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."
"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 operates gas, solar and coal power generation stations as well as data centers for information technology companies in southeast Asia. It 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.
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. 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 due to its "strong sales exposure to Europe" and "robust potential" elsewhere while maintaining "the highest profitability among Korean defence peers."
Many European governments have pledged increased 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 by 60%. Any future stimulus measures announced by China could further benefit this stock.