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3 Chinese Stocks I Own in 2025
BABABABA(BABA) The Motley Fool·2025-01-13 12:06

Chinese Stocks Overview - Chinese stocks are currently undervalued due to geopolitical tensions and trade war concerns, presenting a potential investment opportunity [1][2] - Despite risks, China remains one of the world's largest economies with quality investments trading at lower valuations [2] Baidu (BIDU) - Baidu is China's top search engine and a major player in AI, autonomous driving, robotics, and machine learning [3] - The company has struggled with growth, posting only one year of double-digit revenue gains since 2018, and its shares dropped 29% in 2024 [3] - Baidu's financial performance is strong, with a 28.5billionmarketcap,28.5 billion market cap, 23.4 billion enterprise value, and 18.3billionintrailingrevenue,tradingat1.3timesitstopline[5]−Thestockistradingatlessthaneighttimestrailingadjustedearnings,makingitanattractiveinvestment[4]Alibaba(BABA)−Alibabaisaleadinge−commercegiantinChina,thoughitsgrowthhasslowedwithonlyonequarterofdouble−digitrevenuegrowthinthepasttwelvereports[6]−ThecompanyfacescompetitionfromdeepdiscounterslikeSheinandTemuparentcompanyPDDHoldings[6]−AlibabahastransformedSinglesDayintoamajorshoppingholiday,withrevenuegrowingover250−foldsince2009[7]−Thestockistradingatninetimesforwardadjustedearningsandoffersa2.518.3 billion in trailing revenue, trading at 1.3 times its top line [5] - The stock is trading at less than eight times trailing adjusted earnings, making it an attractive investment [4] Alibaba (BABA) - Alibaba is a leading e-commerce giant in China, though its growth has slowed with only one quarter of double-digit revenue growth in the past twelve reports [6] - The company faces competition from deep discounters like Shein and Temu parent company PDD Holdings [6] - Alibaba has transformed Singles Day into a major shopping holiday, with revenue growing over 250-fold since 2009 [7] - The stock is trading at nine times forward adjusted earnings and offers a 2.5% yield through semiannual distributions [8] Qifu Technology (QFIN) - Qifu operates a credit solutions platform with 55.2 million cumulative users and 162 financial services partners, leveraging AI for credit assessments [9] - The company focuses on underserved markets, with 70% of borrowers under 40 and 81% from rural areas [10] - Qifu is consistently profitable, with a 5.6 billion market cap and $2.3 billion in trailing revenue [9] - The company has implemented share buyback plans and offers semiannual payouts with a 3.3% yield, trading at six times forward earnings [11]