- Strategic Public Relations Group - Precision-Built for Success Campaign
Company: Strategic Public Relations Group
Company Description: PR networks in Asia and the largest PR consultancy in Hong Kong. It is a specialist in public relations, investor relations and financial communications, and a trusted corporate and marketing communications leader. The award-winning agency has a 300 strong workforce, nine offices in the Asia-Pacific, and retainer clients numbering 300.
Nomination Category: Corporate Communications, Investor Relations, & Public Relations Categories
Nomination Sub Category: Communications or PR Campaign/Program of the Year - Investor Relations
Nomination Title: Precision Tsugami (China) Corporation Limited- Precision-Built for Success
Tell the story about this nominated campaign since 1 January 2017 (up to 650 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms.
Precision Tsugami is an established foreign-owned manufacturer in the PRC, primarily engaging in the manufacture and sale of a wide range of computer numerical control (CNC) high-precision machine tools under the TSUGAMI brand. The Group is ranked first in the PRC precision automatic lathe market, with a market share of approximately 34.8%. Precision Tsugami faced fierce competition in the run-up to its IPO, with seven IPOs launched within the same week, some for companies with much larger market capitalisation values. Compounding matters, investors were generally unfamiliar with their business and did not understand their technology; tending to compare them with other industrial stocks which have lower margins and entry and technology requirements.
SPRG employed a two-pronged strategy of education and differentiation to upstage Precision Tsugami’s peers and IPO rivals as well as to explain the business benefits and investment potential.
In Precision Tsugami’s IPO period, we established strong key messages to convey its business and potential to the investment community. First of all, unlike its industry peers, the company primarily operates in the premium segment where the entry barrier is high due to the need for advanced technologies and high-precision machinery, expert after-sales services, and extensive distribution network. Second, its management team are mainly local Chinese with managerial experience gained in Japanese companies. They have solid technical expertise, observe world-leading Japanese quality standards, and possess local knowledge and execution capabilities for realising long-term objectives. Third but not least, appealing growth prospects due to component shortages in China and the expected 10-year industrial upgrade boom present opportunities to Precision Tsugami for capturing greater market share in the future.
To differentiate Precision Tsugami, we took specific steps to showcase the Company at crucial stages of the IPO campaign. We arranged small group meetings with key opinion leaders from the investment community to explain the Company’s competitive strengths; showcasing components made by its high-precision machines. A corporate video was produced and broadcasted during the investors presentation and press conference to underscore Precision Tsugami’s advanced production capabilities as well as strong investment value. To maximise coverage of the Company on listing day, a model of a CNC high-precision machine was created for presentation as a souvenir to a representative of HKSE.
After the company’s listing in September 2017, SPRG’s next objective would be to ensure that the investment community, media and stakeholders were kept abreast of Precision Tsugami’s ongoing developments. We subsequently helped organise three roadshows to meet over 19 analysts and investors in Hong Kong after the company’s interim results announcement to demonstrate its sustainable post-listing business growth. In the post-interim results period we also arranged meetings with over 20 key opinion leaders in addition to a media briefing, one-on-one media interviews as well as distribution of a bilingual press release to both the Hong Kong and China media to reiterate its growth potential and proven track record
In general, this project enjoyed an overwhelmingly positive market response. Precision Tsugami’s IPO was oversubscribed by approximately 5.6 times, and its stock price rose 14.8% from HK$5.60 to HK$6.43 on the first trading day. Ongoing communication efforts contributed to its stock price surging 109.29% to HK$11.72 as at 29 March 2018, the highest growth rate among six IPOs that commenced listing over the same period. Market capitalisation rose from HK$2,315 million (US$296 million) to HK$4,464 million (US$569 million) as at 29 March 2018. Three well-known institutional investment funds subscribed to 7,870,000 additional shares of the Company in January, reflecting solid confidence in its prospects. In addition, over 256 news items in print, online and broadcast media were generated within eight months, worth HK$19 million (US$2.4 million) in PR value, while 27 research reports were released featuring favourable commentaries on Precision Tsugami's future prospects.
In bullet-list form, briefly summarize up to ten (10) of the chief features and results of this nominated PR program since the beginning of 2017 (up to 150 words).
-IPO 5.6 times oversubscribed and stock price rose 14.8% on the first trading day
-Follow-up communications supported a stock price surging 109.29% to HK$11.72 as at 29 March 2018, the highest rise among six concurrent IPOs
-Market capitalisation rose from HK$2,315 million (US$296 million) to HK$4,464 million (US$569 million) as at 29 March 2018
-Over 256 news items in print, online and broadcast media within eight months, worth US$2.4 millionin PR value
-Three well-known institutional investment funds subscribed 7,870,000 additional shares in January
-27 research reports featured favourable commentaries
-Organised three rounds of roadshows – 19 one-on-one meetings with analysts and investors in Hong Kong – after interim results
-Arranged meetings with over 20 KOLs, a media briefing, one-on-one media interviews and bilingual press release distribution to both Hong Kong and China media reiterating growth potential and proven track record