We recently compiled a list of the 10 Chinese Penny Stocks to Buy According to Analysts. In this article, we are going to take a look at where Adlai Nortye Ltd. (NASDAQ:ANL) stands against other Chinese penny stocks to buy according to analysts.
The announcement of the Chinese stimulus has somewhat created interest among investors and market pundits. China’s local market reacted positively after the government announced that it would apply a ‘moderately loose’ strategy for monetary policy in 2025. This will be China’s first major shift in economic policy since 2011. The Chinese government could take a more proactive approach to fiscal policy to stabilize property and stock markets.
READ ALSO: 10 Best Canadian Stocks to Buy Under $10 and 10 Most Profitable European Stocks To Invest In.
China’s President Vows to Meet Growth Target
China’s president, Xi Jinping, has assured that the country will remain the world’s ‘growth engine’ and meet its GDP growth target of 5% in 2024. The Chinese government has taken bold steps to support its economy. Moreover, the stimulus has come at a time when the economy is struggling badly and there are potential tariff threats from the new U.S. administration. Despite that, China has been facing lower imports and exports, which greatly threatens the economy against Trump’s tariffs.
The outbound shipments saw a 6.7% growth in November, missing estimates by 8.5% and down from a 12.7% growth in October 2024. On top of that, the imports declined 3.9% in November, the worst performance for imports in nine months, as reported by Reuters.
China’s stimulus of $1.5 trillion, or nearly 10 billion yuan, to support its economy has given some hope. Further loosening the policy would support small businesses. However, for investors to be attracted to the Chinese stock market, something positive needs to happen, especially how the economy reacts to the policy during the first half of 2025.
“The actual delivery has disappointed high hopes several times already over the past two years. We are back to the tricky stage of waiting for actual numbers to see whether it lives up to expectations,” said Xin-Yao Ng, investment director on the Asian equities team at abrdn.
The Hang Seng Index has plunged over 3% over the last five days, as of December 17, while the CSI 300 index has dropped by nearly 1.50% in the last five days but it is up by almost 16% year to date. We can see the market’s mixed reaction to the recent events.
You can also visit and see 12 Cheap Chinese Stocks to Buy According to Hedge Funds.
Photo by Myriam Zilles on Unsplash
Our Methodology
To compile our list of the 10 Chinese penny stocks to buy according to analysts, we used a Finviz screener to list down all Chinese penny stocks under $5. We then picked the 10 stocks with the highest upside (over 25%) according to analysts, as of December 17. The list is ranked in ascending order of analysts’ estimated upside.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Adlai Nortye Ltd. (NASDAQ:ANL)
Share Price (As of December 17): $2.36
Analysts Upside: 281%
Established in 2017, Adlai Nortye Ltd. (NASDAQ:ANL) is a global clinical-stage biopharmaceutical firm that is developing differentiated, innovative immuno-oncology medicines. Adlai Nortye made its IPO on NASDAQ in September 2024. The company is involved in R&D and the development of cancer therapies. Adlai Nortye’s pipeline includes three drug candidates in the clinical stage: buparlisib (AN2025), palupiprant (AN0025), and AN4005, alongside three candidates in the preclinical stage.
AN2025 is the lead product of Adlai Nortye Ltd. (NASDAQ:ANL) which is designed to treat solid tumors. The potential treatment candidate is under Phase 3 clinical trials for patients suffering from metastatic squamous neck cancer. AN2025 could potentially become the first drug to cure metastatic squamous neck cancer patients. Furthermore, the company’s other products to treat metastatic cancer including AN4005, a first-in-class oral PD-L1 inhibitor, and AN8025, a multifunctional fusion protein that serves as a T cell and APC modulator, are also progressing in their initial trials.
Adlai Nortye Ltd. (NASDAQ:ANL) is creating an experienced team with the additions of Archie Tse, M.D., Ph.D., as the Head of Research and Development, an expert in oncology drug development, and Roger Sawhney, M.D., the newest member of Adlai’s board of directors. According to the National Cancer Institute of Health (NIH), in the US alone, the number of people suffering from metastatic breast, prostate, lung, colorectal, or bladder cancer, or metastatic melanoma is projected to rise from 623,405 in 2018 to 693,452 by 2025. This shows a potential opportunity for Adlai to enter the market and make a mark.
Adlai Nortye Ltd. (NASDAQ:ANL) is focused on making a difference in curing metastatic cancer patients. AN2025 remains a key product for the company and the firm expects it to be on track to report the Phase 3 OS data in the first quarter of 2025, which would be potentially a game changer for the firm. Being a new biopharmaceutical firm with huge potential, ANL can gain massively in the long term.
Overall, ANL ranks 1st on our list of Chinese penny stocks to buy according to analysts. While we acknowledge the potential of ANL to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ANL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
