Yung Chi Paint (YCP) (TWSE: 1726 TT) is Taiwan’s largest paint and coating maker with domestic market share leadership of 30% and 50% in architecture and heavy duty paint respectively under its own “Rainbow” brand. YCP is established in 1951 in the industrial city of Kaohsiung by the founder Chang Ten-yung. Through technical cooperation with UK’s Berger Jenson and Nicholson, Japan’s Kobe Paints, and US Ameron, YCP is equipped with advanced technology and facilities and strong internal R&D ability, offering marine coating, coil coating, anti-corrosion coating, fire-retardant coating and other heavy duty paint and coatings. YCP also provides painting contractor services with multi-year contracts from the Formosa Group to paint anti-corrosion coating at the giant Mailiao Petrochemical Complex. Overseas operations in China (Kunshan) and Vietnam (Don Nhai) are scaling up while warming up in Malaysia and US. When the founder passed away in 2006, giant PPG (PPG US, MV $29.8bn) and Formosa Plastics (1301 TT, MV $14.5bn) offered to buy over 51% of the company but were rejected by the controlling family.
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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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