Challenger Technologies: 3 things we learned from the 2015 AGM

Challenger Technologies: 3 things we learned from the 2015 AGM

Challenger Technologies: 3 things we learned from the 2015 AGM

Challenger is a dynamic regional IT retailer known for its strong brand name, attractive ValueClub member privileges and strong product partnerships with major global brands. Since inception in 1982, they have expanded to over 45 stores consisting of Superstores, Mini stores and Musica stores across Singapore.

Challenger’s ValueClub of roughly half a million members get to enjoy discounts on the latest IT products while being assured of quality, value and service. In 2012, we started our private label Valore, bringing affordable lifestyle and mobility accessories to our customers.

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With the closure of Funan, Challenger’s biggest store, we decided to attend Challenger’s AGM to understand how management is going to navigate the tough times ahead.

Here are 4 things we learnt from Challenger Technologies’s 2015 AGM:


1. Challenger Ventures –

I believe many investors noticed that Challenger Technologies incorporated a new subsidiary called Challenger Ventures. Challenger Ventures is a wholly-owned subsidiary focusing on investing in companies and businesses operating within Challenger’s digital ecosystem by providing support for the group’s business operations and other subsidiaries within the group.

However, what caught our attention was, a wholly-owned subsidiary under Challenger Ventures. The closure of Challenger’s superstore at Funan would result in a decrease in revenue and net profits by approximately 20%. To mitigate this decrease, management’s strategy for the company in the next 5 years would be to develop, which is a marketplace for Challenger and their distributors to market all their products.

2. The closure of Funan gave impetus to the company’s new strategy

The CEO admitted that the closure of Funan was the kick that got the company to start changing the business model. The current business model of focusing on retail stores would be fine for the next 3-5 years; however, the question is what’s next after 5 years? The management realised that with the current business model, they have been experiencing difficulties increasing their sales, especially since Singapore has a population of around 5.5 million. Management has tried venturing outside Singapore using the same business model as seen in Malaysia; however, they realise that they lack the network and expertise to succeed in it.

3. The differentiating factor between and other e-commerce sites like qoo10

With e-commerce sites like qoo10 having the first mover advantage in this field, the key issues is the differentiating factor between and the others. One thing we have to understand is that is not just an online portal for Challenger to sell their products. is a marketplace where Challenger and their network of distributors would use to market their products to the members. Challenger’s strong relationship with reputable distributors would play a vital role in’s success.

Furthermore, with, Challenger is able to increase the variety of products that they are able to offer. No longer will Challenger just be offering retail products but they will be offering enterprise products (e.g. servers) as well. This is because previously enterprise products were difficult to be sold via retail shops. With the online marketplace established, such products could be easily sold and is another channel to increase the sales for the company.

As part of our mission to make quality investment education affordable and accessible for everyone, we are very excited to announce our 2-part investment workshop held on 7th May and conveniently located at Park Mall!

For more information, check out our Courses page! We look forward to seeing you!

Challenger Technologies

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I developed my passion for investment management especially equity research at a relatively young age. My investment journey began when I was 20, at a point in time where markets were still recovering from the Global Financial Crisis. My portfolio started from money I saved over the past years and through working during the holidays. I was fortunate to have a good friend with common investing mentality to began my journey towards value investing. To date, we still research and invest in companies together, discussing valuations and potential risks of a company. To date, I manage a fund with a value investing style. Positions are decided upon via a bottom-up approach or smart speculation (a term I came up with when buying a stock for quick profit due to a mismatch in prices in the market due to takeovers/selling of a subsidiary or associate). Apart from managing my own portfolio, I enjoy sharing my research with family and friends, seeking their opinions and views towards the stock. Reading Economics in London, I constantly keep up with the financial news in Singapore & Hong Kong. Despite my busy schedule, it has not stopped me from enjoying other aspects of life. I enjoy a variety of activities in whatever free time I may have – endurance running, marathons, traveling, fine dining, whiskey appreciation, fashion. Lastly, I enjoy meeting new people, discussing ideas and gaining new perspectives towards issues in the world.

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