Markis Capital Markis Capital is an independent investor relations and financial advisory firm based in Kaohsiung Taiwan. We aim to increase transparency to quality companies, acting as a bridge between foreign investors and Asian companies.
Investor Relations
Financial Advisory
Research
Training
Letter from the CEO
Dear colleagues and associates,
I established Markis Capital Ltd about two years ago, with the sole purpose of servicing companies and assisting them in improving their transparency and visibility to the global investor community without con�licts of interests. It has been my belief that there are many hidden gems in Asia, where the engagement with capital markets has not been as proactive.
Leveraging on our team’s Wall Street expertise and a comprehensive array of services, we go beyond traditional western-style investor relations services with a clear understanding of local corporate cultures and management styles. Our innovative approach is to focus on providing research-based insights and measurable support to our clients. Also, taking into consideration the smaller available budgets for IR activities in Asia, we developed a range of services spanning investor relations, �inancial advisory, research and training that delivers global professional standards at a reasonable budget level. Our solutions are fully customized for our clients, maximizing the quality of disclosures via outsourced support, and taking into consideration current resources and available budgets. As we embark on our third year in existence, we are reaching towards the Greater China and South East Asia markets, sharing our research and our experiences. Working together, we believe that our services can create value add to your existing IR program, regardless of its size and scale. In the coming years, our team hopes to become your valued partner, and realize our dream of bridging investors with Asia. We look forward to hearing from you. Yours sincerely,
Teddy H. Tsai Chief Executive Of�icer
Table of Contents Investor Relations
Financial Advisory Research Training About Us
3
Investor Relations Markis Capital is Taiwan’s �irst IR consulting and �inancial advisory �irm. Leveraging on our investor relations expertise, we believe that we are best positioned to provide a comprehensive and ef�icient solution to meet your requirements.
CASE
In recent years, Taiwan’s capital market
As an independent, provider-agnostic third
corporate disclosures. Corporate governance & transparency scorecards were introduced to benchmark listed companies in Taiwan,
management software platform, the latest in website user experience designs, and bilingual (Chinese and English) website content to
authorities has gradually emphasized higher standards of corporate governance and
and encourage them to improve their corporate governance and increase transparency in their engagement with stakeholders.
The client is a Taiwan-listed company, but with a corporate website built over 10 years ago. The company’s outdated website style does not meet investor needs, and its content management system is in�lexible, resulting in insuf�icient disclosures and a poor performance on the corporate governance and transparency scorecards. Moreover, with a limited budget and a wish to minimize future hosting cost, the client chose to engage with local website programmers rather than IR platform providers.
party, Markis Capital was able to develop a complete solution, combining a content
enhance the company’s visibility and aid its corporate image. Our strength and value comes from the combination of regulatory knowledge,
sell-side analyst & investor relations experience, website technology knowhow, and
project management competence. Importantly, our solution enabled the client to save time and money and not have to spend time drafting content, communicating with web designers, tracking project progress, and negotiating technical contracts.
Contact & Events Management
Document Management
Intergrated Approach
Project Management
Knowledge Management
5
Investor Relations
CASE
In our most recent Survey of Taiwan IR practices, the most important activity for IR managers is preparation for analyst meetings, followed closely by preparation work for the AGM. For many companies with small teams, the requirement to have English versions of the shareholder handbook, annual report, agenda, invitation letter, meeting minutes, and proxy forms all within a very short time frame can be a very onerous task. IR teams often do not have the resources to translate, deliver, and engage shareholders on AGM materials. Outsourcing to translation agencies is an alternative, but often results in lower quality translations due to the amount of �inancial or legal terminologies in AGM materials.
Moreover, with the increase attentions on corporate governance matters, IR teams are increasingly asked by shareholders to spend time and engage governance teams on proxy matters. Incorrect or inaccurate translations may result in misunderstandings that affect proxy recommendations or votes. As a result, many of our clients have engaged us to support content development for AGM materials. Our team consists of a graduate from one of Taiwan’s leading university of languages with a masters’ degree in a law-related �ield. Our familiarity with capital markets terminology, and our quick turnaround service, enables us to be a value-added partner in investor relations.
Strategic Advisory
Planning and development of IR departments
Content Development
Presentation materials development
Market Intelligence
Analyze research reports
Events & Engagement
OUR IR SERVICES
IR forum, investor visits
Evaluate and shape the investment message
Integrated communication and disclosure to enhance credibility and transparency Analyst surveys, perception studies
Website structure, content, and vendor selection Earnings release revisions and drafting Conference call scripts
Sustainability report drafting and development
Collect trading statistics
Analyze shareholder structure Identify capital market trends Peer comparison
Disclosure policy and execution
Analyst and investor relationship management Strategically target and identify investors
7
Financial Advisory
Knowledge 知識
Skill 技能
Expertise 專業經驗
CASE
The unfairness of capital markets is that while large-cap stocks enjoys a large
analyst following and strong support by investment bankers, smaller companies, whether listed or unlisted, often have a harder time in raising capital and obtaining professional advice. As a small, employee-funded company, Markis Capital understands the issues facing small mid-sized enterprises (SMEs), and
has actively worked in engaging international investors, while at the same time support corporate clients in structuring innovative projects using global practices in investment banking and private equity.
In November 2014, Markis Capital established NewBank Lease Corp, a Taiwan-based alternative �inance provider, leveraging our expertise and changing regulations in ship �inance, equipment and asset �inance, and lease asset projects in selected socially-bene�icial industries. With funding provided by institutional investors, family of�ices, employees, and industrial companies, NewBank actively seeks investment projects that can achieve a threefold goal, where value-generating leased assets can deliver cash yields and capital gains to its investors, provide a lower cost alternative �inancing source to SMEs and social enterprises, and provide clients a more competitive offering. An environmental engineering company developed a new type of waste compacting equipment, enabling cleaner communities but will require a larger upfront investment. Our analysis indicated that by purchasing the equipment and
leasing it to waste collection companies, investors could enjoy a 6% unleveraged return. By leasing rather than buying, waste collection companies could increase their margins by 13%, saving on depreciation costs. Communities, by using newer technology can improve their environment, and through renegotiations with the waste collection companies were able to obtain discounted prices on their services. Through a better balance of risk-reward tradeoffs, NewBank is able to achieve its threefold goal.
9
Research
DIEM
Identify
Monitor
Define
Evaluate The DIEM Cycle is our analytical framework for customized research. First, we DEFINE a clear research mandate, scope of study, and areas of exclusion. Secondly, we IDENTIFY, the key drivers and inhibitors to the variables and factors that may in�luence and change our views. Thirdly, we EVALUATE, the intensity, scale, and rate of change through qualitative and quantitative analytical tools. Lastly, we MONITOR changes, review our assumptions, consolidate and summarize data and conclusions for presentation.
CASE
Our client, a board member of a shipping company, was concerned that with the introduction of eco-ships, the dynamics of the industry supply environment would create substantial changes in asset values and shorten the economic value of their existing �leet. Furthermore, there has not been a comprehensive study done on the depreciation policies of global shipping companies, and it remained unclear in what market conditions would asset impairment, useful life, or depreciation policy result in material changes in market perceptions of company values.
Led by an ex-sell side analyst covering the shipping sector, our team was able to leverage our data resources, build a comprehensive global database of depreciation policies and �inancial data, identify the key drivers and inhibitors, and analyze various scenarios and their respective market impacts within a short research timeframe. Presented to selected members of the board and senior management, the results and conclusions from the report enabled our client to develop a clear understanding of the key levers impacting the industry.
11
Training
Markis Academy, Markis Capital’s training services, developed a reiterative course development process, setting clear benchmarks and goals, and enabling companies to better measure their vocational education and training efforts.
jective
Mea sure
Res
Set Ob
ult
Assess
D
en t
es
ign
Im
p l e m
CASE
An experienced corporate communication professional, working at a high growth, high margin technology company faced a supposedly enviable situation - A leading foreign investment bank initiated coverage on the stock with a high target price. With a background in PR and marketing, the newly promoted IR manager had the right language and communication skills for the job. However, with the sudden increased interest in the company, questions on valuations, revenue recognition, and �inancial modeling, particularly from analysts and investment fund managers, was overwhelming.
As the �irst line of contact from the company to the investing public, and the urgency of the situation, our solution was to provide a comprehensive quick course for a full day, covering topics ranging from IR basic and activities, to �inancial analysis and modeling, valuations, and capital markets communications. Executed on a con�idential 1-on-1 basis, this format enabled the IR manager to ask questions to an experienced analyst, in an informal environment, while maintaining the reputational impact of the company.
13
About Us Markis Capital is a Taiwan-based investor relations (IR) consulting and boutique �inancial advisory �irm. We are focused on providing strategic investor relations consulting services, corporate �inance advisory, �inancial education and training, and proprietary research services. We service Asian companies with a professional approach in investor engagement, using innovative methods and channels, targeting institutional investors and analysts. Corporate clients have engaged services including content development, translation and editorial services, website design & project management, customized research services, �inancial education & training programs, etc. In support of our consultancy work, we produce a series of research articles that has reached over 25,000 readers, as well as sponsor events around the region educating the market on the latest best practices and management methods. Our team leverages our research-based expertise, combined with a clear understanding of local business cultures, and aims to bring to the market more transparency and better quality, actionable intelligence.
15
GET IN TOUCH Investor Relations
Financial Advisory
Markis Capital Ltd. 9F.-2, No.20, Datong 2nd Rd. Kaohsiung City 80143, Taiwan Web : www.markis.asia Email : info@markis.asia Phone : +886-7-241-2329 FAX : +886-7-216-3268
Research
Training