Research & Analysis
Research & Company Analysis
Good decisions start with good questions. At BNB Asset Management, research begins with public filings and IR materials, then moves through management meetings, site visits and an industry expert network to confirm a company’s competitive strengths beyond what disclosures show. We apply the same standards from companies preparing to list through to those already listed.
Four Sources
Four windows onto a company
No single source shows the whole company. BNB layers information of different kinds to build the basis for each decision.
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Filings
Filings & registration statements
We review the business model and the trend and quality of earnings shown in public filings, registration statements and financial statements — the foundation of every analysis.
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Management & IR
Management meetings & official IR
We question management one-on-one and attend official IR events to check competitive strengths and risk factors first-hand.
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Site Visits
Company visits
We visit the business to see how it actually operates. Visits are also one of the ways we review investee companies periodically after investing.
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Expert Network
Industry expert network
We understand industry structure, conditions and technology trends with input from specialists in each field — looking at the industry as well as the company.
Building on filings and IR materials, we use company visits and an industry expert network to identify core competitiveness beyond disclosed data. (Investment Process, Step 1: Pre-investment research)
Coverage
A pool of potential investees that starts before listing
Meeting a company for the first time at the offering leaves too little time to judge. BNB researches potential investees broadly, from pre-IPO companies to those already listed, and follows the same company with the same standards as it moves through each stage of listing.
Same company, same standards
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Pre-IPO
Preparing to list
Competitiveness, the likelihood of meeting listing requirements, and how to exit if listing is delayed or cancelled
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IPO
Public offering
The pricing rationale in the registration statement, valuation against peers, offering size and demand
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Post-IPO
After listing
First post-listing results compared with what was presented at the offering, and changes in free float as lock-ups expire
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Mezzanine
Listed-company financing
The issuer’s financial stability and repayment capacity, and conversion or exercise prices and their adjustment terms
Multi-Layer Analysis
Valuation in several layers
A company’s value is not a single number. BNB separates the company itself, its price, the offering market around it and the chance that assumptions prove wrong, and analyses each layer.
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Fundamentals
Company
The business model, its position in the industry, and the trend and quality of earnings. We ask how, and from whom, the company makes money.
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Price & Peers
Price
Price attractiveness against peers, the basis for the offering price, and the offering size.
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Market & Supply
Market
Sentiment and supply-demand in the offering market, the holdings of the largest shareholder and existing investors, and the shares that may trade right after listing.
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Risk Factors
Risk
We look for potential risk factors and test how much value changes if assumptions do not hold.
Our in-house model combines quantitative valuation with a qualitative assessment of growth to estimate a company’s fair value. (Investment Process, Step 2: Comprehensive valuation)
From Research to Decision
How research becomes an investment decision
Research feeds into the investment review. Whether to invest, and how much, is decided not by one fund manager alone but after review by the investment team and the risk management organisation, with prior checks by the Compliance Team.
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STEP 1
Pre-investment research
Asset Management Team
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STEP 2
Comprehensive valuation
Asset Management Team
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STEP 3
Investment review & strategy
Asset Management Team · Compliance Team · Investment Committee
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Monitor
Ongoing value review
Asset Management Team · Compliance Team
Research Integrity
Principles our research keeps
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We keep a record of our reasoning
We base decisions on independent research and objective indicators, and we document the process.
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We do not use material non-public information
In management meetings, company visits and other engagement, we comply with the Capital Markets Act and related rules, including the ban on using material non-public information.
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We separate the flow of information
Information barriers (Chinese walls) between departments structurally block flows of information that could create conflicts of interest.
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Value before sentiment
Even when the offering market runs hot, a company’s fundamentals and its price attractiveness against peers remain our starting point.
After Investing
Research continues after we invest
Research does not end with the investment decision. In line with our Stewardship Code implementation plan, BNB periodically reviews the financial position of investee companies through company visits, review of disclosures, research reports and other means.
- First post-listing results compared with what was described at the offering
- Changes in free float as lock-up periods end
- Company results and events, industry conditions and the macro environment
- Further engagement where we judge it necessary to enhance long-term value
Important information
- This page is a general description of how BNB Asset Management conducts research and is not a solicitation to invest in any company or product.
- Analysis and procedures are intended to manage risk; they do not remove the possibility of losing principal. Past performance does not guarantee future returns.
- Our funds are general private funds open only to qualified investors.
