BDA-萬得資訊Wind盡職調查與價值評估項目-20150121

DueDiligenceonWindJanuary,2015ExecutiveSummaryBriefintroductiontoWindBDA’sEstimateonWFTPotentialBDA’sUnderstandingonWind’sNewProductsAppendixIntroductiontoWind’sProductsOverthepastsevenyears,Wind’srevenuehaskeptgrowingat25%p.a.,andreachedUSD119MNin2014.Thebusinesshasalsomaintainedahighoperatingmargin,at64-88%inhistory20082009201020139711920123120148544100201165CAGR~25%WindRevenue(2008-14)Unit:USDMNWindOperatingProfitandMargin(2008-14)Unit:USDMN88%75%20112014201320122008200920102573%64%74%3279%68%48586275105Source:Companyinformation,BDAanalysisWFTcontributesthemajorityoftherevenue,aswellascashincomeinhistory1.Ittypicallyoffersaterminaltotheusersandchargefromit.Managementisplanningtoexpanditscurrentproductbaseinnearfuture.Source:Companyinformation,BDAanalysisTraditionalProducts2NewProductsInstitutionFlagshipStoreNote:1.SomeWFTproductsarechargedbymultipleyears.Therefore,cashincomeisusuallylargerthanrevenue.2.Inourfollowingpages,we’llfocusonexplainingWFT.We’llelaborateWFCinNewProductSection.We’llnotfurtherexplainWDBinthedeck.WindFinancialTerminal(WFT)WFTisasoftware-basedfinancialtoolwithcomprehensivefunctionsincludingdataresearch,atradingplatform,news,etc.WindFinancialConsultant(WFC)WFCisaterminaltargetingwealthmanagementconsultantsinbankswithportfoliomanagementandcustomermaintenance.EvolvedintoWindDatabase(WDB)WDBmainlyprovidedatafeedserviceforquantitativetraderswithdataintegrationandhigh-frequencydatastreams1AssetManagementPlatformforPE2EquityInvestmentPlatformQuantitativeTradingPlatform4WealthManagementPlatform3CConferencePlatform6NewMediaPlatform7CommoditiesTradingCoterie8FinancialTalents’SocialNetwork9WindCollege1035201424.0%5.0%3.0%Others68.0%WindCashIncome123123ThecompanyplanstoboostitsbusinessfromcurrentscaletooverUSD7BN,withWFTgeneratingUSD806MNrevenueandnewbusinessesgeneratingUSD6.5–8.2BNrevenue.2018F2017F2016F2015F2014+41%+60%2020F2019FManagement’sProjectiononWFTbusiness(2014–2020)“IthinkitisveryrealistictoreachUSD818MN(RMB5BN)revenueby2020forWFT.Asinthenext3yeartherewillbebullmarket,andwecouldenjoya60%CAGR,whichwouldmakeusgrowmorefast.”——Mr.ZhouTao,CEOofWindManagement’sProjectiononNewbusinesses(2020)OTCQuantitativeInvestmentCloudManagementFlagshipStoreFinancingPlatformOthersBull8,2153,8778086465901,486Bear6,5433,8771623235901,187Unit:USDMN“Ihaveveryoptimisticvisiononournewbusinessmodels;ifthesebusinessesturnoutasexpected,wecanevenmakeourcurrentmajorservicefree!”——Mr.LuFeng,PresidentofWindSource:ManagementPresentation,BDAanalysisUnit:USDMNHowever,weprojectWFT’srevenuein2020toreachonlyUSD168MN,withCAGR13%Subtotal189,329Trust10,500PE/VC13,950Future&Commodity5,250Insurance12,000Brokers45,750Bank101,879BDAEstimatedRealDemandPopulation(Unit:Person)ProjectedGrowthRate(Companyvs.BDA)8%17%10%26%10%38%4%100%7%19%12%21%5%7%BDACompany+5.00%+0.02%2020F2019F2018F2017F2016F2015F201420132012AverageWFTAccountPrice(CashBasis)(2012-20F)CAGR13%+11.55%2020F168201481201370201265WFTRevenueProjection(2012-20F)Unit:USDUnit:USDMNSource:ManagementPresentation,BDAanalysisAndweevaluatedthepotentialofeachnewbusinesses.Ourresearchresultsindicatethatthecompany’snewbusinessesarenotaspromisingasthemanagementexpectedInstitutionFlagshipStoreBDACommentWindwilltakeatmost5%oftheshare,whichis~USD161MN(RMB1BN)revenuein2020,muchlowerthanthemanagement’sprojectionProspectNewProductsMostpromisingLeastpromisingAssetManagementPlatformforPEWindcanyieldUSD17MN(RMB108MN)in2020withdimprospects,muchlowerthanthemanagement’sprojectiononbusinessgrowth.3CConferencePlatformPubliccompanyIRswillspendaroundUSD13MN(RMB80MN)in2020forconferencecallandrelatedservice,nearly1/100ofWindmanagement’sprojection.NewMediaPlatformWesawverylimitedadsonWind,andourinterviewresultssuggestedthatthewillingnessofbuyingadvertisementonWindisverylow.EquityInvestmentPlatformItishardforWindtomonetizeasapure-onlinemodel,andmoreoveritfacesstrongcompetitionwithexistingcompetitorJinmajia.CommodityTradingCoterieTradersarealreadyorganizedinWeChatcrowdandQQcrowdandnotinterestintheoffer-organizingandpricealertfunctions.WealthManagementPlatformInfrequentlyusedbyfinancingmanagersandlowmonetizingfeasibility(theperformanceofthisbusinesshasalreadybeenreflectedinotherpartofourmodel).QuantitativeTradingPlatformSmallcustomerbaseandstrongincumbentpresence(LHTZ.com,whoalreadyattracted1MNregistrationandUSD4.8BN/RMB30BNdailytradevolume)FinancialTalents’SocialNetworkNoresumeaccumulatedandlackofspecialtyinjobsearch.WindCollegeLackofspecialtyinonlinetrainingandhardtomonetization.Source:BDAanalysisAssuch,weestimatethatthecompany’soverallmarketvaluetobearoundUSD3BNin20154393.7XWFTOthersNewBusinesses2020F1687919220141198138WindTotalRevenueProjection(2014-20F)2812.8X2020F201499WindTotalNetProfitProjection(2014-20F)EVin2020F5,800Unit:USDMNUnit:USDMNUnit:USDMNMarketCapin2015Debt14Cash124EVin2015WindValuation(2014-20F)Considering25%IRRSource:BDAanalysis20XPERatioExecutiveSummaryBriefintroductiontoWindBDA’sEstimateonWFTPotentialBDA’sUnderstandingonWind’sNewProductsAppendixIntroductiontoWind’sProductsOverthepastsevenyears,Wind’sRevenuehaskeptgrowingat25%p.a.,andreachedUSD119MNin2014.Thebusinesshasalsomaintainedahighoperatingmargin,at64-88%inhistory20082009201020139711920123120148544100201165CAGR~25%WindRevenue(2008-14)Unit:USDMNWindOperatingProfitandMargin(2008-14)Unit:USDMN88%75%20112014201320122008200920102573%64%74%3279%68%48586275105Source:Companyinformation,BDAanalysisWFTcontributesthemajorityoftherevenue,aswellascashincomeinhistory1.Ittypicallyoffersaterminaltotheusersandchargefromit.Managementisplanningtoexpanditscurrentproductbaseinnearfuture.Source:Companyinformation,BDAanalysisTraditionalProducts2NewProductsInstitutionFlagshipStoreNote:1.SomeWFTproductsarechargedbymultipleyears.Therefore,cashincomeisusuallylargerthanrevenue.2.Inourfollowingpages,we’llfocusonexplainingWFT.We’llelaborateWFCinNewProductSection.We’llnotfurtherexplainWDBinthedeck.WindFinancialTerminal(WFT)WFTisasoftware-basedfinancialtoolwithcomprehensivefunctionsincludingdataresearch,atradingplatform,news,etc.WindFinancialConsultant(WFC)WFCisaterminaltargetingwealthmanagementconsultantsinbankswithportfoliomanagementandcustomermaintenance.EvolvedintoWindDatabase(WDB)WDBmainlyprovidedatafeedserviceforquantitativetraderswithdataintegrationandhigh-frequencydatastreams1AssetManagementPlatformforPE2EquityInvestmentPlatformQuantitativeTradingPlatform4WealthManagementPlatform3CConferencePlatform6NewMediaPlatform7CommoditiesTradingCoterie8FinancialTalents’SocialNetwork9WindCollege1035201424.0%5.0%3.0%Others68.0%WindCashIncome123123BothusernumberandtheuserstickinessofWFThaveseenprudentgrowth14/1014/0714/1213/0713/0413/0112/1012/0712/0412/0114/0114/0413/10ActiveStickyEffectivePotentialNo.ofWFTAccountsbyLoggingFrequency(2012-14)Unit:#Source:Companyinformation,BDAanalysisNote:Effective–Loggedinatleastonceeverythreemonths;Potential–Loggedinatleastonceeverymonth;Active–Loggedinatleastonceeveryweek;Sticky–Loggedinatleastthreedaysofaweek.Potential59%67%70%62%62%69%73%67%71%79%81%78%82%Active44%51%51%48%46%53%53%51%52%58%58%58%58%Sticky28%31%32%29%30%33%32%31%32%39%38%38%39%As%ofEffectiveAstheNo.1financialsoftwareinChinesemarket,thecompanyhascoveredawidespectrumincludingbanks/brokers/insurancecompanies/etc.;thecompanyestimatedamarketpenetrationrateandbelievesthereisstillabundantgrowthpotential.BU1BU2BU3BU4BU5BU6BU7MainlybrokersHQsofbanksFuturecompanies/corporateInsurancecompanies/trustfundsQuantfundsBranchesofbanks,thirdpartywealthmanagementcompaniesPV/VC,publiclistedcompanies,exchanges,etc.29,5089,58028,3202,60021,50016,90036,700SalesCoverageNo.ofEffectiveAccountsManagementEstimatesonPenetrationRate3.7%8.5%1.9%6.1%29.5%5.2%9.4%Source:Companyinformation,BDAanalysisThecompanyplanstoboostitsbusinessfromcurrentscaletooverUSD7BN,withWFTgenerateUSD806MNrevenueandnewbusinessesgeneratingUSD6.5–8.2BNrevenue.2018F2017F2016F2015F2014+41%+60%2020F2019FManagement’sProjectiononWFTbusiness(2014–2020)“IthinkitisveryrealistictoreachUSD818MN(RMB5BN)revenueby2020forWFT.Asinthenext3yeartherewillbebullmarket,andwecouldenjoya60%CAGR,whichwouldmakeusgrowmorefast.”——Mr.ZhouTao,CEOofWindManagement’sProjectiononNewbusinesses(2020)OTCQuantitativeInvestmentCloudManagementFlagshipStoreFinancingPlatformOthersBull8,2153,8778086465901,486Bear6,5433,8771623235901,187Unit:USDMN“Ihaveveryoptimisticvisiononournewbusinessmodels;ifthesebusinessesturnoutasexpected,wecanevenmakeourcurrentmajorservicefree!”——Mr.LuFeng,PresidentofWindSource:ManagementPresentation,BDAanalysisUnit:USDMNExecutiveSummaryBriefintroductiontoWindBDA’sEstimateonWFTPotentialBDA’sUnderstandingonWind’sNewProductsAppendixIntroductiontoWind’sProductsWFThasstrongpositioninterminal-basedfinancialproductmarket,howeverwebelieveitsfuturedevelopmentislimited.SolidPositioningintheMarketWebelieveWFTwillremainasNo.1financialdataterminalinthemarket.However,itsgrowthwillhardlybemoresignificantthatthefinancialmarketbusinessgrowthDimProspectinfuturedevelopmentWFThasthemostextensivecoverageandbestuserviscosityItisanirreplaceableforHQsofbanks,brokers,andthecapitalmanagement&investmentdepartmentofmostfinancialinstitutions.WFThasbeenwidelyvaluedasmostfully-featuredterminalinthefinancialservicemarketItisaIndispensabletoolforbondtrading,fundamentalresearch,marketnewstracking.Basedonourinterviewresults,wedisagreewithmanagement’soutlookinvolumeandthecurrentprojectionseemstooexaggerated.WFT’spenetrationinitsexistingsectorsisalreadyveryhigh,pushingitsbusinesstowardspotentialceiling.WFT’sgrowthismoreofapopulation-relatedissueratherthanscale-related,withBDA’sinterviewandresearch,thepopulationgrowthinmostofitsexistingsectorswillberelativelylowinthenextfewyearsIt’salsodifficultforWindtopenetrateintoothernewsectorsbecauseofthelackondemandandotherstrongcompetitors.WealsofoundWFTpricehasbeenstagnatedoverthepastthreeyears.WeforecastthatthecompanymaybeonlyabletoincreaseitsWFTpriceby5%p.a.infuture.Source:BDAanalysisExecutiveSummaryBriefintroductiontoWindBDA’sEstimateonWFTPotentialBDAEstimateonWFTVolumeBDA’sUnderstandingonWind’sNewProductsAppendixIntroductiontoWind’sProductsWindhasasolidpositioninginmajorfinancialserviceindustry,especiallyininvestmentandresearchrelatedpositionsIndispensableforfinancialresearchandbondtradingFirst-choicegivenenoughbudget;switchingtoothertoolsoftenmeanssacrificingdataqualityWindhasaverysolidpositioninginthemarket,whichiswidelysupportedbyourinterviewresultsSectorResearchTradeHQsofBankBrokersHQsof

InsuranceCompaniesFutureCompaniesTradingCompaniesPE/TrustFundsVCIRfromPublicListedCompaniesSource:BDAinterviewsandanalysisUsingWindNotUsingWindWind’sShareHighWind’sShareLow“Windisthebestchoiceforfundamentalresearchgivenabundantbudget”“Windisindispensableforbondtrading,banknotes.NotasusefulinFXtrading”“Windisveryhandytoolforfundamentalresearch,betterthanGreatWisdom,exceptforhighprice.”“Windisindispensableforbondtrading”“Windisindispensableforbondtrading”“Windisthebestresearchtoolforsure,andpeoplewouldonlyconsiderothersforlowprice.”“ResearchanalystshavetouseWindeveryday.Itsdatabaseisessentialforcommodityresearch.”“AlmosteveryoneisusingWindtotrackstockmarketandmacroeconomy.”“Windisbarelyusefulinoursector.Wedon’tneeditsmacrodata,andithaslittledatafornichesector.”However,ourinterviewresultsshowthatWFT’sgrowthpotentialislimitedWFThaslimitedgrowthpotential:AlreadyhighlypenetratedinexistingsectorsLowgrowthrateofmostsectors’populationLowpossibilityinpenetratingintoothersectorsSectorCurrentPenetrationExpandingPotentialHQsofBank,Brokers,InsuranceCompanies,FutureCompaniesHighlyPenetratedinfulfillingresearchdemand.HighlyPenetratedinbondtradingrelateddemandLowgrowthrateofsectorpopulation;LowinterestofusingWindfromotherdepartments.FutureCompanies,TrustFundsHighlyPenetratedinfulfillingResearchdemandLowgrowthrateofsectorpopulation;LowinterestofusingWindfromotherdepartments.PEHighlyPenetratedinfulfillingResearchdemandHighgrowthinprivateEquities.LowgrowthinpublicequitiesTradingCompaniesPenetrationverylowLowpotentialofenteringthesemarketsSource:BDAinterviewsandanalysisCurrentPenetrationExpandingpotentialhighlowhighlowBottom-upResearchThecompanymanagementprojectedtheoverallfinancialserviceindustrytogrowrapidlyandthepopulationwillalsogrowatsimilarrateTrustInsurance10,0003,000Broker1,000Bank5,0003,20020132020PopulationProjectionofFinancialServiceSectorBytheCompanyManagements(2013,2020)Unit:People,K7-yearCAGR(Population)Source:CompanyInformationIndustryRevenueCAGR(2015-2020)Windmanagementspredictedthatreformsinfinancialserviceindustry(especiallythebrokersectorandinsurancesector)willboostindustryrevenuesignificantly,andthepopulationofindustrywillgrowatsimilarrate.21%26%19%7%23%15%22%11%However,weprojectthatWind’scustomerwillgrowat8%insteadofcompanyclaimed35-60%,andwithnoincreaseinpenetrationSubtotal189,329Trust10,500PE/VC13,950Future&Commodity5,250Insurance12,000Brokers45,750Bank101,879BDAEstimatedRealDemandPopulation(Unit:Person)ProjectedGrowthRate(Companyvs.BDA)10%26%10%38%4%100%7%19%12%21%5%7%8%17%BDACompanySource:CompanyData,CompanyManagement,BDAinterviewsandanalysisBDAthinksthepopulationgrowthofmajorfinancialservicesectorswillbearound10%,andwillbefarlessthanthemanagementexpectedgrowthrate.Inconsistencybetweenpopulationandbusiness:althoughsomesectorswillgrowstrongly,populationofthesesectorswillalwaysgrowslowerthanthebusinessgrowrate.Financialinstitutionsareconservativetoreforms:althoughnewpolicieswereissued,financialinstitutionsareexpandingslower:theyprefertoallocateoriginalstafftotrailnewbusinessratherthandirectexpansion.OrganizationStructureofBank:amongallthedepartmentsinbank,financialmarketservicelinehasthebestusageofWindBankManagement/SupportPersonalFinancialServicesCorporateFinanceServiceFinancialMarketServiceBoard/SupervisoryBoardOfficeFinanceHumanResourceSecurityOfficeStrategyPlanningRiskControlDataCenter

RetailBusinessPrivateBankingInvestmentBankingFixedIncomeForeignExchangeFinancialDerivative

BillBusinessAssetsManagementCorporateBusinessDepartmentFunction&DemandforWindBusinessLineVeryfrequentusage/DailyuseThesedepartmentsengagedinproprietaryfundinvestmentandtrade,anduseWindtotrackstockmarket,bondmarket,fundamentaldata,forexinformation,andmarketnews.Theyalsousediversefunctionssuchascalculationmodel,BBQ,andWindMarket.Infrequentusage.ThesedepartmentsuseWindtolookupindustrialdata,macrodata,andmarketnews,inordertogetageneralsenseofmarketSomewhatfrequentusage.ThesedepartmentsuseWindtolookupindustrialdata,companyfinance,companyhistory,andotherfundamentalinformationtochecktheircurrentorpotentialclients.VeryFrequentUsage,similartotheabove.NoneedforWind.Thesedepartmentsfocusoncompanymanagementandsupportwhicharefarfrommainbusiness.HighUsageMidUsageNoUsageSource:BDAinterviewsandanalysisInthebankingsector,Windpenetrationrateisalreadyhighwithlimitedgrowthinnext3-5yearsexceptforfinancialmarketservicelineduetothefinancepolicyreforminitiatedrecentlyBoard/SupervisoryBoardOfficeStrategyPlanningRiskControlPersonalFinancialServices70%50%50%90%80%98%3%3%~0%4%7%2%CorporateFinanceService“Demandofthispartisverysmall,themanagementonlylogintoWindoccasionallyfortheirownstocktradeinterest.”“WeuseWindformacromarketdataandsomespecificindustryinformation.WelikeWindforitsbroaddatacoveragebutwedonotuseitthatoften."“Wehavesomeaccountsatpubliccomputersandwehavenoneedtobuyaccountforeveryone;thedemandisquiteinfrequent.““Thispartofbusinesswillgrowrelativelyfast,andwerelyonWindheavily."“Demandofourdepartmentisminimal,mainlypersonaluseforequityinvestment,andmostofaccountsarefree.Iftheychargeus,wewouldprobablyquit."FinancialMarketService“Ourmainjobhereistochecktargetcompany’sriskstatus,soweusuallydownloadfinancialsandreportsfromWind.However,Windisexpensive,andwearetryingsomecheapersubstitutes.”CurrentPenetrationGrowthrateCommentsbyIndustryExpertsHighUsageMidUsageNoUsageSource:BDAinterviewsandanalysisSeedetailedanalysisinthenextpageInfinancialmarketservicedepartment,Windpenetrationrateisalreadyhigh,with~7%growthrateInvestmentBankingFixedIncomeFinancialDerivativeForeignExchange/BillBusiness75%40%55%85%80%10%3%5%7%8%AssetsManagement“Wealreadyhaveprettyhighcoverageofaccounts,andalthoughweoftenshareaccount,wedonotuseitfrequently,andwedonothavemuchincentivetobuymore."“OnlytheresearchandproductdevelopmentpeopleareusingWind.SalesdonotusingWind.Thegrowthrateofstaffinthisdepartmentisverylow.”“WeusuallyuseBloombergandTRIforFXtrade;WindcannotreplaceBloombergorTRIinFXtrade.”“AssetManagementisastronggrowingbusiness,yetthegrowthrateofpeopleismuchlowerthanthatofthebusiness,nomorethan10%p.a..Weasbanksarerelativelyconservativeinstaffingandwillnotexpandfast."HighUsageMidUsageNoUsageCurrentPenetrationGrowthrateCommentsbyIndustryExperts“InFIdepartment,eachinvestmentpersonnelneedtouseWind.WindistheTop1Chinabonddatasupplier,andwecannotworkwithoutWind.”Source:BDAinterviewsandanalysisBrokerage,securitiesfinancingandproprietarydepartmentshavetheheaviestusageofWindBranchesFunctionalDepartmentsSubsidiariesBrokerageOfficesBrokerageDept.SecuritiesFinancingDept.InvestmentBankingDept.ResearchInstituteAssetManagementDept.ProprietaryDept.InnovativeBusinessDept.FundManagementSubsidiaryDirectInvestmentSubsidiaryHRDept.,FinanceDept.,ITDept.,CustomerServiceLegal&ComplianceDept.BrokerageOfficesbarelyuseWindBrokerageDept.useWindforbond/equity/fundtrading,watchingnews,checkingcompanyfundamentals,andmonitoringmarkettrends.SecuritiesFinancingDept.useWindformarginfinancingtrading,watchingnews,monitoringmarkettrends,etc.InvestmentBankingDept.useWindforcheckingcompanyfundamentals,news,etc.ResearchInstitutesuseWindforcompanyinformationresearch,bondinformationresearch,news,financialproductinformationresearch,pricefluctuationanalysis,etc.AssetManagementDept.useWindforinvestmentportfoliomanagement,news,pricefluctuationanalysis,etc.ProprietaryDept.useWindforbond/equity/fund/derivativestrading,news,companyinformationresearch,pricefluctuationanalysis,etc.InnovativeBusinessDept.useWindforcompanyinformationresearch,news,investmentportfoliomanagement,etc.FundManagementSubsidiaryuseWindforinvestmentportfoliomanagement,news,pricefluctuationanalysisDirectInvestmentSubsidiariesuseWindforcompanyinformationresearch,news,pricefluctuationanalysis,etc.HRDept.,FinanceDept.,ITDept.,CustomerServicehavebarelynousageofWindLegal&ComplianceDept.useWindforriskindicatoranalysis,bondvaluationinformation,companyinformation,etc.DepartmentFunction&DemandforWindBusinessLineSource:BDAinterviewsandanalysisHighUsageMidUsageNoUsageCurrentpenetrationofWindishighinmostdepartments,butthefuturegrowthdoesnotseempromising(1/2)BrokerageDept.SecuritiesFinancingDept.ProprietaryDept.ResearchInstituteCurrentPenetration80%90%90%90%80%GrowthrateCommentsbyIndustryExperts“Wind’sinformationmodulesandtradingplatformsoutperformothersimilarproducts.AlmostallbrokerschoosetouseWind”“Althoughthemarketisgrowingreallyfast,theamountoftraderswillnotgrowatthesamespeedbeforetheirworkloadsreachsaturation”InvestmentBankingDept.“Windisthemostpopulartoolsamongsttradersonbond,equity,derivatives,etc.AlmosteachofthemhasaWindaccount”“Thesituationinproprietarysectionisquitelikethatinbrokerage.Theamountoftraderswillnotgrowfasteither”“BankersneedtouseWindwhendoingresearchoncompaniesandindustries,aswellasthestockmarketmonitoring”“WiththerelaxedpolicyonAshare,theworkforceinIBwillincrease.Butitwon’tincreaselargelybecausefirmsmayneedthemtomultitask”“MostoftheresearchershavetheirownWindaccounttosupporttheirneedsonbondresearch,companyresearch,etc.”“Althoughthewholefinancialmarketisturninggood,thestaffsinresearchinstituteswillnotgrowfastsincetheycanstillhandlemoretasks”10%10%5%10%40%“Themarginfinancingandsecuritieslendingmarketgrowsatover50%recentyears,leadingtomarkedlyincreaseintheworkforce”“Windenteredthefinancialterminalmarketfirst.Mostofthestaffchooseitbecauseofitsmaturetechnologyandgooduserexperience”Source:BDAinterviewsandanalysisHighUsageMidUsageNoUsageCurrentpenetrationofWindishighinmostdepartments,butthefuturegrowthdoesnotseempromising(2/2)AssetManagementDept.InnovativeBusinessDept.DirectInvestmentSubsidiaryFundManagementSubsidiaryCurrentPenetration40%50%70%70%40%GrowthrateLegal&ComplianceDept.10%20%5%10%40%CommentsbyIndustryExperts“AlldomesticassetmanagementdepartmentsuseWind,butthefrequencyofusageislowandaccountsharingiscommon”“Thegrowthinassetmanagementmarketisnorthatclearandincreaseinnewstaffsintheindustrymaynotbelarge.”“Innovativebusinesshasjuststartedintheseyearsandusuallyshareaccountswithotherdepartmentsuchasbrokerageorproprietary.”“Theinnovativebusinesssectionisnascentbutpromising.Thestaffswillgrowfastintherecentcomingyears.”“Usuallyjuniorstaffscounting50%ofthetotalstaffswilluseWindfrequentlyandhavetheirownWindaccount”“Adirectinvestmentsubsidiaryisstreamlined,thestaffsengagedinthecorebusinessareveryfewandwon’tgrowfast”“Ideallyeveryrelativestaffneedsanaccountforriskindicatorcontrolandbondsmonitoring,buttheuseofWindisnotsopopularnow.”“Thegrowingbusinessinfinancialmarketrequiresastrongerlegalandcomplianceteam,sotheamountofrelativestaffswillincreasefast.”“Usuallyafundmanagementsubsidiaryhasveryfewwindaccountsandthestaffscansharethem.TheirusageofWindisrelativelylow”“Afundmanagementsubsidiary’stradingsectionusuallyhasveryfewpeopleandthenumbergrowsrelativelyslowly”Source:BDAinterviewsandanalysisInsurancecompaniesuseWindmostlyamongtheirinvestmententitiesanddepartments.WindisnotrelatedtotheirsalesandoperationAssetManagementEntity/DeptSales,Operation,andManagementDepartmentsFinancialMarketInvestmentFixedIncomeInvestmentOtherInvestmentDepartmentFunction&DemandforWindThedepartmentengagesinlowriskinvestmentusingpremiumsofthegroup.TheyuseWindtotrackstockmarket,financialsofcompanies,andmarketnews.Thedepartmentinvestsinfixed-incomesecuritiestradeusingpremiumsofthegroup.TheyuseWindtotrackbondmarketpriceandtendency,andmayalsousetheBBQonWind.Thedepartmentinvestsintovariousfinancialproductsusingpremiumsortrustcapitals.TheyuseWindwithsimilarpurposeasabovedepartments.Sales,marketing,operation,andmanagementoftheinsurancecompany.NoneedforWind.Source:BDAinterviewsandanalysisHighUsageMidUsageNoUsageInsuranceCompanyBusinessLineInsuranceindustryisratherconservativethatitwouldadoptthereformslowly,andweexpectthatthegrowthpotentialoftheindustryislowFinancialMarketInvestmentFixedIncomeInvestmentOtherInvestmentOtherDepartmentsCurrentPenetration0%40%90%70%Growthrate0%3%3%10%CommentsbyIndustryExperts“Thedevelopmentofnon-standardfinancialproductswoulddrivethegrowthofbusinessandthedemandformorestaff.”“Theassetmanagementstrategyofinsurancecompaniesisveryconservative.Wewillnotexpandstafffast.Moreover,thegrowthofpremiumcollectedbytheindustrywillalsohardlyoutperformthe