12 Cheap Chinese Stocks to Buy According to Hedge Funds

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8. Vipshop Holdings Limited (NYSE:VIPS)

Number of Hedge Fund Holders: 21

Forward P/E Ratio: 5.87

Vipshop Holdings Limited (NYSE:VIPS) is a leading consumer cyclical company with operations in China’s online retail market. The company offers branded products on its vip.com website, while it operates via its segments including sales, product distribution, and offering of goods on its online platforms. Vipshop offers products from more than 17,000 domestic and international brands.

Vipshop Holdings Limited (NYSE:VIPS) has demonstrated strong results so far in 2024 despite the economic constraints in China. During the second quarter, the company posted a revenue of $3.77 billion, exceeding consensus estimates by $108.72 million, while the gross profit increased by 2.2% year-over-year to $872.6 million. Thanks to Vipshop’s robust business strategy, the company reached peak operational efficiency. The company’s active SVIP members soared by 11% from a year ago and accounted for 40% of Vipshop’s online spending.

Vipshop Holdings Limited (NYSE:VIPS) has a solid business model and the results continue to back its growth. The key to the company’s growth in these tough economic circumstances is its discount retail model. Vipshop’s gross merchandise value (GMV) from Made for VIP increased over 140% year-over-year in Q2.

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