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Well howdy there guys today i’m going to share with you my top 5 chinese stocks alright my top 5 chinese stocks out there this is a highly requested video from so many you guys want to hear me talk about chinese companies and that’s someone that’s a u.s. investor i rarely invest internationally why because honestly there are so many great companies to invest in
The 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 gonna ask me what what country i’m gonna 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 we’ll 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 gonna look at their expected growth rates and all the type of stuff so i 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 who 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 alright the fact that this 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 this 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 a something i think it’s 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 tending this opportunity of not just growing in china as more and more people reach the middle class and all
These companies have another opportunity but then you look at the india then you look at africa it’s a huge opportunity for all these chinese corporations alright also many of these companies are newer companies i think every single company on this 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 it’s all more modernized as 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 favors chinese companies big time okay they will block other companies if they don’t want to that company to succeed we know google’s been blocked in china for a long time that way it could give up one of the companies that
Was on this list a huge advantage but also facebook’s been blocked over there a 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 gonna 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 those 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 in to stock number five is jd tom alright jd comm is up about
43 percent within the past five years which is not very good considering how much this company has grown over those past five years but jd calm 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 operate a couple different business segments jd mall being one of them and think
Of them as what wal mart 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 it’s just an amazing amazing company in the e-commerce space online all right there’s a company that the eps growth is supposed to be phenomenal okay so 54
Cents it didn’t eps a year ago this year that expected to around 63 cents but next year they expect to do around dollar o.9 so if you’re looking at from a two your basis that’s what we’re double up in eps that’s unbelievably impressive there all right sales growth is also expect to be phenomenal so current year they expected to grow revenue over 30 percent next
Year of expected to grow revenue around 26 percent so very strong growth in eps and revenue they’re expected on the trailing piece unbelievably expensive on this company to 96 but for p of only 32 which is a very very low considering how much this company is growing all right 51 billion dollar market cap there and then you know so when you look at this company you
Kinda are getting the what like i said what 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 made it in at number five coming in number four this one would have been higher had a 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 a little sketchy okay but anyways this one is up huge this is the only one that’s up massively in the past five years that actually made the list tencent holdings is up three hundred and seventy percent in the past five years guys absolutely unbelievable tencent holdings is an investment holding
Company which provides internet 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 investment since we’re talking investments in everything from tesla to snapchat to actually some of the biggest online games in the entire world
Or $0.10 properties i’m 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 and much bigger so a very interesting opportunity here their ep s this year is expected to be a rounded doll 30 next year expected to be around
The dollar 80 which is very impressive and once again this accompany it 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 are up 5 times 10 times on their money it’s pretty impressive so next year they expect to grow revenue are around 37 and a half percent so very phenomenal
Growing company here a very big market cap around a four hundred and twenty four billion dollar market cap which makes it one of the biggest companies in the entire world trailing p of 35 but afford p of 25 so fairly low therefore the way this company’s expanding profits expanding revenue in a lot of their investments a lot of the this companies invest in a ton
Of different companies and a lot of those investments never show up directly on the numbers because they’re on that balance sheet is kind of investments and whatnot but for certainly like this one would maybe even be number one had a not been on the pink sheets it’s so sketchy why it’s on the pink sheets i’ve 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 percent
Plus of their net income comes from china they have them by far and away the more employees in china than they do anywhere else okay there’s 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 our number
Three here is wynn resorts winning resorts in the past five years of 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 this stock it’s
Actually not a good stock to just hold for a long long long period of time the last five years it’s only up 12 percent 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 resorts out here in los vegas the win and the encore they’re building went 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 wind palace if you want to read more in depth you can pause it there this company did five dollars and 46 cents a year ago a vps current year they expect to do around eight dollars in twenty six and since next year they expect to do nine dollars in fifty
Eight cents of eps there as far as revenue growth expected to have around eight percent revenue growth in the current year and next year around eleven and a half percent revenue growth there as a company that has about a 16 billion dollar market cap thirty-five trailing p but a fifteen or about a sixteen forward p so fairly low on this company has been in a lot of
Controversy obviously with steve wynn all the allegations coming down and i 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 then we got to see if matt mattox a new ceo kim 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 mathematics is having to do when you come in a steve wynn’s company and take it over you’re filling a legend shoes so we’ll have to see how all this plays out but this is a company that just is 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 left with go gamble over there in macau and here 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 gonna 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 bi do bi do corporation and this one’s up 73 percent in the past five years so decent performance but i 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 buy do to get that spot because they know how big of an opportunity that is for advertising revenue in china and baidu’s right there okay but if you want to read more about it in their cloud
Products and ton of their different products go ahead and pause it there as far as eps go so a year ago they did $10.05 this year expect to actually have a decline to nine dollars and 80 cents all right but then again next year they’re expected to get back to growth with about eleven dollars and seventy six cents of eps expected there as far as the current year
Revenue growth around 21 percent expected in next year around 20 percent there’s a company that you can generally grow around 20 percent they’ve done that very consistently for quite a while now an 81 billion dollar market cap so although it’s a google of china as we call it the market cap is teeny compared to google google’s around an 800 700 800 billion dollar
Market cap on google last time i checked this one’s about you know ten times less i guess you can say charlie p of 23 for p under 20 so it’s not like you’ve got to pay a huge premium for this company but as long as people keep continuing to search i mean using a lot of baidu’s products you know this company should be one that profits for years and years to come
Into the future guys and coming in at number one my favorite name in china is ali baba baba good chance i buy this one sometimes zoom past five years of around 101 percent alibaba they have a ton of different super successful businesses all right the taobao marketplace team all aliexpress ali 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 kinda sees itself as a company that is helping other chinese companies small much smaller companies grow and become more profitable as those those companies succeed more alibaba
Succeeds more in the end whereas amazon sometimes likes to eliminate companies 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 i 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 six dollars and fifty cents of eps this year versus five dollars in nineteen cents last year eight dollars and 55 cents expected next year which is very very strong growth there as far as revenue goes fifty nine point
Seven percent revenue expected to go up this year thirty-seven point four percent next year so growth rate is going to slow quite a bit however that’s still phenomenal growth that they grow at a 37 percent plus clip there this one is a little under half a trillion dollar market cap four hundred fifty eight billion dollar market cap to be exact forty eight trailing
P but i love to look at the four peaks that tell them is it tells me where the business is going and that’s a little under a twenty-one which is a very very low very very low forward p 20 under 21 for a company that’s gonna grow revenue by somewhere around sixty percent this year and you know thirty five percent plus next year for a twenty one 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 would love to hear from you guys in that comment section as
Always thank you for watching have a great day
Transcribed from video
My Top 5 Chinese Stocks in 2018 By Financial Education
