2014 Fab 50: Asia's Tech Takes Over The World
This story appears in the September 8, 2014 issue of Forbes Asia.
Tech companies dominate China’s lineup, with Tencent the most valuable, having a market cap of $155.6 billion, nearly twice that of runner-up Tata Consultancy Services . Lenovo is the biggest in terms of annual revenue–$38.7 billion, just edging out India’s Tata Motors . But as China is experiencing slowing economic growth, the total number falls to 16, down from 20 last year and 23 the year before that. The country’s real estate slump knocked off all of the property developers that would make the list regularly.
Full List: 2014 Asia’s Fab 50 Companies
India trails China with 12 companies on the list, the same number as last year. HDFC Bank , the country’s second-largest private sector bank, has made the list eight times, more than any other company since we started compiling this roster in 2005. Tata Consultancy, another long-time Fab 50 star, makes the Fab 50 for the seventh time and sixth straight time overall. Tech Mahindra, the country’s fifth-largest IT player, debuts on the list after net profits soared 112% to touch $500 million.
South Korea has six companies, with Naver for the sixth straight year. Boosted by strong mobile advertising-and-content sales, the country’s largest online search portal enjoyed a 32% rise in revenue and a 250% jump in net profit last year. Hyundai Marine & Fire Insurance, South Korea’s second-largest nonlife insurance company, makes the list for the first time as it seeks rapid expansion beyond crowded domestic market.
After failing to get any companies on the list the last two years, Japan has two newcomers this year: Suntory Beverage & Food, which sells bottled teas and fizzy drinks, and Unicharm, the country’s No. 1 in feminine hygiene products and baby diapers. The Japanese beverage giant debuts on the Fab 50 list after raising $3.9 billion in an IPO in July last year. It now has a new U.S.-based sister company, Beam Suntory, thanks to parent Suntory Holdings’ $16 billion purchase of the producer of Jim Beam bourbon in April.
Casino kings Galaxy Entertainment Group and Melco Crown Entertainment represent Hong Kong once again, along with newcomer Chow Tai Fook Jewellery. Started in 1929, the famous jewelry chain is the world’s largest jeweler by stock market value and is controlled by the family of Cheng Yu-Tung, Hong Kong’s fifth richest with a $15.5 billion fortune.
There are eight other first-timers. Another eight return after falling off in recent years. That means 19 companies failed to repeat, including China snack leaders Tingyi Holding and Want Want China Holdings. At least one of them had made the cut every year since 2007. Other companies ending long streaks include China’s Hengan International Group and India’s ITC.
In terms of industry, technology companies once again shine on our list this year with nine representatives. The consumer durables industry has the second most members with 7 companies, including four motor vehicle giants from China and India, as the rise of Asia’s middle class continues to drive demand. Three oil and gas companies make it into the rank, up from only one firm from last year.
The Fab 50 is chosen from a pool of 1,300 companies in the region that have at least $3 billion in market cap or annual revenue. Since only public companies are considered, hot privately held outfits such as Alibaba Group and Huawei Technologies are out. We screen for a long series of performance measures, analyze the outlook for each company and throw out any that carry a lot of debt or are more than 50% state-owned. Companies that are more than 50% owned by listed parents are also culled. The result is the region’s best of the best.
Reporting by Donald Frazier, Yunita Ong, Anuradha Raghunathan, Lucinda Schmidt and Elizabeth Woyke.