Goldman Sachs Drops 3% on Asia Pacific Confidence Select List Changes

On April 4, 2025, Goldman Sachs experienced a 3% drop in pre-market trading, reflecting investor sentiment and market dynamics.

Goldman Sachs recently updated its Asia Pacific Confidence Select list, adding MediaTek, CR Land, Weichai Power, and Krafton, while removing Advantest, Delta Electronics, Keppel Ltd, and Zijin Mining. This move indicates the firm's strategic shift in focusing on companies with strong growth potential and innovative capabilities.

MediaTek, a leading semiconductor company, is expected to benefit from the growing demand for AI-driven technologies. Analysts predict that MediaTek's revenue and earnings growth will be driven by its expansion into AI applications, including edge AI devices, enterprise-specific integrated circuits, and smart automotive solutions. This strategic pivot is anticipated to result in a compound annual growth rate (CAGR) of 16% for revenue and 17% for earnings from 2024 to 2027.

CR Land, a prominent real estate developer, is poised for a recovery due to its strong financial position and reduced debt pressure. Analysts forecast that CR Land's contract sales will accelerate, and its market share in the primary housing market will increase. The company's development business is expected to see a turnaround in profitability by 2025, with a stable growth in its core business and increased land reserves.

Weichai Power, a major engine manufacturer, is anticipated to see a revaluation driven by improved prospects in the heavy-duty truck market, a more profitable engine product mix, and potential benefits from its investment in KION Group. The company's strong cash position and free cash flow generation capabilities are expected to support increased dividend payments, making it an attractive investment option.

Krafton, known for its popular game PUBG, is expected to see strong earnings driven by the continued success of its PUBG series. Analysts believe that the company's focus on this franchise will be a key driver of its financial performance, with the market potentially re-evaluating its prospects based on the upcoming first-quarter earnings report.