We concentrate all our energy on uncovering "cheap" stocks, instead of tracking benchmarks. We believe that our bottom–up
approach to identifying well–performing but undervalued stocks holds the key to the success of our value investing.
We favor companies that can determine their own destiny in the face of any external circumstances. We make decisions on which stock to
invest in, only after combing through both quantitative indicators and qualitative data (produced by analysts from their company visits),
and conducting in–depth analysis into the company’s P/E ratio, P/B ratio, new value, and dividend payout, etc.
Our investment universe is constructed on both our experienced fund managers’ quantitative analysis into the relevant sector, and the
information gathered from their company visits. We hold a strategy meeting with our analysts and our fund managers to review selected
target companies and choose finalists among them. We are confident that the combination of our fund managers’ sufficient experience
and our analysts’ in–depth research leads to the best outcome, optimizing for the metrics that matter.
- P/E ratio analysis
- Through the P/E ratio analysis, we discover low–P/E stocks whose share prices fail to fully reflect earnings power.
Among such low–P/E stocks, we pick those possessing stable and solid earnings growth potential.
- P/B ratio analysis
- By checking the P/B ratio, we uncover companies trading below their net asset value.
We particularly focus on spotting "hidden low–P/B companies" that possess a considerable amount of real estate and
securities as assets.
- New value analysis
- We conduct a "new value analysis" to identify companies possessing huge growth potential.
Sticking to the principle of value investing, we do not overestimate growth potential that has yet to be confirmed.
We pay attention to companies highly likely to create new value, with dominant market presence expected to grow further
in the changing social paradigm.
- Dividend payout analysis
- By looking into dividend policy, we spot companies that pay high dividends to investors, but that also maintain their
dividend policy in a consistent and reliable manner.