Goldman Sachs April update to the APAC Conviction List adds Yum China, WuXi AppTec, Lasertec, Haitian-H, and Ramelius Resources
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Goldman Sachs April update to the APAC Conviction List adds Yum China, WuXi AppTec, Lasertec, Haitian-H, and Ramelius Resources
The report adjusts its APAC high-conviction buy basket, with new names mainly benefiting from consumer resilience, TIDES/GLP-1 outsourcing demand, the EUV inspection equipment cycle, condiment recovery, and growth in Australian gold output, while Toyo Tire and MakeMyTrip are removed.
- Yum China is added to the list on the view that 2026 sales, operating profit, and net profit are expected to grow 6%, 8%, and 6% respectively, with a high-single-digit shareholder return yield.
- WuXi AppTec is added to the list, with the report expecting continuing operations to grow 20% y/y in 2026, non-IFRS net profit to compound at 16% from 2025 to 2028, and TIDES/GLP-1-related small-molecule sales to grow at a 36% CAGR.
- Lasertec is added to the list, with the report arguing that the new ACTIS A200HiT product will drive order and earnings acceleration in FY6/27-FY6/28, and that the 12-month target price of ¥50,000 implies about 49.9% upside.
- Haitian-H is added to the list, with the report highlighting recovery in the restaurant channel, market-share gains, pricing power, and efficiency improvements, while the roughly 20% H-share discount to the A-share offers attractive risk-reward.
- Ramelius Resources is added to the list, with the report favoring its high-grade, long-life gold asset portfolio in Western Australia, low-cost base, and improving long-term free cash flow yield.
Report interpretation
Overview
This is Goldman Sachs' April 2026 update to the APAC Conviction List - Director's Cut. The report announces the additions of Yum China, WuXi AppTec, Lasertec, Foshan Haitian-H, and Ramelius Resources, removes Toyo Tire and MakeMyTrip, and continues to map the list's 24 differentiated buy recommendations, thematic distribution, regional and industry exposure, and upcoming earnings and non-earnings catalysts.
Core views
The core view is that the new names have clearer growth visibility or earnings inflection under an uncertain market environment: Yum China is supported by store expansion, stable same-store sales, and efficiency gains to maintain resilience through consumer volatility; WuXi AppTec benefits from structural TIDES/GLP-1 demand, backlog growth, and improved cash flow; Lasertec benefits from more EUV layers in advanced logic nodes and penetration of its A200HiT inspection equipment; Haitian-H benefits from recovery in the restaurant channel, market-share gains, and strong pricing power; Ramelius Resources benefits from the quality of its Western Australian gold assets, low costs, and output growth.
Analysis framework
The report combines portfolio screening, company fundamental breakdowns, target-price and upside comparisons, catalyst calendars, and thematic categorization. For each new company, it discusses growth drivers, key controversies, valuation methodology, target price, potential catalysts, and principal risks, and places these companies within the regional, sector, and thematic framework of the APAC Conviction List.
Methodology notes
Differentiated buy recommendations
Goldman Sachs screens APAC-covered stocks for names with higher conviction, clear catalysts, or better risk-reward, and presents them by theme, region, and sector.
Target price and upside
The report uses 12-month target prices to measure potential returns, and combines current price, dividend yield, and total-return potential to assess risk-reward. Different companies use different valuation bases; for example, Yum China uses KFC and Pizza Hut 2026E EV/EBITDA, WuXi AppTec references 12-month forward P/E, and Lasertec references global semiconductor equipment EV/EBITDA with a premium.
Future event-driven
The report lists the next three months of earnings catalysts and other non-earnings events to identify likely triggers for rerating.
Asset mapping & comparison
Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).
- Yum China / 9987.HK / YUMCNew APAC Conviction List name
- Strengths
- Store network expansion, digital capabilities and cost management, new initiatives such as KCoffee and KPro, strong execution, and relatively controllable commodity risk.
- Weaknesses
- The post-Lunar New Year pullback in the share price reflects concerns about slower consumption, a higher delivery mix, and margin risk.
- Comparison
- At roughly 16x-17x 2026E P/E, the report sees the risk-reward as attractive and sees a high-single-digit shareholder return yield.
- Risks
- Volatile consumer trends, delivery rider costs, food inflation, and intensifying competition.
- WuXi AppTec / 2359.HK / 603259.SSNew APAC Conviction List name
- Strengths
- Strong TIDES/GLP-1 demand, deep technology capabilities, growing backlog, global capacity expansion, improving cash flow, and stable dividends.
- Weaknesses
- The market is concerned about concentration in GLP-1/TIDES growth, geopolitical issues, and the potential impact of AI on the outsourcing model.
- Comparison
- The report believes the valuation already reflects concerns related to the Biosecure Act/1260H and AI, while fundamentals have not yet shown any major negative impact.
- Risks
- USD/RMB exchange rates, geopolitical regulation, customer migration, and weaker-than-expected early demand recovery.
- Lasertec / 6920.TNew APAC Conviction List name
- Strengths
- ACTIS A200HiT offers roughly 3x higher throughput than the prior generation, and more EUV layers in advanced logic nodes should drive inspection demand, with orders likely to accelerate after FY6/27.
- Weaknesses
- FY6/26 orders have limited impact, customer evaluation cycles may last up to a year, and the post-2Q6/26 order outlook is below market expectations.
- Comparison
- At roughly 33x-34x FY6/27 P/E, the stock trades below the report's stated mid-cycle level of about 50x; competitor KLA's product is still in early demo stages.
- Risks
- A200HiT customer validation progress, wafer fab capex, advanced-node investment pace, and commercialization of competing products.
- Foshan Haitian Flavouring & Food-H / 3288.HKNew APAC Conviction List name
- Strengths
- Recovery in the restaurant channel, market-share gains, strong pricing power, efficiency improvements, and a good execution track record.
- Weaknesses
- Still exposed to raw-material cost volatility and the pace of consumer recovery.
- Comparison
- The H-share trades at about a 20% discount to the A-share, while the A-share rating is Neutral; the report believes the H-share offers a more attractive risk-reward.
- Risks
- Upward moves in raw-material prices, weaker-than-expected restaurant recovery, intensifying competition, and channel inventory or pricing pressure.
- Ramelius Resources / RMS.AXNew APAC Conviction List name
- Strengths
- Three major gold production and development hubs in Western Australia, a high-grade and long-life asset portfolio, a low-cost base in the Australian gold sector, and EBITDA that could nearly triple.
- Weaknesses
- Higher medium-term growth spending leaves near-term free cash flow yield at about 5%, limiting the near-term release of returns.
- Comparison
- The stock trades at around 0.7x NAV, implying a gold price below US$2,900/oz, while spot gold is above US$4,000/oz.
- Risks
- A pullback in gold prices, project execution, capex overruns, and mine output and cost volatility.
- Toyo Tire / 5105.TRemoved from the APAC Conviction List
- Strengths
- The report does not provide detailed positive reasons for this removal in the input material.
- Weaknesses
- The report only discloses the removal action and does not provide a full rationale.
- Comparison
- Relative to the new additions, Goldman Sachs is shifting its portfolio conviction toward companies with clearer visibility and catalysts.
- Risks
- Lack of removal detail makes it hard to tell whether the driver was valuation, catalyst execution, or fundamentals.
- MakeMyTrip / MMYTRemoved from the APAC Conviction List
- Strengths
- The report does not provide detailed positive reasons for this removal in the input material.
- Weaknesses
- The report only discloses the removal action and does not provide a full rationale.
- Comparison
- Relative to the new additions, Goldman Sachs is shifting its portfolio weight toward other higher-conviction opportunities.
- Risks
- Lack of removal detail makes it hard to tell whether the driver was upside changes, valuation, or fundamentals.
Key data
- New additionsYum China, WuXi AppTec, Lasertec, Foshan Haitian-H, Ramelius ResourcesAll added to the APAC Conviction List.
- RemovalsToyo Tire, MakeMyTripExplicitly removed from the Conviction List.
- Yum China target price and upside9987.HK 12-month target price HK$450, price HK$385.4, upside 16.8%Also gives an ADR target price of US$57.7; valuation based on KFC/PH 2026E EV/EBITDA.
- WuXi AppTec target priceH-share 12-month target price HK$149.7, A-share target price Rmb137.3The A-share target price is derived from the H-share target price using HKD/RMB 0.92 and a 0% A/H premium.
- Lasertec target price and upside6920.T 12-month target price ¥50,000, price ¥33,350, upside 49.9%Target price is based on FY6/27-FY6/28 estimated 18x EV/EBITDA and a 50% sector-relative premium.
- Haitian-H target price and upside3288.HK 12-month target price HK$46.8, price HK$36.54, upside 28.1%The report highlights an approximately 20% H-share discount to A-shares.
- WuXi AppTec growth forecast2026 continuing operations revenue growth of 20% y/y; 2025-2028 non-IFRS net profit CAGR of 16%TIDES/GLP-1-related small-molecule sales are expected to grow at a 36% CAGR from 2025 to 2028.
- Lasertec new product assumptionSales of 3 A200HiT units in FY6/27 and 7 A200HiT units in FY6/28Based on A14-node capacity, EUV layer counts, and cumulative MATRICS sales.
- Conviction List regional distributionChina 38%, Japan 17%, India 17%, Taiwan 13%, ANZ 8%, Hong Kong 4%, Other Asia 4%Greater China totals about 54%.
- Conviction List sector distributionInformation technology 29%, consumer staples 21%, consumer discretionary 17%, industrials 13%, healthcare 8%, materials 8%, financials 4%Shows a tilt toward technology and consumer sectors.
Impact & implications
This adjustment strengthens the portfolio's exposure to consumer resilience, structurally growing healthcare outsourcing, semiconductor equipment technology upgrades, and gold resources. For investors, the report suggests that in a volatile APAC market and an uncertain macro backdrop, Goldman Sachs prefers companies with earnings visibility, order or product-cycle support, clear catalysts, and room for valuation discount normalization.
Risks
- A weaker-than-expected APAC consumer recovery could affect revenue and margins for Yum China, Haitian, and other consumer names.
- Delivery subsidies, rider costs, and rising raw-material prices could squeeze restaurant margins.
- WuXi AppTec faces risks from geopolitics, the Biosecure Act/1260H, exchange rates, and customer order migration.
- If TIDES/GLP-1 orders slow, WuXi AppTec's growth visibility beyond 2026 could weaken.
- If A200HiT customer validation, order ramp-up, or advanced-node capex is delayed, the earnings acceleration assumption for Lasertec could be hurt.
- Changes in the semiconductor equipment competitive landscape or faster-than-expected commercialization of KLA and other competitors could compress Lasertec's valuation premium.
- Gold prices, mine costs, and expansion execution risks could affect Ramelius Resources' NAV and free cash flow improvement.
- This report is a portfolio update, and some removals lack detailed explanations; investors should verify against the full text and follow-up reports.
What to watch
- Yum China 1Q26 results, and consumption trends during the April spring holiday and May Labor Day period.
- Sales contributions from Yum China's new initiatives such as KCoffee, KPro, and Pizza Hut Wow, and the pace of store expansion.
- China consumer policy support, food inflation, and changes in the restaurant competitive landscape.
- WuXi AppTec TIDES/GLP-1 orders and backlog growth, especially for oral small-molecule GLP-1 projects.
- WuXi AppTec small-molecule CDMO reacceleration, early demand recovery, and FY26 revenue guidance delivery.
- Lasertec's next-quarter order outlook, progress in ACTIS A200HiT customer evaluations, and A14-node-related demand.
- Increased EUV layer counts, wafer-fab capex recovery, and progress in the commercialization of KLA actinic inspection equipment.
- Haitian's restaurant-channel recovery, market-share gains, cost volatility, and changes in the H/A-share discount.
- Ramelius Resources gold prices, output growth, capex, and the path to FY29/30E free cash flow yield.