Goldman Sachs has removed Tencent Holdings from its Asia-Pacific “conviction list” of top picks, following its recent designation as a “Chinese military company” by the U.S. Department of Defense. This decision implies restricted procurement capabilities for the company starting in 2026. Additionally, Goldman has also excluded Japan’s Sumitomo Mitsui Financial Group and China’s Sungrow Power Supply, while introducing Kotobuki Spirits, JD.com, and Iluka Resources to the list.
Goldman has a positive outlook on Kotobuki Spirits, highlighting its strong growth due to brand power and projected inbound sales growth of at least 30% as tourism increases in Japan. The company’s stock shows substantial potential upside with a target price of 2,800 Japanese yen.
JD.com is viewed favorably due to anticipated revenue acceleration and supportive policies, with a target price of 181 Hong Kong dollars indicating a 34.1% upside. Lastly, Iluka Resources is noted for its strong free cash flow and growth potential in rare earths, with a target of 7.7 Australian dollars, suggesting nearly 50% upside. Goldman’s “Conviction List” aims to present a curated selection of high-potential stocks across regions.
