In third place for a second consecutive year is J.P. Morgan’s Hak Kan (Leon) Chik. The analyst is “on top of solid fundamental research skills,” applauds one fund manager, adding that “Leon’s secret weapon is making money-making timing calls.” In general, Chik is positive on his sector, encouraged specifically by the improving prospects for industrial companies that have high operating leverage as the Chinese economy improves. A snap-back in margins, beginning in late 2012, followed by the end of plant closings and then the building of new facilities have led to Chik’s expectation that the market will “reward these stocks with a pop in price-earnings ratings,” he explains. Most favored among the names he covers is Xinyi Glass Holdings, whose products are used in automobile, construction and household applications, making it one of the largest and most diversified glass manufacturers in the country. In September, Hong Kong–based Xinyi announced its intention to spin off its solar-glass business, a move that Chik believes will add further funding capacity and enable the company “to participate in the recovery in demand in the solar-glass market,” as well as in its other business segments. — Carolyn Koo |
Carolyn Koo Xinyi Glass Holdings Hong Kong China Chik J.P. Morgan
