Since the release of ChatGPT in late 2022, AI has become a major theme in the global market. Investors have flocked to AI stocks, driving the prices of companies like Nvidia, Intel, Samsung, TSMC, and SK Hynix to dizzying levels. But it has also led to concentration risks, particularly in Asia, where HSBC said more than half of the index returns for the FTSE Asia ex-Japan index were driven by TSMC, SK Hynix and Samsung Electronics. “There are risks with such a concentrated rally; everyone owns the same stocks,” the bank said in a note on Tuesday, adding that the focus on AI “is causing market disruption and, in some cases, diverting attention from other growth themes.” Highlighting the names of companies that go beyond AI, HSBC has identified 10 of Asia’s “forgotten gems”, selecting companies that generate high returns on equity, maintain strong profits while gaining market share, and pay high dividends. Here is the complete list for HSBC: Among them are Hong Kong Exchange, South Korean food maker Samyang Foods and Indonesian telecommunications provider PT Telkom. HSBC also selected Fuyao Glass Industry, the world’s largest manufacturer of automotive glass, to highlight its scale. HSBC analysts said: “We believe the market is underestimating Fuyao’s growth trajectory and earnings resilience, as well as the broader changes in global competitive dynamics that are unfolding in Fuyao’s favor.” The company has approximately 70% share in the Chinese market and is expanding its share internationally with its manufacturing base in the United States and extensive product portfolio based in China, the bank said. Another “forgotten gem” on HSBC’s list is WuXi AppTec, a China-based contract research, development and manufacturing organization (CRDMO). The CDMO’s revenue, which refers to the development and manufacturing of pharmaceuticals, will grow 11% in 2025, and analysts expect growth to accelerate further in 2026 due to strong customer demand and ongoing global capacity expansion in Singapore, the European Union, and the United States, and WuXi AppTec aims for 18-22% revenue growth in continuing operations in 2026, analysts said. “We believe this growth runway will last well for another two to three years,” they added. HSBC also named Indian real estate developer Godrej Properties, saying that while shares of Indian developers are under pressure as market demand broadly eases, premium demand remains strong. According to HSBC, Godrej Properties is one of the few real estate companies in India with a pan-India presence, strong balance sheet, strong brand and experience in sourcing and selling large-scale projects. The bank says it is therefore well-positioned to expand its market share. “We expect strong deliveries to translate into reported profitability, improved collections and strong cash flow,” analysts said.
