Perception Study
Use findings from the perception study to reshape investment keywords
A global leading PCB manufacturer continues to achieve outstanding financial results and actively invests in future growth by entering new businesses. However, compared to its peers, its valuation did not adequately reflect its company value. QIC proposed that the company should first conduct a “perception study.” Then for the areas of perception gap, it should provide corresponding elaborations to strengthen its investment thesis and utilize key keywords to regain control of building its own capital market story.
Client Challenge
Attract investors who support the company’s growth strategy to achieve a fair valuation
The company has set a clear growth strategy and goals and has a track record of achieving excellent financial results by delivering its goals. It also has a certain amount of sell-side analyst coverage. However, the company did not provide investors with a structured investment story and regular communications, and hence its valuation did not reflect the value of its new businesses.
The QIC Advantage
Use the perception study to restructure its equity story and adjust its communication style
Through the perception study, QIC collected and summarized the key concerns from investors and sell-side analysts regarding the company's future development strategy across various issues, including industry competition, customer concentration, industry supply-demand gaps, and how the new businesses can succeed, etc.
QIC conducted in-depth communication with the company's Chairman, President, and other senior management to address investor concerns, review the company’s track record, and discuss its growth strategy. QIC assisted in creating indicators that can be regularly updated to help investors follow the company’s business progress. QIC also rebuilt the company’s equity story and reshaped its investment keywords.
In addition, QIC assisted management in changing its communication style. We encouraged the company to proactively address investors' concerns and provide ongoing communications to enhance the company's transparency. This allows investors to track the company's business progress over the long term.
Results
Share price outperformed peers, FINI holding materially increased, sell-side analysts upgraded ratings
For the first earnings conference arranged by QIC, it attracted nearly 180 investors, doubling in attendance compared to previous events. Subsequently, QIC produced a list of target investors and arranged a series of investor communication activities. QIC also helped collect investor feedback and assisted the company prepare emails to provide investors with regular updates. Over the nine months following the first earnings conference, the company's stock price increased by nearly 20% (while many competitors' share prices declined during the same period), FINI holding increased by 11 percentage points, and many sell-side analysts upgraded the company's ratings.
