7 Cheap Chinese Stocks To Invest In Now

2. JD.com (NASDAQ:JD)  

Number of Hedge Fund Investors: 59  

Forward P/E Ratio as of September 29: 10.04  

JD.com (NASDAQ:JD) is one of China’s largest e-commerce companies specializing in the retail of consumer electronics, apparel, and household products. In addition to its e-commerce platform, the company also operates in various other sectors, including logistics, marketing services, and property classifieds, as well as other technology initiatives. JD.com (NASDAQ:JD) is known for its vast logistics network and strong commitment to customer service and provides a seamless shopping experience through fast delivery and a wide range of products. The company also focuses on cutting-edge technologies such as drones and AI to improve its logistics and supply chain.

JD.com (NASDAQ:JD) is investing heavily in improving its third-party merchant platform. By enhancing its third-party merchant platform, the company aims to achieve a better product mix, which will drive stronger revenue growth and improve profit margins in the future. This, in turn, will ultimately benefit the company’s long-term performance and position it for sustained success in the competitive e-commerce market. Ariel Investments stated the following regarding JD.com (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 fulfilment 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.”

JD.com (NASDAQ:JD) is trading 10.04 times it forward year earnings, which represents a 42% discount to the sector median of 17.34. The company’s earnings are expected to grow by 24.54% this year. At the end of the second quarter, 59 hedge funds held stakes in the company worth $1.33 billion. According to Insider Monkey’s hedge fund database, Alkeon Capital Management is the largest shareholder, with stakes valued at $171.47 million.