The 2014 All-China Research Team: Industrials, No. 1: Xiang (Edmond) Huang

Xiang (Edmond) Huang

Credit Suisse

First-Place Appearances: 2

Total Appearances: 4

Analyst Debut: 2011

Advancing one notch to reclaim the top spot he most recently held in 2012 is Hong Kong–basedXiang (Edmond) Huang, 43. In January the analyst moved to Credit Suisse from Bank of America Merrill Lynch and wins plaudits for providing research whose “scope is broad and deep,” as one backer describes it. Huang is advising clients to favor Beijing’s China CNR Corp., a train-car manufacturer, citing high demand for high-speed rail equipment. He initiated coverage in June with an outperform rating, and by late October the stock had catapulted 49.9 percent, to HK$7.66, besting China’s industrials shares by 47.5 percentage points. At that time, management announced the suspension of trading in its H shares. On orders from China’s State Council, the company and Beijing-based CSR Corp., the nation’s largest train makers — both of which are state-owned enterprises — are negotiating a merger. He remains bullish on both manufacturers, preferring China CNR on valuation and maintaining a target price of HK$9.70. “Edmond is an acute stock picker,” affirms another portfolio manager, who points to the analyst’s coverage of Xinjiang Goldwind Science & Technology Co. Hang added the Ürümqi-based producer of wind-generating equipment and plants to his sector portfolio in March, advising investors to overweight the shares. The supplier is well positioned to leverage high demand and government support for wind power, he believes, and should benefit from improving supply constraints and pricing discipline. The stock had bolted 38 percent by late last month, to HK$12.64, outdistancing its peers by 32.4 percentage points. Huang believes that a value of HK$15 is justified.