Euromoney‘s second survey of the best Asian companies as rated by the region’s top analysts comprises an expanded list of countries and industry sectors. Participants gave their opinions on sectors from telecoms to textiles, transport and shipping in north-east Asia, south-east Asia, the Indian sub-continent and Australasia.
Overall, 115 companies were nominated for individual sectors, 22 of which are located in Korea, 17 in Malaysia, 13 in Pakistan, 12 in Hong Kong and 10 in Japan.
Korean companies rank highly in many sectors of our survey: banking & finance (Kookmin Bank in second place), electronics (Samsung Electronics at one; LG Electronics at six), iron and steel (Pohang Iron & Steel at one), oil and gas (Yukong at one), pulp and paper (Hansol Paper at one), and shipping (Hyundai Merchant Marine at one). This reflects recent activity in capital markets: for example, Kookmin Bank issued three $100 million FRNs earlier this year. Both Samsung and LG Electronics brought 10-year convertible bonds to the market in June, for $300 million and $75 million respectively. Hyundai Merchant Marine has been busy with syndicated loans: over $1.3 billion of guaranteed term loans signed in 1997.
It is the gaming sector where Malaysia excels, with Berjaya Sports Toto and Resorts World at the top of the list. But the country does well in other areas too: conglomerates (Sime Darby at two), motor companies (Proton at four) and utilities (YTL at five). In the finance sector, Malayan Banking ranks equal second behind HongkongBank, up five places on last year’s ranking. Southern Steel enters the ranking of iron and steel companies behind Pohang Iron & Steel and China Steel. Telekom Malaysia climbs to second place from sixth and YTL joins the list of utilities at five, following its M$700 million ($209 million) IPO lead-managed in March by BZW and Rashid Hussain.
A greater number of replies from the Indian sub-continent has enabled us to include results not just on India, but also on Pakistan, which in fact performed better in the survey than India. Utility Hubco and Pakistan Telecom were voted the country’s top companies, but its automotive, oil and gas, and textiles industries are worthy of mention too. Several companies in these sectors are partly foreign-owned: Shell Pakistan, Lever Brothers, Pak Suzuki, Honda Atlas. India’s top names are Housing Development Finance Corp and detergent manufacturer Hindustan Lever (also partly foreign-owned), followed by Reliance Industries, Tata Iron & Steel and Infosys electronics.
Among Hong Kong’s best companies are property giants Cheung Kong Holdings and Sun Hung Kai Properties, which top the real-estate sector, along with New World Development. HongkongBank (first in banking and finance), Hutchison Whampoa (first for conglomerates) and Cathay Pacific (second among travel and aviation companies) dominate in their own areas too. Hong Kong Telecommunications is also successful, but has slipped from number one last year to fifth place.
Included for the first time in this survey, some Japanese companies do well, especially Honda Motors and Sony, which rank first and second respectively in the automotive and electronics sectors. But given the size of the country’s economy, few Japanese companies were nominated. Nippon Steel, Sumitomo Metal Industries, Shin-Etsu Chemical, NTT, and retailer Ito-Yokado are among the names which feature.
How analysts rate companies
| North-east Asia | ||||||
| Rank | ||||||
| 97 | 96 | Score | ||||
| China | ||||||
| 1 | 1= | China Resources (Holdings) | 8 | |||
| 2 | 6= | Shanghai Industrial Holdings | 6 | |||
| Hong Kong | ||||||
| 1 | 4 | HongkongBank | 20 | |||
| 2= | 3 | Hutchison Whampoa | 9 | |||
| 2= | 1 | Sun Hung Kai Properties | 9 | |||
| 4 | – | Cheung Kong (Holdings) | 7 | |||
| Japan | ||||||
| 1 | – | Sony | 8 | |||
| 2 | – | Honda Motor | 7 | |||
| South Korea | ||||||
| 1 | 1 | Pohang Iron & Steel | 28 | |||
| 2 | 2 | Samsung Electronics | 17 | |||
| 3 | – | SK Telecom | 7 | |||
| 4 | – | LG Chemical | 5 | |||
| Taiwan | ||||||
| 1= | 3= | China Steel | 8 | |||
| 1= | 3= | Taiwan Semiconductor Manufacturing | 8 | |||
| 3 | – | Asustek Computer | 7 | |||
| South-east Asia | ||||||
| Indonesia | ||||||
| 1 | 5= | Astra International | 7 | |||
| 2= | 8= | Tambang Timah | 6 | |||
| 2= | 3= | Telekomunikasi Indonesia | 6 | |||
| South-east Asia | ||||||
| Rank | ||||||
| 97 | 96 | Score | ||||
| Malaysia | ||||||
| 1 | 1= | Malayan Banking | 18 | |||
| 2= | 5= | Sime Darby | 7 | |||
| 2= | – | Tanjong | 7 | |||
| 4 | 1= | Telekom Malaysia | 6 | |||
| Philippines | ||||||
| 1 | – | Philippine Long Distance Telephone | 8 | |||
| 2= | 1= | Ayala Corp | 7 | |||
| 2= | 1= | Ayala Land | 7 | |||
| 4 | – | Meralco | 6 | |||
| Singapore | ||||||
| 1 | 1= | Singapore Airlines | 13 | |||
| 2 | 4= | DBS Land | 11 | |||
| 3= | – | Creative Technology | 6 | |||
| 3= | 11= | DBS Bank | 6 | |||
| Thailand | ||||||
| 1 | 1= | Bangkok Bank | 14 | |||
| 2 | 5= | Thai Farmers Bank | 7 | |||
| Indian Subcontinent | ||||||
| India | ||||||
| 1 | 2 | Housing Development Finance | 9 | |||
| 2 | 1 | Hindustan Lever | 8 | |||
| Pakistan | ||||||
| 1 | – | Hubco | 9 | |||
| 2 | – | Pakistan Telecom | 7 | |||
By Sector
| Rank | ||||||
| 97 | 96 | Country | Score | |||
| Automotive | ||||||
| 1 | – | Honda Motor | Japan | 16 | ||
| 2 | 1 | Hyundai Motor | Korea | 12 | ||
| 3 | – | Astra International | Indonesia | 8 | ||
| 4= | – | Honda Atlas | Pakistan | 7 | ||
| 4= | 2= | Proton | Malaysia | 7 | ||
| 6 | – | Pak Suzuki | Pakistan | 6 | ||
| 7 | – | Indus Motors | Pakistan | 5 | ||
| Banking & finance | ||||||
| 1 | 15= | HongkongBank | Hong Kong | 20 | ||
| 2= | 4 | Kookmin Bank | Korea | 14 | ||
| 2= | 7= | Malayan Banking | Malaysia | 14 | ||
| 4 | 7= | Bangkok Bank | Thailand | 11 | ||
| 5= | 2= | DBS Bank | Singapore | 9 | ||
| 5= | – | Housing & Commercial Bank | Korea | 9 | ||
| 7= | – | Bank of the Philippine Islands | Philippines | 8 | ||
| 7= | – | Bank of Tokyo-Mitsubishi | Japan | 8 | ||
| 7= | – | Bank Sinopac | Taiwan | 8 | ||
| 7= | 5= | Thai Farmers Bank | Thailand | 8 | ||
| Conglomerates | ||||||
| 1 | 18= | Hutchison Whampoa | Hong Kong | 16 | ||
| 2 | 5= | Sime Darby | Malaysia | 15 | ||
| 3 | 5= | Swire Pacific | Hong Kong | 8 | ||
| 4= | 5= | Ayala Corp | Philippines | 7 | ||
| 4= | – | Citic Pacific | Hong Kong | 7 | ||
| 6 | – | Astra International | Indonesia | 6 | ||
| Construction & engineering | ||||||
| 1 | – | Hyundai Engineering & Const. | Korea | 8 | ||
| 2 | – | United Engineers (Malaysia) | Malaysia | 7 | ||
| Electronics | ||||||
| 1 | 1 | Samsung Electronics | Korea | 24 | ||
| 2 | – | Sony | Japan | 12 | ||
| 3= | 10= | Asustek Computer | Taiwan | 8 | ||
| 3= | 5= | KR Precision | Thailand | 8 | ||
| 3= | – | Malaysian Pacific Industries | Malaysia | 8 | ||
| 6= | – | Infosys | India | 6 | ||
| 6= | 4 | LG Electronics | Korea | 6 | ||
| 6= | – | NatSteel Electronics | Singapore | 6 | ||
| 6= | 2= | Taiwan Semiconductor | Taiwan | 6 | ||
| 6= | – | TDK | Japan | 6 | ||
| Food, drink & tobacco | ||||||
| 1 | 6= | Fraser & Neave | Singapore | 9 | ||
| 2= | – | Carlsberg Brewery Malaysia | Malaysia | 8 | ||
| 2= | – | Lever Brothers | Pakistan | 8 | ||
| 2= | 1= | Rothmans of Pall Mall | Malaysia | 8 | ||
| 5= | – | Hanjaya Mandala Sampoerna | Indonesia | 7 | ||
| 5= | – | Hindustan Lever | India | 7 | ||
| 5= | – | Lottee Confectionery | Korea | 7 | ||
| 8= | – | Cheil Jedang | Korea | 6 | ||
| 8= | – | Guangnan Holdings | China | 6 | ||
| 8= | – | Ng Fung Heong | Hong Kong | 6 | ||
| Gaming | ||||||
| 1 | – | Berjaya Sports Toto | Malaysia | 17 | ||
| 2= | – | Resorts World | Malaysia | 8 | ||
| 2= | – | Tanjong | Malaysia | 8 | ||
| Iron & steel | ||||||
| 1 | 1 | Pohang Iron & Steel | Korea | 35 | ||
| 2 | 2 | China Steel | Taiwan | 17 | ||
| 3 | – | Southern Steel | Malaysia | 8 | ||
| 4= | – | Nippon Steel | Japan | 7 | ||
| 4= | – | Sheng Yu Steel | Taiwan | 7 | ||
| 6= | – | Korea Iron & Steel Works | Korea | 6 | ||
| 6= | – | Tata Iron & Steel | India | 6 | ||
| 8 | – | Sumitomo Metal Industries | Japan | 5 | ||
| Media | ||||||
| 1= | – | BEC World | Thailand | 8 | ||
| 1= | – | Star Publications | Malaysia | 8 | ||
| 3 | – | Grammy Entertainment | Thailand | 7 | ||
| Oil & gas | ||||||
| 1 | – | Yukong | Korea | 14 | ||
| 2= | – | Pakistan State Oil | Pakistan | 7 | ||
| 2= | – | Shell Pakistan | Pakistan | 7 | ||
| Petrochemicals | ||||||
| 1 | – | LG Chemical | Korea | 15 | ||
| 2= | – | Fauji Fertiliser | Pakistan | 8 | ||
| 2= | 5= | Nan Ya Plastics | Taiwan | 8 | ||
| 2= | – | Reliance Industries | India | 8 | ||
| 2= | – | Shin-Etsu Chemical | Japan | 8 | ||
| 6 | 3= | Formosa Plastics | Taiwan | 6 | ||
| Property | ||||||
| 1 | – | Cheung Kong (Holdings) | Hong Kong | 17 | ||
| 2 | 2 | Sun Hung Kai Properties | Hong Kong | 12 | ||
| 3 | – | New World Development | Hong Kong | 9 | ||
| 4= | 3 | Ayala Land | Philippines | 8 | ||
| 4= | 1 | City Developments | Singapore | 8 | ||
| 6 | – | SM Prime Holdings | Philippines | 7 | ||
| 7 | 4 | DBS Land | Singapore | 6 | ||
| 8 | Keppel Land | Singapore | 5 | |||
| Retail | ||||||
| 1= | – | Robinson | Singapore | 8 | ||
| 1= | – | Shinsegae Department Store | Korea | 8 | ||
| 1= | – | Siam Makro | Thailand | 8 | ||
| 4 | – | Ito-Yokado | Japan | 7 | ||
| 5 | – | Keum Kang Development Ind. | Korea | 6 | ||
| Telecoms | ||||||
| 1 | – | SK Telecom | Korea | 20 | ||
| 2 | 6 | Telekom Malaysia | Malaysia | 13 | ||
| 3 | – | PLDT | Philippines | 12 | ||
| 4 | – | LG Information & Comms | Korea | 10 | ||
| 5= | 1 | Hong Kong Telecommunications | Hong Kong | 8 | ||
| 5= | – | NTT | Japan | 8 | ||
| 7= | – | Indonesian Satellite | Indonesia | 7 | ||
| 7= | – | Pakistan Telecom | Pakistan | 7 | ||
| 7= | 2= | Telecomasia | Thailand | 7 | ||
| 7= | – | Telstra | Australia | 7 | ||
| Textiles, pulp & paper | ||||||
| 1 | – | Hansol Paper | Korea | 11 | ||
| 2 | – | Gadoon Textiles | Pakistan | 7 | ||
| 3= | – | Indah Kiat Pulp & Paper | Indonesia | 6 | ||
| 3= | – | Nishat Mills | Pakistan | 6 | ||
| Transport & shipping | ||||||
| 1 | – | Hyundai Merchant Marine | Korea | 12 | ||
| 2= | – | NYK Nippon Yusen Kaiska | Japan | 8 | ||
| 2= | – | Precious Shipping | Thailand | 8 | ||
| 4 | – | Hanjin Shipping | Korea | 6 | ||
| Travel & aviation | ||||||
| 1 | 1 | Singapore Airlines | Singapore | 24 | ||
| 2 | – | Cathay Pacific Airlines | Hong Kong | 16 | ||
| 3 | – | Korean Air Lines | Korea | 12 | ||
| 4 | – | Qantas | Australia | 6 | ||
| 5 | – | Malaysian Airlines | Malaysia | 5 | ||
| Utilities | ||||||
| 1 | 1= | Meralco | Philippines | 16 | ||
| 2 | 6= | China Light & Power | China | 13 | ||
| 3 | – | Hubco | Pakistan | 10 | ||
| 4 | – | Hongkong Electric | Hong Kong | 9 | ||
| 5 | – | YTL | Malaysia | 8 | ||
| 6= | 1= | Hong Kong & China Gas | Hong Kong | 7 | ||
| 6= | – | Korea Electric Power | Korea | 7 | ||
| 8 | – | Tenaga Nasional | Malaysia | 6 | ||
| 9= | – | Sui Northern Gas | Pakistan | 5 | ||
| 9= | – | Sui Southern Gas | Pakistan | 5 | ||
Methodology
Euromoney’s Asian company ranking is based on a survey of 37 market analysts at major banks and research institutes worldwide. Respondents were asked to nominate the top three companies in each of the countries or sectors they covered, bearing in mind market strength, profitability, growth potential and quality of management and earnings. The company’s current share price was not taken into account. Results were awarded on a scale of 4:3:2.
Australia, New Zealand and Sri Lanka were included in the survey but did not receive enough votes for publication. Four sectors omitted for the same reason were building materials, mining, pharmaceuticals and plantations.
If you would like more information about the poll, or a breakdown of the results, please contact Rebecca Dobson, head of research at Euromoney on +44-171-779 8694 (telephone) or +44-171-779 8407 (fax)
