As we enter 2025, the global economy continues to evolve, presenting a mix of challenges and opportunities for investors. While inflationary pressures, geopolitical shifts, and technological advancements shape the financial landscape, they also create avenues for growth across key sectors. Infrastructure, advanced materials, and technology remain at the forefront of economic transformation, offering resilience and potential. Against this backdrop, we highlight three standout companies – CK Hutchison Holdings, Corning Incorporated, and Japan Aviation Electronics that exemplify innovation, diversification, and long-term value. Each presents an attractive opportunity for sophisticated investors looking to enhance their portfolios with a mix of stability and growth.

CK Hutchison Holdings Limited (SEHK: 1)

CK Hutchison Holdings is a Hong Kong-based multinational conglomerate with operations spanning Ports and Related Services, Retail, Infrastructure, and Telecommunications. This strategic diversification provides stable cash flows and exposure to global trade and urban modernisation trends.

The company operates 293 berths across 53 ports in 24 countries, making it a critical player in global trade logistics. Its retail segment includes well-known brands like Watsons and PARKnSHOP, while its infrastructure investments span energy, water, and transportation. Trading at a low price-to-earnings (P/E) ratio of 6.33 and offering a dividend yield of 6.14%, CK Hutchison is undervalued compared to its industrial conglomerate peers. The company’s defensive business segments generate strong cash flows, enabling reinvestment in high-return projects. A prudent debt-to-EBITDA ratio of 5.26 underscores its financial stability.

Recent geopolitical developments suggest a more measured approach to U.S.-China trade relations, reducing the likelihood of extreme tariffs. CK Hutchison’s strategically located port assets stand to benefit from this shift. With its diversified operations, strong fundamentals, and attractive valuation, CK Hutchison offers a compelling investment case for those looking to gain exposure to global trade and infrastructure growth.

Corning Incorporated (NYSE: GLW)

Corning is more than just a materials company, it is a technology leader specialising in advanced glass and optical solutions. Its business spans five key segments: Display Technologies, Optical Communications, Specialty Materials, Environmental Technologies, and Life Sciences.

Corning’s products are integral to enabling next-generation technologies, including fiber optics for AI infrastructure and specialty glass for automotive applications. Its Optical Communications segment is particularly strong, fueled by increasing demand for high-speed fiber networks to support AI data centers and 5G rollouts. The Specialty Materials division supplies cutting-edge glass solutions for mobile devices and automotive technologies.

Despite some challenges in its Display Technologies segment, Corning’s FY2024 revenue is expected to exceed $15 billion, supported by growth in optical connectivity and strategic pricing adjustments. The company has also secured funding under the CHIPS Act, reinforcing its role in advanced manufacturing. Trading at a P/E ratio of 22.35 and offering a 2.25% dividend yield, Corning combines income and growth potential. The company’s consistent share buybacks further enhance shareholder value. As markets recognise its critical role in AI, 5G, and next-gen automotive advancements, Corning presents a strong long-term investment opportunity.

Japan Aviation Electronics Industry Ltd. (TSE: 6807)

Japan Aviation Electronics (JAE) is a leader in high-performance electronic connectors and interface solutions, serving industries such as aerospace, automotive, telecommunications, and factory automation.

JAE’s advanced connector technologies are crucial for industries like EV manufacturing and smart factories. The company’s innovations, including ultra-compact connectors for smartphones and automotive applications, cater to the global trend toward miniaturisation and efficiency. JAE is also active in the aerospace sector, where its motion sensors and fiber optics play a vital role in advanced navigation and stabilisation systems.

Financially, JAE has demonstrated resilience, reporting a return on assets of 4.63% and a return on equity of 7.86% for FY2024. With a manageable debt-to-EBITDA ratio of 1.19, the company is well-positioned for future growth. Trading at a forward P/E ratio of 13.8 and a price-to-book ratio of 1.46, JAE offers an attractive entry point for investors. Its 2.16% dividend yield adds to its appeal, offering both income and growth potential. As industries increasingly adopt advanced electronics, JAE’s expertise positions it as a key enabler of innovation, making it a compelling long-term investment.

The TAMIM Takeaway

The three companies highlighted CK Hutchison Holdings, Corning Incorporated, and Japan Aviation Electronics demonstrate the value of investing in businesses with strong fundamentals, innovative capabilities, and exposure to key global trends. Each operates in sectors poised for sustained growth, making them attractive options for sophisticated investors seeking to diversify their portfolios.

CK Hutchison offers stability and income through its diversified global operations and undervaluation. Corning provides a unique blend of technological leadership and long-term growth in AI and next-gen automotive technologies. JAE delivers cutting-edge solutions for high-growth industries, reinforcing its role as a leader in advanced electronic components.

In an evolving market environment, these companies exemplify how a strategic global investment approach can uncover hidden value and long-term potential. For investors managing their SMSFs or seeking high-conviction investment ideas, these businesses offer a balanced combination of growth, income, and resilience key attributes for success in 2025 and beyond.

At a time when global equity markets have been dominated by one theme, AI, and portfolio risks highly concentrated in Nvidia and its ecosystem, to a dangerous degree, there are many attractive cheaper and technologically advanced companies which are under acknowledged by the stock market. Thai presents a remarkable opportunity for investors who wish to access a diversified portfolio with a resulting lower level of return volatility.

_____________________________________________________________________________________

Disclaimer: CK Hutchison Holdings Limited (SEHK: 1), Corning Incorporated (NYSE: GLW) and Japan Aviation Electronics Industry Ltd. (TSE: 6807) are held in TAMIM Portfolios as at date of article publication. Holdings can change substantially at any given time.