BofA Releases Its Q2 2026 Asia Pacific Top 10 Buy Ideas

Overview

This is a quarterly Asia Pacific equity ideas report from BofA Securities introducing the Top 10 Asia Pac Ideas for Q2 2026. The report aims to identify the stocks within BofA's Asia Pacific coverage universe that have the strongest market or business catalysts over the next quarter and are most likely to significantly outperform or underperform their peers. This edition's list consists of 10 Buy-rated stocks: Astra, Fast Retailing, Goldwind, Ingenic, Link REIT, Mengniu Dairy, Mitsui E&S, SBI Holdings, Sinoma S&T, and Sona Comstar.

Core views

The report's core view is that there are still relative-return opportunities in the Asia Pacific market in Q2 that can be driven by company-specific catalysts. All of the selected stocks are constructive ideas, with investment theses drawn from cyclical recovery, margin improvement, overseas expansion, price increases, asset disposal, cost savings, shareholder returns, and valuation re-rating. For example, Astra benefits from coal prices, mining activity, and motorcycle demand recovery; Fast Retailing continues to benefit from expansion in the U.S. and Europe; Goldwind benefits from turbine shipments, export margins, and offshore wind recovery; Ingenic benefits from tight DRAM supply/demand and automotive memory demand; Link REIT benefits from a high dividend yield, non-core asset disposals, and potential buybacks; and Mengniu Dairy benefits from troughing raw milk prices, earnings recovery, and a low valuation.

Analysis framework

The report uses a combination of top-down and bottom-up stock selection. BofA fundamental research analysts first propose the companies within their coverage universe with the strongest quarterly catalysts, and then a committee made up of research management, the Asia Pacific strategy team, and industry heads further screens the ideas while considering sector diversification, macro views, catalyst strength, and relative performance potential. Only names already rated Buy by a BofA fundamental analyst can be selected as constructive ideas.

Methodology notes

• Stock selectionTop 10 Asia Pac Ideas

  Quarterly Top 10 Asia Pacific stock ideas

  A quarterly selection of the 10 Asia Pacific stocks covered by BofA with the strongest market or business catalysts over the next quarter; the list is usually published at the start of the quarter and maintained through quarter-end.

• Rating constraintBuy-rated outperform idea

  Buy-rated constructive idea

  The report explicitly states that only stocks rated Buy by the fundamental analyst can be included as constructive ideas; all 10 stocks in this edition are Buy-rated.

• List maintenanceQuarterly list maintenance

  Quarterly list maintenance mechanism

  Stocks are intended to remain on the list throughout the quarter unless the rating changes, coverage ends, or a major event occurs; if a stock is removed during the quarter, it is not replaced by another name.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Astra International

  Selected for the Q2 2026 Asia Pacific Top 10 Buy Ideas list

  Strengths

  Coal prices and mining activity support United Tractors' earnings, the motorcycle market is improving, four-wheel vehicle demand is showing signs of recovery, and the integrated manufacturing, distribution, and financial ecosystem increases cyclical resilience.

  Weaknesses

  Auto demand and financing growth are sensitive to Indonesia's domestic economy, and the auto business faces competition and electrification disruption.

  Comparison

  The report positions it as a cyclical recovery name benefiting from commodity prices, vehicle demand recovery, and improved shareholder returns.

  Risks

  MSCI index rebalancing pressure, a domestic economic slowdown, weaker coal prices or mining volumes, and intensifying auto competition.

• Fast Retailing

  Selected for the Q2 2026 Asia Pacific Top 10 Buy Ideas list

  Strengths

  Store expansion in the U.S. and Europe remains strong, brand awareness is improving, overseas growth momentum is solid, and profit-improvement measures in China are showing early signs of a bottoming process.

  Weaknesses

  Overseas earnings contribution is affected by exchange rates, and the growth outlook may be influenced by disruptions in the Middle East and macro uncertainty.

  Comparison

  The report frames it as a retail leader with a durable overseas growth path and confirmed brand momentum.

  Risks

  Yen appreciation, adverse weather, country risk, and a meaningful deterioration in the macro environment.

• Goldwind

  Selected for the Q2 2026 Asia Pacific Top 10 Buy Ideas list

  Strengths

  FY25 earnings pressure has already been released, wind turbine gross margins have been better than expected, export margins are high, FY26 shipment guidance is strong, and the mix is shifting toward higher-margin overseas and offshore wind business.

  Weaknesses

  Turbine pricing, raw material costs, and overseas delivery conditions could still pressure margins.

  Comparison

  The report believes it trades at about 13x 2026 P/E, which is in line with history, while earnings are in an upcycle.

  Risks

  Offshore wind installations growing more slowly than expected, lower turbine prices, higher raw material costs, and geopolitical disruptions to overseas shipments and localization.

• Ingenic

  Selected for the Q2 2026 Asia Pacific Top 10 Buy Ideas list

  Strengths

  Automotive and industrial memory demand is benefiting from tight DRAM supply and demand, the company has begun raising DRAM prices, and it is entering the high-density DDR4 DRAM market.

  Weaknesses

  Operating profit over the past few quarters remains below historical peaks, and the current share price implies close to 40x P/E.

  Comparison

  The report views it as a semiconductor beta name driven by DRAM ASP catch-up, memory business recovery, and new-product volume growth.

  Risks

  Rising foundry wafer prices compressing margins and intensifying competition in automotive and industrial memory.

• Link REIT

  Selected for the Q2 2026 Asia Pacific Top 10 Buy Ideas list

  Strengths

  The valuation is attractive, the forward dividend yield is 7.2%, the rent-to-sale ratio is moving toward a more sustainable level, Hong Kong retail occupancy is around 97%, and non-core asset disposals and buybacks could improve returns.

  Weaknesses

  Competition from Hong Kong e-commerce and pressure on discretionary retail remain challenges, and governance and accountability concerns exist ahead of the CEO appointment.

  Comparison

  The report says it has the highest dividend yield among BofA-covered Hong Kong property stocks, with its yield spread about 1.5 standard deviations wider than the historical average.

  Risks

  Oil-price-driven U.S. rate hikes and intensified promotions by Hong Kong e-commerce platforms that divert offline retail share.

• Mengniu Dairy

  Selected for the Q2 2026 Asia Pacific Top 10 Buy Ideas list

  Strengths

  The raw milk cycle and EPS trajectory are inflecting, 2026 earnings visibility is relatively high, the three-year shareholder return policy increases dividend visibility, and the valuation is below the five-year average.

  Weaknesses

  The recovery in dairy demand still depends on consumer recovery, and a trough valuation requires earnings delivery to support re-rating.

  Comparison

  The report positions it as a dairy name preferred for CPI reflation and cyclical recovery, with 2027 net profit expected to return to a historical peak.

  Risks

  Consumer spending recovering more slowly than expected, continued downtrading in dairy consumption, intensifying peer competition, and ongoing losses in offline projects.

Key data

• Number of stocks this quarter10The Q2 2026 Asia Pacific Top 10 Ideas list.
• Rating composition10 Buy-rated stocksThe report says this edition consists of ten Buy-rated stocks.
• List constituentsAstra; Fast Retailing; Goldwind; Ingenic; Link REIT; Mengniu Dairy; Mitsui E&S; SBI Holdings; Sinoma S&T; Sona ComstarThe Q2 2026 list shown on the first page of the report.
• Goldwind FY26 turbine shipment guidance37GW, +40% YoYThe report believes this guidance is above expectations.
• Goldwind valuation and earnings growth13x 2026 P/E; 2026-2027 earnings CAGR 44%The report says valuation is in line with history but earnings are in an upcycle.
• Ingenic earnings growth expectationapproximately 40% EPS CAGR in 2026-2028Mainly driven by memory business recovery, DRAM price increases, and new high-density DDR4 DRAM products.
• Link REIT forward dividend yield7.2%The report says this is the highest yield among BofA-covered Hong Kong property stocks.
• Link REIT fixed-rate debt ratioapproximately 68%As of September 2025, this was near the upper end of the 50%-70% target range.
• Mengniu Dairy 2026/2027 net profit forecastRMB4.86bn / RMB5.4bnThe report says 2027 net profit is expected to return to a historical peak.
• Mengniu Dairy valuation and dividend<12x 2026E P/E; 4.3% dividend yieldThe report believes the valuation is close to a trough and the shareholder return policy improves yield visibility.

Impact & implications

For investors, the report is more like a quarterly tactical stock list than a single-company deep dive. Its implication is that Asia Pacific equity allocation should focus on companies with clear event windows and improving fundamentals, especially short-term relative-return opportunities driven by cyclical price inflection points, overseas growth, cost efficiency, capital returns, shareholder returns, and valuation recovery. However, because the report emphasizes that the list covers only a subset of high-impact ideas rather than all important catalysts, investors still need to manage portfolios based on their own risk appetite, sector exposure, and liquidity constraints.

Risks

• The quarterly ideas list is tactical in nature, so if catalysts are delayed or market style rotates, short-term relative performance may fall short of expectations.
• The report covers stocks across multiple countries and industries, so portfolio returns may be influenced by a combination of FX, geopolitics, interest rates, commodity prices, and the macro consumer cycle.
• Some selected names depend on price upcycles or cyclical recovery, such as coal prices, DRAM prices, raw milk prices, turbine prices, and end-demand; if those inflection points do not persist, the investment thesis may weaken.
• The list is maintained by the research committee; if a rating changes, coverage ends, or a major event occurs, the relevant stock may be removed during the quarter and will not be replaced.
• BofA Securities discloses that it may have business relationships with issuers covered by the report, and investors should treat the report as only one factor in their investment decision-making.

What to watch

• Fast Retailing's 1H FY2026 earnings release, the sell-side meeting on April 14, and the New York store visit and management meeting on May 12.
• Goldwind's 1Q26 results, China turbine tender prices, monthly wind installations, overseas exports, and offshore wind installation pace.
• April earnings disclosures from global DRAM makers such as Samsung Electronics and Nanya Tech, as well as Ingenic's 1Q26 results and product updates on April 28.
• Progress on Link REIT's non-core asset disposals, whether the 100 Market Street transaction closes in May or June, buyback arrangements, and the appointment of a new CEO.
• Yili's month-end results and presentation for peer mapping to Mengniu, raw milk prices, the stability of liquid milk demand, and the impact of channel and product optimization.