Macquarie’s top picks for 2025 span Korea, Japan and Hong Kong — and all get over 50% upside
Macquarie has named several Asian companies as its top picks for 2025, with predicted gains ranging from 50% to over 80% in their share prices. The selection spans multiple sectors including technology, automotive, defense, and power utilities, reflecting the investment bank’s positive view on these industries for the coming year. The investment bank screened for 25 companies that have strong market positions, clear growth catalysts, solid financial fundamentals and are set to “prosper in the year ahead.” The below table lists the six stocks with the biggest upside potential, and four of the six also trade in the U.S. YTL Malaysia’s YTL Power International is the stock with the biggest upside potential of 85% over the next 12 months, according to Macquarie. The utility company, which operates gas, solar and coal power generation stations as well as data centers for information technology companies in southeast Asia, is expected to be a major beneficiary of the growing trend in artificial intelligence. AI servers use significantly more electricity compared to traditional computers, which is expected to drive demand for power generation. The stock also has momentum behind it, with gains of more than 50% so far this year. Kia Macquarie is also bullish on Korean automaker Kia , expecting the stock to rise by 80% over the next 12 months. Aside from leading the trend in electric vehicles, Kia also has a “resilient business outlook” with even its gasoline-powered vehicle manufacturing able to “generate above industry average profitability”, according to the investment bank. Meanwhile, U.S. and European automakers are currently restructuring large parts of their business due to a slowdown in global sales, and are having to contend with billions in losses . Tokyo Electron The Japanese semiconductor equipment manufacturer stands out with Macquarie’s predicted 67% upside potential. Tokyo Electron is well-positioned to benefit from the growing demand in artificial intelligence chipmaking, according to the bank’s analysts. Shares of the company have tumbled this year on fears of U.S. export controls limiting the company’s growth in China. SK Hynix Korean memory chip maker SK Hynix is another stock expected to see its shares rise by 50%, driven by increasing demand for AI memory chips. The company’s position in the semiconductor industry appears particularly strong as artificial intelligence applications continue to drive demand for memory chips, according to the bank. It is currently the sole manufacturer of AI memory chips for Nvidia . Hanwha Aerospace Korean defense manufacturer Hanwha Aerospace is predicted to deliver a 55% return, according to Macquarie. The investment bank is particularly bullish on the company due to its “strong sales exposure to Europe” and “robust potential to expand sales in the Middle East and Southeast Asia,” while also noting it maintains “the highest profitability among Korean defence peers.” Many European governments have pledged to increase defense spending amid the war in Ukraine. Meituan Chinese technology and food delivery company Meituan is also among Macquarie’s top picks for 2025. The Hong Kong-listed stock is expected to rise 60% over the next 12 months. The company’s strong position in China’s digital economy and local services market underpins Macquarie’s positive outlook. Any future stimulus measures announced by the Chinese government is also likely to benefit the stock, the bank said.
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