10 Best Asian Stocks to Invest in According to Analysts

1. Shinhan Financial Group Co., Ltd. (NYSE:SHG)

Upside Potential: 48.52%

Stock Price as of January 27: $35.22

Number of Hedge Fund Holdings: 8

Shinhan Financial Group Co., Ltd. (NYSE:SHG), headquartered in Seoul, South Korea, is one of the country’s largest financial conglomerates. The group offers a comprehensive range of financial services, including banking, investment, insurance, and asset management. Shinhan Bank, its flagship subsidiary, serves a diverse clientele, from individual customers to large corporations.

Shinhan Financial Group Co., Ltd. (NYSE:SHG) is focusing on qualitative growth, with an emphasis on return on equity (ROE) and return on assets (ROA). The company is targeting an ROE of 13% for 2025 and is working to optimize its asset allocation and resource allocation to achieve this goal. This includes a focus on high-growth areas such as corporate lending and digital banking, as well as efforts to improve operational efficiency and reduce costs.

Shinhan Financial Group Co., Ltd. (NYSE:SHG) is also focused on managing its risk-weighted assets (RWA) and maintaining a strong capital position. The company is targeting RWA growth of 5% for 2025 and is working to strengthen its RWA budget system and improve data alignment and integrity. This includes investments in digital transformation and data analytics, as well as efforts to enhance its risk management capabilities and improve operational efficiency.

Furthermore, Shinhan Financial Group Co., Ltd. (NYSE:SHG) has announced a comprehensive plan to enhance its enterprise value. This program aims to achieve a total shareholder return (TSR) of 50% by 2027, with a focus on increasing dividend payouts and share buybacks. The company has already made significant progress in this area, with a share buyback program of $276.37 million (KRW 400 billion) announced in the third quarter of 2024, and plans to continue this program in the future.

While we acknowledge the potential of Shinhan Financial Group Co., Ltd. (NYSE:SHG) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SHG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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