Wai Kit (Danny) Chu joined Macquarie Capital Securities from Nomura in May and hasn’t missed a step. He retains the third-place position he first captured last year. The prospects for Hong Kong–based China Mobile, the country’s largest mobile services provider, by revenue, will remain among the telecommunications industry’s major issues in the short term, Chu contends. He will be monitoring especially closely China Mobile’s earnings growth and the average revenue per user, or ARPU, for its various businesses after the company commercializes its fourth-generation service, which is expected to happen next year. Also key, he adds, are any further changes to the regulatory landscape, as well as the abilities of Hong Kong–based China Unicom (Hong Kong) and Beijing’s China Telecom Corp. to adapt next year to retain their competitive advantages in the mobile telecoms space — where they rank No. 2 and No. 3, respectively. Chu’s top pick is China Telecom because he expects earnings growth to swing back before year’s end and projects an upward trend of ARPU for all its segments. Furthermore, he says, the company boasts a reliable track record in executing its strategy as well as an inexpensive valuation. One portfolio manager is particularly impressed by Chu’s “great insights” into the sector. — Carolyn Koo RUNNER(S)-UP Bin Liu Citi Taisheng (Steven) Liu Standard Chartered Bank Yumei Wang China International Capital Corp. |
The 2013 All-China Research Team: Telecommunications, Third: Wai Kit (Danny) Chu