The 2013 All-China Research Team: Conglomerates, First: Simon Cheung
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The 2013 All-China Research Team: Conglomerates, First: Simon Cheung


Simon Cheung

Goldman Sachs (Asia)

First-place appearances: 3

Total appearances: 4

Analyst debut: 2010

Sector champion for a third consecutive year, Goldman Sachs (Asia) researcher Simon Cheung covers 20 stocks “with greater detail than his competitors,” one asset manager insists. Praised by another investor as “always accessible, with quick responses to requests,” Cheung, 36, acknowledges increasing his client visits, road shows and report output over the past 12 months. Cheung’s long-standing buy position on Hutchison Whampoa also earns kudos from backers. Quality management at the Hong Kong–based diversified provider of e-commerce, leisure and telecommunications services has captured the analyst’s favor. In the 12 months through October, the shares surged 29.9 percent, to HK$96.60, pacing the sector by 12.4 percentage points. Cheung added property and infrastructure developer Wharf (Holdings) to his conviction list in July 2012, in part because he deemed the shares undervalued. In addition, he forecast a rise in mainland Chinese shoppers, which would benefit Hong Kong–based Wharf’s already-strong retail malls. The stock skyrocketed 77.5 percent into late May — tearing past the sector by 62 percentage points — before slipping to HK$65.30 at the end of October, for a life-of-call gain of 51.4 percent that outperformed the sector by 31.6 percentage points. A current favorite is China Merchants Holdings (International) Co., a sea and air cargo handler and terminal operator that is headquartered in Hong Kong. Upgraded from neutral to buy in September, thanks to stronger international trading, through October the shares climbed 2.3 percent, to HK$27.50. “Simon makes the right calls,” another booster cheers. — Ben Mattlin

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