Top analysts from SG: Tan Ai Teng (DBS V), Andy Sim (DBS V), James Koh (Kim Eng).;
online.wsj.com/article/SB100014240527487...leTabs%3Dinteractive
Tan Ai Teng, an analyst at DBS Vickers Securities in Singapore, isn't afraid to change her mind often about stocks.
A case in point for Ms. Tan, 37, was
Hi-P International Ltd., a manufacturer of components for smartphones, tablet devices and other electronics.
Ms. Tan had a hold rating on the stock at the beginning of 2010, and then downgraded it to sell in February. She feared the company wasn't moving quickly enough to expand its product mix, which included providing parts for some of BlackBerry maker Research in Motion Ltd.'s less-popular communications devices.
But things started looking up by mid-year, as sales of tablet devices gained following the release of Apple Inc.'s iPad. As sales momentum strengthened, she grew confident there was a bigger market for Hi-P's products and upgraded it to a buy in June. The stock yielded a return of 45% over the year and 100% on Ms. Tan's buy call.
Ms. Tan says her strategy is to stay in constant contact with the companies, and not be afraid to change their rating quickly when necessary.
"I like to know the companies well---I call them and build relationships, and I want to be the first person to know" any news, she says. Sometimes the companies don't want to talk after she downgrades them, but if they're well-run, they usually provide a reason for an upgrade later.
"You must have the guts to make the call when it is due," she says.
For 2011, she says, one trend to watch is the rising price of labor in China, which will force manufacturers to find new ways to cut costs, including investments in equipment that boost productivity.
Beneficiaries include
Venture Corp., an electronics solution provider, and Bright
World Precision Machinery Ltd., a metal-stamping-machine supplier.
She maintains buy recommendations on both.
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