| | | Tak Hung (Eric) Lau | | Citi | First-place appearances: 2 Total appearances: 3 Analyst debut: 2011 |
Citi’s Tak Hung (Eric) Lau repeats in first place, earning buy-siders’ praise for “providing good corporate access,” as one client puts it. Lau is optimistic for his sector since expectations that Chinese share prices will move within a narrow channel next year will prompt investors to raise their risk profiles, he says, and one way to do that is by investing in these companies. “In general, small- and midcap stocks would outperform as long as the market is bullish or range trades,” he says. Over the 12 months through October, the sector did just that, rising 19.2 percent to best the broad market by 13.3 percentage points. One company Lau recommends is China State Construction International Holdings. He believes that the Hong Kong–based builder and property services provider is able to secure more favorable projects than its rivals thanks to its largest shareholder’s being a state-owned enterprise. Moreover, CSCI has “a stronger balance sheet and a longer track record to manage all kinds of infrastructure projects,” he says. Hong Kong’s Haier Electronics Group Co. and Man Wah Holdings are also preferred because the penetration rates in rural areas for the former’s home appliances and the latter’s furniture are “still far lower than in urban areas,” Lau notes. “In addition, income growth in rural areas will be higher than in urban areas.” He also favors Hong Kong’s Nine Dragons Paper Holdings, which is benefiting from tighter supply in the containerboard products industry. The 42-year-old joined Citi in 2009 after covering small- and midcap stocks at Deutsche Bank. He holds an MBA from the U.K.’s University of Hull Business School. “I appreciate Eric’s frequent and timely updates,” reports another money manager. — Carolyn Koo |
