In this article, we discuss the top 5 Chinese companies on NASDAQ. If you want to read our analysis of these companies, go directly to the Top Chinese Companies on NASDAQ.
5. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 28
Li Auto Inc. (NASDAQ:LI) is a Chinese electric vehicle company with its headquarters in Beijing and production facilities in Changzhou. The company delivered 11,496 Li One’s in May, reflecting an increase of 165.9% YoY. Since its debut in 2019, Li Auto Inc. (NASDAQ:LI) has delivered 171,467 vehicles.
On May 10, Ming Hsun at Bank of America gave Li Auto Inc. (NASDAQ:LI) a Buy rating with a price target of $33. In a report issued to investors, the analyst highlighted that Li Auto Inc. (NASDAQ:LI) stock is a Buy because of the solid new model pipelines. Hsun also warned that there is uncertainty due to the consumption power of the batteries and the supply chain-related challenges. In Q1 2022 results, Li Auto Inc. (NASDAQ:LI) reported defensive margin trends and a stable free cash flow.
Li Auto Inc. (NASDAQ:LI) was held by 28 hedge funds as of Q1 2022.
4. Huazhu Group Limited (NASDAQ:HTHT)
Number of Hedge Fund Holders: 27
Huazhu Group Limited (NASDAQ:HTHT) is a Chinese fast-growing multi-brand hotel group that operates 6,187 properties spread across 16 countries as of June 30, 2020. The company has been ranked number seven in the hotel group.
On June 1, Fawne Jiang at Benchmark gave Huazhu Group Limited (NASDAQ:HTHT) a price target of $40 and maintained a Buy rating on the stock despite the company reporting mixed Q1 2022 results and expecting Q2 to be difficult. All these developments have already been factored into the stock price. In a note issued to investors, Jiang acknowledged that Huazhu Group Limited (NASDAQ:HTHT) is facing near-term headwinds due to COVID-19-related disruptions. However, in his opinion, the company has the potential to become a leader in the hotel industry and a consolidator once the COVID-19-related concerns are addressed.
Huazhu Group Limited (NASDAQ:HTHT) was held by 27 hedge funds as of Q1 2022.
3. Bilibili Inc. (NASDAQ:BILI)
Number of Hedge Fund Holders: 24
Bilibili Inc. (NASDAQ:BILI) is a Shanghai-based video streaming platform that started as a focal point for Animation, Comics, and Games (ACG) but has now pivoted as a pan-entertainment provider and includes content related to anime, education entertainment, games, knowledge, lifestyle, and technology.
It is the most preferred video streaming platform amongst Gen-Z in China, with 78% of the users under the age of 35. The monthly active users (MAUs) for Bilibili Inc. (NASDAQ:BILI) stood at 272 million during FY21. Meanwhile, the average time spent on this platform was one hour and 22 minutes. The number of average monthly active content contributors was recorded at 2.7 million, signifying a 62% YoY increase. Some experts call Bilibili Inc. (NASDAQ:BILI) the answer to YouTube in China as it generates revenue from a wide range of sources.
Here’s what Tao Value said about Bilibili Inc. (NASDAQ:BILI) in its Q3 2021 investor letter:
“As witnessed in the past quarter, the government intervention in Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We also exited Bilibili (ticker: BILI), given its priced-in valuation in the context of Chinese ADR confidence loss.”
Bilibili Inc. (NASDAQ:BILI) was held by 24 hedge funds as of Q1 2022.
2. JD.com, Inc. (NYSE:JD)
Number of Hedge Fund Holders: 59
Headquartered in Beijing, JD.com, Inc. (NYSE:JD) is one of China’s leading e-commerce retailers. In terms of revenue, it is the third-largest internet company in the world.
To serve over 300 million customers, JD.com, Inc. (NYSE:JD) operates its national logistics network, which allows the company to deliver up to 90% of orders within a day. JD.com, Inc. (NYSE:JD) claims to have the most dependable delivery service amongst the major e-commerce companies in the world.
On May 19, Shyam Patil at Susquehanna gave a Neutral rating on JD.com, Inc. (NYSE:JD) stock. Even though the analyst lowered the price target from $66 to $55, he presented a positive opinion on JD.com, Inc.’s (NYSE:JD) positioning in the expanding Chinese e-commerce segment. Patil appreciated the company’s efficiency in incubating new businesses and believes that the company’s “hybrid 1P/3P model is attractive.”
In Q1 2022, JD.com, Inc. (NYSE:JD) posted an EPS Normalized Actual of $0.38, beating the analysts’ estimates by $0.13. Moreover, the company surpassed the revenue estimates by $850.7 million.
Here’s what Argosy Investors said about JD.com, Inc. (NYSE:JD) in its Q3 2021 investor letter:
“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”
As of Q1 2022, JD.com, Inc. (NYSE:JD) was held by 59 hedge funds.
1. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 47
Baidu, Inc. (NASDAQ:BIDU) is a multinational technology corporation based in Beijing’s Haidian District. The company specializes in Internet-related services as well as artificial intelligence.
On May 31, Shyam Patil at Susquehanna maintained a Positive rating on Baidu, Inc. (NASDAQ:BIDU) stock with a price target of $200. The analyst stated that even though the company is facing near-term headwinds, its AI business is still strong. In Q1 2022, Baidu, Inc. (NASDAQ:BIDU) recorded an EPS Normalized Actual of $1.67, surpassing the analysts’ estimates by $0.83. Moreover, revenue was posted at $4.22 billion, beating the analysts’ estimates by $58.95 million.
Baidu, Inc. (NASDAQ:BIDU) was mentioned in the Q3 2021 investor letter of Harding Loevner. Here’s what the investment management firm said:
“In contrast, Baidu undertook and is now emerging from a much needed branching out from its original business of internet search, which has faced waves of regulatory threats and ferocious competition from other new online ad formats. Over the past several years it has invested heavily in the next longterm growth opportunities in Al, what it sees as its real core competency. After racking up over 12 million kilometers (7.5 million miles) of testing, Baidu’s autonomous driving system (ADS), Apollo, is now being deployed on certain less congested designated parts of the cities. In July, it introduced its robo-taxi services, Apollo Go, in Guangzhou (pop. 15 million), the fourth city where the service has launched, and it expects to roll out to 30 more cities over the next three years. Several Chinese carmakers such as Great Wall have announced plans to integrate Baidu’s system into their vehicles. Baidu’s Al initiatives should be viewed favorably by regulators because they align with overarching central government objectives around technology leadership and
reducing carbon emissions.Baidu’s technological innovation in internet search, Al, and ADS are made possible by accelerating advancement in semiconductors, a trend of considerable significance to our portfolio. The broad adoption of the internet of things (loT) and fifth-generation (5G) mobile networks, the growing importance of Al and machine learning applications, and the mass uptake of electric vehicles (EVs)—all enabled by advanced semiconductors—are transforming a host of industries.”
Baidu, Inc. (NASDAQ:BIDU) was held by 47 hedge funds as of Q1 2022.
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