< The 2016 All-Asia Research Team
Kam Keung (Oscar) Choi & team
Citi
First-Place Appearances: 8
Total Appearances: 12
Team Debut: 1997
Under the leadership of Kam Keung (Oscar) Choi, Citi’s Asia ex-Japan property team extends its winning streak to a seventh year. Choi, who is based in Hong Kong and also oversees a crew that merits a runner-up position on the China roster, works with 11 associates throughout the region in monitoring 137 names in this sector. Their “solid macro knowledge and strong sector fundamentals judgments” win one money manager’s praise, while other investors value their timely and topical updates on sector developments and good corporate access. “China’s physical market keeps warming up, spilling over into small tier-2 and big tier-3 cities, thanks to the government’s supportive measures and liquidity loosening,” says Choi. “Leading China developers are capturing market share and enjoying significant improvements in funding costs.” His squad forecasts that the mainland’s property industry will enjoy a pickup in earnings growth momentum this year and next, projecting annual gains of 11 percent and 10 percent, respectively. “We expect that the favorable policy environment for China property will last at least through 2016 and likely through most of 2017,” he adds. Citi’s researchers are recommending that clients favor two Hong Kong–headquartered players: China Overseas Land & Investment and China Resources Land. “These companies are major market leaders and should be market consolidators, with COLI recently announcing it will acquire Citic Real Estate, while CRL is likely to be involved in M&A as well,” the 38-year-old leader explains. “Both have decent earnings growth outlooks, and valuations are attractive.” Their projected upside for each stock is significant. China Overseas Land is pegged at HK$33.88 and was trading at HK$24.85 late last month. China Resources they target at HK$30.28; it closed in late April at HK$19.48.