Hot Stocks – REA Group and Aristocrat Leisure

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This week we have lots of favourites. First off Mary Manning, portfolio manager at Ellerston Capital Limited, likes Chinese white goods company Midea Group

It is largest white goods companies in China with 25% market share and a market cap of $70b. There are three main reasons why we like Midea: growth and valuation, play on robotics and MSCI A share inclusion.

“Midea is a very high growth company with 24% EPS growth expected in 2018. This high growth is driven by relatively low white goods penetration in China, particularly in lower Tier cities. Despite this high strong growth outlook, Midea is trading at a PE of only 16x,” Manning says.

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