Redefining Investor Relations in Taiwan


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Markis Capital Ltd. - Taiwan's first independent, locally-operated strategic investor relations consulting and research firm.

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Redefining Investor Relations in Taiwan

  1. 1. Markis Capital Limited OverviewTaiwan’s First Domestic Investor RelationsConsulting & Research Firm
  2. 2. Overview• Markis Capital is an independent investor relationsconsulting and research advisory firm.• Founded by a senior research analyst with substantial capitalmarkets experience. Our team previously worked at marketleading firms such as Merrill Lynch, Morgan Stanley,CLSA and others.• We combine a wealth of knowledge about local Asianmarkets and an understanding of global capital markets. Weaim to introduce international best practices serviced with alocal touch.• We work to develop training programs to improve the skillsfor IR professionals.2
  3. 3. 3Founder and CEO Background• Deputy Head of Research in Asia at DnBNOR in Singapore• Head of Research at CLSA Capital Partners’shipping fund, Pacific Transportation Asia• Vice President at Merrill Lynch EquityResearch, covered Asia Pacific Shipping,Taiwan non-tech, and Taiwan strategy.• Also served with Morgan Stanley, InsightPacific Investment Research,• Education▫ Holds a Double Major BA in Economics andInternational Relations from UC San Diego▫ Diploma in Ship Finance from Lloyd’sMaritime Academy
  4. 4. Our Experiences4
  5. 5. 5Values• Local Service, Global QualityWe believe we can draw attention for under-researched high-quality companies to institutional investors, and help thesecompanies excel in the global capital markets.• No secrets to investingWe believe that good research should be available to the public.Better and constant communications with investors can improvetransparency and help investors make better investment decisions.• Social responsibilitiesWe provide our expertise through public training programs, in aneffort to bring financial knowledge and skills to a broader spectrumof society.
  6. 6. IR consulting and senior-level advisory. Wehelp companies improve governance andtransparency.InvestorRelationsMarketResearchEducationandTraining6We provide capitalmarket updates andcommentary on theIR industry.Better knowledgeand understandingof techniques,markets, andcompanies.Our Services
  7. 7. 7Investor Relations• Main focus:IR Consulting and Investor Engagement• IR Website & Presentation Audits / Scorecards• Event Organization (Corporate Day, Roadshows, etc.)• Shareholder Identification and Targeting• Capital Market Intelligence Reports• Pre-meeting preparation and post-meeting feedbackIR Consulting(understanding ofcapital markets andinformationrequirements)• Meeting preparation (AGM, Investor Conferences,Company Visits, etc.)• IR Materials – Content Development (AnnualReport, Presentations, Fact Sheets, Financial PR, IRWebsite, etc.)• Relationship management with media, analysts,regulators, partners• Activities to increase corporate visibility and imageInvestor Engagement(communicating withthe analyst &investment community)
  8. 8. Redefine Investor Relations8Traditional Outsourced IR Services• PR oriented• Junior-level execution,administrative efforts• Emphasis on mediarelationships, similar methodsapplied to different types ofinvestors• Benchmarks and metrics basedupon media exposures• Low value-addedMCL’s Innovative Approach Capital markets experience andperspective IR advice encompassingstrategic corporate goals Leverages understanding ofinstitutional investors to achievegreatest impactMeasurable benchmarks basedupon investor and analystpenetrationHigh value-added
  9. 9. 9Investor RelationsStrategicAdvisory• Planning anddevelopment of IRdepartments• Evaluate and shapethe investmentmessage• Integratedcommunication anddisclosure toenhance credibilityand transparency• Analyst surveys,perception studiesMarketIntelligence• Analyze researchreports• Collect tradingstatistics• Analyze shareholderstructure• Identify capitalmarket trends• Peer comparisonContentdevelopment• Presentationmaterialsdevelopment• Website structure,content, and vendorselection• Earnings releaserevisions anddrafting• Conference callscripts• Sustainability reportdrafting anddevelopmentEvent andrelationships• IR forum, investorvisits• Disclosure policyand execution• Analyst and investorrelationshipmanagement• Strategically targetand identifyinvestors
  10. 10. Understand the catalyst,key investment driversfor the stock.Consistent disclosuresand presentations.Targeted interactionwith shareholders,analysts, and media.Unique analysis andproprietary marketingtools.10 Save time!Targeted Solutions
  11. 11. Our Value Proposition-3S Framework• Senior, International, Professional expertise. Wecombine a rich background in capital markets with anunderstanding of local business culture. We are an idealbridge between investors and listed companies.• Strong supports. Our clients benefit from senior leveladvice and strong team support.• Strategic solutions. We understand our clients, andthrough in-depth analysis, we aim to shape an investmentmessage that can most effectively communicate thecompany’s investment proposition to the capital markets.11
  12. 12. Substantial Industry Expertise12IndustryExpertiseTransportTechnologyIndustrialEnergy &CommoditiesConsumerConglomeratesThematicIdeas
  13. 13. Strong Industry relationshipsFund Managers / HedgeFunds• Invesco• Fidelity• APS• Blackrock• Citadel• JP Morgan• GIC• UBS• … and othersFinancial Media• Economic Daily• Commercial Times• Asian Wall Street Journal• Financial Times• South China Morning Post• Taipei Times• Liberty Times• China Post• Dow Jones Newswires• CNBC• Bloomberg News• Bloomberg TV• Reuters• ChannelNewsAsia• TodayBrokers / Analysts• JP Morgan• UBS• Morgan Stanley• BAS-Merrill Lynch• Goldman Sachs• CLSA• Barclays• Credit Suisse• Deutsche Bank13
  14. 14. 14Positive Impact of analyst coverage –Sincere Navigation14Merrill Lynch initiates coverage on Dec 5, 2005 with a BUY recommendation and a targetprice of NT$33.5. Share price at time of initiation was NT$27.3.Impact: Shares increased over 5 days in a row, achieving target price within a short timeframe. Importantly, first coverage by a major broker prompted other analysts to initiate aswell, and market transparency improved drastically.0102030405060 Share Price MovementInitiationReportTargetPrice
  15. 15. 15Improve Company ValueCompany value is determined not only by financial performance.We estimate that 20-40% of a company’s value attributed byinvestors is determined by non-financial factors.This 20-40% includes:• Consistency in information• Transparency and disclosure levels• Level of interaction between managementand investors• Corporate reputation• … and others.Proper investor relationship management canimprove a company’s transparency and boostInvestors’ confidences and help reflect aCompany’s true value.
  16. 16. Optimization through IR Management• According to NASDAQ, proper investor relationship can improve acompanys value by 10%, however, inappropriate investorrelationship can damage a companys value by 25%.• 79% analysts will downgrade a stock due to poor communication.88% analysts thinks a company’s rating might be impacted due tonon-transparency.• Appropriate IR activities can help to improve communicate withinvestors, increase stocks’ liquidity, allow share price to reflect thecompany’s value, boost investors’ confidence, and prepare thecompany for re-financing.16 Source: IR magazine
  17. 17. IR Activities Impact on Company Value- HIWIN Technologies•Spokesperson: Lin Yi Feng, AssistantGeneral Manager•# of analysts – 13 AnalystsIR Status Quo•2012/04/30First AnalystBriefing•Increased institutional ownership•Stock price went up by 10% on theday of the briefing•Trading volume was 50% higher thanthe 3-month averageImpactChange of top institutional ownership
  18. 18. Education and Training18•MCL Internship Program (National Sun Yat-sen University,National Kaohsiung First University of Science andTechnology)•University Seminars•Lecturer for innovative Intelligent Group and EnterpriseUniversity FoundationIndustry-Academia Partnerships•Market and industry analysis•Understanding your target and communication skills•Financial analysis and application in Excel•Regulations for Taiwan stock exchange and OTC•Capital markets and strategyMarkis CapitalAcademy(Corporate Seminars)•IRM training for CEO/CFO•Valuation techniques and tools•Communication, crisis response, corporate reputationtrainingExecutive Coaching
  19. 19. Markis Capital Academy19Comprehensive Financial Education Program全面性金融教育計畫Analytical Tools & Techniques分析工具與技巧 Policies & Procedures策略和程序 Market Insights市場透析
  20. 20. Custom Training Programs20
  21. 21. Industry-Academia Partnerships21
  22. 22. Innovative Research – Local Index SeriesKaohsiung Index• 84 CompaniesTainan Index• 67 CompaniesTao-chu-miaoIndex• 188 CompaniesCentral TaiwanIndex• 282 CompaniesGreater Taipei Index• 178 Companies22
  23. 23. Innovated Index- Performance23
  24. 24. Team24Director and CEO – Teddy TsaiTeddy Tsai founded Markis Capital Ltd (MCL) and currently serves as its Director andChief Executive Officer . His background has been as a research analyst and manager,primarily covering Asian shipping and offshore companies, working for leading financialfirms such as DnB NOR, CLSA Capital, Merrill Lynch, and Morgan Stanley.Senior Manager – JJ YangJJ is an experienced buy-side analyst. Prior to joining Markis Capital, she worked withScottish Widows Investment Partnership as an investment analyst. In addition to be aconsumer analyst, she co-managed Asia ex Japan and global emerging market funds.Previously, she worked for Martin Currie, Citigroup, and Aberdeen Asset Management inScotland.Research Associates – Peter Hung, Kelly Hung, Shun Wang, Helen Wei, Ryan Ho,Benson Chen, Jason Chen, Nicole HuangTranslation Assistant – Verna Lin
  25. 25. FAQ• Typical IR Budget▫ Global - USD$561,000 per year▫ Asia – Average USD$336,000 per year▫ Asia Small Cap – Average USD$160,000 per year• Internal or External IR?▫ On average, Asian companies allocate 18% of their total IR budget to external serviceproviders. However, companies with less than US$150 million in market cap allocates ahigher 29%. Larger cap stocks allocate between 11-16%.▫ During the first three years of a fund raising event, higher levels of IR budgets are oftenrequired.• Time Commitment▫ Minimum of four conference calls or analyst briefings per year, an annual shareholdermeeting, 9-12 board meetings, 2-3 road shows per year, and 2-4 investor visits per month ordepending on market interest.• Human resources requirements?▫ Asia – Average of 4.3 persons per team▫ China – Average of 5.2 persons per team▫ 59% of IR professionals report directly to the CFOSource: IR magazine25
  26. 26. 瑪亞投資有限公司Markis Capital Ltd. (Taiwan)蔡鴻德 (Teddy H. Tsai)董事暨執行長 (Director & CEO)9F-2, No.20, Datong 2nd Rd., CianjinDist., Kaohsiung City 80143, TaiwanPhone: +886-7-241-2329 Ext.123Mobile: 0910-723-698Email: teddy.tsai@markis.asiaWebsite: