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The 2014 All-Asia Research Team: Industrials, No. 1: Paul Dewberry, Xiang Rong (Jacqueline) Li & team


Paul Dewberry,
Xiang Rong (Jacqueline) Li
& team
Bank of America
Merrill Lynch
First-Place Appearances: 11

Total Appearances: 22

Team Debut: 1999

Bank of America Merrill Lynch captures first place on this lineup, which has been expanded to include coverage of the region’s infrastructure and transportation companies. The firm claimed the top spots in Industrials and Infrastructure last year. Under the guidance of Paul Dewberry, 40, it earned a runner-up position in Transportation in 2013 and the No. 1 spot in 2012. Newcomer Xiang Rong (Jacqueline) Li, 36, joins Dewberry in directing this newly combined squad of ten analysts, who work from offices in Bangkok, Hong Kong, Mumbai, Seoul, Shanghai, Singapore and Sydney. The region’s industrials names tumbled 7.2 percent over the first five weeks of 2014, slightly trailing the broader regional market, then rebounded 7.1 percent through late April, which was roughly in line with the performance of their Asian peers. Fears of a slowdown in China pressured the stocks in the early part of the year, Dewberry explains, while the comeback has been driven by companies with exposure to increased investment in railway infrastructure and public housing, given news that the Chinese government would provide a round of stimulus. “Looking forward,” he adds, “we are positive on infrastructure, bulk shipping and shipyards; and more neutral on construction, mining equipment and airlines.” Of the 100 stocks in the researchers’ sector portfolio, a favorite for this year is CSR Corp. China’s largest train manufacturer is enjoying “increasing demand for railway equipment, given an acceleration of the rollout of China’s high-speed rail network construction,” Dewberry notes, and can look forward to “rising equipment maintenance demand from 2016 and China’s high-speed railway diplomacy creating increased opportunities for rail equipment exports.” The BofA Merrill team maintains a buy rating on CSR’s Hong Kong–listed shares, with a price objective of HK$8.20. They were trading at HK$5.84 in late April. Li earned a bachelor’s degree at China Pharmaceutical University then worked as a market analyst at Shenzhen Kexing Biotech Co. In 2006, upon completing her master’s degree in finance at China’s Fudan University, she joined BofA Merrill.


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