10 Chinese Penny Stocks to Buy According to Analysts

5. Dingdong (Cayman) Limited (NYSE:DDL)

Share Price (As of December 17): $3.96

Analysts Upside: 38.78%

Dingdong (Cayman) Limited (NYSE:DDL) is a Chinese e-commerce company that provides groceries and other daily necessities. The products offered on Dingdong’s e-commerce platform mainly include fresh eatable items such as farm items, meat, and seafood. The company has over 950 frontline fulfillment stations across China, supported by almost 40 regional processing centers to assist its supply chain.

Dingdong Limited (NYSE:DDL) has attracted strong demand from lower-tier cities within Jiangsu and Zhejiang. The growth in these regions is driven by accelerated penetration via new fulfillment stations and improved product offerings. The company has expanded its products with the addition of fruits, dairy, wine, snacks, and baked goods, leading to high daily transaction volumes.

In addition to that, the company opened 80 new frontline fulfillment stations in Q3 2024, which added to strong financial performance during the quarter. The enhanced inventory management and delivery speed have further improved the number for DDL. During Q3, the revenue soared by 27% year-over-year to RMB 6.54 billion while the gross merchandise value (GMV) increased by 28% to RMB 7.27 billion. The company continues to enhance its growth after it achieved non-GAAP profitability for the eighth consecutive quarter.

The continuous growth and profitability have helped Dingdong improve its cash position, achieving a positive net inflow for five consecutive quarters. With further development and inventory management, Dingdong (Cayman) Limited (NYSE:DDL) remains a promising Chinese penny stock to invest in.