Equity: Emperor Capital (HKG:717)
Business: Financial Services
Markets exposed: Mainly Hong Kong
Stock exchange: HKex
Purchase price: HKD 0.582 (including transaction costs, excluding FX costs)
Purchase month: December
10% per annum thesis:
Emperor Capital is an undervalued fast grower. Earnings growth in the coming quarters might serve as a catalyst for revaluation, which in turn has the potential to transfer Emperor Capital into a multi-bagger.
Emperor Capital is a boutique financial services firm with the following 4 main segments: Financing, Brokerage, Placing & Underwriting and Corporate Finance.
Its operations are mainly in Hong Kong, where it has 10 branches. The firm also has 3 representative branches in mainland China.
1) Management-Shareholder Alignment
Emperor Capital is currently being led by CEO Daisy Yeung of the Yeung Family. As the family owns more than 41% of Emperor Capital, the largest shareholder is essentially also personally taking care of …