The 2014 All-China Research Team: Conglomerates, No. 3: Man Chuen (Benjamin) Lo
< The 2014 All-China Research TeamMan Chuen (Benjamin) LoNomuraFirst-place appearances: 0
Total appearances: 5
Analyst debut: 2010It’s four straight years in third place for Man Chuen (Benjamin) Lo, who works out of Hong Kong and exhibits “a high degree of detail and analytical skill,” as one fund manager says, in coverage of seven Chinese conglomerates. The Nomura analyst continues to peg MTR Corp. as a top pick, reiterating his long-standing buy rating on the Hong Kong–based property developer and public transit operator in March, when the shares were down 5.1 for the year. Although disappointing results from MTR’s property-development operations had exerted downward pressure on the the stock, Lo pointed to the strength of the company’s recurring railway operations, as well as its strong free cash flow and high dividend yield — and stuck with his recommendation. Sure enough, by late last month, MTR had rallied 15 percent, to HK$31.05, besting its peers by 22.4 percentage points. “He was right, and it paid off for us,” cheers another buy-side ally. Lo still dubs the stock a bargain, assigning it a target price of HK$38.20.