< The 2015 All-Asia Research Team
Total appearances: 11
Team debut: 1996Earning its tenth overall top finish on this roster is Citi, whose team has not ranked below No. 1 since 2007, when Pierre Lau made his first appearance as its leader. Lau, 44, is “one of the most experienced analysts covering power in Hong Kong,” avers one fund manager. “His detailed analyses help us easily understand the sector and the competitive landscape.” The analysts monitor 54 utilities, clean energy and power equipment equities, which reflects an increase in coverage of A shares over the past year. They are sanguine on the regional sector’s prospects, citing lower unit fuel costs and the rising use of clean energy to protect the environment. “Mild topline deceleration in a weak economy might turn out to be an issue,” says Lau. “However, supportive government policies would help drive up demand. We like companies with strong earnings growth prospects.” He and his colleagues dub China’s wind farms their favorite subsector, naming China Longyuan Power Group and Huaneng Renewables Corp. the best players in that space. Since last April they also have been recommending that investors buy China’s Xinjiang Goldwind Science & Technology Co., which manufactures wind turbine generators and components. By the end of last month, the stock rocketed 124.8 percent, to HK$545.30, far outdistancing the 15.3 percent gain posted by its regional peers. As the team forecast when they upgraded their rating from neutral, Xinjiang Goldwind has been benefiting from an industry upcycle with higher sales volumes and expanding profit margins.