My Top 5 Chinese Stocks in 2018
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People always ask me about Chinese stocks, so today I share with you my top 5 favorite Chinese growth stocks for 2018 and beyond!
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Well howdy there guys, today I’m going to share with you my top five Chinese stocks. Alright, my top five Chinese stocks out there is a highly requested video from so many you guys want to hear me talk about Chinese companies and not someone that’s a US investor I rarely invest internationally.
Why? Because honestly, there’s so many great companies to invest in United States all the time that it’s rare that I’m like, I can’t find any deals in the States, I need to look internationally.
However, if you’re going to ask me what what country I’m going to look at after I get out of the United States, I’m looking at Chinese corporations. Okay, that’s where I’m going from here.
So I hope you guys really enjoy this hope you learn a lot about these stocks will kind of go over a brief overview of all these different companies, what their businesses actually do, we’re going to look at the five year stock charts and all these companies.
Which some of them are not that impressive, despite their amazing growth, which one might be just a lot of people don’t trust Chinese companies, for whatever reason. And the second part might just be maybe they were all way overvalued.
When a lot of these companies when IPO and whatnot, we’re also going to look at their expected growth rates and all that type of stuff. So hope you guys really enjoy us now. Why should you even care about Chinese stocks, Chinese companies and whatnot.
There are five reasons okay. The first is that our 1.3 billion people live in China, a ton of these people are moving into the middle class. Okay. So this is a massive, massive growing opportunity for every single Chinese company out there, right.
The fact that this is this is a country with the most people out there, and the fact that they have mass amounts of people moving into the middle class right now it means these people have a lot more money to spend is a phenomenal thing for all five of these companies.
Also, China has an expanding relationship with India, which means the Chinese corporations will have a great opportunity to expand their billion plus people live in India, right? They have a big time big time expanding relationship with Africa.
All right, well, over a billion people live in Africa, this is a minute they have something I think is a trillion plus or multi trillion dollar project going with Africa over the next coming years, the Silk Road.
It’s going to go through all out the region and whatnot. So when you look at kind of this opportunity of not just growing in China, as more and more people reach the middle class, and all these companies have the opportunity.
But then you look at the India, then you look at Africa, it’s a huge opportunity for all these Chinese corporations. All right, multiple, many of these companies or newer companies, I think every single company on this list here has been created in the last 20 years.
Guys, the last two decades, okay, these are all newer type companies, which means they have way more modern everything, okay, the way they think the way they can react, come out with a new product service and expand it quickly.
Though, the whole technology behind the company, and everything is all more modernized. And some of the old dog companies that are like, you know, trying to, you know, think of ways to do things, and they just can’t execute on it.
These companies are phenomenal executing on these things. And maybe the biggest factor, or at least one of the biggest factors is China favours Chinese companies big time, okay, they will block other companies if they don’t want that company to succeed.
We know Google’s been blocked in China for a long time. That way it could give one of the companies that was on this list, a huge advantage. will also Facebook’s been blocked over there ton of US corporations are completely blocked in China.
And mainly just because China wants to favor their corporations give them a leg up. And that’s a huge opportunity. And then you look at the markets, they’re going to be these Chinese companies have a huge opportunity to grow into in the future.
And you can understand why, you know, it’s exciting to invest in some of these Chinese corporations. So let’s just get into this guys. I hope you enjoyed. Let me know what your favorite Chinese stock is out there.
I would love to hear from you guys down there in that comment section as always, coming into stock number five is jd.com. All right. JD comm is up about 43% within the past five years, which is not very good, considering how much this company has grown over those past five years.
But JD comm you if you want to read all in depth here, you can pause the video and read here but in a simplest say, you know a way of explaining it. They operated a couple different business segments JD mall being one of them.
And think of them as what Walmart in the United States would represent in physical retail JD comm represents that in the online space in China, okay, tons of warehouses and distribution of fulfillment centers and whatnot. Just amazing, amazing company in the e commerce space online.
All right. This is a company that the EP s growth is supposed to be phenomenal. Okay, so 54 cents in ETS a year ago this year, they expected to around 63 cents, but next year they expect to do around dollar oh nine so if you’re looking at it from a two year basis.
That’s what we’re double up in ETS. That’s unbelievably impressive there alright. sales growth is also expected to be phenomenal. So current year they’re expected to grow revenue over 30%.
Next year, they expected to grow revenue around 26%. So very strong growth in in ETS and revenue they’re expected on the trailing p unbelievably expensive on this company to 96 but for P of only 32 which is very very low considering how much this company is growing right $51 billion market cap there.
And then you know so when you look at this company, you kind of are getting the will I guess Walmart represents the United States for physical retail, this represents it in China but in the online space okay.
This is all pretty much online business and it’s just unbelievable the way they can get products to people in a very quick amount of time and whatnot. So a very impressive company very strong growth expected to be much more profitable in the future.
And so interesting opportunity there That’s why I’d made it in and number five coming in number four, this one would have been higher had not been listed on the OTC which is really sketchy.
But coming in at number four is Tencent holdings. All right, why this company is on the Pink Sheets, over counter exchange, it does not make sense to me that’s usually penny stocks do that type of stuff.
It’s, it’s a little sketchy. Okay. But anyways, this one is up huge. This is only one that’s up massively in the past five years that actually made the list, Tencent holdings is up 370% in the past five years, guys, absolutely unbelievable.
Tencent holdings is an investment Holding Company, which provides internet and value added services in online advertising services in mainland China, Hong Kong, North America, Europe, Asian countries.
This is the ultimate tech company, the amount of tech companies they have investments is we’re talking to investments in everything from Tesla, to Snapchat to actually some of the biggest online games in the entire world or Tencent properties.
So a phenomenal, phenomenal advertising type company that just makes tons of money off advertising revenue, and a very smart investor of a lot of companies that are that, you know, grow to be much, much bigger.
So very interesting opportunity here, their ups Yes, here is expected to be around $1.30 next year expected to be around $1.80, which is very impressive. And once again, this the company has tons of investments on their balance sheet that Don’t ever show up in the earnings.
But you know, a lot of these investments are you’re up five times 10 times on their money, it’s pretty impressive. So next year, they expect to grow revenue around 37 and a half percent.
So very phenomenal growing company here are very big market cap around a $424 billion market cap, which makes it one of the biggest companies in the entire world, trailing P of 35. But a Ford P of 25.
So fairly low there for the way this company is expanding profits, expanding revenue and a lot of their investments. And a lot of these companies invest in a ton of different companies.
And a lot of those investments never show up directly on the numbers because they’re there they’re on that balance sheet is kind of investments and whatnot. But for certain like this one would maybe even be number one had not been on the Pink Sheets, it’s so sketchy why it’s on the Pink Sheets.
I have no clue why that is very weird stuff. But needless to say, it’s a very exciting company, this number three company, all right. It’s not technically a Chinese company. Okay, so one company that made the list that’s not technically a Chinese company.
But listen, this this company gets by far and away the majority of their revenue from China. They get by far and away the majority of their profits, we’re talking like 80% plus of their net income comes from China.
They’re by far and away the more employees in China than they do anywhere else, okay, is a company that the majority of management’s time and focus is in China, the majority of their investments are in China.
So this sounds like a Chinese company, right? But it’s not technically a Chinese company Coming in at number three here is Wynn resorts, winning resorts. In the past five years, the stock hasn’t done much Wynn resorts is one of those stocks that.
If you get in the right time, like my wife, and I did, you can make a ton of money we got in in early 2016. And we rode that wave all the way up until January this year and made phenomenal but if you just kind of stayed in the stock.
It’s actually not a good stock to just hold for a long, long, long period of time. last five years. It’s only up 12% guys, so not very impressive there. But Wynn resorts basically they have some of the best resorts all in the world.
They have a couple of resorts out here in Las Vegas, the wind and the encore. They’re building one out in Boston that could open sometime next year. But basically they have three resorts in Macau, which are the profit makers for this company.
One being Wynn palace. If you want to read more in depth, you can pause it there. This company did $5.46 a year ago a VPS. current year they expect to do around $8.26 next year, they expect to do $9 in 58 cents of epcs.
There as far as revenue growth expected to have around 8% revenue growth in the current year. And next year around 11 and a half percent revenue growth there is a company that has about a $16 billion market cap 35 trailing p.
But a 15 or about a 16 for p so fairly low on this company has been in a lot of controversy obviously with Steve when all allegations come down and that was around like January, February.
And obviously it’s it’s been a total change in the company there. So a lot going on a lot of moving parts and whatnot. We got to see if mathematics a new CEO, Can Can you know keep the company going in the right direction.
It’s sometimes hard when you’re a new guy coming in you’re you’re filling a legend shoes which is what mathematic is having to do when you come into Steve Wynn’s company and take it over a year, you’re filling a legend shoes.
So we’ll have to see how all this plays out. But this is a company that just as a straight profit machine, they have the best of the best resorts out there in Macau. And guess what, you know, wealthy people in China that have made a lot of money like to do they lifted, go gamble over there in Macau.
And, you know, Wynn resorts benefits just as much if not more than pretty much any company in the world out there. So as long as China’s economy stays strong, people are making more and more money.
They’re going to want to go to Macau spend money, do things and wins a direct beneficiary of that whole game. So not technically a Chinese Corporation. But when you look at the business, it’s a pretty much a Chinese business.
And coming in at number two is Baidu, Baidu Corporation. This one’s up 73% in the past five years, so decent performance, but by Do I really call it the Google of China, okay, a lot of their businesses, and especially in terms of their main business search, is very, very similar to Google.
This is one of the main reasons why honestly, China’s never let Google in because I want to Baidu to get that spot, because they know how big of an opportunity that is for advertising revenue in China and Baidu is right there.
Okay, but if you want to read more about it in their cloud products, and turn their different products, go ahead and pause it there. As far as epds go, so a year ago, they did $10.05 this year, expect actually a debit decline to $9.80.
All right. But then again next year, they’re expected to get back to growth with about $11.76 of epcs expected there. As far as the current year revenue growth around 21%. expected in next year, around 20%.
There’s a company that can generally grow around 20%. And they’ve done that very consistently, for quite a while now, an $81 billion dollar market cap. So although to the Google of China, as we call it, the market cap is tiny compared to Google.
Google’s around 800 700 $800 billion market cap on Google last time I checked, this one’s about you know, 10 times less, I guess you can say trailing P of 23, for p under 20. So it’s not like you got to pay a huge premium for this company.
But as long as people keep continuing to search using a lot of Baidu products, you know, this company should be one that that profits for years and years to come into the future guys.
And coming in at number one, my favorite name in China is le baba baba good chance I buy this one sometimes zoom. past five years of around 101% Alibaba, they have a ton of different super successful businesses.
All right? The Taobao Marketplace, t mall, alley Express alley trip, I mean, just across the board, they’re doing amazing, amazing things, a lot of people like to compare them to Amazon.
I don’t really think that’s a fair comparison. I think Amazon and their business models are very different in a lot of ways. I think Alibaba kind of sees itself as a company that is helping other Chinese companies small, much smaller companies grow in become more profitable.
And those those companies succeed more, Alibaba succeeds more in the end. Whereas Amazon sometimes likes to eliminate companies in and say, Oh, you know, what, you know.
We see that product having success, we’re going to come out with a product, that’s the same exact thing, rank it higher than your product, undercut your price, and we’re gonna, you know, put you out of business or hurt your business successfully.
Alibaba is very different, in my opinion, from everything I’ve read, and everything I’ve seen there, as far as earnings go, or a company is expected to do around $6.50 of epcs this year, versus $5.19.
Last year $8.55 expected next year, which is very, very strong growth. there as far as revenue goes, 59.7% revenue expected to go up this year 37.4% next year, so growth rate is going to slow quite a bit.
However, that’s still phenomenal growth that they grow to 37% plus clip there. This one is a little under half a trillion dollar market cap $458 billion market cap to be exact 48 trailing p but I love to look at the Four Peaks that told me tells me where the business is going.
And that’s a little under a 21, which is a very, very low, very, very low for a p 20. And 21 for a company that’s gonna grow revenue by somewhere around 60% this year, and you know, 35% plus next year for 21.
That is a very, very low number there guys, which is why Alibaba is probably a company I will be buying at some point in time, coming up very soon. So let me know what you guys think about all five of these stocks,which one is your favorite name out of the bunch.
Do you think it’s smart to invest in any Chinese stocks out there, we’d love to hear from you guys in that comment section. As always, thank you for watching. Have a great day.