7 Cheap Chinese Stocks To Invest In Now

4. NetEase (NASDAQ:NTES)  

Number of Hedge Fund Investors: 35  

Forward P/E Ratio as of September 29: 13.07

NetEase (NASDAQ:NTES) focuses on online services, with its core operations concentrated in the gaming, education, and e-commerce sectors. The company’s gaming division is responsible for developing and publishing a vast array of popular mobile and PC games, both within China and globally. With a portfolio of over 100 game products, NetEase (NASDAQ:NTES) has established itself as a notable player in the industry, forming strategic partnerships with renowned gaming companies, including Blizzard.

NetEase (NASDAQ:NTES) boasts a robust pipeline of upcoming game releases, with several recent launches. Notably, the company’s Naraka: Bladepoint Mobile,, launched in China in July, has garnered positive reviews from players. Furthermore, its Hero Shooter and Marvel Rival have also received enthusiastic feedback from the gaming community. Expanding its reach, NetEase (NASDAQ:NTES) has also successfully launched Marvel Rivals on prominent gaming platforms, including PlayStation 5, Xbox Series X|S, and PC.

NetEase (NASDAQ:NTES) has an impressive $19 billion in cash and equivalents against almost no debt burden. This financial stability provides the company with the flexibility to aggressively invest in research and development (R&D) initiatives, as well as take risks on innovative new game releases. The combination of NetEase’s (NASDAQ:NTES) solid financial foundation and its promising pipeline of upcoming games makes the company an attractive investment opportunity.

NetEase’s (NASDAQ:NTES) stock is trading 13.07 times its forward-year earnings, which represents a 6.21% discount to the sector median of 13.94. The company’s earnings are expected to grow by almost 1% this year. However, industry analysts have a consensus Buy rating on the stock, setting an average share price target of $115.34, which indicates a 20.83% upside potential from its current levels. As of the second quarter, 35 hedge funds own stakes in the company valued at $993.75 million. According to Insider Monkey’s hedge funds database, Orbis Investment Management is the largest shareholder, with stakes worth $182.28 million.