Optimism has increased that Washington could soon enter into a deal with Beijing to end their lengthy trade conflict, which has helped fuel this year's 16% rally in the near-supreme. height. Indeed, the KraneShares CSI China Internet ETF (NYSE 🙂 has won 29% this year so far, considerably better than the wider market.
As such, we look at three Chinese technology-related stocks, each of which will apparently perform better in the coming weeks amid renewed optimism for a solution to the trade war between the United States and China. One is a proven global market leader in its field, the second operates an online website for automotive users, and the third is a recent Fintech IPO, which has been in trouble since last month's trade debut
1 . Alibaba Group Holdings
Perhaps no Chinese e-commerce company is better known than Alibaba (NYSE :). It dominates the market in China with a 58% share in online retail. The e-commerce platform is supported by two market places, Taobao, similar to eBay (NASDAQ :), and Tmall, which is more a managed site, with brands such as Nike and Zara.
With those leading platforms, Alibaba enjoys significant competitive advantages because retailers, both foreign and domestic, look to the company to reach China & # 39; s online shoppers. We marked the shares last month and are considering one of the best Chinese games in the long run. It was also one of the best shares of Investing.com to view in 2019. At the time, we said:
"Jack Ma & # 39; s dairy cow went from a peak of $ 210 in June to $ 150 in early November. If the trade war were to weaken, investors could see a return to possibly even the $ 200 + sign "
Indeed, the shares closed yesterday to $ 185.78 have risen 35.5% since the beginning of the year. It reached a nine-month high of $ 189.79 on April 12.
We still expect a major benefit from this and recommend accumulating shares because the company is well positioned as a leader in its field.
Alibaba reports next win on May 6 before opening. Consensus calls for EPS of $ 6.65 on revenue of $ 91.84 billion for the first quarter. The company announced a profit of $ 5.73 per share over the same period on sales of $ 61.93 billion.
2. Autohome Inc.
Autohome (NYSE :), the leading online destination for car buyers in China, offers auto-listing services, advertising services, and dealer services for dealers. The ability to reach a large and committed user base of car users has made Autohome the preferred platform for car manufacturers and dealers who want to conduct advertising campaigns and publicize their services.
The company manages its & # 39; Autohome Mall & # 39 ;, a full-service online transaction platform, to facilitate transactions for manufacturers and dealers. Furthermore, through its website and mobile applications, Autohome also offers car-specific services with added value, including financing, insurance, used car transactions and after-market support.
The shares of Autohome that closed yesterday with $ 108.34 have so far won 38.5% this year. Despite the strong start to 2019, the stock remains below its highest point ever of $ 119.50, hit last June.
Autohome is expected to release the first quarter earnings before the opening bell on Tuesday, May 7. Consensus calls for earnings per share of $ 5.02 on $ 1.58 billion. The company reported earnings of $ 0.69 per share in revenue and $ 1.29 billion.
3. UP Fintech Holding
Up Fintech (NASDAQ :), which became public on March 20, is an online brokerage firm that focuses on Chinese investors around the world. The company was launched to allow Chinese customers to easily trade foreign stocks on foreign exchanges, especially in the United States, according to CEO Tianhua Wu.
Shares of UP Fintech, known in Asia as Tiger Brokers, closed at $ 22 yesterday, an increase of 175% over the $ 8 per share at the IPO debut. The offer increased around $ 104 million for the company.
Lei Huang, CEO of the US unit UP Fintech, said the proceeds from the IPO will be used for general corporate purposes, global expansion, net capital requirements and for financing possible acquisitions
Strategic investors in UP Fintech are the Beijing-based smartphone giant Xiaomi (HK 🙂 and the American online brokerage Interactive Brokers Group (NYSE :). Wu said that the purpose of UP Fintech is to become similar to E-TRADE Financial (NASDAQ :), a brokerage firm in the US that gained fame in the rise of the internet in the late start of the 1990s.
Although UP Fintech is not yet profitable, it has experienced very strong revenue growth. The company's net loss of $ 44.3 million in 2018, but sales rose to $ 33.6 million from $ 5.5 million the year before.