Max Hu of Tyee Capital Group presented his in-depth investment thesis on Keyence Corp. (Tokyo: 6861) at Asian Investing Summit 2018.
Keyence is the world’s leading factory automation business. Principal products are sensors embedded in devices and equipment ranging from detection and measurement controllers to automation measuring instruments. Keyence, with its unique fabless manufacturing and direct-sales model, monopolistic economics with unmatched profitability (60% operating margin), is the highest-quality business in the global industrial automation space. Keyence should benefit significantly from China’s long-term plan to upgrade its manufacturing base as well as from global shifts toward artificial intelligence and industrial automation. The shares recently traded at a P/E of 30x for 2018E. The company should be able to grow earnings by 25+% for the next few years. While the stock is not cheap, Max believes that Keyence constitutes an underappreciated opportunity and a unique way to gain exposure to the themes of Chinese growth and factory automation.
The full session is available exclusively to members of MOI Global.
Members, log in below to access the full session.
Not a member?
Thank you for your interest. Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:
About the instructor:
Max Hu serves as a fund manager at Tyee Capital Group, a leading asset management platform with offices in both Hong Kong and Shenzhen. He has been managing the global opportunity fund, an equity-biased, long-biased multi strategy fund with a focus on extraordinary businesses. Previously, Max was the founder and portfolio manager of Tempus Capital Limited, a Hong Kong based investment firm. Max’s investment approach is contrarian, value-driven and concentrated. His investments have been focused on easy to understand, wide-moat businesses with solid long-term growth prospects. He has worked at Deutsche Asset Management and is a CFA Charterholder. Max graduated from Tsinghua University in China, with a degree in physics and mathematics. He has done PhD research in Financial Economics at ETH Zurich and holds a Masters’ degree from University Heidelberg.
About The Author: MOI Global Editorial Team
The MOI Global Editorial Team, led by John Mihaljevic, CFA, includes community builders, event organizers, writers, editors, research associates, security analysts, and fanatical member support advocates. Our sole purpose is to serve the members of MOI Global as well as we possibly can in order to help them learn, invest intelligently, and build lifelong friendships with like-minded people.
Who is MOI Global? In recent years, The Manual of Ideas has expanded to become more than simply “the very best investing newsletter on the planet” (Mohnish Pabrai). We are now a thriving global community of intelligent investors, connected through great ideas, thought-provoking interviews, online conferences, live member events, and much more.
Members of MOI Global enjoy complimentary access to a growing array of resources and content related to the art of intelligent investing. Members also enjoy preferential access to selected offline events as well as exclusive access to other events hosted by MOI Global, including the Zurich Project Summit, the Latticework Conference, and Ideaweek.
More posts by MOI Global Editorial Team