Bank of America releases its top 10 Asia-Pacific stock picks for the third quarter of 2026
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Bank of America releases its top 10 Asia-Pacific stock picks for the third quarter of 2026
The report selects 10 buy-rated names from Bank of America's Asia-Pacific coverage, believing they have the most significant market or business catalysts in the third quarter of 2026.
- The third-quarter 2026 list consists of 10 buy-rated stocks: China Jushi, Eternal, Jiangxi Copper, Korean Air, MediaTek, Mitsubishi Estate, NCE Power, NHK Spring, Samsung Electronics Preferred, Trial Holdings.
- The stock selection process involves fundamental equity research analysts, the Asia-Pacific strategy team, sector heads, and research management, with the goal of identifying names most likely to outperform peers within the quarter.
- The list is typically maintained for one quarter; if coverage is terminated, the rating changes, or a major event occurs, a name may be removed and will not be replaced during the quarter.
- The main catalysts are concentrated in areas such as price increases for electronic fiberglass, instant retail growth, copper and sulfuric acid prices, airline merger synergies, 5G/SoC, power semiconductors, and improving earnings at Japanese companies.
Report interpretation
Overview
This report is Bank of America's Top 10 Asia-Pacific Investment Strategy Picks for the third quarter of 2026. It targets companies in its Asia-Pacific coverage universe and selects stocks expected to be driven by the strongest market or business catalysts over the next quarter. The report makes clear that all names on this list are buy-rated and span markets including China, India, South Korea, Taiwan, China, and Japan, across sectors such as materials, internet consumption, copper, airlines, semiconductors, real estate, power devices, auto parts, and retail.
Core views
The core view is that, on a quarterly basis, companies in the selected portfolio may outperform their peers. China Jushi benefits from electronic fiberglass price hikes and capacity expansion; Eternal benefits from a food delivery duopoly and Blinkit's instant retail growth; Jiangxi Copper benefits from copper prices, sulfuric acid prices, valuation, and a rerating of its copper foil business; Korean Air benefits from the Asiana merger, passenger and cargo pricing power, and lower valuation; MediaTek benefits from growth opportunities in 5G, SoC, IoT, ASIC, ARM PC, and automotive. The other selected names correspond respectively to unrealized gains in Japanese real estate, growth in power discrete devices, margin improvement at NHK Spring, semiconductor exposure through Samsung Electronics Preferred, and growth at Trial Holdings.
Analysis framework
The report uses a combination of top-down and bottom-up approaches: first, the fundamental equity research team proposes candidate names with quarterly catalysts, then research management, the Asia-Pacific strategy team, and sector heads screen them based on relative performance potential, macro views, industry diversification, and drivers. To be included in the outperform selection, a stock must have a buy rating; to be included in the underperform selection, it must have an underperform rating. In this period, the final list consists entirely of buy-rated names.
Methodology notes
Select high-conviction names with the strongest catalysts within the quarter from the coverage universe
The list is published at the beginning of each quarter, and the objective is not to cover every important opportunity, but to select the relative performance opportunities the research team believes will matter most in the quarter.
Buy ratings correspond to outperform picks, underperform ratings correspond to underperform picks
The list for the third quarter of 2026 consists entirely of buy-rated stocks, so the portfolio has an overall positive tilt.
Usually retained during the quarter and not replaced after removal
If coverage is terminated, the fundamental rating changes, or a major stock-specific event occurs, the committee may remove a name; stocks removed during the quarter will not be replaced, and changes will be disclosed through research reports.
Asset mapping & comparison
Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).
- China JushiOne of the Top 10 Asia-Pacific buy picks for the third quarter of 2026.
- Strengths
- Consecutive price hikes in electronic fiberglass, widening downstream CCL spreads, and 66% growth in electronic fiberglass capacity from 2026 to 2028 may drive an earnings rerating.
- Weaknesses
- Historically, margins for electronic fiberglass have only been slightly positive, and earnings improvement depends on price increases and demand absorption.
- Comparison
- The report says Jushi ranks first in standard electronic fiberglass, while Sinoma and Grace Fabric lead in specialty electronic fiberglass.
- Risks
- Slower-than-expected demand growth, increased loom supply leading to capacity expansion and weaker prices, and slower-than-expected R&D progress for next-generation low-Dk products and others.
- EternalOne of the Top 10 Asia-Pacific buy picks for the third quarter of 2026.
- Strengths
- The food delivery business is a duopoly with lower competition and improving margins and cash flow; Blinkit's focus on high-income users, brand recognition, and network effects supports growth.
- Weaknesses
- Instant retail may still require heavy investment, and there is balancing pressure between growth and margin improvement.
- Comparison
- The report says Zomato's 4Q26 share was 57% on a GOV basis, and Blinkit's NOV YoY growth was higher than Instamart's.
- Risks
- Prolonged competition in instant retail for high-income users, slower instant retail growth, and increased investment dragging on margins.
- Jiangxi CopperOne of the Top 10 Asia-Pacific buy picks for the third quarter of 2026.
- Strengths
- High sulfuric acid prices, resilient copper prices, attractive valuation, and potential benefit from a rerating of the copper foil business driven by AI-related demand.
- Weaknesses
- Earnings are still affected by copper prices, sulfuric acid prices, and mine capacity ramp-up.
- Comparison
- The report says its FY26E P/E is about 9x, below global peers at about 17x and the historical average since 2010 of about 11x.
- Risks
- Delayed ramp-up of domestic mine capacity, lower long-term TC/RC levels in 2027, and a sharp decline in sulfuric acid prices.
- Korean AirOne of the Top 10 Asia-Pacific buy picks for the third quarter of 2026.
- Strengths
- The Asiana merger is expected to enhance pricing power on Korea inbound and outbound routes and strengthen trans-Pacific transfer competitiveness; passenger and cargo demand support resilience in 2Q26.
- Weaknesses
- The airline business is sensitive to fuel, exchange rates, and M&A integration progress.
- Comparison
- The report says its valuation is about 0.9x PBV, trading at a discount to regional peers and appearing attractive.
- Risks
- KRW depreciation, delays to the full integration timeline of Asiana Airlines, and elevated fuel prices.
- MediaTekOne of the Top 10 Asia-Pacific buy picks for the third quarter of 2026.
- Strengths
- As a fabless IC design company, it benefits from expanding applications in 5G smartphones, IoT, ASIC, ARM PC, and automotive; cash flow and the balance sheet support the share price.
- Weaknesses
- The smartphone and consumer electronics cycle can affect SoC shipments, ASP, and gross margin.
- Comparison
- The report emphasizes that the competitive landscape in the 5G era is closer to a duopoly and expects structural margin improvement.
- Risks
- Slower global smartphone demand, SoC pricing or share pressure, and slower-than-expected monetization of new non-handset businesses.
- Mitsubishi EstateOne of the Top 10 Asia-Pacific buy picks for the third quarter of 2026.
- Strengths
- The report's chart shows that nearly 70% of unrealized gains come from the Marunouchi office portfolio, making asset revaluation and core real estate value key highlights.
- Weaknesses
- The value of real estate assets is relatively sensitive to interest rates, office demand, and the Japanese property cycle.
- Comparison
- The excerpt does not provide a full peer comparison, but highlights the contribution of the Marunouchi portfolio to unrealized gains.
- Risks
- Rising interest rates, weaker office demand, and slower-than-expected asset revaluation progress.
- NCE PowerOne of the Top 10 Asia-Pacific buy picks for the third quarter of 2026.
- Strengths
- The report expects China's power discrete device market to grow at a CAGR of about 10% from 2025 to 2028, and expects the revenue contribution of SGT-MOSFET to continue increasing in FY26-28E.
- Weaknesses
- Growth depends on demand for power semiconductors, product mix upgrades, and capacity execution.
- Comparison
- The excerpt emphasizes its product mix upgrading toward SGT-MOSFET, but does not show a full peer valuation comparison.
- Risks
- Weaker-than-expected downstream demand, intensified industry competition, and slower-than-expected product upgrades and capacity expansion.
- NHK SpringOne of the Top 10 Asia-Pacific buy picks for the third quarter of 2026.
- Strengths
- The report assigns a buy rating and highlights further margin improvement driven by DDS.
- Weaknesses
- The excerpt does not disclose the full weaknesses; cost, demand, and customer mix need to be verified against the full company page.
- Comparison
- The excerpt does not provide a full peer comparison.
- Risks
- Weaker demand for autos and auto parts, cost pressure, and margin improvement falling short of expectations.
- Samsung Electronics PreferredOne of the Top 10 Asia-Pacific buy picks for the third quarter of 2026.
- Strengths
- Provides exposure through preferred shares to Samsung Electronics-related semiconductor and memory cycles, and the target price implies significant upside versus the report price.
- Weaknesses
- The excerpt does not disclose the full company thesis; the investment view needs to be considered alongside the semiconductor cycle and preferred-share discount/premium.
- Comparison
- The excerpt does not provide a full peer comparison.
- Risks
- Memory price volatility, changes in semiconductor demand, and FX and geopolitical risks.
- Trial HoldingsOne of the Top 10 Asia-Pacific buy picks for the third quarter of 2026.
- Strengths
- The report assigns a buy rating and a target price of 5000 JPY, pointing to growth opportunities related to Japanese retail.
- Weaknesses
- The company description and financial details in the excerpt are limited, and the sources of growth and margin assumptions need to be verified against the full page.
- Comparison
- The excerpt does not provide a full peer comparison.
- Risks
- Weaker-than-expected Japanese consumer demand, store or business expansion below expectations, and cost pressure dragging on earnings.
Key data
- Number of picks in this issue10 stocksAll are buy-rated Asia-Pacific equities.
- China Jushi target price and priceTarget price 96 CNY; report price 72.88 CNYThe investment thesis focuses on electronic fiberglass price hikes, 66% growth in electronic fiberglass capacity from 2026 to 2028, and an earnings rerating.
- Eternal target price and priceTarget price 320 INR; report price 259.4 INRIts food delivery share is solid, and Blinkit has brand and network effects in instant retail.
- Jiangxi Copper target price and priceTarget price 49 HKD; report price 30.92 HKDThe report mentions FY26E P/E of about 9x, below global peers at about 17x and the historical average since 2010 of about 11x.
- Korean Air target price and priceTarget price 36000 KRW; report price 28550 KRWThe report expects its share of Korea's international routes to be about 48% in 2026, up from 32% in 2024, and says the valuation is about 0.9x PBV.
- MediaTek target price and priceTarget price 5100 TWD; report price 4245 TWDThe investment thesis includes 5G SoC, IoT, ASIC, ARM PC, automotive, and robust cash flow and balance sheet.
- NHK Spring target price and priceTarget price 4800 JPY; report price 3885 JPYThe report highlights further margin improvement driven by DDS.
- Samsung Electronics Preferred target price and priceTarget price 355000 KRW; report price 210500 KRWSelected as preferred-share exposure to Korea's leading semiconductor company.
- Trial Holdings target price and priceTarget price 5000 JPY; report price 2992 JPYThe excerpt shows it is a buy-rated name related to Japanese retail.
Impact & implications
The investment implication of this report is that Asia-Pacific allocation in the third quarter of 2026 can focus on stocks with clear short-term catalysts and high conviction from the research team, rather than a single industry or single-country theme. The list is diversified across materials, consumer, airlines, semiconductors, Japanese real estate, and retail, helping reduce exposure to any single macro factor; however, because the list targets quarterly performance, subsequent tracking of rating changes, earnings validation, price trends, and event developments is required.
Risks
- The list is a quarterly short-term selection; if catalysts do not materialize in the third quarter of 2026, excess returns may be insufficient.
- Although all selected names are buy-rated, they are spread across multiple countries and industries and still face fluctuations in FX, interest rates, commodity prices, and macro demand.
- Stock-specific risks include slower demand and R&D progress for China Jushi, instant retail competition for Eternal, copper and sulfuric acid prices for Jiangxi Copper, fuel and M&A delays for Korean Air, and the smartphone cycle for MediaTek.
- The list maintenance rules allow removal due to rating changes, termination of coverage, or major events, so investors need to track subsequent research report updates.
What to watch
- Whether the earnings and management guidance of each name in the third quarter of 2026 validate the quarterly catalysts in the report.
- China Jushi's electronic fiberglass price hikes, CCL price pass-through, and progress in specialty electronic fiberglass.
- Eternal's 1QFY27 results, Blinkit's NOV growth, the competitive landscape in instant retail, and narrowing losses.
- Jiangxi Copper's copper prices, sulfuric acid prices, HVLP copper foil capacity ramp-up, and progress at domestic mines.
- Korean Air's 2Q26 passenger and cargo performance, fuel prices, KRW trends, and the Asiana merger timetable.
- MediaTek's 5G SoC shipments, smartphone demand, ASP, gross margin, and progress in ASIC, IoT, ARM PC, and automotive businesses.
- Mitsubishi Estate's release of value from the Marunouchi office portfolio and the Japanese interest-rate environment.
- NCE Power's demand for power discrete devices, increasing revenue contribution from SGT-MOSFET, and industry competition.
- Whether NHK Spring's DDS-driven margin improvement materializes.
- The semiconductor cycle and preferred-share valuation discount/premium for Samsung Electronics Preferred, and Japanese retail growth and earnings delivery for Trial Holdings.