Strategy & Economics: Small- & Midcapitalization Stocks
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Strategy & Economics: Small- & Midcapitalization Stocks

The 2010 All-China Research Team Rankings Released

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Kenny Lau Credit Suisse


The buy side says: “Kenny has deep industry knowledge.”


Kenny Lau, 42, of Credit Suisse takes the top prize. A 1990 graduate of Hong Kong’s City University with a bachelor’s degree in quantitative business analysis, Lau urged buy-­siders in February 2009 to buy RexLot Holdings, a Hong Kong–based provider of lottery machines, at a mere HK$0.29. By May 2010 the share price had jumped 193.1 percent, to HK$0.85, as the sector gained 96 percent.


In September he initiated coverage of Skyworth Digital Holdings with an outperform, at HK$3.57, on rising demand. The Hong Kong–based TV maker’s shares catapulted as high as HK$9.90 in the spring before sliding to HK$6.39 in late May; still, they outpaced the sector by 67.1 points over the period. Lau, who joined Credit Suisse from CLSA Asia-­­Pacific Markets in 2004, offers “good stock picking,” says one fan.


Second Team


Paul Quah CLSA Asia-Pacific Markets


Coming in second is CLSA Asia-Pacific Markets’ Paul Quah, who impresses investors with “insights into companies most other analysts don’t even cover,” in the words of one money manager. In January 2009, Quah upgraded Hengdeli Holdings from sell all the way to buy, judging it undervalued at HK$1.17 after a jump in same-store sales and balance-sheet improvements. By May 2010 shares of the Kowloon, Hong Kong–based watch retailer had soared a stunning 176.9 percent, to HK$3.24. “Paul thinks like a buy-sider and distinguishes the good from the grubby,” cheers one backer.


Third Team


Eddie Lau Citi


Eddie Lau of Citi, who takes the third tier, earns praise for mostly contrarian views of distressed companies. In January 2009 he upgraded Techtronic Industries Co., a power-tools manufacturer headquartered in Hong Kong, from sell to buy, at HK$2.23, on its successful debt refinancing and a restructuring plan to improve margins. Sure enough, sales took off and the stock more than tripled, to $6.94, through the end of May 2010. “Eddie is one of the few true specialists in a space filled with generalists,” observes one fund manager.


Runner-up


Hak Kan (Leon) Chik J.P. Morgan


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View the complete results of the 2010 All-China Research Team Rankings


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