12 Cheap Chinese Stocks to Buy According to Hedge Funds

4. Silicon Motion Technology Corporation (NASDAQ:SIMO)

Number of Hedge Fund Holders: 43

Forward P/E Ratio: 13.97

Silicon Motion Technology Corporation (NASDAQ:SIMO) is a provider of NAND flash controllers for solid-state storage drives (SSD) and other SSD devices. The American-Taiwanese company engages in the design, development, and sale of low-power semiconductor solutions for OEMs and other customers. Silicon Motion Technology’s products are used in tablets, PCs, smartphones, and other devices.

The company is focusing on the growing PC market. Silicon Motion Technology Corporation (NASDAQ:SIMO) is moving into the high-end PC and expects to expand its market through the introduction of its first PCIe 5.0 controllers. Moreover, the company is also growing its SSD market share in the game console, automotive, industrial, IoT, and other markets. Especially in markets such as China, the company’s module-maker customers can deliver solutions that comply with increasing localization standards.

During the third quarter of 2023, the company experienced a significant growth of 60% year-over-year from NAND maker customers, attributed to new product introductions and strategic partnerships. The revenue was reported at $212.40 million, a 23% increase from a year ago. The gross margins were 46.8% higher year-over-year, marking the sixth consecutive quarter of increase.

Silicon Motion Technology Corporation (NASDAQ:SIMO) is expanding its presence in all the markets and has great growth opportunities. SIMO is currently trading at a discount of almost 39% from its sector median of 25, as it has a forward P/E of just under 14.