10 Cheap Chinese Stocks to Buy Now

6. Vipshop Holdings Limited (NYSE:VIPS)

Forward P/E Ratio: 6.67

Earnings Growth This Year: 4.16%

Number of Hedge Fund Holders: 25

Vipshop Holdings Limited (NYSE:VIPS) is an online discount retailer based in China. The company uses a flash sale model through which it buys products from over 17,000 brands at discounted prices and sells them online for a limited time at even lower prices. The company deals in products ranging from apparel for men, women, and children, to fashion goods, cosmetics, and lifestyle products. Its products are sold mainly through its website vip.com and other platforms like lefeng.com.

During the fiscal fourth quarter of 2024, Vipshop Holdings Limited (NYSE:VIPS) delivered results above expectations despite a challenging year. The company saw positive growth in apparel categories, which accounted for 75% of total Gross Merchandise Volume, helping them surpass RMB200 billion in annual sales. The Apparel category alone experienced a 2% year-over-year growth, driven by strong execution and a focus on retail fundamentals. The company introduced unique off-price seasonal offerings, particularly in sportswear and outdoor products.

The company is improving its customer engagement, during the quarter, Super VIP membership witnessed double-digit growth, with active members increasing by 50% year-over-year. On February 25, Jiong Shao from Barclays maintained a Buy rating on the stock with a price target of $20. It is one of the cheap Chinese stocks to buy now.