In this article, we will take a detailed look at the 10 best Chinese stocks to buy right now.
Nearly every major equity market is up for the year owing to improved investor sentiments. However, it is an exception for Chinese equity markets that continue to underperform while hovering near the zero-COVID lockdown valuations of three years ago.
Over the past three years, about $6 trillion has been wiped off the value of Chinese stocks. The global index compiler MSCI has already announced plans to remove up to 60 Chinese stocks from its gauges as it responds to the underperformance of recent years. The cut will signify the waning need and demand for some of the country’s equities to overseas investor’s portfolios. Amid the cuts, the index will still keep hold of some of the best Chinese stocks to buy now.
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The underperformance comes amid growing concerns about the Chinese economy, which continues to send jitters to the investment community. The Chinese economy has always outperformed the US economy, increasing by 123% between 2012 and 2022, compared to 58% for the US.
Nevertheless, the Chinese economy has struggled in recent years amid a myriad of problems, including a downturn in the real estate sector, deflation, high debt levels, and a shift in ideology-driven policies that are scaring away foreign firms from the economy.
While the economy grew by 5.2% last year, much higher than 2.5% for the US, it was the lowest pace of growth since 1990, with the exception of the pandemic period. While economists expected the economy to slow even further in 2024, with growth averaging 4.5%, it has started showing signs of recovery. The Chinese economy grew 5.3% in the first quarter and 4.7% in the second quarter.
Nevertheless, the 4.7% growth in the second quarter, while reasonable, is far below the country’s double-digit growth rates in the past decades, which is a major point of concern in the equity markets. On the other hand, the slowdown in economic growth is not the only headwind that scares investors from the Chinese economy.
Deteriorating US-China relations has always rattled investors’ sentiments. With the US hitting Chinese firms with trade tariffs and restricting access to some key technologies, China has also hit back with its fair share of tariffs. The tariff hike on Chinese electric vehicles from 25% to 100% and the imposition of trade tariffs on $18 billion worth of imports underline the ever-deteriorating relations between the two economic powerhouses.
Amid the deteriorating macroeconomics, Chinese stocks have started showing signs of recovering in the second half of the year. Some of the promising sectors include the fixed asset investments sector, which is driven by faster manufacturing and infrastructure investment. Additionally, industrial production and services are also on the rise while playing host to some of the best Chinese stocks to buy.
In July, global hedge funds added holdings of some of the best Chinese stocks to buy now as most took advantage of their depressed valuations after steep pullbacks. Nevertheless, the hedge fund positions holdings remain near a five year low.
Additionally, analysts at BCA Research believe Chinese equities could insulate fund managers from deep losses as global risk assets face fresh dangers. The firm has already upgraded Chinese onshore equities to overweight from neutral.
“We expect Chinese stocks to fall by less than or as much as their global and EM peers in a bear market,” analysts, including chief China strategist Arthur Budaghyan, said in the report. Potential market support from Chinese state-owned funds could temper potential declines, he added.
As the economic situation in China improves and sentiments in the equity market improve, now could be the best time to pay close watch to the best Chinese stocks to buy, likely to outperform heading into year-end.
Source:unsplash
Our Methodology
To compile the list of the 10 best Chinese stocks to buy now, we scanned through the top 50 companies listed on the US stock exchange from the iShares MSCI China ETF. Analysts believe these companies have significant upside potential. Once we had a consolidated list, we ranked the best Chinese stocks in ascending order of their upside potential, as of August 17.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Best Chinese Stocks to Buy Right Now
10. New Oriental Education & Technology Group Inc. (NYSE:EDU)
Hedge Funds Holding Stakes: 37
Stock Upside Potential: 41.67%
New Oriental Education (NYSE:EDU) is one of the best Chinese stocks to buy as a leading provider of private educational services. It also offers tutoring services unrelated to academics; smart learning tools and gadgets to provide an online learning experience for students, and services for consulting on studies abroad.
The company is in a robust growth phase, with the number of schools and learning centers under its portfolio having increased by 114 and 227, respectively in its fiscal fourth quarter ended May 31, 2024. The total number of schools and learning centers increased to 1025. Likewise, Oriental Education (NYSE:EDU) completed the year with a healthy topline growth of 32.1% to $1.14 billion. Full-year revenue was up 43.9% to $4.31 billion as operating income increased 84.4% to $350 million.
Expansion into new educational business initiatives has been the catalyst behind the 43% increase in revenue in 2024. Moreover, the company’s overseas test preparation and consulting services have seen significant revenue increases, driven by the growing demand for international education.
New Oriental Education (NYSE:EDU)’s competitive edge stems from its comprehensive approach to education and its ability to adapt to market changes. It has successfully transitioned from traditional classroom-based teaching to incorporating online and hybrid learning models, maintaining a solid market presence despite regulatory changes and increased competition. Additionally, it has strategically invested in intelligent learning systems and devices to enhance the learning experience and, therefore attract more clients to its platforms.
However, it faces regulatory pressures and the need to innovate to stay ahead of soaring competition. Despite these challenges, New Oriental Education (NYSE:EDU)’s strong financial position, with cash and cash equivalents totaling approximately $4.9 billion, provides a buffer to navigate these hurdles.
Analysts on Wall Street rate the stock as a Buy with an average price target of $97.07, which implies a 41.67% upside potential from current price levels. 37 out of 920 hedge funds tracked by Insider Monkey held stakes in New Oriental Education (NYSE:EDU) as of the end of the second quarter.
9. Alibaba Group Holding Limited (NYSE:BABA)
Hedge Funds Holding Stakes: 91
Stock Upside Potential: 40.29%
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese internet giant that provides technology infrastructure and marketing that helps merchants, brands, and retailers connect with users and customers. The company has rebounded from the 2021 antitrust crackdown, with revenue growth improving from 2% in fiscal 2023 to 8% in fiscal 2024, and the same expected for fiscal 2025. EPS is projected to rise by 34% year-over-year in fiscal 2025, driven by a growing operating margin exceeding 13% in the last four quarters.
Alibaba Group Holding Limited (NYSE:BABA)’s sentiments have received a boost after the e-commerce company announced plans to earn more service fees from merchants. The company plans to charge a basic software services fee of 0.6% on confirmed transactions for vendors on Tmall and Taobao.
The new measure is expected to boost Alibaba Group Holding Limited (NYSE:BABA)’s core merchant revenue and add multiple catalysts for the stock as it earns most of its revenues from Taobao and Tmall.
“We view the 0.6% software service fees starting in September as positive to core merchant revenue considering the new arrangement applies to both Taobao and Tmall,” Jefferies analysts led by Thomas Chong wrote in a research note.
According to Bank of America Securities analyst Joy Ju, Alibaba’s growth in merchandise volume should match the industry growth as the company works to regain growth momentum.
Alibaba Group Holding Limited (NYSE:BABA) is rated as a buy on Wall Street with an average price target of $111.29, implying a 40.29% upside potential from current levels. On the other hand, the Insider Monkey database indicates that 91 hedge funds held stakes in the company as of the end of Q2 2024.
Artisan Partners, an investment management company, has released its first quarter 2024 investor letter for the “Artisan Select Equity Fund.” Here’s what the fund had to say:
“Alibaba Group Holding Limited (NYSE:BABA) shares declined 7% during the quarter. There isn’t much new to say about Alibaba. There was no meaningful news that drove the share price decline. The earnings for the December quarter were fine, with revenues and profits both increasing 5%—not typically an exciting level of growth, but certainly enough to justify the company’s paltry valuation of 4X–5X EBIT. As we have written in recent letters, this is a valuation level that is normally reserved for a dying business, and Alibaba is not a dying business. Management continues to implement changes that are intended to increase shareholder value. Over the past year, they have changed management, adjusted the company structure, contemplated spinning off assets, made progress monetizing the balance sheet and have improved the capital allocation. All of these actions have yet to be reflected at all in the share price. This is a stock that could double and would still be cheap.”
8. NetEase Inc (NASDAQ:NTES)
Hedge Funds Holding Stakes: 35
Stock Upside Potential: 45.10%
NetEase, Inc. (NASDAQ:NTES) is a Chinese company involved in various digital entertainment sectors, such as online gaming, music streaming, and educational services over the web. The firm is structured into different divisions: Games and Related Value-Added Services, You Dao, Cloud Music, Innovative Businesses, and Others. NetEase, Inc. (NASDAQ:NTES) creates and manages games for PCs and mobile devices, in addition to providing games licensed from external game creators.
It stands out as one of the best Chinese stocks to buy, having returned 89% over the past five years; NetEase, Inc. (NASDAQ:NTES) experienced a compound earnings per share (EPS) growth rate of 24% annually. This EPS growth rate is notably higher than the annual increase in share prices, which stood at 12% throughout the same duration.
Polen Emerging Markets Growth Strategy stated the following regarding Net Ease, Inc. (NASDAQ: NTES) in its first quarter 2024 investor letter:
“NetEase, Inc. (NASDAQ:NTES) is one of the top players in China’s video game industry and saw decent revenue growth in 2023, particularly in its games division, with profit growth close to 20%. The stock also continues to recover after gaming restrictions announced last quarter in China were not nearly as bad as first feared.”
Currently, the stock is rated as a Buy with an average price target of $127.50, implying a 45.10% upside potential from current levels. In Q2 2024, there were around 35 hedge fund holders in the company, down from 41 in the previous quarter. Orbis Investment Management held the most prominent position in NetEase, inc. (NASDAQ:NTES) with 1.91 million shares worth $182.28 million.
7. JD.com (NASDAQ:JD)
Hedge Funds Holding Stakes: 59
Stock Upside Potential: 49.60%
JD.com (NASDAQ:JD) is a supply chain-based technology and services provider that offers computer communication and consumer electronics products. The company also generates significant revenues by operating online marketplace services for third-party merchants.
JD.com (NASDAQ:JD)’s core business has been growing steadily, underlining why JD is one of the best Chinese stocks to buy now. In the second quarter, revenues were up 1.2% to $40.1 billion, and the net income attributable to shareholders was more than doubled to $1.7 billion. Free cash flow also increased by 66.2% to $7.7 billion.
While slowing the Chinese economy remains a significant headwind for JD.com (NASDAQ:JD)’s long-term prospects, DBS Bank’s Sachem Mittal said in a research report that the company has made impressive strides to offset the challenges. For starters, it has made efforts to diversify into other fields, including groceries and healthcare, as one of the ways of bolstering future earnings.
While JD.com (NASDAQ:JD) is down by about 10% for the year, analysts on Wall Street remain upbeat about its long-term prospects, going by the consensus buy rating and an average price target of $40.62, implying a 49.60% upside potential from current levels. Additionally, a total of 59 hedge funds held stakes in JD.com (NASDAQ:JD) as of the end of the first quarter, according to the Insider Monkey database.
Here is what Ariel Investments‘ Ariel Global Fund said about JD.com, Inc. (NASDAQ:JD) in its first quarter 2024 investor letter:
“We initiated a position in China-based technology-driven E-commerce company, JD.com, Inc. (NASDAQ:JD). The brand has long been known across the region as a superior online shopping channel due to its unique first-party model and unparalleled fulfillment service underpinned by JD Logistics. Yet, a challenging macro environment drove shares lower as shoppers began seeking bargains. In response, the company made significant investments in elevating its third-party merchant platform to enhance its variety of product offerings and price competitiveness for consumers. We believe these actions will yield an improved product mix, stronger top-line growth and margin expansion on a go-forward basis.”
6. KE Holdings (NYSE:BEKE)
Hedge Funds Holding Stakes: 43
Stock Upside Potential: 52.16%
Headquartered in Beijing, China, KE Holdings (NYSE:BEKE) operates an integrated online and offline platform for housing transactions and services. The company operates Beike, an integrated online and offline platform for housing transactions and services, and Lianjia, a real estate brokerage branded store. It also owns the Deyou brand for connected brokerage stores and other brands.
KE Holdings (NYSE: BEKE) operates 8,000 offices in China and manages over 500,000 rental apartments. Despite a severe real estate downturn, it has increased market share in both existing and new homes markets. This success is due to its Agent Cooperation Network (ACN), which standardized transactions and promotes agent cooperation, and its trusted brand, Lianjia, known for authentic property listings.
The Chinese digital and brick-and-mortar real estate marketplace reported revised earnings per share of $2.28, far exceeding the market’s average forecast of $1.60 in the second quarter. Its income rose 19.9% compared to the previous year, reaching RMB23.4 billion ($3.2 billion), surpassing the market’s prediction of RMB22.04 billion.
KE Holdings (NYSE:BEKE)’s impressive performance was fueled by an increase in its current home transaction services and the growth of its home renovation and rental divisions. The income from current home transactions saw a 14.3% year-over-year increase to RMB7.3 billion ($1.0 billion), while the income from home renovation and furnishing services jumped by 53.9% to RMB4.0 billion ($0.6 billion).
While trading at a price-to-earnings multiple of 16, KE Holdings (NYSE:BEKE) is one of the best Chinese stocks to buy for gaining exposure in the Chinese real estate sector. Analysts hold an average price target of $22.52 on the stock, implying a 52.16% upside potential from current levels. As of the end of the second quarter, 43 hedge funds tracked by Insider Monkey held stakes in the company.
5. Yum China Holdings, Inc. (NYSE:YUMC)
Hedge Funds Holding Stakes: 24
Stock Upside Potential: 41.11%
Yum China Holdings, Inc. (NYSE:YUMC) is a premier restaurant chain that owns, operates, and franchises restaurants in China. It generates revenues through direct restaurant operations, licensing fees, and additional services associated with its brands.
Yum China Holdings, Inc. (NYSE:YUMC) has been firing on all cylinders, going by the record revenue in Q2 2024 due to same-store transaction growth and new unit growth. Revenues in the quarter were up by 1% to a record high of $2.68 billion, as same-store sales reached 96% of last year’s levels. Diluted earnings per share were up 17% to $0.55, a record level.
The record revenues and earnings can be attributed to, among other things, a sharp focus on value for money and innovative products that continue to drive robust same-store transaction growth. Yum China Holdings, Inc. (NYSE:YUMC) has taken proactive steps to improve operational efficiency, stabilize restaurant margins, and generate more shareholder value.
Yum China Holdings, Inc. (NYSE:YUMC) is also investing significantly towards innovation, such as launching new menu items and marketing initiatives, which continue to attract customers and boost sales. Another positive aspect was the seamless internal transition in the C-suite, with CFO Andy Yeung set to step down in September and current CIO Adrian Ding taking over as acting CFO.
While the average price-to-earnings multiple for consumer cyclical stocks is 23, Yum China Holdings, Inc. (NYSE:YUMC) is currently trading at a forward P/E of 15. What this means is that the stock might be undervalued. Additionally, as one of the best Chinese stocks to buy, the stock rewards investors with a dividend yield of 1.91% for generating some passive income on the side.
Yum China Holdings, Inc. (NYSE:YUMC) remains a top pick for investors, as Wall Street analysts have rated the stock as a Buy. With an average price target of $48.26, this rating implies a significant 41.11% upside potential from the current levels, making it a promising investment opportunity. Insider Monkey database indicates that 24 hedge funds held stakes in the company as of the end of Q2 2024.
Baron Funds discussed the reasons behind Yum China Holdings, Inc. (NYSE:YUMC)’s decline in its Q4 2023 investor letter. Here’s what the firm mentioned:
“Yum China Holdings, Inc. (NYSE:YUMC) is the master franchisee for the YUM brands in China and operator of the KFC and Pizza Hut restaurant networks in that market. Shares detracted after the company reported a negative surprise on margins for the third quarter and hinted that increased competition and cost-consciousness among Chinese consumers could cause that margin compression to continue through the first quarter of 2024. Although in-year margins are volatile at Yum China, its pristine balance sheet, cumulative investments in technology, unmatched scale, and successful pivot to higher-ROI, smaller footprint stores in recent years should drive continued 8% to 10% store growth at attractive returns. Further, given its strong free-cash-flow generation and strong balance sheet, we believe the company is likely to offer capital returns to shareholders in excess of earnings over the next several years. We remain shareholders.”
4. Li Auto (NASDAQ:LI)
Hedge Funds Holding Stakes: 17
Stock Upside Potential: 90.24%
Li Auto (NASDAQ:LI) is one of the best Chinese stocks to buy now to gain access to the country’s electric vehicle market. It designs, develops, manufactures, and sells premium smart electric vehicles (EVs). Li Auto distinguishes itself from its rivals through its effective market launch of extended-range electric vehicles (EREVs) in China. These vehicles merge the advantages of electric propulsion with the extended mileage achievable through an internal combustion engine.
Over the last year, Li Auto Inc. (NASDAQ:LI) has steadily increased its sales amid the strong demand for electric vehicles, especially in China. Its total deliveries in the first quarter were up 52.9% to 80,400 vehicles, leading to vehicle sales of $3.4 billion, representing a 32.3% year-over-year increase
In July, it achieved a new monthly record with 51,000 deliveries, marking a 49.4% increase from the same period last year. This suggests that the introduction of new subsidies might have played a role in boosting Li’s sales.
Li Auto Inc. (NASDAQ:LI) is set to experience significant growth in 2024, mainly due to its lofty sales goal. The firm plans to hit the mark by delivering 800,000 vehicles this year, a notable jump from the 376,030 units it sold in 2023.
The introduction of new models bolsters this objective. Moreover, Li Auto’s emphasis on autonomous driving technology and innovative vehicle solutions is anticipated to propel further expansion and strengthen its position in the market. The company is expecting to launch level 3 self-driving technology by 2025. While tariffs in the EU and U.S. have impacted Chinese EV companies, Li Auto Inc. (NASDAQ:LI) focuses on China, with potential expansion into the Middle East and Southeast Asia in the next 24 months.
Li Auto Inc. (NASDAQ:LI)’s stock is currently trading at a price-to-earnings (P/E) ratio of 12.7, which is relatively low compared to its peers, affirming undervaluation. The average price target for Li Auto’s stock is $40.08, representing a forecasted upside of 90.24% from the current price.
According to the Insider Monkey database, 17 hedge funds held stakes in Li Auto Inc. (NASDAQ:LI) as of the end of Q2 2024. Jim Simons’ Renaissance Technologies is the most significant shareholder of the company with stakes worth $129.69 million
3. PDD Holdings Inc. (NASDAQ:PDD)
Hedge Funds Holding Stakes: 86
Stock Upside Potential: 66.94%
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese internet giant that owns and operates a portfolio of businesses. Its e-commerce platform offers products in various categories, including apparel, shoes, bags, agricultural produce, and childcare products.
PDD Holdings Inc. (NASDAQ:PDD) is one of the best Chinese stocks to buy, as the company is making solid strides in e-commerce through its Temu and Pinduoduo brands. The company’s expansion and achievements have turned PDD into a significant player in the online retail sector, competing with top brands such as Alibaba and JD. Crucially, this significant increase in market presence has also resulted in robust financial results.
PDD Holdings Inc. (NASDAQ:PDD) is growing its profits at a rate that outpaces nearly every publicly listed online retail firm. Investors on Wall Street anticipate this swift expansion to persist, projecting earnings per share (EPS) growth of approximately 97% in the upcoming quarter and 85% for the entire year 2024.
The expected growth should be fuelled by Temu, the online marketplace currently available in China and the US. The company has delivered better-than-expected earnings per share over the past four quarters, underlying growth in the core business.
PDD Holdings Inc. (NASDAQ:PDD) is holding an average price target of $218.36 on Wall Street, implying a 66.94% upside potential. Likewise, 86 hedge funds out of 920 tracked by Insider Monkey held stakes in the company as of the end of Q2 2024. As of June 30, GQG Partners is the top investor in the company and has a stake worth $1.44 billion.
Here is what Baron Emerging Markets Fund said about PDD Holdings Inc. (NASDAQ:PDD) in its fourth quarter 2023 investor letter:
“We added to our digitization theme by building a position in PDD Holdings Inc. (NASDAQ:PDD), a leading Chinese e-commerce platform. Founded in 2015, the company has emerged as China’s second largest e-commerce player, capturing approximately 20% market share. In our view, PDD’s competitive moat lies in its team purchase model that facilitates bulk buying through direct partnerships with manufacturers, thereby eliminating intermediaries (e.g., distributors and middlemen) and lowering costs. Key factors driving the company’s meteoric growth include rising consumer demand for affordable products in China amid an economic slowdown, small-scale merchants seeking alternatives to Alibaba, and superior management execution. PDD’s revenue growth outpaces gross merchandize value growth owing to rising take rates as merchants aggressively compete for consumer traffic on the platform. In our view, PDD should continue to gain market share given its dominance in the value-for-money segment, growing affordable branded product offerings, and high operational efficiency. We believe the company’s growth will be further supported by the recent launch of its international e-commerce platform, Temu, which has become one of the fastest growing apps globally. Leveraging China’s excess manufacturing capacity, Temu has strong negotiating power with domestic suppliers and attracts global consumers with competitively priced products. Temu’s recent initiatives to improve unit economics, coupled with achieving variable breakeven in the sizable U.S. market, showcase management’s skill and commitment to sustained growth. We expect PDD to at least double its earnings and free cash flow in the next three years, with the potential for continued compounding thereafter.”
2. Baidu, Inc. (NASDAQ:BIDU)
Hedge Funds Holding Stakes: 42
Stock Upside Potential: 68.22%
Baidu, Inc. (NASDAQ:BIDU) is a Chinese tech giant that provides internet search services. The company offers access to Internet search services and other services in China. It generates most of its revenues from advertising and operating the biggest search engine in China. In addition, Baidu, Inc. (NASDAQ:BIDU) offers online marketing services that include pay-for-performance and auction-based services.
In the first quarter of 2024, Baidu, Inc. (NASDAQ:BIDU) announced an earnings of 31.513 billion Yuan (approximately $4.37 billion), a 1% increase from the previous year. Meanwhile, its adjusted net income rose to 7.01 billion Yuan ($971 billion), showing a growth of about 22% from the previous year.
This expansion was mainly attributed to the company’s digital marketing division, which sells advertising space. The demand for search advertising and digital marketing services in China saw a modest increase as more businesses began to focus their marketing efforts online following China’s economic revival.
In China, Baidu, Inc. (NASDAQ:BIDU) is often seen as a leader in artificial intelligence, boasting a search engine and autonomous taxi division named Apollo Go, which affirms why it is one of the best Chinese stocks to buy.
In the first quarter, earnings from sources other than marketing increased to 6.8 billion Yuan ($935 million), marking a 6% growth compared to the same period the previous year, with the bulk of this increase attributed to its AI Cloud division.
Although the cloud division might face challenges as companies reduce their IT budgets due to an uncertain economic climate, our attention will be primarily on the success of the AI division.
Baidu, Inc. (NASDAQ:BIDU) is currently rated as a Buy, with analysts maintaining an average price target of $141.29, implying a 68.22% upside potential from current levels. Likewise, 42 out of 920 hedge funds tracked by Insider Monkey held stakes in the companies as of the end of the second quarter.
Here is what Ariel Global Fund said about Baidu, Inc. (NASDAQ:BIDU) in its first quarter 2024 investor letter:
“Alternatively, several positions weighed on performance. China’s internet search and online community leader, Baidu, Inc. traded lower alongside Chinese equities as intensifying problems in China weighed on investor sentiment during the period. The company continues to invest heavily in Artificial Intelligence (AI) and recently launched its generative AI, Ernie Bot, aimed at rivaling Open AI’s ChatGPT. While monetization of the new technology is largely dependent on regulatory review, we think Baidu should continue to experience margin improvement with the ongoing implementation of efficiency and profitability initiatives. While some investors remain on the sidelines due to uncertainty surrounding China’s economic growth, government regulations, and the political rhetoric towards Taiwan, we remain enthusiastic about Baidu’s longer-term opportunity for revenue growth and margin expansion across internet search, cloud, autonomous driving, artificial intelligence and online video.”
1. H World Group (NASDAQ:HTHT)
Hedge Funds Holding Stakes: 24
Stock Upside Potential: 89.25%
H World Group (NASDAQ:HTHT) is a consumer cyclical company that develops leased and owned franchised hotels in China. It operates a diversified portfolio of hotel brands in the economy and upscale segments, generating management fees and franchise fees.
The primary driver behind H World Group’s (NASDAQ:HTHT)’s growth is its bold approach towards expansion. By March 31, 2024, the organization managed a network of 9,817 hotels, encompassing 955,657 rooms across 18 nations. This growth is propelled by natural expansion and strategic mergers, like the purchase of Deutsche Hospitality, which has greatly enhanced its footprint in Europe. The company’s ability to adjust to evolving market trends and capitalize on its broad range of brands positions it favorably for continued expansion.
H World Group (NASDAQ:HTHT) delivered solid financial results in the first quarter, whereby earnings rose by 17.8% compared to the same period the previous year, reaching RMB5.3 billion (US$731 million). The increase was attributed to a resurgence in travel demand and effective control over expenses. The firm’s earnings for the quarter amounted to RMB659 million (US$91 million).
Analysts on Wall Street currently rate the stock as a Buy with an average price target of $53.43, suggesting an 89.25% upside potential from current levels. Additionally, H World Group (NASDAQ:HTHT) rewards investors with a 2.195 dividend yield.
According to Insider Monkey’s second-quarter database, 24 hedge funds were bullish on H World Group (NASDAQ:HTHT), compared to 34 funds in the prior quarter. Insider Monkey database indicates that 24 hedge funds held stakes in the company as of the end of Q2 2024.
The best Chinese stocks to buy now offer some of the best ways of diversifying an investment portfolio into the Chinese economy. However, given that the artificial intelligence arms race is just but starting, there are under-the-radar AI stocks trading at highly discounted valuations that hold greater promise for anyone looking to diversify their portfolio. If you are looking for an AI stock that is more promising than NVDA, check out our report about the cheapest AI stock.
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