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<Research>UBS: Leading CN Stocks Often Kick Start; TENCENT (00700.HK), Alibaba (BABA.US) etc. Favored
Recommend
50
Positive
73
Negative
30
Although theoretically past stock performance should not be a guide for future performance, UBS analysis showed that the best and worst performers for Chinese stocks of the previous year often outperformed the broader market by about 15-20% on average in the following year, UBS stated. Interestingly, the broker found that most of the leading advantage of the best performers is often realized in the first half of the following year, while the worst performers typically see a catch-up in the second half of the year. Despite marked differences in share price return among these stocks, this indeed provides the broker with a perspective for screening stocks for 2026.

The following are UBS's top picks, all being rated Buy:

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SUNGROW POWER (300274.SZ)| TP: RMB225
TONGWEI (600438.SH) | TP: RMB27.6
CATL (300750.SZ) | TP: RMB465
HORIZONROBOT-W (09660.HK)| TP: HKD13.2
FUYAO GLASS (03606.HK) | TP: HKD96

HUATAI SECURITIES (601688.SH) | TP: RMB31.2
NetEase (NTES.US) | TP: USD185
NAURA (002371.SZ) | TP: RMB587.5
TENCENT (00700.HK) | TP: HKD780
YUTONG BUS (600066.SH) | TP: RMB38

Alibaba (BABA.US) | TP: USD216
ZHAOJIN MINING (01818.HK) | TP: HKD37
GDS (GDS.US) | TP: USD57

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