Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

Equity Bottom-Up

FnGuide Inc., offers financial market data and solution for user.  The Company provides fixed income, equity, index, economic, and customized financial. Fnguide offers financial solution such as valuation model, risk management system, and asset management system for financial companies.  FnGuide also publishes quarterly company analysis for listed companies in Korea.

<ul>
<li>When I interviewed <a href="https://www.asiancenturystocks.com/r/3c60edc7?m=6c5f307a-dde1-4839-8919-b2cc2f446e27" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.asiancenturystocks.com/r/3c60edc7?m%3D6c5f307a-dde1-4839-8919-b2cc2f446e27&amp;source=gmail&amp;ust=1764043948388000&amp;usg=AOvVaw2Wv291UBgdaNMAzBq5806l" rel="noopener">Raghav Kapoor</a> the other day, he mentioned a small Korean financial information provider called <a href="https://www.asiancenturystocks.com/r/f83e00bd?m=6c5f307a-dde1-4839-8919-b2cc2f446e27" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.asiancenturystocks.com/r/f83e00bd?m%3D6c5f307a-dde1-4839-8919-b2cc2f446e27&amp;source=gmail&amp;ust=1764043948388000&amp;usg=AOvVaw2owDIfWj_-hntFyNISwIvK" rel="noopener">FnGuide</a> (064850 KS — US$64 million).</li>
<li>I wanted to dig deeper. FnGuide is a tiny company in terms of market cap, but significant in terms of its impact on Korea's financial services industry. You see FnGuide's name mentioned almost every day in the business media and in sell-side research as a source of financial and economic data.</li>
<li>FnGuide owns the Excel-based financial data tools DataGuide and Quantiwise. It also has several equity research aggregation platforms such as FnGuide.com, WiseReport and Retamin.</li>
</ul>


When I interviewed Raghav Kapoor the other day, he mentioned a small Korean financial information provider called FnGuide (064850 KS — US$64 million).
I wanted to dig deeper. FnGuide is a tiny company in terms of market cap, but significant in terms of its impact on Korea's financial services industry. You see FnGuide's name mentioned almost every day in the business media and in sell-side research as a source of financial and economic data.
FnGuide owns the Excel-based financial data tools DataGuide and Quantiwise. It also has several equity research aggregation platforms such as FnGuide.com, WiseReport and Retamin.


FnGuide (064850 KS): The FactSet/MSCI of South Korea at 12.9x P/E

Treasury Wine Estates Ltd was founded in 2010 and is headquartered in Southbank, Victoria, Australia. The Company's line of business includes vineyard operations and international marketing and distribution of wine.

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<li>
<a href="https://finance.yahoo.com/quote/TWE.AX/?ref=asiancenturystocks.com" target="_blank" rel="noopener">Treasury Wine Estates</a> (TWE AU — US$3.0 billion) is one of the world's largest wine producers globally. And it's one of the very few large companies in Australia trading at a reasonable valuation multiple.
</li>
<li>
It started as the wine division of brewery giant Forster's Group. From the 1990s onwards, Foster's acquired vineyards and brands such as Penfolds, Lindeman's and Beringer.
</li>
<li>
But throughout the 2000s, this wine division underperformed, draining cash from Foster's highly profitable beer business. So in 2011, it was eventually spun off into a separately listed entity called Treasury Wine Estates (TWE).
</li>
</ul>



Treasury Wine Estates (TWE AU — US$3.0 billion) is one of the world's largest wine producers globally. And it's one of the very few large companies in Australia trading at a reasonable valuation multiple.


It started as the wine division of brewery giant Forster's Group. From the 1990s onwards, Foster's acquired vineyards and brands such as Penfolds, Lindeman's and Beringer.


But throughout the 2000s, this wine division underperformed, draining cash from Foster's highly profitable beer business. So in 2011, it was eventually spun off into a separately listed entity called Treasury Wine Estates (TWE).



Treasury Wine Estates (TWE AU): Penfolds Owner at 11x P/E and 7% Dividend Yield

Oriental Watch Holdings Limited, through its subsidiaries, trades watches and invests in properties.

<ul>
<li>Alternative data suggests a turn in the luxury wristwatch market. But most likely, this turn is due to US tariffs on Swiss watch imports, causing US buyers to panic buy. </li>
<li>Oriental Watch continues to be undervalued at just 8.3x P/E and a dividend yield of 12%</li>
<li>However, the Chinese watch market remains weak and there's no clear sign of a turnaround yet</li>
</ul>


Alternative data suggests a turn in the luxury wristwatch market. But most likely, this turn is due to US tariffs on Swiss watch imports, causing US buyers to panic buy. 
Oriental Watch continues to be undervalued at just 8.3x P/E and a dividend yield of 12%
However, the Chinese watch market remains weak and there's no clear sign of a turnaround yet


 Bermaz Auto Berhad distributes and retails automobiles. The Company also provides after sale services.

<ul><li>Bermaz Auto (BAUTO MK — US$186 million) is the former auto distribution arm of Malaysia’s Berjaya Corporation.</li><li>It has been listed on Bursa Malaysia since 2013 and has since expanded from a Mazda-focused dealer to also sell Kia, XPeng, and Deepal.</li><li>The competition within Malaysia’s auto industry has historically been favorable, thanks to a set of regulations. For example, imported vehicles are subject to a 30% duty, thereby protecting locally assembled cars, such as those made by Mazda and Kia.</li></ul>

Bermaz Auto (BAUTO MK — US$186 million) is the former auto distribution arm of Malaysia’s Berjaya Corporation.It has been listed on Bursa Malaysia since 2013 and has since expanded from a Mazda-focused dealer to also sell Kia, XPeng, and Deepal.The competition within Malaysia’s auto industry has historically been favorable, thanks to a set of regulations. For example, imported vehicles are subject to a 30% duty, thereby protecting locally assembled cars, such as those made by Mazda and Kia.

Bermaz Auto (BAUTO MK): Ongoing Mazda Product Refresh and EV Tax Exemption Expiry While 5x P/E

Concepcion Industrial Corporation, together with its subsidiaries, manufactures, sells, distributes, installs, and services heating, ventilation, and air conditioning (HVAC) products and services in the Philippines. The company operates through three segments, Concepcion Carrier Air Conditioning Company (CCAC); Concepcion Durables, Inc. (CDI); and Concepcion Otis Philippines Inc. (COPI). The CCAC segment offers HVAC and refrigeration products for industrial, commercial, and residential sectors through a network of distributors, dealers, retailers, and technicians. The CDI segment manufactures and sells refrigerators and freezers for the domestic market. The COPI segment distributes and services elevators, escalators, moving walkways, and shuttle systems. It offers its products under the Carrier, Toshiba, Condura, Kelvinator, Midea, and Otis brand names. The company was formerly known as Concepcion Air Conditioning Company and changed its name to Concepcion Industrial Corporation in June 2013. Concepcion Industrial Corporation was founded in 1997 and is based in Makati, the Philippines.

<ul><li>Concepcion Industrial (CIC PM — US$91 million) is an appliance company selling air conditioners and refrigerators in the Philippines.</li><li>The business was started by the Concepcion family in 1962. One year after being formed, it received exclusive distribution rights for Carrier-branded air conditioners in the Philippines.</li><li>In 1987, Concepcion launched its own brand, “Condura” — now one of the top five brands in the country.</li></ul>

Concepcion Industrial (CIC PM — US$91 million) is an appliance company selling air conditioners and refrigerators in the Philippines.The business was started by the Concepcion family in 1962. One year after being formed, it received exclusive distribution rights for Carrier-branded air conditioners in the Philippines.In 1987, Concepcion launched its own brand, “Condura” — now one of the top five brands in the country.

Concepcion Industrial (CIC PM): Philippine Air-Conditioning Giant at 7x P/E and 7% Dividend Yield

Buy-side analyst and portfolio manager, now focusing on an Asia related research service called Asian Century Stocks. Focus on long-term value with short-term catalysts.