Tung Thih Electronic (TTE): Asia’s #1 (Global #3) Automotive Parking Sensor Innovator with >50% Market Share in China
Tung Thih Electronic (TTE) (GreTai: 3552 TT) is Asia’s largest maker of patented, ultrasonic, accurate auto parking radar sensor, ahead of Japan’s Denso (6902 JP), and is the third-largest in the world behind Valeo (FR EN) and Bosch. TTE has about 60% market share in parking radars installed on new cars sold in China, and the installation rate of radar sensors on China’s auto is still low (35%+ on new cars vs 80%+ in Taiwan and developed markets). Established in 1979 by founder and Chairman Scott Chen, TTE is one of the few Tier-1 automotive suppliers in Taiwan to major OEM car makers that include Ford, GM, Nissan, China’s top 10 auto companies, and Taiwanese automakers, thereby directly shipped to them and involved in their R&D processes and early stage processes of concept car design and prototyping, creating a pre-emptive advantage in winning new orders. TTE’s top five clients (Shanghai VW, North America Ford, Great Wall Motor, Dongfeng Nissan, and Shanghai GM) accounts for 53% of total sales in FY14. TTE operates 3 factories, one in Taiwan and two in China (Xiamen, Kunshan) with a total capacity of around 10m units.
1) What Makes It a Wide-Moat Business?
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About The Author: Koon Boon Kee
Koon Boon is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets.
Starting his career at a boutique hedge fund in Singapore and later, at Korea’s largest mutual fund company, Koon Boon started to make headway into the investment arena. In his early successes, Koon Boon was part of the core investment decision committee which achieved 700% in returns (net of fees), in its flagship Asian fund.
A prolific writer and thought leader, Koon Boon has contributed hundreds of articles to Bamboo Innovator and BeyondProxy, an acclaimed series of subscription-based, research-intensive publications for serious investors; and is Managing Editor of the Moat Report Asia, a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia. He had also presented in top banking and finance conferences in Sydney, Cape Town, HK and Beijing, as well as in the Emerging Value Summit and Wide Moat Investing Summit. His work has been featured in local and international media such as, TEDxWallStreet, Investopia, BeyondProxy, Greatinvestors.tv, Jakarta Post, Straits Times Singapore, TODAY Singapore, Business Times Singapore, as well as a publication in the BoğaziçiJournal.
With the wide occurrences of financial fraud committed by listed firms in China during 2015, Koon Boon went to further his studies, from which he saw a gap in the curriculum for accounting fraud. He went on to pioneer the first-of-its-kind course on Accounting Fraud in Asia, which is now an official course in the SMU curriculum.
Today Koon Boon is the Chief Investment Officer at 8I Holdings Limited, where he is responsible for the sustainable growth and outperformance of listed Asian equities investments in the Hidden Champions Fund.
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