IR Materials

The reality is that no company can expect investors to beat a path to its door, so it must beat a path to theirs. IR is the route.

Most stock-exchange listed Asian companies, particularly smaller and mid-sized companies, seriously underestimate the importance of communication, seeing it as something largely cosmetic that can be easily handled by in-house ‘PR’ staff or cheap local consultants.

Furthermore, many companies see PR, internal corporate communications, IR and branding as very separate areas to be dealt with by different, often competing, internal teams and external consultants. The result is frequently a mish-mash of materials and events with inconsistent messages and poor quality English. At best the effect is simply confusing or boring. At worst it is embarrassing.

While each stock market in Asia Pacific has its own set of rules and regulations, they all have one thing in common: the market and its participants have high expectations. These key players include analysts, investors, the media and other stakeholders, all of whom can have a significant impact on a listed company, from the smallest to the largest.

Communicating with these varied audiences is what Investor Relations (IR) is about.

PYI Consulting’s approach to IR seeks to achieve three key results for our clients:
  • A fair market valuation for the company
  • A level of liquidity sufficient to enable trading by retail and institutional investors alike
  • The ability to attract new capital
IRTargeting



IR Targeting

We are attuned to the needs and wants of the market and can provide our clients with true insight on how to meet investors’ expectations.

It is all too common for publicly listed companies to fail to maximize shareholders value because of poor investor targeting.

PYI Consulting helps its clients extend their coverage by equity analysts, fund managers and business media. In IRSystemssome cases, IR targeting may include rethinking a company’s stock market strategy and even its listing on a particular exchange.

As former investment bankers, equity analysts and media professionals, PYI Consulting directors and consultants are attuned to the needs and wants of the market and can provide our clients with true insight on how to meet investors’ expectations.


IR Systems

We work with clients to develop both internal and external mechanisms to ensure consistency, accuracy and timeliness of information disclosure and communications with all stakeholders, including regulators.

While there are several aspects to a best practice IR program, one of its key components is undoubtedly consistency. It is crucial for a company to have a systematic approach to its IR and financial communications.

PYI Consulting works with its clients to develop both internal and external mechanisms to ensure consistency, accuracy and timeliness of information disclosure and communications with all stakeholders, including regulators.

We help our clients set up their own internal IR team and we train the IR team based on the rules and regulations governing their specific exchange yet with an emphasis on international best practice standards.

We establish IR feedback systems to ensure that the IR program meets the needs of the investment community and we produce comprehensive quarterly IR Management Report so that CEOs and CFOs can evaluate the effectiveness of our activities.

Market

Market Signal Analysis

PYI Consulting conducts anonymous, independent market surveys and interviews with equity analysts, brokers, fund managers and specialized media.

What does the market think of your company’s strategy? Do you really know? Most CEOs today simply do not receive straight, unbiased feedback from shareholders, investors and investment professionals.

They see their share price underperform and they think there are some unknown, uncontrollable factors at play. If CEOs of publicly listed companies really knew what the market thought of their corporate strategy, they might change tack and move their company in a different, more value-adding direction.


Valuation PYI Consulting conducts anonymous, independent market surveys and interviews with equity analysts, brokers, fund managers and specialized media. We get in-depth, unbiased feedback on how they view your company, how they assess its value and what they think of its strategy and IR program.

The feedback is then used in our Fair Value Gap Analysis and often helps explain why there is a gap between fair value and actual share price.


Valuation and Fair Value Gap Analysis

PYI Consulting will summarize its findings and set out its conclusions and recommendations in a report, usually within 12 weeks of commencement of an assignment.

The last level of analysis before moving on to the actual implementation of an international-standard IR program, the Fair Value Gap Analysis comprises four stages.

Management Valuation
PYI Consulting will review our client’s existing in-house valuation analyses and interview management in relation to the main assumptions behind these analyses.

Market Signals
Through the Market Signals Analysis, PYI Consulting will assess the way the investment community is valuing our client.

DCF
PYI Consulting will construct its own Version 1 discounted cash flow analysis model based on publicly available information and a Version 2 based on additional confidential information provided by the client. PYI Consulting will comment on fair value conclusions from this analysis.

Multiples
PYI Consulting will conduct a detailed multiples analysis of its client versus its peers (both domestic and regional) including EV/Ebitda, EV/BV, PE, PB, simplified present value comparisons, relative liquidity analysis and relative gearing analysis.

Fair Value Gap Analysis Report
PYI Consulting will summarize its findings and set out its conclusions and recommendations in a report, usually within 12 weeks of commencement of an assignment. This report will be followed by a Strategic Recommendations Report, which includes:
  • Identification of the Fair Value Gap (FVG)
  • An IR Response to close the FVG
  • A Corporate Finance Response summarizing corporate finance solutions to close the FVG
  • A FVG workshop with the client’s finance and IR teams to brainstorm alternative strategies