Financial Frontiers specialises in distressed asset, special situations and growth investing.
Our primary focus is to seek lucrative investment opportunities at acceptable risk levels.
We balance the risk and return of each project by evaluating the potential company’s
(1) Competitive Advantage
(2) Growth Potential
(3) Management Team
(4) Exit Strategy
We prefer to participate in brown field investments and expansion-stage companies whose management treats us fairly as minority investors. Our deal size ranges from S$500,000 to S$10 million. We accept flexible investment methods and structures, focusing on alignment of interests with investee companies.
We actively help investee companies in restructuring and re-organizing their operational framework for superior efficiency and effectiveness in their business operations. We are a big proponent of good corporate governance practices as we believe it is the key driver of good company performance. We will actively promote such practices in our portfolio companies, enabling fast and smoother growth when our principles are aligned. Should the need arise, we will advise our investee companies in capital requirement planning, business development strategies and public listings.
Pentamaster International Ltd is an innovative manufacturing and technology solutions provider listed on Hong Kong Stock Exchange. It is founded in Penang, Malaysia and has 22 years of extensive experience and proficient skills in providing integrated and customized solutions.
The company provides Automated Testing Equipment (ATE) and Automated Manufacturing Solutions (AMS) to multinational manufacturers mainly in the semiconductor, telecommunications and automotive sectors spanning APAC, North America and Europe.It has won the highly acclaimed title of Forbes Best Under A Billion 2018 and 2017.
Guan Chong Berhad is the largest cocoa processor in Asia and joint 4th largest in the world. It has an annual grinding capacity of 250,000 MT. The group provides cocoa-derived food ingredients such as cocoa liquor, cocoa butter, and cocoa powder to its customers, including several MNCs, through its wide distribution network and exports to more than 70 countries.
GCB’s main operations are cocoa processing, where it grinds cocoa beans into semi-finished products, e.g. cocoa butter, cocoa liquor, cocoa cake and cocoa powder.
We think that the demand for chocolate product is going to be evergreen, thus this drives the demand vertically throughout the entire supply chain. Through a cost-plus model and active hedging of its business model and the de-commoditisation of its cocoa powder, GCB will be less affected by demand/supply shocks.
Inari Amertron Berhad is a Malaysia-based investment holding company with 14 wholly-owned subsidiaries involved in the outsourced semiconductor assembly and test (OSAT) service & electronics manufacturing services (EMS) industries.
It is founded in Penang, Malaysia is one of the top Malaysian semiconductor company and is focused on outsourced semiconductor assembly and test (OSAT) service provider for Radio Frequency (RF), Fiber-optics transceivers, opto-electronics, sensors and customer IC technologies.
Established in 1991, Top Glove Corporation Bhd is overall, the world largest manufacturer of rubber gloves. TopGlove has 18,000 employees worldwide and is one of the component stocks for MSCI Global Standard Index, FTSE Bursa Malaysia KLCI Index, FBM 100 Index and Dow Jones Sustainability Index (DJSI) for Emerging Markets.
Prior to COVID, the rubber glove industry is mainly driven by medical, dental, pharmaceutical and food handling sectors. According to Malaysian Rubber Glove Manufacturers Association (MARGMA), the global demand for rubber gloves is estimated to reach 300 bn gloves in 2019 with an expected annual growth rate of 12%. Malaysia is the world’s largest producer and leading exporter of rubber gloves, contributing 65% of the world's supply.
Crowdstrike, founded by George Kurtz (ex-CTO of McAfee) is a best-in-class next-gen cloud native cybersecurity software that specialises in end point protection (EPP) and endpoint detection and response (EDR). Its flagship product - Falcon is built with single lightweight-agent architecture that leverages artificial intelligence (AI) and offers real-time protection and visibility across the enterprise, making it the top CISO choice in EPP/EDR software.
With the proliferation of cyber hacking and ransomware incidents, we see a strong secular tailwind in the cybersecurity space for a foreseeable future. Crowdstrike operates in a huge market with a total addressable market of $36bn (estimated by the management), and it’s expected to grow to $43.6bn/$106bn by 2023/2025.
By having superior products & services, Crowdstrike has been able to eat the lunches of the legacy players like McAfee and Symantec as customers switch side. Even in the next-gen cybersecurity software, Crowdstrike has been successfully replacing other players like SentinelOne and winning deals from Microsoft. We are of the view that Crowdstrike will continue to be a leader in the EPP/EDR space.
Clearpoint Neuro, a medical device company headed by CEO Joe Burnett (Ex-VP & GM of Neuro Diagnostics and Therapy at Royal Philips) is a provider of neurosurgical solutions that specialises in the Magnetic Resonance Imaging (MRI) space while making progress towards the Operating Room (OR) suite. The Clearpoint Neuro-Navigation System provides a real-time & direct MRI surgical planning and navigation tool which allow neurosurgeons to reach the desired target with high degrees of precision.
With rapid advancements in Gene therapy, Clearpoint Neuro has partnered up with pharmaceutical companies by providing their products for the ongoing clinical trials. We see a strong secular growth in the biologics and genomic space, and Clearpoint Neuro is well positioned to tap into this market with a respectable addressable market of $1.5bn estimated by the management and expects to see first indications starting from 2022 through 2025.
Operating within a niche market, Clearpoint Neuro is able to grow its market share through innovation & deployment of its disposables to increase procedure coverage, driving greater adoption. We are of the view that Clearpoint Neuro is able to grow multiple times in the next 5 years as their products enter both the neurosurgery and gene therapy space.
Humatics develops microlocation products that will revolutionize how people and machines locate, navigate, and collaborate.
Humatics microlocation systems is a combination of proprietary software, proprietary hardware, on-board sensors, and complex algorithms (all created by world leaders in the fields of AI, radio-frequency navigation, ultra-wideband technology, and robotics) position everything that moves – people, robots, autonomous vehicles, heavy equipment, buses, and trains – with unmatched precision and reliability in XYZ coordinates.
Microlocation is capable of locating anything you care about, on a scale from meters to millimeters. This data creates a complete digital picture of what’s happening in the physical world at any given moment and provides the insights necessary to understand where the waste is, how to do more with less, and how to make things safer for people in an automated world.
Humatics’ technology also unlocks new possibilities that will profoundly impact diverse fields such as entertainment, healthcare and the development of smart cities.
BYD started out as a battery maker in 1995, is now the largest new energy vehicle (NEV) manufacturer in China. It has strong capabilities in NEV manufacturing with 20% market share in NEV market in China at a time when most NEV players are merely clocking low single digit market share. It is also the world's first fully vertically integrated NEV maker with capabilities to manufacture battery cells and IGBT transistors, the two most expensive components in a NEV.
NEV industry plays a crucial role in combating climate change and enhancing energy security for countries that have heavy reliance on oil imports. Given the low NEV penetration, dwindling ASP of NEV and governments around the world phasing out internal combustion vehicle (ICV), these act as strong secular tailwinds in the NEV market for a foreseeable future.
On R&D front, BYD has been consistently coming out with new revolutionary technology such as blade battery, DM-i technology and e-Platform 3.0, which will spur multiyear growth. We are of the view that BYD will continue to be a leader in the NEV market and is well-positioned to capitalize on the long-term growth runway of NEV industry.
Sea Limited is a global consumer Internet company. The Company operates approximately three businesses across digital entertainment, e-commerce, as well as digital payments and financial services, known as Garena, Shopee and SeaMoney, respectively.
Garena is a global online games developer and publisher, which provides users with access to mobile and personal computer (PC) online games that it develops, curates and localizes.
Shopee offers a product assortment, supported by integrated payments and seamless fulfilment. Shopee is the pan-regional e-commerce platform in Southeast Asia and Taiwan.
SeaMoney’s offerings include mobile wallet services, payment processing, credit, and related digital financial services and products. SeaMoney services and products are offered under ShopeePay, SPayLater and other brands in the region.
NagaCorp Ltd. is one of the world's most profitable gaming companies, and the largest gaming entertainment company in Cambodia with a proven track record of developing world-class gaming facilities in frontier markets. Its wholly-owned subsidiary NagaWorld owns, manages and operates Phnom Penh's only integrated hotel-casino entertainment complex, which owns a 70-year exclusive casino license.
The Company is the first gaming IPO in the Hong Kong Exchange, and is the first foreign-owned company with operations in Cambodia ever listed overseas. NagaCorp Ltd has listed in the main board of the stock exchange of Hong Kong Limited since 2006.
CNMC Goldmine Holdings Limited is the first gold mining Company listed on the SGX-ST. They commenced operations in 2007 and is principally engaged in the exploration and mining of gold and the processing of mined ore into gold doré bars.
They are currently focused on the development of its flagship project - Sokor Gold Field that is located in Kelantan, Malaysia.CNMC endeavours to be the lowest-cost gold producer in the world (They achieved an all-in-cost of only US$ 500/oz in Q216 and attained an all-in margin of 61%) with a strong focus on sustainable gold mining. CNMC has been listed in SGX-ST since October 2011.
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