2016 All-Asia Research Team: Consumer/Discretionary, No. 1: Young-Ah Han, Chen Luo & team

Young-Ah Han, Chen Luo & team

Bank of America
Merrill Lynch

First-Place Appearances: 6

Total Appearances: 10

Team Debut: 2007

Topping this roster of the best analysts covering Asia ex-Japan’s consumer discretionary shares is the Bank of America Merrill Lynch crew co-piloted byChen LuoandYoung-Ah Han, who also directs (with Yuanyuan [Tina] Long) the No. 1 team on the new Consumer/Staples lineup. In the past, these two sectors were combined into a single Consumer category, and BofA Merrill headlined that list for the past five years. Luo, 39, is based in Hong Kong, while 45-year-old Han works out of Seoul. She and Bryan Song manage a squad that clocks its sixth consecutive first-place showing for its reporting on South Korea, making Han one of only two analysts to lead three champion teams this year. (The other is Morgan Stanley’s Huaxiang [Edward] Xu, whose portfolio includes China [with Ran (Richard) Xu], Industrials [with Kevin Luo] and Transportation.) “Young-Ah has an amazing track record in calling stocks in an otherwise dull sector in South Korea, while Chen’s diligence and foresight make him unique among his peers,” observes one portfolio manager. The 12 analysts covering 40 names in this space are stationed throughout the region. “In China we expect the consumer discretionary sector to remain under pressure in the near term, due to headwinds such as China’s macro weakness, threats from eCommerce and a commercial property glut,” says Han. “While we are generally cautious on the sector, we believe companies that are likely to benefit from structural changes — such as the shift to consumer services, pursuit of health or quality — can outperform.” Despite these concerns, however, “earnings for major department stores should bottom out,” she adds, owing to fewer new store openings and a lighter capital expenditure burden, and “previous investments should start yielding returns.” The region’s consumer discretionary shares tumbled 13.7 percent during the 12 months through late April, compared with its broad market decline of 15.9 percent.