The 2014 All-China Research Team: Industrials, No. 3: Xiang Rong (Jacqueline) Li

< The 2014 All-China Research TeamXiang Rong (Jacqueline) LiBank of America Merrill LynchFirst-place appearances: 0

Total appearances: 2

Analyst debut: 2013Xiang Rong (Jacqueline) Li repeats at No. 3. Based in Shanghai, the Bank of America Merrill Lynch analyst “helps investors grab market opportunities and quickly responds to significant news,” says one portfolio manager. Of the ten industrials companies Li covers, Beijing-based train maker CSR Corp. is a favorite. Primarily citing valuation, she began advising investors to buy the stock last December, when it was trading at HK$6.57. But disappointing quarterly results put downward pressure on the shares, and by mid-March they were off 17.8 percent. Li restated her position, however, because she anticipated a rally in high-speed railway orders — and she was right. By late October, when CSR halted trading, the stock had rebounded 46.1 percent, to HK$7.89. Since her December recommendation, it had risen 20.1 percent, while the sector declined 5.5 percent. On instruction from the central government, CSR and Beijing-based competitor China CNR Corp., both state-owned enterprises, are negotiating a merger. Li remains positive on CSR, reasoning that high-speed rail will keep growing both domestically, “from urbanization development,” she says, and internationally. Her target price for the shares is HK$8.20.