CLSA’s squad of 20 analysts slips back to third place after three years at No. 2. Hong Kong–based Aaron Fischer guides a crew that is spread throughout the region, publishing research on 146 Asian consumer stocks. That number is up from 129 at this time last year, and the researchers plan to continue expanding their coverage. Fischer and his colleagues advise that a key theme in this sector is the expanding middle class in Asia that is feeding strong consumer spending. They acknowledge, however, that companies face significant challenges in positioning themselves to take advantage of this trend, such as intense competition from local and multinational players and the ensuing market-share grabs. Against this backdrop, his group is advising investors to prefer global luxury goods providers, Macau gaming names and other tourism-related companies. Top recommendations in this line are Hong Kong–based retailer Chow Tai Fook Jewellery Group; and Samsonite International, the world’s largest branded luggage provider, which is registered in Luxembourg. Chow Tai’s stock was trading at HK$10.84 in late April, and the researchers believe that a value of HK$16 is justified. As for Samsonite, their price objective of HK$27.70 represents a 10.1 percent premium to the stock’s late April level. See also Aaron Fischer's profile in the 2013 All-Asia Research Team and the 2012 All-Asia Research Team. |
The 2014 All-Asia Research Team: Consumer, No. 3: Aaron Fischer & team