5 Cheap Chinese Stocks to Buy According to Analysts

In this article, we discuss 5 cheap Chinese stocks to buy according to analysts. If you want to see more stocks in this selection, check out 11 Cheap Chinese Stocks to Buy According to Analysts. 

5. Weibo Corporation (NASDAQ:WB)

Average Price Target: $20.58
Upside Potential: 45.44%
Price to Earnings Multiple: 13

Weibo Corporation (NASDAQ:WB) is the go-to company for anyone seeking exposure to China’s social networking space. It operates a social media platform that generates advertising and marketing revenues. It continues to see a recovery of its core business with the reopening of the economy characterized by solid user engagement.

In the first quarter, the social networking giant generated $355 million in advertising and marketing revenues as consolidated revenues topped $413 billion. Weibo Corporation (NASDAQ:WB) has since declared a $0.85 a-share special dividend as part of its effort to return value to shareholders.

While trading with a price-to-earnings multiple of 13, it commands a $20.58 average price target on Wall Street representing 45.44% upside potential.

4. Full Truck Alliance Co. Ltd. (NYSE:YMM)

Average Price Target: $11.07
Upside Potential: 49%
Price to Earnings Multiple: 25

Headquartered in Guiyang, China, Full Truck Alliance Co. Ltd. (NYSE:YMM) operates a digital freight platform connecting shippers with truckers. Its core business enables shipments across distance ranges and cargo weights across China. As the Chinese economy opens up and grows from the COVID-19 slowdown, the company is expected to see strong business amid increased spending in the economy.

It delivered impressive Q1 2023 results, with revenue increasing 27.71%, attributed to improved activity among truckers and shippers that drove daily order volume higher. While trading with a price-to-earnings multiple of 25, Full Truck Alliance Co. Ltd. (NYSE:YMM) commands an average analyst price target of $11.07  representing  49% upside potential.

3. Alibaba Group Holding Limited (NYSE:BABA)

Average Price Target: $142.71
Upside Potential: 56.31%
Price to Earnings Multiple: 24.1

Alibaba Group Holding Ltd (NYSE:BABA) is turning out to be one of the cheapest Chinese stocks with the easing of regulatory scrutiny from authorities in China. While trading at about $91 a share, it is flat for the year and about 40% from its IPO share prices. In addition, its valuation has tanked to its lowest level with a price-to-sales multiple of 2, much lower than the five-year average of about 6.

The easing of covid 19 restrictions and regulatory pressures should significantly impact a company that has grown revenues at an annualized rate of 35%. In a bid to unlock more value, management has sought to break the conglomerate into six different business units, each with an independent management team. The restructuring should reduce bureaucracy and improve the focus.

Likewise, analysts on wall street remain optimistic about Alibaba Group Holding Ltd (NYSE:BABA)’s long-term prospects going by the average price target of $142.71, implying a 56.31% upside potential from current levels.

2. GDS Holdings Limited (NASDAQ:GDS)

Average Price Target: $18.60
Upside Potential: 57.62%
Price to Earnings Multiple: N/A

GDS Holdings Limited ((NASDAQ:GDS) is a leading developer and operator of high-performance data centres in China and South East Asia. The company has been firing from all angles on the core business despite facing a challenging macro environment. It delivered a 7.4% year-over-year increase in revenues to $350 million in Q1 2023.

In the recent past, it’s been focusing on faster backlog delivery and winning new business as it capitalizes on the reopening of the economy. It’s also focused on pursuing growth opportunities on the global scene through its anchor customer in the Johor sire. GDS Holdings Limited (NASDAQ:GDS) has an $18.60 average price target on wall street representing 57.62% upside potential from current levels.

1. JD.com, Inc. (NASDAQ:JD)

Average Price Target: $60.77
Upside Potential: 60%
Price to Earnings Multiple: 23.15

JD.Com, Inc (NASDAQ:JD) was one of the Chinese tech giants under pressure in the first half of the year as Chinese regulators ramped up antitrust probes and crackdowns. With signs of the brutal regulatory crackdown coming to an end, the stock sentiments have improved significantly.

The major Chinese online retailer has also benefited from stimulus packages that have helped shore up the economy. Increased consumer spending is expected to further bolster the company’s prospects heading into year-end. JD. Com, Inc (NASDAQ:JD) has already unveiled an ambitious 20-year blueprint to build seven enterprises valued at over $13 billion. It’s also in the process of opening retail grocery stores to unlock new revenue opportunities. While trading for $39 a share of the stock, it boasts a price-to-earnings multiple of 23 with a 60% upside potential according to average price target of $60.77.

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