BMCs-Best Execs-r2:AMM grid in qxp 12/24/09 9:42 AM Page 44
AWARDS
“Itmeanttheprofitabilityofthewealthbusinessdeclineddispro- WuMartcontinuestobeveryprofitable.Inthefirstninemonthsof
portionatelyasthecost-to-incomeratiosblowout,butitalsomeant theyear,netprofitcametoRmb332million(US$48.6million),growing
thattheyhavenotshreddedtheircostbase.” 21.2%year-on-year.Analystsbelievethiscomesbecauseitiswellposi-
tionedinagrowingmarketandhaveinvestedwiselyintechnologyto
increaseefficiency.
BESTEXECUTIVE “Theyhaveagoodlogisticssystemwhichisveryimportantinthis
RichardUechtritz,chiefexecutive,JBHi-Fi tradeandareveryadvancedcomparedwithdomesticpeers,”saysa
buy-sideanalystinHongKong.
WuMartcanalsogrowquicklywiththehelpoftheUS$213millionit
Intermsofstrategyandexecution,there’sreallynoneedtolookpast obtainedfromstrategicinvestorsthisyear.Itstatedplanstoopennew
RichardUechtritzforthisaward,thechiefexecutiveoflow-costretailerJB storesandmakeacquisitions.
Hi-Fi. Investorshaveapparentlybeencheeredbythenews.OnDecember
Heledamanagementbuy-ininJuly2000withaviewtoexpanding 4,itssharepriceclosedatHK$13.68,up138%sincethestartofthis
themodelofafirmthathadjust10storesfocusedonHi-Fiequipment. year.
ByJulythisyearJBHhad123stores,with18moreplannedinfiscal
2010,anditsplatformnowincludeshomeentertainment,consumerelec-
tronicsandwhitegoods. MEDIUM-CAPCORPORATEOFTHEYEAR
Ithassuccessfullymovedintocomputers,thegamesmarket,mobile LiNing
telecommunicationsandflatpaneltelevisions–grabbingmarketshare
fromarangeofrivals.
Anditsresultshavebeenimpressive.IntheyeartoJulyitgrewsales Consistencyandvisionaretwowordsthatarefrequentlyusedto
27%toA$2.33billion,netprofit45%toUS$94.4millionandsawsame- describeLiNing,theChinesesportswearbusiness.
storesalesgrowthof11.5%. Thefirmtakesthenameofitsfounderandchairman,thecelebrated
JBHalsolowereditscostofdoingbusinessby77basispointsto14.5% Chineseathletewhowonsixmedalsatthe1984Olympics.Morerecent-
ofsalesandboastedapayoutratioof50%.Plusitiswellpositionedfor ly,heisknownasthedaredevilwholitthetorchattheopeningceremo-
continuedgrowth. nyoflastyear’sBeijingGames.
Uechtritzhimselfisdescribedasapersonableandencouragingleader. China’sgoldenboyhasshowngreatnessnotonlyingymnasticsbut
AnalystpraisewasalsoreservedforchiefoperatingofficerTerrySmart alsoinhisbusinessventures.Thefirmhefoundedin1990issometimes
andchieffinancialofficerRichardMurray. called‘NikeoftheEast’.Theyaresimilarinsomeways–bothplacean
Uechtritzmodestlypaidtributetohismanagementteamforthis emphasisonresearchanddevelopmentandoftenbacksportingsuper-
award,adding:“Wejustgottogetheratthestartof[thecrisis]andsaidwe starsasamarketingtactic.
needtobeevenmorefocusedonwhatourmaingainis. “Welikethiscompanybecausethey’refocusedonresearchand
“Itisallaboutthebasicsofretailing–gettingtherightstoresandthe developmentandonproductdesignanddevelopment,”saysoneChina
rightstockattherightprice,andkeepingourcostslow.” headofresearch.“Also,theyknowwhatthey’regoodatanddistinguish
Hesaidmaintainingthecultureoftherapidly-growingorganisation themselvesfromrivalsthatlikeexpandingstores.”
wasoneofthechiefchallenges,andonapersonallevelsingledoutthe Thecompanyisalsoveryprofitable.Inthefirsthalfofthisyear,rev-
firm’sWorkplaceGivingProgrammeasoneofhisachievementsthisyear. enuegrew32.4%toRmb4.1billion.
Theprogrammeseesemployeesmakecontributionstooneoffive Thishome-grownfirmcontinuestogiveinternationalrivalssuchas
charities,whilecompanymanagementdonate1%oftheirsalariesintothe NikeandAdidasarunfortheirmoneyinChina.Butlikethem,ithas
programme.“Ithinkthatshowsthecultureoftheorganisation,”added ambitionsbeyonditsshores.Itrecentlyopenedflagshipstoresin
Uechtritz,proudly. SingaporeandHongKong.
Thatcanbeabitofagamble.AsasportsmanLiNingdoesnotenjoy
CHINA
thesamerecognitionoverseasthathedoesinChinawhereheisahome-
townhero.Butanalystsbelievethisplantoheadoffshorehasmerits.
“Ithinkit’stherightone,”saysamarketsource.“Goingglobalisone
SMALL-CAPCORPORATEOFTHEYEAR ofthefocusesfortheminthenextfewyears.It’saninterestingmove
WuMart andIthinkit’llworkgiventhevisionofthemanagement.”
Therewereanumberofcontendersforbestsmall-capinChinathisyear, LARGE-CAPCORPORATEOFTHEYEAR
andasalwaysitwasadifficultdecisiontomake. Tencent
WuMartedgesoutitsrivals,andalthoughitisnotaconsensuscall,
Asiamoneybelievesthefirmmeritsthisnod.
ThisisoneofthelargestsupermarketchainsinBeijingandisprobably China’slargestinternetcompanyseemstobeabitofeverything:itruns
bestknowninternationallyasChinesefundmanagerZhaoDanyang’s thenation’smostpopularmessagingprogramme,hasextendedits
stocktiptoWarrenBuffet. reachintoonlinegamingandhasthrivingonlineauctionsandonline
InJune,Zhaowonalunchwiththelegendaryinvestorafterpaying paymentsunits.
US$2.1billioninacharityauctionandsharedthistipwiththemediaon PerhapstheeasiestwaytoimagineitisasMicrosoft’sMSNunit,
theeveoflunch. Yahoo,eBayandPaypalallrolledintoone.
ButinChina,WuMartisoftenassociatedwithscandal.In2008,its Thereisverylittlenottolike.Tencenthasgrownconsistentlysince
founderandformer-chairmanZhangWenzhongwassentencedto18 itsIPOlistingin2004.Thecompanynowhasamarketcapofmorethan
yearsinprisonforbriberyandfraud.Heresignedin2006afterbeing US$37billion.
investigatedbytheauthorities. Itsprofitabilitythisyearhasbeenverystrong,too.Inthethirdquar-
Thescandalcastapalloverthecompany,butithascapablyshakenthis ter,netincomejumped93%year-on-yeartoRmb1.42billion.
offandgrownfromstrengthtostrengthinwhatisacredibleturnaround Thecompanydoeswellinwhatitsetsouttodo.Takeonlinegaming.
story. Thisdivisiononlystartedupafewyearsagoandyetitisalreadyoneof
44 DEC2009/JAN2010 ASIAMONEY
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