Goldman Sachs, a prominent financial institution, recently expanded its list of preferred stocks for 2024 by incorporating five carefully selected stocks from various sectors across the Asia Pacific region. This strategic move was underpinned by the anticipation of favorable market dynamics, including the resurgence of Chinese consumer demand, the accelerating shift towards clean energy initiatives, and the continuous advancements in artificial intelligence technology.
One notable addition to Goldman Sachs’ list is ANTA Sports Products Ltd (HK:2020), a Chinese company poised to benefit from the uptick in consumer demand. Leveraging its multi-brand strategy, ANTA is strategically positioned to capture a broader market segment, enhancing its growth prospects in the process.
Another noteworthy inclusion is Hong Kong Exchange and Clearing Ltd (HK:0388), the operator of the Hong Kong Stock Exchange. With the anticipated recovery in cash market trading value, HKEX is expected to witness improved earnings performance. Moreover, the company stands to gain from enhanced policy support and the expansion of the Connect program with mainland China.
Thai Oil PCL (BK:TOP) emerged as a promising addition to the list, with expectations of robust earnings growth driven by its clean fuel project. This initiative is set to bolster the company’s refining margins and capacity, while its increased cash generation could pave the way for improved shareholder returns.
Qantas Airways Ltd (ASX:QAN) is positioned for a rebound in valuation, with anticipated earnings surpassing pre-COVID levels. The company’s commitment to enhancing shareholder returns and upgrading its fleet further solidifies its appeal as an investment opportunity.
Lastly, Elite Material Co Ltd (TW:2383) from Taiwan is primed to capitalize on the burgeoning AI server market. Renowned for its top-notch product quality and best-in-class mass production capabilities, Elite Material is well-positioned to capitalize on the growing demand in this sector.
However, Goldman Sachs also removed HYBE (KS:352820) from South Korea, Mitsubishi UFJ Financial Group Inc (TYO:8306) from Japan, and Shenzhou International Group Holdings Ltd (HK:2313) from China from its conviction list. These stocks had underperformed since their addition to the list in January and December, prompting their removal.
As Goldman Sachs reshapes its list of favored stocks, investors are closely monitoring these developments and evaluating the potential implications for their investment portfolios in the Asia Pacific region.