12 Cheap Chinese Stocks to Buy According to Hedge Funds

3. JD.com, Inc. (NASDAQ:JD)

Number of Hedge Fund Holders: 59

Forward P/E Ratio: 9.72

JD.com, Inc. (NASDAQ:JD) is a leading Chinese e-commerce company that specializes in retailing consumer electronics, apparel, and household products. The company also has operations in segments such as logistics, marketing services, and property classifieds.

The company’s retail business is its largest segment which accounts for almost 90% of JD’s net revenue. Whereas, the company’s logistics business has established a comprehensive infrastructure, including warehouses and delivery networks, enhancing the efficiency of product delivery.

JD.com, Inc. (NASDAQ:JD) is expanding its third-party merchant platform with significant investments, positioning itself for long-term success and competitiveness in the e-commerce market. In addition to that, the company’s net revenue has grown at a CAGR of 19% between 2019 to 2023, reflecting the company’s strong presence in the sector.

JD.com, Inc. (NASDAQ:JD) is expanding outside China and entering new markets to expand its reach. On November 1st, JD announced expanding its e-commerce network to Malaysia and Thailand, which will potentially increase sales for the retail segment.

Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its first quarter 2024 investor letter:

“We initiated a position in China-based technology-driven E-commerce company, JD.com, Inc. (NASDAQ:JD). The brand has long been known across the region as a superior online shopping channel due to its unique first-party model and unparalleled fulfillment service underpinned by JD Logistics. Yet, a challenging macro environment drove shares lower as shoppers began seeking bargains. In response, the company made significant investments in elevating its third-party merchant platform to enhance its variety of product offerings and price competitiveness for consumers. We believe these actions will yield an improved product mix, stronger top-line growth, and margin expansion on a go-forward basis.”