In this article, we discuss 5 beaten-down Asian stocks to buy today. If you want to see more stocks in this selection, click 10 Beaten-Down Asian Stocks to Buy Today.
5. Kanzhun Limited (NASDAQ:BZ)
Number of Hedge Fund Holders: 20
YTD Share Price Decline as of June 9: 32.42%
Kanzhun Limited (NASDAQ:BZ) is a Chinese company offering an online recruitment platform that facilitates job seekers and employers in the hiring process. The stock has taken a beating year-to-date, falling 32.42% as of June 9. However, the company might see a turnaround soon as China eases restrictions on its tech sector and allows Kanzhun Limited (NASDAQ:BZ)’s application back on domestic app stores.
On April 10, Goldman Sachs analyst Timothy Zhao assumed coverage of Kanzhun Limited (NASDAQ:BZ) with a Neutral rating and a $37.50 price target.
Among the hedge funds tracked by Insider Monkey, 20 funds were bullish on Kanzhun Limited (NASDAQ:BZ) at the end of March 2022, up from 16 funds in the prior quarter. Tiger Global Management held the largest stake in the company, with 7.28 million shares worth $181.35 million.
4. Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG)
Number of Hedge Fund Holders: 14
YTD Share Price Decline as of June 9: 16.02%
Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) was incorporated in 2002 and is headquartered in Tokyo, Japan. The company provides commercial banking, leasing, consumer finance, and other financial services, operating through four segments – Wholesale Business Unit, Retail Business Unit, Global Business Unit, and Global Markets Business Unit.
On April 27, Goldman Sachs analyst Makoto Kuroda initiated coverage of Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) with a Buy rating and a 4,900 yen price target, naming it his top pick among Japanese banks. He sees room for its multiples to recover due to strong fundamentals and shareholder returns. The removal of the present overhang presented by the brokerage subsidiary investigation is a “clear catalyst” for Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG), the analyst told investors.
According to Insider Monkey’s data, 14 hedge funds were long Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) at the conclusion of Q1 2022, up from 10 funds in the last quarter. Jim Simons’ Renaissance Technologies is one of the largest shareholders of the company, with 3.65 million shares worth about $23 million.
3. Camtek Ltd. (NASDAQ:CAMT)
Number of Hedge Fund Holders: 16
YTD Share Price Decline as of June 9: 42.72%
Camtek Ltd. (NASDAQ:CAMT) is an Israel-based company that manufactures inspection and metrology equipment for the semiconductor industry. On May 12, Camtek Ltd. (NASDAQ:CAMT) reported its first quarter results, posting an EPS of $0.44 and a revenue of $77.17 million, above consensus by $0.01 and $664,780, respectively.
Riley analyst Craig Ellis on May 13 reiterated a Buy rating on Camtek Ltd. (NASDAQ:CAMT) but lowered the price target on the stock to $34 from $45 after the Q1 results. The analyst believes that the company is performing well, supported by solid advanced packaging secular tailwinds.
According to Insider Monkey’s database, 16 hedge funds were bullish on Camtek Ltd. (NASDAQ:CAMT) at the end of Q1 2022, compared to 15 funds in the preceding quarter. Israel Englander’s Millennium Management is one of the leading stakeholders of the company, with 499,181 shares worth $15.20 million.
2. Agora, Inc. (NASDAQ:API)
Number of Hedge Fund Holders: 17
YTD Share Price Decline as of June 9: 56.11%
Agora, Inc. (NASDAQ:API) is a Chinese company that provides real-time engagement platform-as-a-service (RTE-PaaS) in China, the United States, and internationally. The company offers software tools to embed real-time video, voice, and messaging functionalities into applications. The stock has tumbled over 56% year-to-date as of June 9.
Nomura analyst Bing Duan on May 16 upgraded Agora, Inc. (NASDAQ:API) to Buy from Neutral with a price target of $10, down from $11. While the analyst moderately slashed FY22-24 revenue forecasts to account for a slower-than-expected recovery, he lifted earnings estimates on improved loss margins and believes “demand and policy shock” is already priced in the shares. The company is executing its $200 million repurchase program and the upgraded rating represents Agora, Inc. (NASDAQ:API)’s stabilizing operations, the analyst added.
According to Insider Monkey’s Q1 data, 17 hedge funds were long Agora, Inc. (NASDAQ:API), up from 12 funds in the prior quarter. Dawid Krige’s Cederberg Capital is the biggest position holder in the company, with 2.19 million shares worth $21.7 million.
Here is what Tao Value has to say about Agora, Inc. (NASDAQ:API) in its Q3 2021 investor letter:
“As witnessed in the past quarter, the government intervention in the Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We exited Agora (ticker: API) as we estimated that it has 25+% of evaporating revenue tied to online education use cases, but the management seemed to be evasive about the potential impact.”
1. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 26
YTD Share Price Decline as of June 9: 48.26%
XPeng Inc. (NYSE:XPEV) designs and manufactures smart electric vehicles in the People’s Republic of China. The company builds SUVs, four-door sports sedans, and family sedans. The stock has declined over 48% year-to-date as of June 9. The company posted its Q1 results on May 23, reporting a revenue of $1.12 billion, outperforming estimates by $15.25 million.
On May 24, Barclays analyst Jiong Shao maintained an Overweight rating on XPeng Inc. (NYSE:XPEV) but lowered the price target on the stock to $30 from $39. The analyst told investors to “ignore” Q2 and said that his long-term thesis remains intact. The company’s production is steadily recovering and Q2 is “abnormal” due to the Shanghai lockdown and supply chain disruption, the analyst told investors. Shao observed that XPeng Inc. (NYSE:XPEV) is positioned as one of the primary beneficiaries of the electric vehicle consumption stimulus.
According to Insider Monkey’s data, XPeng Inc. (NYSE:XPEV) was part of 26 public hedge fund portfolios at the end of Q1 2022, compared to 29 funds in the last quarter. Philippe Laffont’s Coatue Management is one of the leading shareholders of the company, with 2.8 million shares worth $77.8 million.
You can also take a look at 10 Best Undervalued Dividend Stocks To Buy and 10 Best Recession Stocks To Buy.
