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  • The Southwood Group Microsoft In Chinese Gaming Joint Venture

    The Southwood Group have been closely observing Microsoft Inc as preparation is made to partner with BesTV New Media Co, in a $79 million joint venture to develop and support gaming in the China's Shanghai free trade zone.

    The announcement of the cooperative venture comes as China's government contemplates the lifting of a ban on gaming consoles implemented in 2000 to combat the perceived negative influence of this media on young people. The reality of the outright ban saw the computer savvy Chinese youth market look instead to online gaming, turning the sector into the largest in the world, ultimately leading to the success of internet giants like Tencent Holdings LTD.

    With the possible withdrawal of the 13-year-old ban, Microsoft and its partner are looking to capitalize by developing, sourcing and supporting gaming products inside the Shanghai free trade zone, so long as the products abide with strict legislation on approved content they will become legally available. By being located domestically, the combined operation would be ideally placed upon the lifting of the restriction especially in light of Microsoft manufacturing the X box gaming console line.

    "More often than not when we hear of partnerships with Microsoft they are generally very large and the reason we are hearing of them is that they are not performing as expected. Small arrangements like the one with BesTV on the other hand tend to turn out very well for both partners and there is no reason to think that this will not be the case here. They are going to be very well placed in regards to the console ban being lifted or not," said Senior Vice President of Mergers and Acquisitions James Morgan at The Southwood Group.

    If the lifting of China's ban on console based gaming is lifted it could be of massive importance to the world's manufacturers of consoles and software developers as the North American market for their products sees slower growth. A Chinese market for such products could conceivably be valued as high as $10 billion and would be expected to grow dramatically in pace with other sectors of media technology in China. Shares in BesTV New Media Co, a subsidiary of Shanghai Media Group surged over 10% after news of the announcement broke further propelling the company's spectacular year to date ROI of 215.88%.

    "The future possibilities for growth and success are good for this joint venture, you have got a dynamic, well integrated young company being partnered with a truly global tech giant and both trying to break into a under exploited and large market. There are very few better positions to be in when negotiating the start of a new business and the markets are definitely seeing the potential of such a combination. While we would still play cautiously in relationship to the flow on effects from any lifting of China's console ban, we are expecting very promising results regardless for this venture," added Senior Vice President of Mergers and Acquisitions James Morgan at The Southwood Group.

    As an equity-research house, The Southwood Group specialises in providing fundamental research and data analysis, ultimately facilitating trend identification, and finally stock selection. The company has professional managers with extensive experience in all aspects of investing and legal compliance, all of whom had spent their careers in the global finance industry from Hong Kong to New York. It is established on ideals of perseverance, enduring commitment to its clients and, most of all, due diligence.

    The Southwood Group hopes to enhance even more its capability and reputation as a provider of success-driven service to its clients.

    Oct 18 10:53 PM | Link | Comment!
  • The Southwood Group Keeping The Lights On In Asia

    The Southwood Group is seeing an increase of interest in General Electric Company, after the successful purchase of a stake in Chinese power equipment manufacturer China XD Electric Company is finalised.

    In what has taken 15 months to come to fruition, it was announced today that G.E has been successful in acquiring a 15% stake in Chinese power equipment company China XD. The deal comes as both companies expect to see a massive increase in the demand for equipment to meet the power infrastructure needs within China as the power grid continues to grow at an unmatched rate.

    "2013 has so far been a very good year for shareholders in both companies we have seen excellent returns on investment as both companies have displayed good solid performance throughout the year. As much as this is a acquisition by G.E. the partnership that will be involved is a sound decision for both parties, G.E. brings a lot of experience to the table and China XD is well placed to supply their own domestic market as it goes through rapid expansion," said Senior Vice President of Mergers and Acquisitions James Morgan at The Southwood Group.

    The stake hold of 15% in China XD cost General Electric Company $552.2 million. The newly formed joint venture will enable the amalgamation to take advantage of the country's growing energy market by supplying key-grid automation equipment for the growing infrastructure. The joint venture is expected to see G.E. expand sales of power transmission components and services by double to around $4 billion annually by 2013.

    The joint venture has already been of benefit to both General Electric and China XD before completion, with speculation of the outcome circulating, share value in both companies benefited. Although a key focus of the partnership will of course be within China, industry analysts point to recent contracts in both European and American supply grids. The U.S. grid in particular has been identified as one where replacement of aging infrastructure will be a pressing concern, both China XD and G.E. share values continue to trend higher with ROI's of 3.75% and 14.88% respectively.

    "Overall this deal has already been paying dividends for shareholders in both companies, now finalised they find themselves ideally placed to capitalise on contracts that are coming on a near daily basis in China and the U.S. We see all of the new possibilities for this partnership as a sign for strong growth, we will be advising clients and new prospective investor's as this situation develops," added Senior Vice President of Mergers and Acquisitions James Morgan at The Southwood Group.

    As an equity-research house, The Southwood Group specialises in providing fundamental research and data analysis, ultimately facilitating trend identification, and finally stock selection. The company has professional managers with extensive experience in all aspects of investing and legal compliance, all of whom had spent their careers in the global finance industry from Hong Kong to New York. It is established on ideals of perseverance, enduring commitment to its clients and, most of all, due diligence.

    The Southwood Group hopes to enhance even more its capability and reputation as a provider of success-driven service to its clients.

    Sep 19 10:04 PM | Link | Comment!
  • The Southwood Group Advise Clients On Soho China Profits

    The Southwood Group is updating clients on Soho China as Beijing's biggest CBD Developer's first half profits double.

    The largest of Beijing's developers Soho China Ltd has seen their latest change in strategic business model richly rewarded with a near doubling in profits for the first half of the year, over the same period last year. The company under CEO Zhang Xin modified their approach from what many describe as a 'buy and sell' strategy to a more long term oriented 'buy and hold' philosophy, the core changes have crucially affected the way Soho's bottom line is attained.

    By maintaining control over attractive CBD properties for longer periods the company has seen rising income from dependable property rental as opposed to the often more profitable, but more erratic sales earnings that Soho has relied on in the past. First half profits for the Chinese developer rose to 537 million Yuan , up from 233 million Yuan a year earlier accompanied by a doubling of revenues to 2.5 billion Yuan.

    "Any changing of a company's fundamental business approach carries risk and this will of course scare a number of investors. With a positive outcome like Soho's the rewards are great for those that could see the big picture and a willing to add some risk to their portfolio's. After a slight slowing in the rental property market first quarter we are now seeing a rebound which Soho is well poised to capitalize on," said Senior Vice President of Mergers and Acquisitions James Morgan at The Southwood Group.

    With changes in its leasing operations matching up swings in the property market the attraction of Soho to investors has not been overlooked by the market with the company's stock gaining 3.2% for the year and paying a dividend of 0.12 yuan per share, despite the Hang Seng's 3% loss for the same period. ROI for the year stands at an impressive 31.97%.

    "Soho has been a consistently well performing company, even in more trying times, coupled with what has now been shown to be a very smart move strategically in terms of core business strategy, it's an even stronger candidate for investment now as the outlook for the property sector improves. We are seeing more clients local to the region investing in this sector, we will continue to advise clients and new investors how best to enter this complex market ensuring that best outcome is achieved," said Senior Vice President of Mergers and Acquisitions James Morgan at The Southwood Group.

    As an equity-research house, The Southwood Group specialises in providing fundamental research and data analysis, ultimately facilitating trend identification, and finally stock selection. The company has professional managers with extensive experience in all aspects of investing and legal compliance, all of whom had spent their careers in the global finance industry from Hong Kong to New York. It is established on ideals of perseverance, enduring commitment to its clients and, most of all, due diligence.

    The Southwood Group hopes to enhance even more its capability and reputation as a provider of success-driven service to its clients.

    Sep 15 8:45 PM | Link | Comment!
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