Samsung Electronics, COSCO Pacific, Ayala Land and Cathay Pacific are some stocks that will fare well even as market volatility and economic uncertainty continue into the second half of the year, according to a report by HSBC Global Research.
Herald van der Linde, Head of Equity Strategy, Asia Pacific and Garry Evans, Global Head of Equity Strategy of the British bank, looked at criteria such as earnings resilience, structural changes in demand, strength of corporate balance sheet and valuations, and picked the stocks they think would likely to outperform regardless of up or down swings.
South Korea's Samsung Electronics, for example, will benefit from the shift from notebooks to tablets, thanks to Apple's iPad, HSBC said. The company's Note, a smartphone-and-tablet hybrid offering, is expected to increasing its blended average unit selling price over the next few months and keep operating profit margins of its handset unit at 20 percent.
The bank also likes China's COSCO Pacific, one of the top five port investors in the world and the world's third-largest lessor of containers.
"COSCO Pacific remains our preferred play in the Asian port and shipping sector, given its attractive valuation and relatively resilient earnings outlook," van der Linde and Evans said in the report.
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