< The 2016 All-Asia Research Team
Jiangqiao (Michael) Tong & team
Deutsche Bank
First-place appearances: 0
Total appearances: 11
Team debut: 1997
In its strongest showing since 2012, Jiangqiao (Michael) Tong’s Deutsche Bank crew claims the No. 3 spot, rising from runner-up. The 43-year-old leader works with one colleague in covering 27 regional power names, an increase of seven A shares over the past year, and Lee also guides the firm’s China researchers to a runner-up appearance on that lineup. The pair tracking this space “dare to be contrarian, sometimes a bit stubborn,” one buy-side admirer says, “but as long as they focus on fundamentals, investors will find the analysis useful.” In particular, a second client values “their quality research and in-depth understanding of the sector, policy views, bottom-up stock selections and the interrelationships between [independent power producers], wind and other renewable energy sources.” Deutsche’s analysts believe that the “major issues facing the sector include regulatory uncertainties on the reform side, sluggish growth on the demand side and an extended oversupply situation if macro does not improve,” says Tong. They are most upbeat on the prospects for wind developers, which are poised to benefit from strong government policy supports, faster output growth and lower interest expenses. “We are also positive on environmental plays, as they have a strong earnings outlook on project wins amid China’s strong initiatives to curb pollution,” he adds. “We are neutral on Hong Kong utilities, given rising bond yields ahead, headwinds on overseas earnings after unfavorable currency movement and rich valuations after the outperformance over the past 12 months.”
