We put together our top Chinese Stocks to buy in June/July 2021 – Make sure to read their full company analyses to comprehend your investments in detail.
(Reading time: 6 minutes)
Which Chinese Stocks should you follow and buy now? The U.S. markets list hundreds of Chinese companies. Our top 5 Chinese stocks you should have in your portfolio are listed below. For this first article on ChineseAlpha we are focusing on the most popular and accessible Chinese stocks. In the future, we will present you with some equity values that are much less popular but might offer a higher upside in the future. If you are new to investing in Chinese stocks and want peer-reviewed, high-quality analyses then continue reading!
The thriving urban middle class of the world’s most populous nation with the second highest GDP participates in extraordinary entrepreneurial ventures. Chinese stocks from many different industries regularly make the top of best-performing stocks and are projected to become global business leaders in their respective industries in the very near future!
Chinese businesses consistently rank best in many sectors as a consequence of being the world’s largest internet market for messaging apps, e-commerce, and mobile gaming companies from which have experienced tremendous historical growth.
1. JD.com (JD)
Overview
JD is a Chinese group that started in 2004 as an e-commerce marketplace under jdlaser.com, after a “need-driven” idea of the founder and current CEO, Richard Qiangdong Liu. Today, JD.com is a multi-business group, with a strong focus on e-commerce and logistics. Its vision is to “become the most trusted company in the world” with the mission to be “powered by technology for a more productive and sustainable world”.
JD.com is currently China’s largest online and biggest overall retailer, as well as the biggest Internet company by revenue. JD.com sets the highest standard for online shopping through its commitment to quality, authenticity, and its vast product offering covering everything from fresh food and apparel to electronics and cosmetics. Its unrivaled nationwide fulfillment network covers 99% of China’s population and provides standard same and next-day delivery – a level of service and speed that is unmatched globally.
Why buy JD.com?
JD.com has a diversified revenue stream with an increasing logistics and distribution network. The main selling point of JD.com is strong historical revenue growth and the fact that it is expected by our analysts to grow substantially over the next 5 years. This combined with historical cost management practices suggests big net profit gains and growing free cash flow later down the line.
Continue following ChineseAlpha.com and check out our analysis to understand JD.com in more detail.
2. Alibaba (BABA)
Overview:
Alibaba Group Holding Limited, also known as Alibaba Group and Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines, and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.
Why buy Alibaba?
China’s internet penetration and consumer spending are grinding higher. Where Alibaba primed to capitalize from these strong economic and social trends. Furthermore, improvements in cost management have seen margins grow year-on-year which has boosted its net income. Right now purely based on valuation Alibaba looks like a steal, strong projected future growth has even attracted the attention of the legendary investor Charlie Munger. That’s why Alibaba is a good Chinese stock to buy right now.
Continue following ChineseAlpha.com and check out our analysis to understand Alibaba in more detail.
3. Baidu (BIDU)
Overview:
Baidu is a Chinese multinational technology company specializing in Internet-related services and products and artificial intelligence, headquartered in Beijing’s Haidian District. It is one of the largest AI and Internet companies in the world.
Why buy Baidu?
Baidu is the dominant search engine in mainland China with a large network of over 60 platforms and services, while at the same time expanding to foreign countries. Baidu owns iQiYI, a major entertainment service, and Baidu encyclopedia, and many more. Baidu’s market dominance alongside increasing diversifying revenue streams both nationally and abroad presents a rigorous and safe business model that is resilient to even harsh economic circumstances.
Continue following ChineseAlpha.com and check out our analysis to understand Baidu in more detail.
4. NIU Technologies (NIU)
Overview:
NIU Technologies is a team of technologists, industrial designers, engineers, and creatives that specializes in lithium electric scooters. NIU is designing electric scooters that will be essential to the future of urban mobility. NIU believes that its vehicles will forever change the way that urbanites live, work, and socialize in their favorite cities.
Why buy NIU Technologies?
NIU’s technology‘s focus on design and international coverage gives NIU the edge over its competitors with thousands of franchise stores and distributors in international markets. Furthermore, combined with its strengths in their cost structure guarantees NIU a large potential customer base. All of these factors point towards strong top-line performance, combined with strong historical EBIT margins suggests strong free cash flow further down the line.
Continue following ChineseAlpha.com and check out our analysis to understand NIU Technologies in more detail.
5. NIO (NIO)
Overview:
NIO is a pioneer in China’s premium electric vehicle market. They design, jointly manufacture and sell smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving, and artificial intelligence.
Why buy NIO?
NIO can count on strong domestic demand and growing international attention for the EV market. The Chinese Government’s propension to protect internal companies will presumably give NIO a competitive advantage over its rivals. This is highlighted by increasing car deliveries year on year and projected to rise in the years ahead. Furthermore, with a positive gross margin in 2020 (a huge achievement), the future looks bright for NIO, and is why we call it a Chinese stock to buy at the moment.
Continue following ChineseAlpha.com and check out our analysis to understand NIO in more detail.
Disclaimer: Our content is intended to be used solely for informational and educational purposes, and not as investment advice. Always do your research and consider your personal circumstances before making investment decisions. ChineseAlpha is not liable for any losses that may arise from relying on information provided.
