< The 2016 All-Asia Research Team
Karen Tang & team
Deutsche Bank
First-place appearances: 4
Total appearances: 8
Team debut: 2009
Under the stewardship of Karen Tang, Deutsche Bank’s six-person troupe rises from runner-up to No. 3. “Her timing on research calls is extremely accurate, and she provides good, in-depth analysis behind the recommendations,” says one investor who particularly values the team’s “detailed graphs and charts.” Overseeing a coverage universe of 36 regional gaming and lodging names, Hong Kong–based Tang notes that “Macau is where the bulk of investor attention has been focused. In our note published in early April, we outlined our relatively negative outlook for gross gaming revenue, or GGR, which we believe will fall 8 percent in 2016, primarily due to regulatory tightening.” Moreover, the group — whose members are stationed in five cities throughout Asia ex-Japan — is warning clients that the investing community is too optimistic. “We think the Street has misinterpreted the return of high-end players during Chinese New Year as a permanent trend,” she explains, so “those in the market looking for a recovery in GGR in the second half of 2016 are likely to be disappointed.” Accordingly, Deutsche sees significant downside risks for the sector this year, including tighter junket and overseas cash withdrawal rules from China, VIP smoking ban legislation and oversupply. “Overall, we retain our relatively cautious view on the sector,” concludes Tang, 38.