10 Cheap Chinese Stocks to Buy Now

4. NetEase, Inc. (NASDAQ:NTES)

Forward P/E Ratio: 13.21

Earnings Growth This Year: 6.72%

Number of Hedge Fund Holders: 38

NetEase, Inc. (NASDAQ:NTES) is a Chinese technology company that operates through four key business segments including Gaming, Education, Music, and E-commerce. In the Gaming segment, the company develops and sells mobile and PC games, whereas, through its Education segment, the company operates the Youdao platform for online learning services, smart devices, and marketing tools. On the other hand, it operates NetEase Cloud Music which offers online music streaming services with membership subscriptions. Lastly, it also runs e-commerce platforms, advertising services, and other value-added services.

On March 3rd, Yang Liu CFA from Morgan Stanley maintained a Buy rating on the stock, with a price target of $117. The analyst noted that the strategic move to relaunch Condor Heroes 2.0 is aimed at revitalizing a previously underperforming game. The enhancements in character models, martial arts skills, and gameplay are expected to attract a large number of gamers, as indicated by the significant interest shown by players. Liu also noted that the company’s decision to refund previous grossing to players demonstrates a commitment to customer satisfaction and long-term brand loyalty, which is seen as a positive move.

During the fiscal fourth quarter of 2024, NetEase, Inc. (NASDAQ:NTES) reported a net revenue of RMB 26.7 billion, representing a slight decrease of 1.4% compared to the same quarter of 2023. On the bright side, the Gaming segment revenue increased 1.5% year-over-year to RMB 21.2 billion, indicating the continued strength of NetEase’s gaming business. It is one of the cheap Chinese stocks to buy now.