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The 2014 All-Asia Research Team: Autos & Auto Parts, No. 1: Young Chang, Yankun Hou & team
UBS extends its run at the top of this roster to a third year. Under the leadership ofYankun Hou, working out of Shanghai, and Seoul-basedYoung Chang, the three-person squad covers 52 companies in this sector. “They are quite knowledgeable and have good corporate connections,” offers one portfolio manager. The researchers maintain a positive view on the region’s autos industry, owing primarily to resilient sales growth. They are forecasting that passenger vehicle sales will increase by 12 percent year over year in 2014, while consensus estimates foresee a rise of 8 to 10 percent. In addition, they expect mild capacity expansion in 2014. The team’s favorite carmaker is South Korean manufacturer Hyundai Motor Co. “Its new models will likely remain firm for the next two to three years, which should lead to moderate volume growth with better average selling price,” explains Chang, 52. Moreover, he adds, “the company has become competitive in the global auto market and is showing a meaningful improvement in product quality.” Hyundai Motor bested the sector by 6.2 percentage points over the year through late April, rising 20.7 percent, to 236,000 South Korean won. The analysts anticipate that the stock will continue to moderately outperform over the next 12 months and assign it a target price of 300,000 won. This year, Chang and Hou, 42, separately captain troops that earn runner-up positions in coverage of South Korea and China, respectively. In addition, Hou directs, with Yong-Suk Son, a runner-up crew in Industrials. |
