7 Most Profitable Chinese Stocks To Invest In

1. JD.com (NASDAQ:JD)  

TTM Net Income: $4.31 Billion  

5-Year Net Income CAGR: 38.36%  

Number of Hedge Fund Holders: 59  

JD.com (NASDAQ:JD) is a leading Chinese e-commerce company that specializes in retailing consumer electronics, apparel, and household products. In addition to its e-commerce platform, the company has a diverse range of operations, including logistics, marketing services, and property classifieds, as well as other innovative technology initiatives.

JD.com (NASDAQ:JD) is making significant investments in upgrading its third-party merchant platform with the goal of achieving a more optimized product mix that will propel stronger revenue growth and enhance profit margins. By doing so, the company is positioning itself for long-term success and competitiveness in the e-commerce market, ultimately benefiting its overall performance and sustainability. The company is also using cutting-edge technologies such as drones and AI to enhance its logistics and supply chain capabilities. 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) has demonstrated exceptional financial growth, with a net income of $4.31 billion for the twelve months ending June 30, representing a significant 37.07% year-over-year increase and a 5-year net income compound annual growth rate (CAGR) of 38.36%, which is a testament to the company’s ability to consistently deliver strong financial performance.

While we acknowledge the potential of JD.com (NASDAQ:JD) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than JD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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