5 Best Asian Stocks To Buy Today

In this article, we discuss 5 best Asian stocks to buy today. If you want to see more stocks in this selection, check out 13 Best Asian Stocks To Buy Today. 

5. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 48

Sea Limited (NYSE:SE) was incorporated in 2009 and is headquartered in Singapore. The company offers digital entertainment, e-commerce, and digital financial services in Southeast Asia, Latin America, rest of Asia, and internationally. Sea Limited (NYSE:SE) is one of the best Asian stocks to monitor. On March 7, Sea Limited (NYSE:SE) reported a Q4 non-GAAP EPS of $0.72 and a revenue of $3.45 billion, topping Wall Street estimates by $1.27 and $400 million, respectively. 

On March 9, BofA raised the firm’s price target on Sea Limited (NYSE:SE) to $92 from $68 and kept a Neutral rating, following the company’s Q4 results that exceeded both BofA’s and market expectations. Although Sea Limited (NYSE:SE) did not provide FY23 guidance, BofA describes the commentary as “optimistic.” However, the firm remains cautious about Sea Limited (NYSE:SE)’s ability to maintain revenue growth with profitability. While BofA’s revenue estimates have not changed significantly, they have increased their EPS estimates for FY23/24E due to the expectation that positive net income will be sustained on an annual basis.

According to Insider Monkey’s fourth quarter database, 48 hedge funds were bullish on Sea Limited (NYSE:SE), compared to 55 funds in the prior quarter. Kora Management is the biggest stakeholder of the company, with approximately 4 million shares worth $206.8 million. 

Here is what Hayden Capital has to say about Sea Limited (NYSE:SE) in its Q3 2022 investor letter:

“Sea Limited (NYSE:SE) reported earnings last week, after which the share price rebounded +36% in a single day. The most obvious question that comes to mind is why didn’t we sell more last year, when prices were still high? The truth is that we did sell a significant amount, but in hindsight obviously wish we were more aggressive with the sales.

For example, we owned the peak number of shares of Sea Ltd in Q1 2020, and steadily trimmed over the next two years. From Q1 2020 to Q1 2022, we trimmed ~39% of our shares over that period. However, the issue was that the investment continued to grow as a percentage of the overall portfolio, since the share price appreciated much faster than our sales (+620% from 1Q20 to 3Q21). This was a similar case for our other long-tenured positions as well.

So why didn’t we trim more aggressively and just hold cash? The answer is that at its core, I believe that holding cash is implicitly a market timing call. I certainly didn’t foresee a likely recession on the horizon so quickly after the turbulence of Covid already had on the economy. Even in late 2021, after it was clear interest rates would start rising, we were still operating under the assumption that rates would cause valuations to compress, but likely wouldn’t have an impact on the overall earnings trajectory. Given our expectations for strong earnings growth, we thought this could more than offset the valuation compression over time, and would still generate strong IRRs over a 3 – 5 year timeframe…” (Click here to see the full text)

4. PDD Holdings Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders: 57

PDD Holdings Inc. (NASDAQ:PDD) operates an e-commerce platform in the People’s Republic of China. The platform offers a range of products, such as apparel, child care products, food and beverages, fresh produce, electronic appliances, household goods, cosmetics, sports and fitness items, and auto accessories. It is one of the best Asian stocks to monitor. 

Morgan Stanley analyst Eddy Wang on March 2 upgraded PDD Holdings Inc. (NASDAQ:PDD) to Overweight from Equal Weight with a price target of $113, up from $77. The analyst believes that the company’s low-priced products and increasing coverage of branded products will enable it to benefit from the long-term trend of consumerism in China. As a result, PDD Holdings Inc. (NASDAQ:PDD) is considered a growth stock in China’s e-commerce industry. Wang also noted that the recent decline in the company’s share price offers a good opportunity for investors to enter the market.

According to Insider Monkey’s Q4 data, 57 hedge funds were bullish on PDD Holdings Inc. (NASDAQ:PDD), compared to 54 funds in the prior quarter. D E Shaw is the biggest stakeholder of the company, with 5.7 million shares worth $468 million. 

Here is what Tao Value has to say about PDD Holdings Inc. (NASDAQ:PDD) in its Q4 2021 investor letter:

“On the detracting side, one of our largest detractors includes PDD Holdings Inc. (NASDAQ:PDD). PDD Holdings Inc. (NASDAQ:PDD) reported the second consecutive GAAP profit quarter yet missed on the revenue due to nation-wide consumption weakness & scaled back Sales & Marketing efforts. Market disliked it and the stock price plunged on the earnings. In my opinion, the accounting profits proved the original thesis of using S&M to acquire users and using great shopping experience to keep them. After realizing the first growth curve, Pinduoduo now shifted its focus & investment to agriculture. It is still very early, but the reduced size due to price drop warrants a position to watch and continue to grow with such a team with a strong culture.”

3. JD.com, Inc. (NASDAQ:JD)

Number of Hedge Fund Holders: 64

JD.com, Inc. (NASDAQ:JD) was incorporated in 2006 and is headquartered in Beijing, China. The company specializes in supply chain-based technologies and services, in addition to providing computers, communication, consumer electronics products, home appliances, and general merchandise products. JD.com, Inc. (NASDAQ:JD) is one of the best Asian stocks to consider. On March 9, the company declared a $0.62 per share cash dividend, which is payable on May 4 to shareholders of record on April 6. 

On March 13, Barclays analyst Jiong Shao raised the firm’s price target on JD.com, Inc. (NASDAQ:JD) to $74 from $72 and maintained an Overweight rating on the shares. According to the analyst, JD.com, Inc. (NASDAQ:JD) has clarified that the recently announced RMB 10 billion subsidies will not result in additional spending and are not expected to significantly affect margins. The analyst noted that JD.com, Inc. (NASDAQ:JD)’s lower Q1 revenue outlook is mainly due to the company’s shift of certain low-margin supermarket products from first party to third party.

According to Insider Monkey’s fourth quarter database, 64 hedge funds were long JD.com, Inc. (NASDAQ:JD), compared to 67 funds in the prior quarter. Chase Coleman’s Tiger Global Management is the biggest stakeholder of the company, with 21.8 million shares worth $1.2 billion. 

Here is what Argosy Investors has to say about JD.com, Inc. (NASDAQ:JD) in its Q3 2021 investor letter:

“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”

2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 86

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan. The company manufactures, tests, and markets integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. On February 24, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced that it intends to build a second chip factory in Japan, with a cost of over 1 trillion yen. This move is expected to revive the development of advanced semiconductor manufacturing in Japan, which is deemed crucial for future economic growth driven by emerging digital technologies. It is one of the best Asian stocks to monitor. 

On January 10, Morgan Stanley analyst Charlie Chan identified Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a “Catalyst Driven Idea” before the company’s release of Q4 results and Q1 guidance on January 12th. The analyst believes that TSMC’s gross margins could exceed expectations due to the company’s wafer price increases. As a result, the analyst maintained an Overweight rating and an NT$700 price target on TSMC shares leading up to the results.

According to Insider Monkey’s fourth quarter database, 86 hedge funds were bullish on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), compared to 87 funds in the earlier quarter. Stephen Mandel’s Lone Pine Capital is the largest stakeholder of the company, with 10.4 million shares worth $774 million. 

Baron Emerging Markets Fund made the following comment about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2022 investor letter:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) contributed in the fourth quarter due to easing geopolitical concerns and expectations for end-demand recovery later in 2023. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, 5G, and IoT, will allow the company to sustain strong earnings growth over the next several years.”

1. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 113

Alibaba Group Holding Limited (NYSE:BABA) was incorporated in 1999 and is based in Hangzhou, China. Alibaba Group Holding Limited (NYSE:BABA) offers technology infrastructure and marketing services to support merchants, brands, retailers, and other businesses to connect with their users and customers in China and other countries. It is one of the best Asian stocks to monitor. On February 23, Alibaba Group Holding Limited (NYSE:BABA) reported a Q3 non-GAAP EPS of $2.79 and a revenue of $35.92 billion, outperforming Wall Street estimates by $0.39 and $40 million, respectively. 

On February 24, Truist analyst Youssef Squali raised the firm’s price target on Alibaba Group Holding Limited (NYSE:BABA) to $130 from $120 and kept a Buy rating on the shares. The analyst noted that Alibaba Group Holding Limited (NYSE:BABA)’s Q3 results demonstrate a sustained enhancement in margins despite challenging demand conditions in China and abroad. The analyst also mentioned that although Alibaba Group Holding Limited (NYSE:BABA)’s performance in the March quarter started weak, demand has significantly improved since then, resulting in positive growth, thanks to the reopening of the economy.

According to Insider Monkey’s fourth quarter database, 113 hedge funds were bullish on Alibaba Group Holding Limited (NYSE:BABA), compared to 105 funds in the prior quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with 5 million shares worth $440.5 million. 

Polen Capital made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its October investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”

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