Today we're looking at five very high quality stocks trading in Asia's mid-cap universe. This is a big market to cover off with such a short list, but we see some strong themes emerging in Asia even with these stocks. Investors are obviously very focused on companies which can combine good cash flow with exposure to expanding infrastructure investment across the region.
Another strong theme is exposure to sectors and projects which enjoy strong government support, including for environmental infrastructure. Asian governments seem to be spending more time and money on developing new and cleaner sources of energy across the region.
- Clean energy bet Cindrigo debuts on London Stock Exchange
- Xeros Technology scores landmark deal with washing machine giant
- UK Oil & Gas raises £3m to fund hydrogen transition
The mid-caps universe is an interesting one to explore in Asia, as these names remain more focused on the economic dynamics of their own home countries rather than having a multi-national posture. Their success with regional investors illustrates how cash flow is increasingly being valued by both Asian institutions and retail traders.
Synergy Grid & Development
Utility play SGP is up 60% in the last 12 months, despite giving back some of its gains in September. The shares have been rallying again recently, gaining nearly 5% last week. This successful Filipino company provides transmission services across the country including power delivery and system operations. Investors obviously like the surge in revenues SGP has been reporting recently.
A major boost for Synergy Grid came from the recognition of regulatory “under-recoveries” via the Philippines' interim maximum allowable revenue (iMAR) mechanism: for first half 2025, SGP recognised catch-up revenue relating to earlier years (2016-2022) which significantly bolstered its earnings. We think the stock still has some considerable upside however.
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