3 Chinese technology stocks forecast 2025: JD PDD and BZUN

Forget Alibaba（BABA)! These 3 Chinese technology stocks are more worth buying

　　 Hello everyone, Alibaba is China's largest e-commerce and cloud company. From January to late May, Alibaba's market value has shrunk by nearly 10%, lagging behind many peers. Antitrust investigations in China, stricter auditing standards in the United States, and funding from growth stocks to value stocks have all dragged down Alibaba's stock price.

　　 Alibaba’s stock is trading at an expected price-to-earnings ratio of 18 times, which may seem cheap, but analysts still expect Alibaba’s earnings to fall by 3% this year because it has absorbed a record US$2.75 billion in antitrust fines. It also needs to stop exclusive deals with big brands, which may weaken the company's defenses against smaller e-commerce markets.

　　 But this is not all. Alibaba may be forced to divest media assets and share user data with the government, and the group's financial technology subsidiary Ant Group, as a financial holding company, will be subject to stricter supervision. Alibaba may be able to withstand all these headwinds and recover for a long time, but the company's stock may still be dead money in the foreseeable future.

　　Investors should not bet that Alibaba may make a comeback, but should consider buying Chinese technology stocks that are not under supervision. These three e-commerce companies meet the requirements: JD.com, Pinduoduo, and Baozun.

　 1. JD.com(JD)

　　JD is the second largest e-commerce company in China after Alibaba. However, it is actually the largest direct retailer in the country because most of its revenue comes from the company's first-party market.

　　 Unlike Alibaba, most of Alibaba's e-commerce revenue comes from third-party sellers on Taobao and Tmall. Jingdong is responsible for inventory and fulfills orders through its own logistics network. This business model is more capital intensive, but it can protect buyers from counterfeit products.

　　 Alibaba co-founder Jack Ma once said that JD.com’s low-profit business model will end in "tragedy", but economies of scale gradually come into play to enable JD.com to generate sustained profits. JD’s logistics department also balances costs by providing services to third-party customers.

　　 In 2020, JD’s revenue and adjusted profit increased by 29% and 57%, respectively. The company has nearly 500 million active consumers in the first quarter of this year, and analysts expect JD.com's revenue and profit to grow by 26% and 13% respectively this year.

　　JD.com is not facing regulatory heat like Alibaba. Its profit margin is expanding. The expected price-to-earnings ratio is only 28 times and the market-to-sales ratio is less than 1 time.

　2. Pinduoduo(PDD)

　　 Pinduoduo is the third-largest e-commerce company in China, but in terms of total shoppers, it is actually bigger than JD.com, with 628 million active buyers every year. Like Alibaba, Pinduoduo generates most of its revenue through third-party merchant listing fees and advertising.

　　Pinduoduo has opened up a niche market in the discount market, encouraging shoppers to form groups to enjoy group discounts. This strategy relies heavily on users to share links on social networks and is popular in low-end cities in China.

　　Pinduoduo subsequently expanded to China's top cities and cooperated with big brands to challenge Alibaba and JD.com. It has also gained a first-mover advantage in online agriculture by helping 12 million farmers ship products directly to customers.

　　Pinduoduo's revenue surged 97% in 2020 and then increased by 239% in the first quarter of 2021. Analysts predict that the company's full-year revenue will grow by 92%. For a stock that trades at 8 times this year's market-to-sales ratio, these estimates are impressive.

　　 Pinduoduo is still unprofitable because of aggressive discounts, subsidies for sellers, and the company's logistics network expansion. However, the company's adjusted operating and net losses narrowed year-on-year in the last quarter. As the scale expands, the company may gradually become profitable.

　3. Baozun e-commerce(BZUN)

　　 Baozun is sometimes referred to as the "Shopify of China", but this comparison is misleading. Unlike Shopify, which provides self-service e-commerce services for small businesses, Baozun mainly provides end-to-end e-commerce solutions for large international companies.

　　 For large American companies, it may be difficult to establish a Chinese website, carry out marketing activities, and establish an e-commerce market, so Baozun is a "one-stop" store that can meet all these needs. It also helped companies integrate their online marketplaces with Tmall, JD.com, and Pinduoduo, which enabled Baozun to play a balancing role in China's booming e-commerce sector.

Baozun’s business model is capital-intensive, but in recent years, it has shifted from a “distribution-based” model of direct fulfillment of orders to a “non-distribution”-based model, thereby expanding profit margins and allowing Baozun’s customers to directly sell products. Ship to their customers.

　　 Baozun’s 2020 revenue and adjusted earnings will grow by 22% and 50%, respectively. 92% of the company's website transaction value comes from a non-distribution business. Analysts expect the company's revenue and adjusted earnings to grow by 35% and 5% respectively this year.

　　 This often-overlooked stock has a price-to-earnings ratio of only 19 times and a price-to-sales ratio of 1.5 times this year. If investors fall in love with Chinese technology companies again, this may make it an undervalued growth stock. The above analysis is only a personal opinion and does not constitute any investment advice. The stock market is risky and investment needs to be cautious.

Comments

FNKO VS PLBY: Which NFT stock is more attractive for investment?

The market for NFT stocks is recently booming, and investors have begun to show strong interest in NFT stocks. NFT is a digital asset created using blockchain encryption technology, such as works of art, music or video, etc. Each NFT has a unique digital signature to determine its unique attributes, making it difficult for NFTs to exchange with each other. NFT provides a unique way for content creators to earn income by paying copyright fees or selling their artworks directly to consumers. According to data provided by Forbes Advisor, since November 2017, nearly $174 million has been used for NFT transactions. On May 12, Eastern Time, eBay (EBAY.US) added NFT to its online shopping mall product list. Funko (FNKO.US) and PLBY Group (PLBY.US) recently had the most popular NFT concept stocks, which stock is more attractive for investment? Let's look at what Wall Street analysts think of these two stocks. Funko is a pop culture consumer goods company who...

TSM Stock Forecast and Price Target 2021

Today, I will analyze TSMC stocks in-depth with you. In the semiconductor sector, TSMC has always been my most promising stock. TSMC has just announced its results for the fourth quarter of 2020. At the same time, there are new developments in the entire chip industry recently. Therefore, today I will combine the financial report and chips. The latest developments in the industry to analyze the trend of TSMC stocks, First of all, we analyze TSMC’s fourth-quarter and full-year 2020 financial reports to see what are the key points worthy of investors’ attention. First, TSMC’s fourth-quarter revenue and profitability are very good. Compared with the outlook for Q4 in Q3, the outlook at that time was US$12.4-12.7 billion, and the actual revenue was US$12.68 billion. Actual revenue As the upper limit of the outlook, the gross profit margin outlook is 51.5%-53.5%, while the actual gross profit margin is 54%, which is better than the outlook. The operating net profit margin is expected t...

Bitcoin vs Ethereum vs Dogecoin: Which one is suitable to buy?

Bitcoin（BTC), Ethereum(ETH), and Dogecoin（DOGE） are the three most-watched cryptocurrencies. As a young investor, he has a strong mentality of pursuing returns and accepting new things. In recent years, cryptocurrencies have become the new favorites of many people. In particular, these three digital currencies have attracted the most attention: Bitcoin, Ethereum, and Dogecoin. However, not all cryptocurrencies are created equally and trying to determine which type is right for you can cause confusion. Each currency has advantages and disadvantages, and which currency you choose to invest in will depend on your situation. Investing in cryptocurrency must bear the risk First of all, you must consider whether cryptocurrencies are suitable for you because all cryptocurrencies are highly speculative and subject to great volatility. They have experienced the "currency disaster" in recent weeks, with an adjustable-rate of more than 30%. Fur...

XPEV stock forecast 2025: can selling software make money?

The new energy vehicle industry has a relatively high degree of attention, that is, Xiaopeng(XPEV) released its first-quarter 2021 financial report. The general performance data of XPEV are as follows: The total delivery volume reached 13,340 units, a year-on-year increase of 487.4%. Total revenue was USD 450 million, a year-on-year increase of 616.1%. Auto sales revenue was US$429 million, an increase of 655.2% year-on-year. The gross profit margin was 11.2%, compared with -4.8% and 7.4% in the same period last year and the fourth quarter of 2020, respectively. The gross profit margin of automobile sales was 10.1%, compared with -5.3% and 6.8% in the same period last year and the fourth quarter of 2020. To be honest, this data itself is not eye-catching in comparison with Weilai and ideals. Although for officials, this quarter’s financial report has ushered in two major milestones. One is that gross profit margin continues to improve and ...

4 economic indicators that must be observed!

Stocks are one of the simplest and most passive types of income, but when we invest in the stock market, we always feel that the current stock price is on the high side, but if we don’t enter the market to buy stocks, we are afraid that the stock price will continue to rise. When the U.S. stock market continues to hit new highs, should it enter the market or should it wait and see and wait for the crash to enter the market. First of all, I want to declare that I am a value investor and insist on the BUY AND HOLD operation method. We all know that stocks are cyclical, and we are now experiencing the longest bull market in history. Stock market analysts believe that a crash may come at any time, but we just have no way to predict the specific time. I believe everyone understands. But I know that a bear market will definitely come. The long-term trend of stocks often has several economic data as a reference. Today we will take a look at these economic data. source: tradingview...

What is a spac stock in the Investment market?

Let me talk about SPAC first. SPAC (Special Purpose Acquisition Company) means "Special Purpose Acquisition Company", also known as "Blank Check" or "Shell Company". As the name suggests, this company has no actual business, and its essence is a financial innovation tool that provides companies with listing services. More simply, SPAC is a shell resource company established by professional institutions such as investment banks and fund companies as promoters. The sole purpose of this company's listing is to find the target company, through reverse mergers and acquisitions, to achieve the target company's listing and financing. Most people pay attention to SPAC from 2020, but in fact, SPAC is nothing new. The SPAC structure was first born in the 1990s and was pioneered by David Nabers, who worked for the Wall Street investment bank GKN. However, in the past few decades, compared with traditional IPOs, the number of SPACs is very limited, and ...

Barrick Gold stock price soars after Warren Buffett's buys a stake?

Has Buffett bought gold ? Buffett has not changed. Buffett does not want to hold physical gold, but he has never said that he will not buy shares in gold mining companies. Looking at the entire market, there are not many stocks that fit Buffett's trading. And Barrick Gold Company is just one of them. Buffett bought nearly 21 million shares, and the current share value is $563 million. We now look at the underlying logic of Buffett's purchase of Barrick Gold stock. Compared with physical gold ETFs, gold mining companies can respond positively to market conditions. There are financial reports to analyze, With dividends and stock repurchase plans, gold mining companies have the right to reward shareholders through capital return plans. In contrast, the physical gold ETF has no gains. The market generally believes that it is still in the upward cycle of gold prices . The current international environment is one where black swans emerge one after another. While paying att...

TSMC VS Nvidia, AMD, Intel. How to choose semiconductor stocks?

The general pattern of the semiconductor industry, the overall trend and target price of TSMC in 2021, how the Nvidia(NVDA), AMD, and Intel(INTC) semiconductor stocks are laid out, what is the decisive factors, and whether there is a predictable time point, we conducted a more systematic discussion. The big picture of the semiconductor industry The semiconductor industry is cyclical. Since the second half of 2019, global semiconductors have entered a new round of the business cycle. This is very important. Only when you understand this reason can you hold stocks with peace of mind. The following analysis is based on the time dimension. In the short term, looking at one to three months now, with the outbreak of the epidemic again, the production capacity of 8-inch wafers are in short supply, the semiconductor industry chain is out of stock, wafer foundry, packaging, and testing links have seen price increases, and production capacity is in short supply. High economic situation, In ...

Capital Flows Tracking Weekly

Release: January 27, 2021 The weekly Capital Flows estimate the industry's total, based on the report covering more than 98% of mutual fund and ETF assets. Collect actual mutual fund net new cash flows and ETF net issuance together monthly; therefore, there is a discrepancy between these weekly estimates and monthly flows. The data from the previous few weeks reflect revisions due to data adjustments, reclassifications, and changes in the number of fund reports. Mutual fund data represents the estimated value of net new cash flows, that is, new sales minus redemptions plus net exchanges, while exchange-traded fund (ETF) data represents net issuance, that is, net issuance minus total Redemption amount. This series does not include data on mutual funds that primarily invest in other mutual funds and ETFs that primarily invest in other ETFs.

AMZN stock forecast 2025： Amazon's main advantages

On July 6, after the US stock market opened, Amazon broke through $3,600, a record high. Amazon has been oscillating between 3000-3500 US dollars in the past year, and the stock price finally broke through. Amazon is a stock that has a high valuation from PE but is seriously undervalued by the market from the perspective of its development prospects. It is one of my favorite technology stocks. Amazon's main advantages are: 1. Amazon's current GMV is only half that of Alibaba. Looking at the current penetration rate of e-commerce in China and the future penetration rate of e-commerce in the United States, we will find that Amazon e-commerce has huge growth potential in the United States. Amazon e-commerce is far from saturated in the United States. 2. Cloud computing has unlimited potential. As the industry leader, Amazon's cloud computing can maintain a growth rate of 20%-30% for many years in the future. 3. The international ...

FinanceLinkway

Search This Blog