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Goldman Sachs adds these stocks to its 2024 APAC “conviction list”

Published 06/03/2024, 01:27 AM
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Investing.com-- Goldman Sachs analysts added five stocks from across the Asia Pacific region to its list of favored stocks for 2024, citing tailwinds from a mix of improving Chinese consumer demand, a clean energy transition and artificial intelligence.

GS said it had added ANTA Sports Products Ltd (HK:2020), Hong Kong Exchange and Clearing Ltd (HK:0388), Thai Oil PCL (BK:TOP), Qantas Airways Ltd (ASX:QAN) and Elite Material Co Ltd (TW:2383) to its APAC Conviction list- a listof 29 Asian stocks on which the brokerage holds Buy recommendations and expects outperformance. 

China’s Anta Sports is expected to benefit from improving consumer demand, while its multi-brand strategy also allows it to better capture mass-market demand, GS analysts said.

HKEX, which operates the Hong Kong Stock Exchange, is set to clock improved earnings tracking a recovery in cash market trading value, and is also expected to benefit from improved policy support as the government widens the Connect program with the mainland. 

Thai Oil is forecast to see stronger earnings from its clean fuel project, which is likely to increase capacity and refining margins, while increased cash generation for the firm could also potentially improve shareholder returns.

Qantas is expected to catch up with its peers in valuation, especially as earnings recover to above pre-COVID levels, and as the firm shows more signs of shareholder returns and upgrading its fleet. 

Taiwan’s Elite Material is expected to benefit greatly from high exposure to the fast-growing AI server market, with GS analysts touting the firm’s product quality and “best-in-class” mass production capabilities. 

On the other hand GS removed South Korean entertainment giant HYBE (KS:352820), Japanese banking giant Mitsubishi UFJ (NYSE:MUFG) Financial Group Inc (TYO:8306), and Chinese clothing maker Shenzhou International Group Holdings Ltd (HK:2313) from the conviction list, as all three stocks underperformed after being added to the list in January and December.

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