Several
sectors
—
and
stocks
—
in
Asia-Pacific
look
“particularly
attractive
right
now,”
according
to
AllianceBernstein.
The
stocks
are
“highly
ranked
on
a
quantitative
basis
and
our
companies
where
our
Bernstein
analysts
have
a
strong
positive
view,”
the
Wall
Street
Bank’s
analysts,
led
by
Ann
Larson,
wrote
in
a
Jan.
16
note,
which
touched
on
its
Asian
“top
picks
for
the
next
six
months.”
AllianceBernstein
said
its
last
“Quant
+
Fundamental
portfolio”
beat
the
MSCI
Asia
benchmark
by
10.5%
on
an
equal-weighted
basis
and
13.6%
on
a
market
capitalization-weighted
basis
over
six
months
from
July
2023.
According
to
the
bank,
the
“alpha
model”
it
uses
has
been
“effective
in
differentiating
winners
from
losers
in
Asia
over
the
long-term
as
well.”
Here
are
four
of
its
top
outperform-rated
stocks.
Samsung
Electronics
and
SK
Hynix
The
South
Korean
giants
are
among
AllianceBernstein’s
top
stock
picks
as
their
memory
arms
are
set
to
get
a
boost
from
the
cyclical
recovery
in
demand
and
average
selling
prices
which
are
“driving
a
rebound
in
margin
and
profit
at
memory
vendors.”
“We
also
believe
the
demand
for
memories
will
remain
strong
thanks
to
the
growing
demand
for
generative
AI
and
more
broadly
for
compute,”
the
bank’s
analysts
wrote.
AllianceBernstein
expects
the
share
price
of
Samsung
to
hit
92,000
Korean
Won
($68.44)
in
the
next
12
months,
giving
it
potential
upside
of
29.4%.
It
has
a
price
target
of
140,000
Korean
Won
on
SK
Hynix,
or
around
64.8%
upside.
Between
the
two
companies,
the
investment
bank
noted
that
“SK
Hynix
is
showing
stronger
performances
near-term
mainly
thanks
to
its
lead
in
HBM
(high
bandwidth
memory).
Hence,
it
has
been
getting
more
love
from
investors
which
is
reflected
in
its
more
expensive
valuation.”
Conversely,
it
observed,
Samsung’s
price-to-book
has
“only
expanded
mildly
in
the
same
period
of
time.”
Still,
AllianceBernstein
“like[s]
both
of
them
as
the
cyclical
rebound
plays
out,”
adding
that
Samsung
likely
offers
more
value
and
upside.
BYD
Automotive
giant
BYD
has
been
making
waves
since
it
dethroned
Tesla
in
the
fourth
quarter
for
2023
to
become
the
top
electric
vehicle
maker
after
selling
more
battery-powered
vehicles
than
its
rival.
AllianceBernstein
is
bullish
on
the
company
as
it
continues
“to
expand
into
the
under-penetrated
mass
and
premium
segments
in
China.”
The
investment
bank
estimates
that
the
mass
market
segment,
which
accounts
for
approximately
20%
of
China’s
auto
market,
has
only
9%
EV
penetration
(excluding
micro
EVs).
“BYD’s
unparalleled
cost
structure
and
vertical
integration
of
powertrain
will
enable
it
to
achieve
a
dominant
market
share
in
this
segment,”
the
bank’s
analysts
wrote.
They
expect
the
automaker
to
deliver
3.7
million
units
on
23%
growth,
in
line
with
consensus.
AllianceBernstein’s
target
price
of
334
Hong
Kong
dollars
($42.71)
gives
it
around
61.5%
upside.
PDD
Holdings
AllianceBernstein
also
favors
PDD
Holdings,
the
parent
company
of
giants
Pinduoduo
and
Temu,
as
it
“continues
to
gain
share
within
the
domestic
e-commerce
market.”
“We
think
the
recent
gains
go
beyond
poor
macro
and
consumers
down
trading.
PDD
has
won
close
to
a
40%
share
of
incremental
industry
GMV
(gross
merchandising
value)
in
the
past
year;
we’re
optimistic
this
can
continue,”
the
bank’s
analysts
wrote.
“We
think
upside
remains
for
PDD’s
domestic
take
rate
too…
reflecting
both
the
superior
availability
of
user
traffic
on
the
platform
and
PDD’s
greater
marketing
spend,”
they
added.
AllianceBernstein
gave
the
giant
a
price
target
of
$170,
giving
it
around
33%
upside.
—
CNBC’s
Michael
Bloom
contributed
to
this
report.