A new report from CLSA, titled 'Going For Glory,' has identified 20 Asia-Pacific stocks that the brokerage believes offer substantial upside potential, with some targets implying gains of up to 145% from current levels. The comprehensive list, however, notably omits any Indian equities, signaling a focus on other regional markets for its highest-conviction bets.
CLSA's High-Conviction Strategy
CLSA's 'Going For Glory' list is a refined selection from its broader universe of 91 Asia-Pacific stocks rated 'High Conviction Outperform' (HC OPF). To make it onto this elite list, analysts needed to demonstrate strong conviction that these companies are significantly undervalued by current market valuations and poised for substantial growth. The 20 chosen stocks boast an average targeted upside of 85%, considerably higher than the 54% average for the wider HC OPF group.
Top Performers and Key Picks
Leading CLSA's 'Going For Glory' ranking is Australia's WiseTech, with analysts projecting an impressive 145% upside. Analyst Nick Basile suggests that investors might be overestimating the company's challenges, anticipating a swift rebound within a 12-month timeframe. Following WiseTech, South Korea's HD Hyundai Heavy ranks second with approximately 118% potential upside. Japan's Murata is third at about 113%.
Other significant picks include Samsung Electro-Mechanics (Semco) at roughly 106% upside, and Hyundai Mobis and CSPC Pharma, both nearing the 100% mark. These selections underscore CLSA's belief in a meaningful disconnect between these companies' intrinsic value and their current market prices.
Full 'Going For Glory' List by Target Upside
- WiseTech: 145%
- HD Hyundai Heavy: 118%
- Murata: 113%
- Semco: 106%
- Hyundai Mobis: 100%
- CSPC Pharma: 99%
- Screen: 96%
- HL Mando: 89%
- EO Technics: 88%
- Nissan Motor: 87%
- Delta Thailand: 83%
- Kaori: 82%
- Jasa Marga: 81%
- Yantai Jereh: 78%
- Accton: 75%
- Gold Circuit: 74%
- Hugel: 68%
- Light & Wonder: 66%
- Lasertec: 64%
- DiDi: 63%
Beyond Technology: A Broad Sector Bet
While technology and artificial intelligence play a role in some selections, such as Semco benefiting from expected AI-server demand for MLCCs and ABF substrates, CLSA's list is notably diverse. The 'Going For Glory' picks span heavy engineering, automobiles, pharmaceuticals, infrastructure, and gaming, alongside semiconductor and tech firms. This broad approach indicates that the selection is not a single-sector trade, but rather a collection of companies where CLSA analysts see compelling investment cases across various industries.
Understanding the Valuation Gap
The report highlights a significant valuation gap within CLSA's Asia-Pacific coverage, which represents approximately $27.2 trillion in market capitalization. The 91 HC OPF stocks account for $5.7 trillion of this, and the 20 'Going For Glory' stocks represent the subset with the strongest combination of analyst conviction and potential for rerating. For investors seeking opportunities beyond broad market benchmarks, this list offers a snapshot of where CLSA analysts perceive the largest potential for upside.
It's important to note that the substantial target upsides also signal that these are high-conviction, higher-expectation calls rather than low-risk investments. Investors are encouraged to conduct their own due diligence.