The 2014 All-China Research Team: Internet, No. 1: Wai (Eddie) Leung

<The 2014 All-China Research Team Wai (Eddie) LeungBank of America
Merrill LynchFirst-Place Appearances: 3

Total Appearances: 3

Analyst Debut: 2012

For a third year in a row,Wai (Eddie) Leungof Bank of America Merrill Lynch is buy-siders’ favorite analyst covering Chinese Internet companies. “Eddie has broad connections in the Internet industry and is very responsive to our requests,” declares one fund manager. “His stock calls are also good.” Hong Kong–based Leung declines to provide specific company recommendations, although he notes that intense competition within different service areas of the sector, such as e-commerce, “has resulted in consolidation of market share into the hands of a few leaders in each segment. Most of these companies have the capability to sustain a long-term business.” However, he cautions, a likely tightening of market liquidity conditions will lead to varied results within the sector. Overall, the group rocketed 47.2 percent during the 12 months through late November, while the domestic broad market slipped 2.2 percent. Looking ahead, adds Leung, “companies with good growth and margins could be more defensive than companies investing aggressively for market-share gains in volatile times.” The 40-year-old researcher advises that providers with search- and performance-based advertising could do well, since they are positioned to benefit as competition heats up and more money is spent on advertising and marketing.