Catapulting to second place after two years at runner-up is Morgan Stanley’s Jasmine Lu, who garners accolades from clients for doing “her own independent research rather than just being a disseminator of managements’ views,” as one buy-side counterpart puts it. Lu expects “limited incremental positives” for the hardware technology group in the fourth quarter, declaring that demand for personal and notebook computers remains sluggish. At the same time, she says, smartphone and tablet market growth is decelerating off a high base, amid rising pricing pressure as the product mix shifts to midrange merchandise in emerging markets. She is on the lookout for new product cycles that can drive replacement demand in the high-end segment, as well as changes in the competitive landscape following industry shifts toward less-expensive products. Lu’s advice to investors is to look beyond the current circumstance and focus on companies “with solid management teams and research and development capabilities,” she says, “and stocks that offer an attractive risk-reward.” She declines to discuss particular company recommendations. — Carolyn Koo |
The 2013 All-China Research Team: Technology, Second: Jasmine Lu