence, determination and perseverance from them, I would like my children and staff to develop the same values, to be self-motivated and strive for excellence, while being a trustworthy and caring person,” Chia added.
“Such values are also interwoven into CBA’s core culture, and form the foundation of the way we do business and conduct ourselves.”
A Bachelor of Commerce graduate from the University of Tasmania, Chia has been with CBA for more than two decades. In her role as COO, Chia oversees the Non-Financial Institution (FI) Data Business, and is responsible for the operations of Dun &amp; Bradstreet Singapore and Dun &amp; Bradstreet Malaysia. She is also a director of group subsidiaries Infocredit International Sdn Bhd and Myanmar Credit Bureau.
Looking back on her journey, Chia derives the greatest sense of achievement from setting up CBA’s Singapore Commercial Credit Bureau (SCCB) in 2005.
“The SCCB is a proprietary platform that we built from scratch - I was involved from development to launch, and all the way to the acquisition of clients,” she recalled. “It took us a year to get it off the ground, as we focused on ensuring the quality of reports, and built up our sales team. But it was worth it.”
Today, SCCB, which provides a suite of services and products ranging from commercial information and company profiles to payment indexes and financial stress ratings, is a key contributor to CBA’s Non-FI Data Business with a 30% revenue share.
Listed on SGX Mainboard in December 2020, CBA is a leading player in the credit and risk information solutions market in Southeast Asia. Its clientele comprises financial institutions, multinational corporations, government bodies, public agencies, local enterprises and individuals across Singapore, Malaysia, Cambodia and Myanmar.
On the Cutting Edge
CBA’s business has two core segments - the FI Data Business and the Non-FI Data Business, covering consumer and commercial credit risk information. The Group, together with its joint ventures, is the dominant market leader in Singapore’s FI Data Business, and the sole market player in the FI Data Business of Cambodia and Myanmar.
For its Non-FI Data Business, the Group has more than 6,000 customers, including multinational corporations and small and medium enterprises, as well as access to a database spanning more than 330 million business records globally.
CBA’s Non-FI Data Business operates in Singapore and Malaysia, where customers can access a wide range of business information, risk management services, and commercial insights, using data from a variety of sources, including publicly accessible registries, as well as Dun &amp; Bradstreet’s extensive international network.
Looking ahead, CBA continues to invest in the digitalisation of its businesses to deliver leading-edge client experiences. “With increased technology adoption globally, I believe digitalisation of our products is the way for CBA to move forward,” Chia noted.
“Digitalisation allows customers to communicate their requirements to us, while we in turn customise the reports and present the data in any format that customers require, so it can be seamlessly integrated with their processes, and accessed as and when required.”
CBA is also developing a proprietary integrated credit bureau platform software that supports cross-industry information uploads to better meet user needs. “We want to develop the technology that will facilitate the integration and sharing of data, and eventually create full-service, multi-industry credit bureau platforms, which are customisable in accordance with permitted regulatory environments,” she added.
The Group is also exploring opportunities to expand into other ASEAN markets over the next three to five years, through acquisitions, joint ventures, and/or partnerships.
In the short term, organic growth in existing markets remains a priority. “For Singapore, we plan to expand our credit bureau membership base to include insurance companies, utilities, moneylenders and leasing companies, as well as upcoming digital banking businesses,” Chia said.
In October 2020, CBA won a tender by Singapore’s Ministry of Law to develop, establish and operate the Moneylenders Credit Bureau.
For its Non-FI Data Business, CBA plans to increase market penetration of risk diligence solutions in its SCCB platform. In addition to its Telco Credit Bureau platform, the Group is also exploring data collection from other sectors.
Due Diligence Demand
Elsewhere in ASEAN, CBA aims to diversify and introduce additional offerings in Cambodia, in tandem with growth in the country’s economy, credit industry and credit penetration rates, to meet evolving customer and industry needs.
“We also recently commenced credit bureau operations in Myanmar, and will work on getting our operations off the ground in the next two years,” Chia added.
The bright outlook for the credit and risk information solutions industry augurs well for CBA. “Increased governmental and industry regulations on financial institutions has raised risk management requirements,” she pointed out.
“Likewise, greater global recognition of the importance of data in making sound decisions has resulted in the embedding of credit reports in decision-making processes, while the proliferation of global trade, and growing need for compliance in trade transactions, have spurred demand for due diligence on counter-parties.”
COVID-19 has also stoked appetite for credit and risk data services. “We’ve seen heightened credit vigilance and increased due diligence among our customers during the pandemic, which has led to a growth in ad-hoc reviews being conducted during these difficult times,” Chia said.
And CBA, possessing the key competitive strengths of industry leadership and a defensive business model, is well-positioned to weather market volatility and ride on these growth trends.
“We have a proven financial track record, resilient revenue streams and strong cash flows. Our extensive, high-quality database forms the foundation for our product and service offerings, and accounts for our captive portfolio of customers,” she added.
Despite rosy prospects, challenges abound, and there is much to keep the 46-year-old up till the wee hours.
“Our business is dependent on the amount of information we collect, consolidate, analyse and organise, which is fuelled by the growing use of computers and mobile devices by corporations and individuals, so data security is crucial, and one of the major issues we worry about,” she admitted.
“We want to ensure our data security is resilient against cyber hacks and breaches, so that we can proactively incorporate new technologies into our platforms, improve our internal processes and databases, as well as allow our customers more flexibility in visualising and consuming the data - which ultimately improves the user experience.”
At the end of the day, family remains a focus for Chia, who has two boys, aged 10 and 15.
“My parents’ acts of sacrifice and commitment to the family have taught me that nothing is impossible when we have an optimistic outlook, and truly put our soul into pursuing our dreams,” she said.
“It has inspired me to focus my energy on building a better future for not only my children, but my staff as well, to allow them to reach their full potential.”
 Credit Bureau Asia Ltd
SGX Mainboard-listed Credit Bureau Asia (CBA) is a leading player in the credit and risk information solutions market in Southeast Asia, providing credit and risk information solutions to an extensive client base of banks, financial institutions, multinational corporations, telecommunications companies, government bodies and public agencies, local enterprises and individuals across Singapore, Malaysia, Cambodia and Myanmar. CBA’s business has two core segments, the FI Data Business and the Non-FI Data Business, covering both consumer and commercial credit risk information. The Group, together with its joint ventures, is currently the dominant market leader in Singapore’s FI Data Business and the sole market player in Cambodia’s and Myanmar’s FI Data Business.
The company website is: creditbureauasia.com  Click&nbsp;here&nbsp;for the company's StockFacts page.  For the IPO prospectus, click&nbsp;here.  &nbsp;
About&nbsp;kopi-C: the Company brew
Text: Jennifer Tan-Stanisic Photo: Company file  kopi-C&nbsp;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&nbsp;kopi-C: the Company brew,&nbsp;please click&nbsp;here. &nbsp;  For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;jennifer.t@sgx.com.

Credit Bureau Asia Banks on Surging Data Demand

Singapore

Credit Bureau Asia provides credit and risk information solutions to financial institutions, multinational corporations, telecommunication companies, government bodies, public agencies, local enterprises, and individuals across Southeast Asia. The company offers credit and risk information reports, credit scores, monitoring services, data trends and analytics, and tailored solutions. It is headquartered in Singapore and was founded in 2019.

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