East Capital, a specialist asset manager in emerging and frontier markets, today announces the winners of the 2017 East Capital Awards:
- Detsky Mir Best Growth Award
- MedLife Best IPO Award
- Canvest Discovery of the Year Award
- Globant Best Corporate Governance
This is the 14th year that the East Capital Awards honour remarkable companies in East Capital’s investment universe. Peter Elam Håkansson, Chairman and CIO of East Capital, said: “The Awards serve to highlight some of the most outstanding companies in our portfolios, and also to inspire others. Through our ongoing research, extensive company visits and investments in the region, we identify companies each year that have achieved impressive results and demonstrate great potential. I want to extend my sincere congratulations to this year’s award winners on their impressive achievements.”
The Best Growth Award is presented to Russian children’s goods retailer Detsky Mir, which experienced an impressive turnaround and growth story after the arrival of the new management team in 2012. The company turned from a loss-making troubled retailer into a unique combination of strong growth, high ROIC and strong FCF generation, thanks to its asset-light business model and market-leading position. Since 2012, the company has experienced a rapid expansion, with store count increasing 2.5-fold to 528, and more than doubled annual revenues. In 2016, EBITDA grew by 32.6%, and this accelerated to 39.9% growth year-on-year in the first half of 2017. Another unique feature of the company is the combination of high growth and large dividend payments, with an expected yield of 8% for 2017. Detsky Mir is expected to continue on its strong growth path and further consolidate its market leadership going forward.
The Best IPO Award is presented to MedLife, a leading private provider of healthcare services in Romania, with 8 general and specialist hospitals and 39 clinics, employing 1900 doctors and 1100 nurses. Founded in 1996, the company started as a family business and is characterised by a strong entrepreneurial culture. MedLife underwent an IPO on the Bucharest Stock Exchange in December 2016, with the book being more than 2x oversubscribed (the total value of the offer was RON 230m). East Capital participated in an initial placement, acquiring 4.2% of shares, and has been gradually increasing its stake up to 6.7%. Since the IPO, the stock has advanced 43.5% (from RON 26 till RON 37.3), but still trades at a significant discount to European and emerging markets peers.
The Discovery of the Year Award is presented to Canvest Environmental Protection Group, a leading waste-to-energy (WTE) developer and operator in China, and the largest privately-owned WTE operator in the Guangdong Province. The company generates revenues from electricity sales and waste treatment fees. Since its listing in 2014, Canvest’s earnings per share (EPS) grew by 15% CAGR. On a year-on-year basis, its 1H 2017 revenue grew by 73%, while its EPS grew by 29%, driven by a strong project pipeline. Going forward, we expect Canvest to continue to outperform its sector growth, due to its strong project pipeline, best-in-class operating efficiency and profitability, as well as a unique advantage over its peers as a private company with strong support from local government.
Globant is presented the award for Best Corporate Governance. Headquartered in Argentina and listed on the New York Stock Exchange, Globant is a leader in creating digital journeys, touching the lives of millions of users on a daily basis. As an IT and software service provider to some of the largest and most demanding companies globally, the company is an important contributor to the fourth industrial revolution. Globant’s strong management team has demonstrated a clear ambition to aim for international best practice by continuously improving corporate governance, its people management and overall role in supporting sustainable development. With a steady +20% revenue growth over the last three years and an 82% customer satisfaction level, we are confident Globant will continue to be a reference company in the technology industry for many years to come.
Notes to editors
The East Capital Awards were established in 2004 to reward the progress of outstanding companies in East Capital’s portfolios.
The award for Best Growth is presented to a company that has demonstrated outstanding growth in the areas of sales, market share and profit margins in recent years. The Best IPO Award is presented to the company that has carried out the most successful floatation in the region. The Discovery of the Year is awarded to a company discovered by our investment team that is expected to demonstrate unique performance. The Best Corporate Governance Award is presented to a company that demonstrates exceptional standards in the area of corporate governance and addresses the opportunities and risks related to environmental and social concerns.
For further information about the winning companies, please visit:
Best Growth Award 2017: Detsky Mir
detmir.ru / twitter.com/detmir_official
Best IPO Award 2017: MedLife
medlife.ro / linkedin.com/company/sc-medlife-sa/
Best Corporate Governance Award 2017: Globant
About East Capital
East Capital is an independent asset manager specialised in emerging and frontier markets, founded in Sweden in 1997, with offices in Dubai, Hong Kong, Luxembourg, Moscow, Oslo, Stockholm and Tallinn. The company manages EUR 3.1 billion in public and private equity funds, real estate funds and separate accounts, for a broad international client base, including leading institutions. Our investment strategy is based on extensive company knowledge gained through proprietary fundamental analysis and frequent company meetings. We incorporate ESG-related risks and opportunities in our investment process, and favour companies with long-term, sustainable growth perspectives and responsible owners.
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