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The 2014 All-China Research Team: Metals & Mining, No. 2: Shuai (Bruce) Wang

< The 2014 All-China Research TeamShuai (Bruce) WangBank of America Merrill LynchFirst-place appearances: 0

Total appearances: 1

Analyst debut: 2014

In his debut appearance on this lineup, Shuai (Bruce) Wang of Bank of America Merrill Lynch earns second place — the same position he wins for a second year running in Basic Materials. Shanghai-based Wang follows 14 companies across both spaces, applying “unmatched diligence,” as one buy-sider says. Moreover, “Bruce has a long-term orientation that matches our investment approach,” the investor adds. Case in point: Since October 2011, when he began reporting on the company, Wang has been urging investors to buy China Hongqiao Group, a Zouping-based producer of aluminum and other base metals. The stock was underpriced at HK$3.26, the analyst believed, and he continues to maintain that the market is undervaluing China Hongqiao. Additional catalysts include the manufacturer’s multiple contracts to produce bauxite, its dominant share of the aluminum market, recent capacity expansions and “better cost controls than peers,” he advises. Late last month the shares were trading at HK$5.63, having climbed 26 percent over the trailing 12 months and paced the sector by 24.4 percentage points during that period. Over the life of the call, the stock outperformed its peers by 87.8 percentage points. Wang’s price target for China Hongqiao is HK$8.50.


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