Case studies:
An insight in our research and portfolio companies

Chinese consumer preferences are evolving rapidly, leading businesses to adapt to these new demands. JNBY, the leading women's apparel company in China, is a prime example. While largely unknown outside China, JNBY has developed a unique design identity and built a loyal base of affluent customers. Based in Hangzhou, where we have invested in several entrepreneurial companies, the company’s airy campus, designed by renowned Italian architect Renzo Piano, is always a pleasure to visit. Our discussions on the risks associated with Wealth Management Products with the CFO were instrumental in guiding management to take the right decisions, including drastically reducing these products and issuing a special dividend in 2024.

ITFOR exemplifies a business with a strong mix of recurring system integration, support, and outsourcing revenues, combined with the dominating credit management software solution for financial institutions. It is always a pleasure to meet with Nakayama-san, CFO and Board Member, during our visits to Tokyo. We receive updates on their new strategic initiatives and mid term management plan and usually find time to discuss their evolving shareholder returns policy. The company has implemented a total returns strategy that efficiently combines dividends and buybacks while predictably growing its earnings. We rarely ask about upcoming quarter results or the timing of a potential new contracts, a practice that Japanese management teams tend to appreciate.

Who doesn’t enjoy shopping for Japanese products at Tokyu Hands while visiting Japan? A visitor to our office would notice most of our supplies come from Itoya, Tokyo’s premier stationery store. However, buying Japanese products from abroad can be quite challenging. That’s where Beenos steps in. They operate the largest and most prominent cross-border e-commerce platform for Japanese goods, Buyee. We highly recommend trying their service to see just how easy and affordable it is to shop for one-of-a-kind Japanese products, even across multiple sites. This world-class marketplace has long flown under the radar, hidden behind international investments and ventures. As frequent visitors to Beenos over the past two years, we’ve been working closely with them to sharpen their messaging and strategy

We have a particular affinity for businesses that benefit from recommendations from trusted middlemen. The value of these endorsements is amplified when coming from a professional. Modern Dental has positioned itself as the leading supplier of dental implants to dentists across China, Australia, Europe, and the U.S. Dentists trust Modern Dental for its efficiency (lower returns), reliability (faster delivery), and competitive pricing (10-15% cheaper than local labs), making it an easy and reliable choice to recommend to patients. Demand for dental implants is relatively inelastic—patients can only delay dental issues for so long. Modern Dental’s strategic acquisition of local distributors mirrors a classic roll-up strategy often employed by private equity firms in the West. We believe most Hong Kong-based investors have yet to fully grasp the strength of this model.