The concept of value investment has its basis in fundamental analysis of individual companies, and the intrinsic value of target companies are invariably predicted using comprehensive fundamental analysis. We believe that what distinguishes an investor from an speculator is that the former always insists in making assessment of the valuation of investment targets. We are truly investors guided by values.

We also believe that the intrinsic value of an investment is the net present value of its future free cash flow. The basic nature of the operation of the stock market is reflected by the volatility of share valuation. Although from a long-term, board perspective, the stock market is an efficient entity, over the short-term and sector wise erroneous pricing cannot be ruled out. Our investment strategy is therefore to buy when the price of a target stock is substantially lower than its intrinsic value; and to sell when its price approaches the intrinsic value.

No investment philosophy alone can guarantee high return; the ability to turn concepts into practice is what really counts. Through our highly disciplined investment decision-making process, we have succeeded in ensuring the principles of value investment are consistently implemented.