< The 2014 All-China Research TeamHuaxiang (Edward) XuMorgan StanleyFirst-place appearances: 0

Total appearances: 3

Analyst debut: 2011After a year’s absence, Morgan Stanley analyst Huaxiang (Edward) Xu returns to claim third place, marking his first top-three appearance on this lineup. Of the 20-odd infrastructure and transportation companies he follows from a base in Hong Kong, Xu currently prefers “avionics component producers to entire aircraft manufacturers,” he says, citing a boom in government investments in aerospace and defense, mixed with high demand growth from commercial markets. Three companies he especially favors in this segment are Beijing’s AviChina Industry & Technology Co., which makes airplane parts and tools; China Aviation Optical-Electrical Technology Co., a Luoyang-based producer of electronic components for airplanes; and China Avic Electronics Co. of Jingdezhen, which supplies mechanical aircraft parts. Xu believes that a price of HK$6.21 is justified for AviChina, 35.41 yuan for China Aviation and 32.65 yuan for China Avic. The stocks were trading at HK$5.62, 25.75 yuan and 25.76 yuan, respectively, late last month. “His experience in the sector and ahead-of-the-pack views make him an analyst to pay attention to,” attests one portfolio manager.