PROPRIETARY detec METHODOLOGY

The proprietary methodology called "Detecting Top Emerging Champions" is used in the portfolio selection process to identify successful Asian and Chinese companies. The method was originally developed by McKinsey in collaboration with Tsinghua University, and further refined by Qilin Capital. 

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Step 1

Step 2

Step 3

Step 4

Step 5

  • Sector- and sub-sector analysis

  • Macro trends including 13th 5-year plan

  • Historical company performance

  • Current company performance

  • Expected future performance

  • Trends analysis of market share & productivity

  • Ownership analysis

  • Management review

  • Auditor review

  • Company visits and management interviews

  • Product and technology competitiveness

DETEC is the the core of the investment process and follows a rigorous 5-step approach starting with industry and sub-sector analysis, taking into account macroeconomic trends, regulatory developments and government policy priorities. Historical and current company performance is analyzed, focusing on key success factors and competitive advantages. Future growth performance is assessed, based on trend analysis and company investments. Ownership and governance structure is analyzed, along with a review of management and auditor. Finally interviews with the company and management is conducted to obtain a better understanding of the business, product and technology.

Industry Prioritization

Today's company performance

Tomorrow's company performance

Soft-factor assessment

On-site Assessment

The DETEC methodology combines three distinct lenses to identify investment opportunities to create a successful portfolio. In addition to fundamental business research, a capital analysis is conducted as well as a behavioral analysis to take into account of marketing timing.