JPMorgan picks 12 Asian stocks with ‘superior’ potential to beat the market

Published Wed, Nov 3 20217:49 PM EDT

JPMorgan has revised its "high conviction" list for Southeast Asia — and named 12 stocks across different countries and sectors with "superior outperformance prospects" in six to 18 months. All 12 stocks have an overweight rating by the bank, and an average minimum daily trading value of $1 million over one to three months. JPMorgan revises the list monthly. Here are the new additions for November: RHB Bank Berhad : The Malaysian bank has in the last 12 months shown improvements across its business, including risk management, asset and liability management, as well as digitization, said JPMorgan. Bank Jago: JPMorgan said the company "has changed banking in Indonesia, by scaling up a digital-first and digital-native ecosystem." The importance of the bank in the system, and the likelihood of scaling up "almost necessitates a position," JPMorgan said. Pakuwon Jati : The Indonesian real estate firm earns roughly half its revenue from malls and offices in tier 1 cities like Jakarta and Surabaya, and would therefore gain from the country's economic reopening, said JPMorgan. Astra Agro Lestari : The Indonesian palm oil company is in a better position to benefit from higher crude palm oil prices compared to its peers, said the Wall Street bank. The four new additions replaced Malaysian conglomerate Genting Berhad , Indonesian lender Bank Rakyat Indonesia , Thai retail and office property firm Central Pattana , as well as Singapore's food and commodity company Wilmar International . Stocks that remain on the list Eight stocks from the October list remained JPMorgan's high-conviction picks for November. They are: DBS Group Holdings : Singapore's largest bank is well-positioned to grow its balance sheet and revenue, said JPMorgan. Its strength in digital also allows it to compete with both banks and fintech companies, said the Wall Street giant. PTT Global Chemical : JPMorgan analysts said they see potential earnings recovery at the Thai petrochemical firm in this financial year. Elang Mahkota Teknologi : JPMorgan said the Indonesian conglomerate is a "key" proxy play on the technology sector given its holding in e-commerce firm Bukalapak — which recently debuted on the Indonesian stock exchange . The company also has a potential new business venture with ride-hailing giant Grab. Ayala Corporation : JPMorgan said it likes the Philippine conglomerate as a high-quality, large-cap stock with attractive valuation. PTT Exploration and Production : The energy firm is a proxy for oil and would gain from better crude oil demand in the second half of 2021, said the Wall Street bank. Thai Beverage : The Singapore-listed beverage company is seeing resilient demand from its core market in Thailand, while its beer business in Vietnam is set to improve as Covid-19 restrictions ease, said JPMorgan. Sea Limited : The Wall Street bank said several factors could drive the Singapore-headquartered e-commerce and gaming company's share price higher. They include better e-commerce revenues and reduction in losses, major game launches, as well as expansion into new countries. Sea is listed on the New York Stock Exchange. Airports of Thailand : Covid-19 infections in Thailand appear to have peaked, and the stock would gain from the reopening of cross-border travels, said JPMorgan.

JPMorgan has revised its "high conviction" list for Southeast Asia — and named 12 stocks across different countries and sectors with "superior outperformance prospects" in six to 18 months.