51job, Inc. (ADR) (NASDAQ:JOBS) is an online job recruiter. Last week’s quarterly report wasn’t very inspiring. Its online recruitment services revenue grew by just 8% after years of double-digit top-line growth. Earnings also declined, falling short of Wall Street estimates after five straight quarters of bottom-line beats. 51job, Inc. (ADR) (NASDAQ:JOBS) is still in the right place at the right time in one of the few industries that China’s restrictive government wants to make sure keeps growing in cyberspace.
NetEase, Inc (ADR) (NASDAQ:NTES) is a pioneer in massive multiplayer online role playing games. It joins many smaller peers in trading at dirt cheap valuations. The bearish thesis is that China’s government will crack down on addictive virtual games, but NetEase, Inc (ADR) (NASDAQ:NTES) has been able to grow steadily through the hoops it has had to jump through over the years. Revenue, earnings, and its audience of gamers continue to grow.
SouFun Holdings Limited (ADR) (NYSE:SFUN) commands the lowest of multiples, but it’s also a company that’s sorely misunderstood. SouFun Holdings Limited (ADR) (NYSE:SFUN) operates an online portal related to real estate. Yes, China’s in a real-estate bubble. It will pop. However, SouFun Holdings Limited (ADR) (NYSE:SFUN) provides relevant info on home improvement projects and furniture purchases that transcend the feverish pace of actual housing sales.
Finally, we have Qihoo 360 Technology Co Ltd (NYSE:QIHU). The company behind China’s most popular Web browser and a suite of online security software has the highest earnings multiple on this list, but it’s also on pace for pretty spectacular growth. Wall Street’s targeting revenue to soar 64% this year and 40% next year. It’s also just starting to monetize its surprisingly popular search engine, and many analyst projections have yet to bake in material growth on that front.
The article 5 Chinese Stocks That Are Still Cheap originally appeared on Fool.com.
Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends 51job, Baidu, and NetEase.com. The Motley Fool owns shares of Baidu.
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