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S&P launches research service for mid & small-cap stocks

Our Bureau

Mumbai May 29 Standard & Poor's has launched Corporate Equity Research Service in Hong Kong and the rest of Asia, in response to a growing market need for investment research on small-to-middle cap companies.

Under the new scheme, listed companies may appoint Standard & Poor's Equity Research, which will provide quality and detailed third-party research and valuations on their stocks. This can be distributed to the investors through Standard & Poor's network and distribution channels. "Currently, there is a shortage of coverage of small-to-middle cap companies in the research market due to the shifting focus of sell-side firms, which are increasingly concentrating on larger companies. Yet in order to make more informed investment decisions, investors need high quality research analysis on all targeted stocks, including small-to-middle cap companies," said Mr Thomas Schiller, Executive Managing Director and Head of Standard & Poor's in Asia-Pacific.

Standard & Poor's Corporate Equity Research service is aimed at enhancing transparency of small - middle-cap stocks and consequently increasing their market liquidity.

"Research coverage on these companies from third-party research firms can provide insights about the companies' business and financial profiles, allow investors to assess their prospects and value their stocks, and consequently help senior management of the companies to plan funding activities based on informed market reactions," said Mr Schiller.

When a company subscribes to the service for the first time, Standard & Poor's will provide investors with an Initiation Report covering company description, management and shareholders' profile, corporate governance, business and strategy, SWOT analysis, industry overview and outlook, financial analysis, earnings quality analysis and earnings forecast and valuation.

Investors will receive ongoing coverage through an Update Report, which consists of three short and one long update per year.

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