5 Cheap Chinese Stocks to Buy Now

4. Daqo New Energy Corp. (NYSE:DQ)

Stock Price as of May 31: $48.9

Hedge Fund Holders: 18

Daqo New Energy Corp. (NYSE:DQ) is involved in the production of monocrystalline silicon and polysilicon for use in solar photovoltaic (PV) systems.

The Shihezi, Xinjiang province-based corporation, was upgraded to an Overweight rating on May 4 by Alan Hon at JPMorgan. The analyst also increased the price target on Daqo New Energy Corp. (NYSE:DQ) from $51 to $55. Hon cited valuation and an expectation that there will be a 30% decrease in the cost of PV systems as reasons for the upgrade. Daqo New Energy Corp. (NYSE:DQ) intends to boost shareholder return by either paying out a dividend or repurchasing its shares from the open market. This is because Xinjiang Daqo, an 80% owned subsidiary, announced a dividend in March, which is expected to be received by June this year. Investors are expecting a $2 per share dividend from Daqo New Energy Corp. (NYSE:DQ).

Presently, the shares are trading nearly 48% down from their 52-week high of $90 last May. The overcorrection is due to the recent COVID-19-related lockdown. Daqo New Energy Corp. (NYSE:DQ) stock price is expected to recover following ease in lockdown restrictions.