In this article, we discuss the 5 Chinese stocks at risk as orders drop in the US. If you want to read about some more Chinese stocks at risk as orders drop in the US, go directly to “Consumers Don’t Have the Money to Spend”: 10 Chinese Stocks at Risk as Orders Drop.
5. Pingtan Marine Enterprise Ltd. (NASDAQ:PME)
Number of Hedge Fund Holders: 3
Pingtan Marine Enterprise Ltd. (NASDAQ:PME) operates in the ocean fishing business. It is based in Fuzhou. It catches and sells red fish, ribbon fish, sea catfish, sea bream, shrimp, silver pomfret and seaperch, slender shad, sole fish, Spanish mackerel, and threadfin. At the end of 2021, it owned 51 squid jigging vessels, 26 trawlers, 25 seine vessels, 13 drifters, 4 longline fishing vessels, and 3 transport vessels for the purpose. In late 2021, the firm was warned by authorities in the US of illegal, unreported, and unregulated fishing. A dramatic slowdown in US consumer spending is likely to weigh on the stock in the near term.
On May 17, Pingtan Marine Enterprise Ltd. (NASDAQ:PME) posted earnings for the first quarter of 2022, reporting earnings per share of $0.08 and a revenue of more than $68 million, up over 102% compared to the revenue over the same period last year.
At the end of the second quarter of 2022, 3 hedge funds in the database of Insider Monkey held stakes worth $160,000 in Pingtan Marine Enterprise Ltd. (NASDAQ:PME), the same as in the preceding quarter worth $44,000.
4. BEST Inc. (NYSE:BEST)
Number of Hedge Fund Holders: 3
BEST Inc. (NYSE:BEST) operates as a smart supply chain service provider. It is based in Hangzhou. The firm offers tech solutions to problems like network and route optimization, swap bodies, sorting line automation, smart warehouses, and store management. It also operates a real-time bidding platform to source truckload capacity from independent transportation service providers and agents. This business has been hurt amid slowing orders from the US, as companies no longer need trucking services for deliveries to export hubs.
BEST Inc. (NYSE:BEST) posted earnings for the second quarter of 2022 on August 17, reporting losses per share of $0.34. The revenue over the period was more than $287 million, down close to 37% year-on-year.
At the end of the second quarter of 2022, 3 hedge funds in the database of Insider Monkey held stakes worth $160,000 in BEST Inc. (NYSE:BEST), compared to 5 in the preceding quarter worth $231,000.
3. Dingdong (Cayman) Limited (NYSE:DDL)
Number of Hedge Fund Holders: 4
Dingdong (Cayman) Limited (NYSE:DDL) is an e-commerce firm based in China. On August 11, the firm posted earnings for the second quarter of 2022, reporting losses per share $0.01, beating market estimates by $0.36. The revenue over the period was $990 million, up more than 37% compared to the revenue over the same period last year and beating market estimates by $20 million. The firm is backed by Japanese multinational conglomerate SoftBank. The firm was founded in 2017 and employs over 4,000 people. The firm is feeling the heat of an economic slowdown in the US along with other Chinese firms.
In mid-May, JPMorgan analyst Andre Chang upgraded Dingdong (Cayman) Limited (NYSE:DDL) stock to Overweight from Underweight and increased the price target to $7 from $2.5, noting that uncertainties in the China regulatory sector were abating.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Coatue Management is a leading shareholder in Dingdong (Cayman) Limited (NYSE:DDL) with 7 million shares worth more than $38 million.
2. Yatsen Holding Limited (NYSE:YSG)
Number of Hedge Fund Holders: 7
Yatsen Holding Limited (NYSE:YSG) makes and sells personal care products. It is based in Guangzhou. Most of these are beauty products and include color cosmetics, eye makeup, lip makeup, face makeup, skincare, nail products, and makeup tools and accessories. The firm went public in the US in late 2020 and raised over $617 million at an initial offering, valuing it at over $7.8 billion. Some of the brands that the company owns include Perfect Diary, Little Ondine, and Abby’s Choice. The three brands served over 23 million customers when the firm went public. Recession fears in the US are likely to weigh on the sales of the firm in the country in the coming months.
On May 24, Yatsen Holding Limited (NYSE:YSG) posted earnings for the first quarter of 2022, reporting losses per share of $0.04 and a revenue of more than $140 million, down close to 36% compared to the revenue over the same period last year.
At the end of the second quarter of 2022, 7 hedge funds in the database of Insider Monkey held stakes worth $74 million in Yatsen Holding Limited (NYSE:YSG), compared to 13 in the previous quarter worth $36 million.
1. RLX Technology Inc. (NYSE:RLX)
Number of Hedge Fund Holders: 9
RLX Technology Inc. (NYSE:RLX) makes and sells e-vapor products. It is based in Beijing. The company went public in the US in early 2021 and raised over $1.4 billion at an initial offering, valuing the firm at over $46 billion on the first day of trading. Since then, amid tightening regulations in China and the US, as well as consumer pressures due to slowing demand, the market capitalization of the company has dropped down to just a little over $2 billion. The firm recently received a License for Manufacturing Enterprise from the State Tobacco Monopoly Administration in China.
RLX Technology Inc. (NYSE:RLX) posted earnings for the first quarter of 2022 on May 20, reporting earnings per share of $0.044 and a revenue of more than $270 million, down close to 26% compared to the revenue over the same period last year.
At the end of the second quarter of 2022, 9 hedge funds in the database of Insider Monkey held stakes worth $106 million in RLX Technology Inc. (NYSE:RLX), compared to 10 the preceding quarter worth $82 million.
You can also take a peek at 10 Stocks Reddit’s WallStreetBets is Buying in July 2021 and Top Robinhood Stocks Popular on Reddit.
