Latest news with #Asian-based
Business Times
21-05-2025
- Business
- Business Times
DBS' Tan Su Shan ranked sixth in Fortune's list of the most powerful women in business
[SINGAPORE] Tan Su Shan, chief executive officer (CEO) of DBS , has been named the sixth most powerful woman in business in Fortune magazine's 2025 100 Most Powerful Women in Business list. In the top 10, she is the only Singaporean and one of two Asian-based business leaders alongside Huawei chief financial officer Meng Wanzhou, who ranked 10th. The list, released on Tuesday (May 20), is 'based on company size and health, as well as an executive's career trajectory, influence, innovation and efforts to make business better', according to Fortune. Tan, who ranked 89th in last year's iteration, is the first woman to lead DBS, the largest bank in South-east Asia. She took over the helm from former CEO Piyush Gupta in March. Rounding out the top five are: Mary Barra, chair and CEO of carmaker General Motors; Julie Sweet, chair and CEO of services company Accenture; Jane Fraser, chair and CEO of Citigroup; Lisa Su, chair and CEO of semiconductor maker AMD; and Ana Botin, executive chairman of Banco Santander. OCBC group CEO Helen Wong ranked 15th and Png Chin Yee, chief financial officer of Temasek, was 87th.
Int'l Business Times
20-05-2025
- Business
- Int'l Business Times
Vista's Global Growth Strategy: Asia as the New Frontier
Just 10 years ago, Vista was primarily a European private aviation company with ambitions to expand. Today, it has transformed into what company leadership describes as "the first and only global private aviation company," with rapidly growing operations across Asia—a region that Vista's executive team now identifies as a critical frontier for future expansion. Recent financial moves by Vista, totaling over $1.3 Bil, have positioned the company to accelerate its growth in Asian markets while strengthening its global infrastructure—a strategic pivot that reflects the company's recognition of Asia's increasing economic significance. " $600 million as equity investment and $700 million on debt refinancing," explained Charlotte, Vista's CFO, in a recent interview. "On the equity side of things, we've always been open to new strategic partners that ultimately are bringing more than just capital to the table." This equity investment, led by a consortium through RRJ, an Asian-based private equity firm, represents more than just a capital injection. It establishes a strategic partnership that provides Vista with valuable networks and regional expertise essential for further penetrating Asian markets. "Richard Long, who leads RRJ, has been incredibly helpful with broadening our client base and getting us [to] the right people in Asia," Charlotte noted, highlighting the relationship-driven approach that's critical for success in Asian markets, and even more so in business aviation. Asia: The Emerging Powerhouse in Private Aviation While North America remains the world's largest private aviation market, Asia's rapidly growing economies and expanding base of high-net-worth individuals make it an increasingly important region for Vista's global strategy . This market opportunity hasn't gone unnoticed by Vista's leadership team. Unlike many competitors who prioritized the U.S. market first, Vista took a different approach, establishing strong positions in developing markets before fully committing to the competitive U.S. landscape. In fact, Vista has established a HQ in Asia over 15 years ago. "The largest market in the world is the U.S. and unlike most of our competitors, we came to the U.S. last," Charlotte explained. "We were originally a European company and probably only in 2022, when we acquired Jet Edge, did the VistaJet brand become a real competitive force in North America." This strategic sequencing has allowed Vista to build expertise in navigating diverse regulatory environments and cultural nuances—an experience that proves invaluable as it deepens its Asian presence. The growth potential in Asia is substantial. With the continent positioned as the second-fastest growing region globally, its economic development creates a natural demand for premium private aviation services, particularly as cross-continental business activity increases. "We're really well positioned to keep on growing in those markets," Charlotte emphasized when discussing regions becoming increasingly accustomed to private aviation. A Business Model Tailored for Asian Expansion VistaJet's subscription-based business model offers unique advantages in the Asian market, where businesses often prioritize capital efficiency and operational flexibility. The company's Program membership, which accounts for approximately 60% of VistaJet's revenue, provides guaranteed availability with fixed pricing through multi-year contracts. "We've secured our pricing with fixed contracts, with fixed pricing on Program, so there's [not] a lot of volatility and risk," Charlotte explained when contrasting VistaJet's model with traditional charter operations. When corporate clients sign up for membership, they secure guaranteed aircraft availability anywhere around the globe, from as little as 24h noticve. The three-year commitment structure also creates a stable financial foundation that enables Vista to make strategic investments in fleet expansion and service enhancements targeted specifically at Asian clientele. This predictability in service and costs resonates particularly well with Asian corporations expanding internationally. "What's important to know is when we sign a client on a Program, they're committing on a three-year basis to use our service and pay for them. So we've got a very clear cash info profile," Charlotte noted. This visibility into future cash flows provides Vista with the confidence to invest in expanding its Asian infrastructure. Operational Advantages in a Competitive Landscape Vista's operational model creates significant advantages as it expands in Asia. The company has pioneered what Charlotte describes as a "one-way pricing" strategy, wherein clients only pay for the occupied flight segments. "We carry the [aircraft] positioning component on us," Charlotte explained. "Therefore, we are incentivized to minimize that positioning." This approach has resulted in what Charlotte described as a "sub 30% ferry factor," meaning that nearly 70% of Vista's flight hours generate revenue—an impressive efficiency metric in private aviation. The company's completely mobile fleet with no designated home base allows for dynamic resource allocation, enabling Vista to rapidly adjust to shifting demand patterns across Asian markets. This flexibility is particularly valuable in a region with uneven but rapidly developing private aviation infrastructure. Technology serves as another key differentiator in Vista's Asian expansion strategy. As Charlotte highlighted, proprietary systems drive operational efficiencies that create competitive advantages in tech-forward Asian markets. "Part of the reason why we're able to achieve that low ferry factor is the technology that underpins all of our operations to drive efficiencies," Charlotte explained. Financial Strength Enabling Strategic Expansion Vista's recent financial transactions have significantly enhanced its market position and growth capabilities. The debt refinancing portion of Vista's recent capital raise was particularly strategic, allowing the company to optimize its financial structure. "In addition to reducing the amount of debt outstanding, the $700 million was predominantly refinancing existing debt. So we were paying down debt that we had, which had pretty aggressive amortization schedules," Charlotte noted. By restructuring its debt profile, Vista has created considerable financial flexibility, reducing its cash obligations by approximately $160 million a year through these transactions. This enhanced financial position enables Vista to pursue strategic opportunities in key Asian markets without the constraints that might limit competitors. "It just gives us more flexibility," Charlotte emphasized. "Diversifying our investor base is especially valuable in times of market volatility, when access to capital can quickly open or close." The Future of Vista in Asia Looking ahead, Vista appears positioned for continued expansion throughout Asia. The company's financial strength, bolstered by its recent capital raises, provides the flexibility to pursue strategic opportunities across the region. The membership client base has grown significantly over recent periods, with the pandemic acting as an "accelerant" according to Charlotte. This growth reflects broader market shifts toward asset-light solutions—a trend particularly evident among Asian corporations seeking operational flexibility and capital efficiency. "The objectives of both those transactions," Charlotte summarized regarding the recent financial moves, were to strengthen Vista's position with "enhanced free cashflow generation, but also flexibility within our financing structures and broader financial stability enhancements." This financial flexibility, combined with strategic Asian partnerships and a service model tailored to regional needs, positions Vista to capitalize on Asia's economic growth trajectory. As Asian businesses increasingly participate in global trade and investment, Vista's ability to provide seamless, premium private aviation services across continents represents a compelling value proposition. Vista's strategy demonstrates a forward-looking approach to private aviation, recognizing Asia not merely as a market to serve, but as a critical growth engine for its global ambitions. By building strong regional partnerships, optimizing its operational efficiency, and leveraging its financial strength, Vista has established itself as a pivotal player in Asia's private aviation landscape—with considerable room for further expansion as the region's economic influence continues to grow.
Globe and Mail
04-03-2025
- Business
- Globe and Mail
After Nvidia's Q4 Report, These 3 Stocks to Buy Could Be the Real Winners
Nvidia's (NVDA) Q4 report has already sent shockwaves through the tech sector. Although shares sold off on the results, Nvidia delivered a robust revenue beat and indicated that demand for its GPUs remains strong. According to Morgan Stanley analysts, estimate-beating results from Nvidia could act as a catalyst for significant gains in Asia-based tech stocks. Their research indicates that if Nvidia's revenue continues to defy expectations, Asian-based artificial intelligence (AI) names could see price upside ranging from 3% to 15%. Analysts from the investment bank have also identified several Asian-based AI companies positioned to benefit from Nvidia's earnings. Among these, we have selected the top three: Taiwan Semiconductor Manufacturing (TSM) remains a linchpin in the global semiconductor supply chain, while Alibaba (BABA) and Infosys (INFY) are well-positioned to capitalize on rapid technological adoption and digital transformation trends sweeping across Asia. These companies are expected to leverage Nvidia's performance as a catalyst, potentially accelerating their growth in an increasingly competitive market. With these compelling prospects in play, let's take a closer look at these stocks to uncover the underlying catalysts that could drive their future growth. AI Stock #1: Taiwan Semiconductor Company Valued at around $936 billion by market capitalization, Taiwan Semiconductor Manufacturing Company (TSM) is a pioneering force in the semiconductor industry, renowned for its leading 5-nanometer (nm) and 3-nm nodes that make it a key supplier for top tech companies. TSM's stock delivered an exceptional performance over the past 52 weeks, surging nearly 30%. Despite this impressive rally, it remains attractive, trading at a forward P/E of 19.7x, a 24% discount relative to the sector average of 23x, and below its 5-year average. In the fourth quarter, TSM posted results that exceeded Wall Street expectations on both top and bottom lines. The company reported revenue of $26.9 billion, up 39% year-over-year thanks to its 3-nm and 5-nm technologies. On an adjusted basis, EPS came in at $2.24, beating estimates by 8 cents. Taiwan Semiconductor serves as the go-to partner for leading tech giants developing GPUs and custom silicon. In 2024, its AI-driven revenue surged threefold, and it expects to double that figure in 2025 thanks to backing from hyperscalers and data centers. Looking ahead, TSMC anticipates an approximate 20% compound annual growth rate in AI-related revenues over the next five years, driven by strong demand for its next-generation 2-nm and 3-nm process technologies. For the first quarter of 2025, TSM management expects revenues between $25 billion and $25.8 billion, implying a 34.7% year-over-year increase at the midpoint. The gross margin is projected to be between 57% and 59%, demonstrating resilience amid industry-wide cost pressures. Analysts have assigned a consensus ' Strong Buy ' rating with a lofty mean price target of $244.50, indicating an upside premium of more than 24% over current levels. AI Stock #2: Alibaba Valued at a hefty $315 billion by market cap, Alibaba (BABA) is an e-commerce giant operating diverse digital platforms and services. The company boasts several marketplaces, including AliExpress and Taobao, which cater to both international and domestic markets. Over the past year, shares of this Chinese tech company have surged by 75% and have rallied over 50% in 2025 alone. This massive rally is linked to the company's strong performance in AI and cloud services, areas it has recently expanded into to drive operational efficiency and foster innovation across its vast ecosystem. Despite this impressive performance, BABA stock still trades at a reasonable price. It is currently valued at 17.4x forward earnings. On Jan. 20, BABA reported its Q3 earnings for fiscal year 2025, posting a sizable beat on the top line, although it missed on the earnings side. Nevertheless, shares surged by 8% after the stellar earnings report. Sales reached $38.3 million, marking an 8% year-over-year increase, while EPS of $2.77 missed estimates by 7 cents. Alibaba's latest move to ramp up investments in cloud and AI technology marks a strategic shift. The firm is set to allocate more capital in these areas over the next three years than it has in the past decade, underlining its commitment to leveraging the emerging AI era. While this aggressive strategy promises substantial long-term growth, it could place pressure on near-term margins. Wall Street expects Alibaba to increase sales to $138 billion in 2025 and $149 billion in 2026, while adjusted earnings are forecast to expand from $8.68 per share in 2025 to $9.77 per share in 2026. Analysts maintain a ' Strong Buy ' rating on BABA stock, with an average price target of $146.84, implying an upside premium of around 9%. AI Stock #3: Infosys Valued at $83 billion by market cap, Infosys (INFY) is an Indian-based multinational IT services and consulting company known for its innovative technology solutions and digital transformation expertise that empower businesses worldwide. Infosys shares are down more than 9% YTD, likely due to the broader market correction. However, the stock still trades at premium levels with 27.8x forward earnings, higher than the sector median of 22.9x. In its third quarter of fiscal 2025, Infosys delivered a solid performance, with revenues climbing to $4.94 billion from $4.66 billion the previous year. Earnings per share reached $0.19, up from $0.18 cents. The company's strategic focus on digital transformation and generative AI has fostered steady revenue momentum. Infosys also raised its fiscal 2025 revenue guidance to an anticipated growth range of 4.5-5.% on a constant-currency basis while forecasting operating margins between 20%-22%. These financial indicators reinforce its competitive positioning and growth potential. In May 2023, Infosys unveiled its Topaz platform, an AI-first suite harnessing generative technology. CEO Salil Parekh also announced 50 active client projects, further reinforcing the firm's leadership in digital transformation. Moreover, Infosys continues to expand its global footprint and technological capabilities, fueling sustainable revenue growth. The company is actively investing in advanced AI and cloud solutions to capture emerging market trends. Driven by strategic partnerships and innovative initiatives, Infosys is well-positioned to deliver strong long-term growth and enhanced shareholder value in the coming quarters. Considering all of this, Wall Street has assigned a consensus ' Moderate Buy ' rating on INFY stock, with an average price target of $23.82, implying approximately 20% upside potential over current levels.
The Hill
03-03-2025
- Business
- The Hill
Why Asian logistics operators are leasing more US warehouses
Logistics operators based in Asia have been leasing more warehouses in the United States in response to changes in e-commerce, global trade and manufacturing. Third-party logistics firms, known as 3PLs, work with online retailers and other businesses to store, pack and move products for sale. Leasing by Asia-based logistics firms more than doubled in key U.S. markets such as New Jersey and Los Angeles last year compared to 2023, according to global real estate firm Cushman & Wakefield. Landlords generally have seen less demand for warehouses following the COVID-19 pandemic, which led to a boom in online shopping. A leasing surge by Asia-based companies seeking to take advantage of favorable market conditions has emerged as a bright spot for the industry, real estate company CBRE Group said in a June 2024 report. E-commerce companies and logistics providers based in China were estimated to account for 20% of new U.S. warehouse leases in the U.S. though the third quarter of 2024, logistics real estate company Prologis said. By leasing warehouses, some companies that feared potential tariffs on imported goods were looking to store more inventory in the U.S., according to the CBRE report. U.S. President Donald Trump in early February put an additional 10% tariff products imported from China, a tax set to 20% on Tuesday. The Associated Press recently spoke about warehouse leasing trends with Jason Tolliver, co-leader of Cushman & Wakefield's Americas logistics and industrial services practice. The interview has been edited for length and clarity. Q: There's data that shows a rise in Chinese and Asia-based companies leasing more warehouses in the U.S. What's your company seeing on the ground? A: When you think about the uptick in Asian-based 3PLs – or 3PLs more broadly – we've really seen them become a more significant lessor of space in the last two years. That's being driven by the complexity in the market. As uncertainty rises and as trade complexity increases, the value proposition of a third-party logistics provider that has the scale, and the expertise, to be able to manage it has helped drive demand. We've seen an increase in the amount of Asian-based leasing by 3PLs that are tied to cross-border e-commerce. And a key driver has been the de minimis exemption, which allows online orders to be placed in the U.S. and have it shipped directly from storage facilities throughout Asia. There's also a broader trend of regionalization that's being driven by increases in global trade and manufacturing. Q: How do U.S.-based warehouses benefit companies that are operating under the de minimis model? A: It's really about speed. The ability to ship directly to consumers. And also the reverse commerce or logistics – or being able to process returns and resell products back into the U.S. In terms of footprint, the scale of Asian-based 3PLs has been much smaller than other e-commerce players. But it's been a significant driver of leasing activity in recent years because as other e-commerce players have pulled back on leasing, while Asia-based logistics operators were aggressively moving forward. Q: Where do these companies rank in terms of overall leasing activity? A: It varies depending on the market. But by far the 3PL space, whether domestic or foreign, is the strongest driver of leasing. They are forecasted to continue to be the most significant lessors of logistics and industrial space in the Americas. Second is manufacturing. And third are retailers and wholesalers. Q: In early February, President Donald Trump threw out and then paused imposing tariffs on small-value packages arriving from China. Have you seen any shifts from companies that are processing these changes? A: Not yet. Commercial real estate doesn't react as quickly as the stock market, so it takes longer for policies of any kind to work through the system. We are seeing retailers and wholesalers planning for potential changes. But broadly, there's a lack of sufficient clarity in terms of policies. So, we're not seeing anyone making meaningful changes to their network.
The Independent
03-03-2025
- Business
- The Independent
Why Asian logistics operators are leasing more US warehouses
Logistics operators based in Asia have been leasing more warehouses in the United States in response to changes in e-commerce, global trade and manufacturing. Third-party logistics firms, known as 3PLs, work with online retailers and other businesses to store, pack and move products for sale. Leasing by Asia-based logistics firms more than doubled in key U.S. markets such as New Jersey and Los Angeles last year compared to 2023, according to global real estate firm Cushman & Wakefield. Landlords generally have seen less demand for warehouses following the COVID-19 pandemic, which led to a boom in online shopping. A leasing surge by Asia-based companies seeking to take advantage of favorable market conditions has emerged as a bright spot for the industry, real estate company CBRE Group said in a June 2024 report. E-commerce companies and logistics providers based in China were estimated to account for 20% of new U.S. warehouse leases in the U.S. though the third quarter of 2024, logistics real estate company Prologis said. By leasing warehouses, some companies that feared potential tariffs on imported goods were looking to store more inventory in the U.S., according to the CBRE report. U.S. President Donald Trump in early February put an additional 10% tariff products imported from China, a tax set to 20% on Tuesday. The Associated Press recently spoke about warehouse leasing trends with Jason Tolliver, co-leader of Cushman & Wakefield's Americas logistics and industrial services practice. The interview has been edited for length and clarity. Q: There's data that shows a rise in Chinese and Asia-based companies leasing more warehouses in the U.S. What's your company seeing on the ground? A: When you think about the uptick in Asian-based 3PLs - or 3PLs more broadly - we've really seen them become a more significant lessor of space in the last two years. That's being driven by the complexity in the market. As uncertainty rises and as trade complexity increases, the value proposition of a third-party logistics provider that has the scale, and the expertise, to be able to manage it has helped drive demand. We've seen an increase in the amount of Asian-based leasing by 3PLs that are tied to cross-border e-commerce. And a key driver has been the de minimis exemption, which allows online orders to be placed in the U.S. and have it shipped directly from storage facilities throughout Asia. There's also a broader trend of regionalization that's being driven by increases in global trade and manufacturing. Q: How do U.S.-based warehouses benefit companies that are operating under the de minimis model? A: It's really about speed. The ability to ship directly to consumers. And also the reverse commerce or logistics - or being able to process returns and resell products back into the U.S. In terms of footprint, the scale of Asian-based 3PLs has been much smaller than other e-commerce players. But it's been a significant driver of leasing activity in recent years because as other e-commerce players have pulled back on leasing, while Asia-based logistics operators were aggressively moving forward. Q: Where do these companies rank in terms of overall leasing activity? A: It varies depending on the market. But by far the 3PL space, whether domestic or foreign, is the strongest driver of leasing. They are forecasted to continue to be the most significant lessors of logistics and industrial space in the Americas. Second is manufacturing. And third are retailers and wholesalers. Q: In early February, President Donald Trump threw out and then paused imposing tariffs on small-value packages arriving from China. Have you seen any shifts from companies that are processing these changes? A: Not yet. Commercial real estate doesn't react as quickly as the stock market, so it takes longer for policies of any kind to work through the system. We are seeing retailers and wholesalers planning for potential changes. But broadly, there's a lack of sufficient clarity in terms of policies. So, we're not seeing anyone making meaningful changes to their network.
