8 Thai SMEs among 'Best Under a Billion'

Chinese companies once again dominated the Forbes Asia “Best Under a Billion” (BUB) list of the top small and medium-sized enterprises in the Asia-Pacific region, according to the magazine’s August issue. 

A rising number of Japanese companies also appeared on the list, while the number of Indian firms continued to drop. Thailand added two to the list, now boasting eight.

The BUB list honours 200 leading public companies in the region with annual revenue between US$5 million (Bt157 million) and $1 billion. Forbes editors select the best 200 out of a universe of 15,000 companies based on such criteria as rising financial performance, sufficiently broad and private share ownership, reasonable debt levels and profitability. 

Companies from China including Hong Kong dominated the list this year with 63 entries. Add those domiciled in Taiwan and the figure reached 89 companies from Greater China. Among the notable Chinese honourees are Xinghui Auto Model, whose shipments of remote-controlled and die-cast cars delivered a 34.7-per-cent jump in net profit in 2012, and Dukang Distillers, a maker of traditional baijui (white liquor), which is gaining popularity. 

A rising number of Japanese companies made the list with 17 entries compared with just four or less in recent years. The highly popular Cookpad Japanese website allows users to share recipes, cooking ideas and photos of their culinary creations. More than 80 per cent of Japanese women in their 20s and 30s use Cookpad. The company has an agreement with Yahoo, Japan’s most visited website, where Yahoo puts a direct link to Cookpad on its home. 

Tim Ferguson, editor of Forbes Asia, said the growth of China, the world’s second-largest economy, continued to be central to the success of many firms on the BUB list. Japan’s stronger showing also suggests that prospects for the country’s economic rebound are looking better and entrepreneurial energy may be fuelling a comeback. 

“Overall I am struck by how many companies keep improving their performance year after year, regardless of what is happening in their nearby economy,” he said.

Taiwan has the second-highest number of companies on the list at 26, three more than the previous year. India came in third with 19 companies, the lowest level since 2007. Two countries dropped off without any representation, Sri Lanka (two listees last year) and New Zealand (one last year). The Philippines only managed one company compared with three in 2012.

Australia, Malaysia and Indonesia also saw a few companies dropped off the list. 

Australia and Malaysia both have 12 companies, down two from the previous year, whereas Indonesia, with four companies, is down three from last year.

Singapore, South Korea, Vietnam and Thailand added more companies to this year’s list. Singapore, with seven companies, is up three, while South Korea, Vietnam and Thailand have two more each, at 18, 10 and eight respectively.

Four companies share the mark for sustaining their winning streak on the list for the longest period of time – four years – including Malaysian latex-glove maker Hartalega Holdings, Malaysian property developer Mudajaya Group, an Internet gaming company from the Philippines called Philweb, and Chinese computer company YGSoft. 

Last year’s longest streak holder (six years), Ctrip from China, fell off the list this year, along with long-time regular Changyu Pioneer Wine. A handful of achievers from last year’s 200 also “graduated” from the list this year by exceeding $1 billion in revenue in their latest-year end results. Among them are China’s Kangmei Pharmaceutical and Tianneng Power International.