My personal take on the opportunities within Asia is based on companies that can achieve leading positions in either their home markets, or regionally and globally. The Asian consumption story is well known but the new facet is the growth in commercialisation of home-grown intellectual property. The perception of Asian companies as copycats and consumers of Western innovation is now outdated. So a portfolio of Asian shares should extend beyond traditional consumption themes. Asian companies are climbing up the value chain, disrupting Western oligopolies and beginning to lead industry trends.
Taiwan’s leading-edge chipmaker
TSMC (Taipei: 2330) is the world’s leading semiconductor foundry, based in Taiwan. It is one of the very few players capable of producing the leading-edge microchips used in high-performance electronics and is well placed to capitalise on structural demand arising from digitisation, 5G and artificial intelligence. The outlook is positive: revenues are growing at 20% a year and the company will invest US$100bn in producing advanced microchips over the next three years.
The story of the semiconductor fabrication industry is one of consolidation. As the technological challenges and the costs of improving processing power have mounted, even Intel, historically at the forefront, has been struggling. This leaves just two Asian players standing, with TSMC leading in logic chips and Samsung Electronics in memory chips.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Nidec (Tokyo: 6594) is a Japanese company that manufactures half of the world’s brushless direct current (DC) motors. The company has built its leading position via research and development over 50 years on delivering ever smaller, more powerful motors with superior energy-efficiency. It enjoys scale advantages and breadth in its end-markets, supplying sectors ranging from drones to robots and industrial machinery. It is now leveraging the same skill set into traction motors required for the global electric-vehicle (EV) market.
Nidec is targeting a 40%-45% share in a market with huge potential as the demand for EVs explodes, with new players entering the market including Apple and Xiaomi. Nidec’s strength as the core supplier of critical components allows it to benefit from the overall growth of the market.
Entertaining Gen Z
Bilibili (Hong Kong: 9626) is China’s go-to online entertainment platform targeting Generation Z, with over 200 million active users. It is a unique blend of Youtube, Twitch and Netflix, featuring user-generated content, live-streaming, e-sport hosting, and professional video productions.
It stands out among its countless peers, preserving a distinctive quirky identity thanks to its anime, comic and gaming (ACG) heritage. A community experience is cultivated through innovative interactions, encouraging high user engagement and retention. It also consciously curates an ecosystem supporting quality content and content-makers that will sustain creativity in the long run.
Businesses are increasingly turning to Bilibili to connect with China’s youth. The platform is expanding at an annual rate of over 70% with multi-faceted revenue streams; key areas include gaming, advertising and e-commerce.
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
-
Rolls-Royce stock jumps 15% – could it climb further?Aircraft-engine group Rolls-Royce’s CEO has been hailed as a hero for spearheading the firm’s recovery. And the future looks bright, says Matthew Partridge
-
The power of private marketsInterview Helen Steers, co-manager of the Pantheon International investment trust, tells MoneyWeek about the vast array of compelling opportunities in private equity
-
Vertex Pharmaceuticals is an uncommon opportunity in rare diseasesVertex Pharmaceuticals operates in a profitable subsector and is poised for further success
-
Global investors have overlooked these top tips in emerging marketsOpinion Chris Tennant, co-portfolio manager of Fidelity Emerging Markets, picks three attractive companies in emerging markets
-
King Coal has not been dethroned yet — should you buy?The demand for coal is only growing, yet investors don’t seem to want to take advantage of the opportunity, says Rupert Hargreaves
-
It’s time to start buying Europe again, says Merryn Somerset WebbOpinion Europe's stocks are cheap and the economic backdrop is starting to look cheerier, says Merryn Somerset Webb
-
Prosus to buy Just Eat for €4.1 billion as takeaway boom fadesFood-delivery platform Just Eat has been gobbled up by a Dutch rival. Now there could be further consolidation in the sector
-
Should investors stay bullish and buy UK and US stocks?Opinion Ignore the Eeyores, says Max King. The outlook for stocks in both Britain and America remains auspicious
