The 2014 All-China Research Team: Small- & Midcapitalization Stocks, No. 2: Tak Hung (Eric) Lau

< The 2014 All-China Research TeamTak Hung (Eric) LauCitiFirst-place appearances: 2

Total appearances: 4

Analyst debut: 2011Although Citi’s Tak Hung (Eric) Lau slips back to second place after having topped this roster for two years running, the Hong Kong–based strategist retains an avid following. He tracks 15 small- and midcap Chinese stocks, bringing to bear “authority and confidence [and] taking a long-range view, which suits our approach,” in the words of one fund manager. One of Lau’s long-standing favorites is Hong Kong–based Techtronic Industries Co., which exports a wide range of merchandise, including home-improvement goods and power equipment. The strategist reiterated his buy rating on the stock in March, citing better-than-expected year-over-year profit gains, and through late November it had climbed 19.7 percent, to HK$24.15, while the sector was nearly flat. Lau also has been touting Sunny Optical Technology (Group) Co., a Yuyao-headquartered manufacturer of lenses for use in handsets, televisions and vehicles, among other products. He began reporting on Sunny Optical in August and urged investors to buy the shares, in part thanks to high demand for its smartphone components. By late last month the stock had jumped 28.7 percent, to HK$13.98, beating the sector by 31.9 percentage points. The analyst forecasts a further rise to HK$14.30.

Related