S-Chips

Recommendations by CIMB

Our top picks are China Fishery, Pacific Andes, and Midas. While these companies may not appear the cheapest, we believe their risk-reward is more compelling. Moreover, a recovery in confidence and greater earnings visibility should lead to a reversion in valuation multiples, providing further upside. Other Schips which we believe have strong qualitative qualities but with valuation concerns are China XLX, Cosco and Yanlord.