Nitin Bajaj of the Fidelity Asian Values trust has selected three Asian stocks that are expected to yield profits today and be winners tomorrow
When searching for Asian stocks, I look for reputable companies with capable management teams that are priced with a safety margin. In order to help compound returns at higher rates over time, I concentrate on controlling absolute risk and making minimal losses during market downturns.
This discipline steers the portfolio away from stocks on high multiples to earnings, start-ups, highly geared companies, cyclical businesses earning peak margins, and popular thematic investments.
Because of this strategy, mispriced small and medium-sized businessesthe "winners of tomorrow"are the main investments made by the Fidelity Asian Values trust before they gain notoriety. Here are three instances.
Look out for Asian stocks.
The well-known brand Choco Pie is owned by Orion Corporation, a South Korean snack and confectionery company (Seoul: 271560). Supported by its production facilities in China, India, and Vietnam, it is a high-quality franchise with a 25 percent domestic market share and significant foreign earnings. Its global operations are still expanding, and China contributes significantly to its revenue.
Watch the entire video here: Although chocolate pie is its fastest-growing category, Orion is leveraging its brand recognition to expand into high-end snacks and target a health-conscious market as a potential growth engine. The management has been concentrating on increasing shareholder value, and in 2025, the dividend increased by 40% year over year. The company has no debt; the stock offers a return on equity of over 12% and is valued at a 12-month forward price-earnings (p/e) ratio of nine times.
ManpowerGroup Greater China (Hong Kong: 2180) assists companies that want to handle their own direct headcount or that need workers for a specific project or a brief period of time. Additionally, it provides its customers with training, payroll outsourcing, and headhunting and recruitment services. The company's headhunting and recruitment division generates higher margins, and the business model is asset-light.
ManpowerGroup Greater China maintains a strong focus on risk management and has the dependable operational procedures of its former parent, ManpowerGroup, which was a global leader in its industry. ManpowerGroup's size and geographic reach are advantageous in light of China's extremely disorganized recruitment market.
The recruitment industry in China is at its lowest point in the business cycle, according to our on-the-ground research. The stock offers a dividend yield of over 7%, trades at a 2026 forward p/e of six times, and its balance sheet shows that net cash accounts for roughly 95% of its market capitalization.
With a 45 percent market share, JW Life Science (Seoul: 234080) is South Korea's biggest manufacturer of intravenous (IV) fluids. Since IV fluids are necessary for surgery, critical care, hydration, and patient nutrition, demand for these products is steady. Three or four competitors compete with the company, but entry barriers are high due to stringent quality standards, the requirement for powerful brands and distribution capabilities, and high capital expenditure levels.
South Korea's aging population supports JW Life Science's potential for revenue growth. The business offers a return on equity of roughly 15%, has strong operating cash flows and a net cash balance sheet, and has a consistent mid-single-digit earnings growth profile. Six times 2026 earnings is how much it is worth.
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