15 May 2013

Lunch Talk with Declout CEO - 15 May 2013

Today I just had a group lunch session with Declout CEO, Vesmond Wong Kok Khun. To recap, Declout is a catalyst counter which listed on SGX last year. He is a relatively young CEO, as we know that this is quite common in IT industry. He explained to us about his company and what his business strategy to further grow his business.

He categorize his businesses into 3 parts:

1. IT Infrastructure Services
2. Cloud Computing - SaaS, PaaS, etc
3. VDC - Vertical Domain Clouds such as Games Clouds Infrastructure that includes Games Cloud Infrastructure (GCI), Unified Payment Infrastructure (UPI) and Gamers Community Portal.

He mentioned to us that VDC could be the next engine of growth to his company and IT Infrastructure Services may experience negative growth in future. So his focus now is to working hard to launch the Games Cloud Ecosystem. To make it success, he needs a group of participants in South East Asia as well as the "killer apps" which can generate more monies to the company.

While there is no regulators to working on the virtual money cash flow in South East Asia, the CEO mentioned to us that the currency risk is minimum as the company has inked the agreement with those participants on the currency settlement procedures.

Going forward, his plan is to spin off those mature subsidiaries. In my opinion, this is a good strategy to generate more cash flow from existing companies and move on to involved in new sector. Although I am with IT background, however I do not really know how to calculate an IT company. Anyway I will put this counter in my watch list for further investigation and see whether his plan would be success or not.

Disclosure:  Catalyst Counters are among relatively young companies to seek fund to further grow their business. You have to bear higher risk in investing in those counters. 

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