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  "docSlug": "f3f23ae4a447",
  "documentTitle": "Bank of East Asia, Limited (0023.HK)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
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  "presentationDate": "2016-02-04 00:00:00",
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  "notes": "Uses a combination of a stacked bar chart for dilution breakdown and a grouped bar chart for performance comparison.",
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      "kind": "callout",
      "text": "These share issuances, when combined with the associated “strategic” agreements, have had the effect of entrenching BEA’s executive management and have further weighed on performance",
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      "text": "Effect of Dilutive Share Placement on EPS Growth",
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      "text": "Increase in share count since FY 2007",
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      "text": "These share issuances, when combined with the associated “strategic” agreements, have had the effect of entrenching BEA’s executive management and have further weighed on performance",
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      "text": "Any increases in BEA’s capital should have been achieved by way of pre-emptive share issuances and/or disposals of assets, in the same manner in which other Hong Kong listed banks have raised capital",
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      "text": "BEA undertook dilutive share issuances to “Strategic” Shareholders in 2008, 2010, 2012 and, most recently, in H1 2015 (totaling ~37% of the 2007 share count) on a selective, non pre-emptive, basis",
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      "text": "EPS growth: 5%",
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      "kind": "source-note",
      "text": "Source: Broker research; Company disclosures. 1. Total dilutive issuance of 36.8% from issuance to “Strategic” Shareholders and 1.8% from issuance for Option Exercises. 2. BEA 2007 EPS adjusted to reflect the impact of bonus share issuance; for HSB, figures adjusted to exclude the financial impact of its stake in Industrial Bank",
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      "kind": "title",
      "text": "In addition, repeated share issuances to “Strategic” Shareholders have increased BEA’s share count by ~37%, leading to stagnant EPS growth since 2007",
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      "evidence": "The document agitates the problem by presenting peer comparisons and highlighting BEA's underperformance.",
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