This content is from: Research
The 2013 All-China Research Team: Telecommunications, Second: Xinnian (Sydney) Zhang
Leaping to second place from runner-up is Bank of America Merrill Lynchs Xinnian (Sydney) Zhang, whose insightful thematic research, as one supporter describes it, merits particular praise. Zhangs attitude toward the sector is one of cautious optimism in the near term, he reports. He is concerned, in part, about uncertainties in the regulatory environment regarding mobile-number portability, tax reform and the potential awarding of a fixed-line broadband license to Hong Kongbased China Mobile, the nations biggest mobile wireless name, by revenue and in relation to the governments plans to allow telecommunications companies to offer fourth-generation mobile services (which is expected to happen by the end of this year). However, over the long run, Zhang is positive on the growth potential of Chinese telcos mobile-data services, he says, driven by expanding mobile-data usage and tiered data pricing. Currently, the analyst has buy ratings on Hong Kongs China Unicom (Hong Kong) and Beijings China Telecom Corp., the second- and third-largest wireless providers in the country, respectively. He maintains an underperform rating on China Mobile. These positions, he notes, are based primarily on the outlooks for the companies revenues and earnings growth over the next 12 months, as well as their relative valuation metrics. Carolyn Koo |