< The 2016 All-Asia Research Team
Simon Lee & team
Morgan Stanley
First-Place Appearances: 3
Total Appearances: 17
Team Debut: 1996
Securing their fourth straight appearance in second place, Simon Lee and his Morgan Stanley colleagues “understand and follow the power industry very well, especially on the policy and industry dynamics,” one asset manager attests. “They also organize timely and fruitful trips.” The five-member team, another investor remarks, also has “a clear grasp about key drivers for each individual covered company.” Morgan Stanley’s analysts cover 60 regional names and are neutral on the power generation industry because of structural power oversupply. “Our preference is for wind power equipment names and gas distributors,” Lee reports. “We like wind equipment companies because of the strong export growth opportunity and strong gross margin improvement from pricing power. We like gas distributors’ structural demand growth in China.” In the former industry, gear manufacturer China High Speed Transmission Equipment Group Co. and turbine maker Goldwind Science & Technology Co. are their favorites. In the latter, top picks include pipeline infrastructure provider ENN Energy Holdings, as well as distributors China Gas Holdings and China Resources Gas Group. “I quite like Simon for his contrarian views and diligent work,” says another adherent. “The utilities sector is well covered by many experienced analysts — to differ from the mainstream view with independent thinking is precious.” This year Lee and co-captain Praveen Choudhary shepherd their Hong Kong research troupe to its third straight No. 1 showing on that roster.