The Chinese economy did not have a very good year in 2021. China had to cope with a slew of issues, including government crackdowns, IPO cancellations, and heightened controls on a variety of private IT, education, and entertainment firms, all of which have harmed the economy.
Furthermore, a resurgence of the Omicron variant has sparked fears of a shutdown in the near future, potentially affecting economic progress.
Unfortunately, these issues are widespread and long-lasting, posing a serious danger to China’s economic prospects in 2022.
Despite the challenges, the Chinese government is working hard to ensure economic development stability. With this in mind, we might take bets on some of the Chinese stocks that we believe will do well this year.
Here is the scoop:
Li Auto
Li Auto (LI), one of the best Chinese stocks, is extending its existing activities and looking to the future of autonomous driving.
Li Auto recently announced strong December delivery figures. The business shipped 14,087 Li ONEs, a 130% increase year-over-year and a 4.5% increase sequentially. Meanwhile, deliveries in the fourth quarter of 2021 were 35,221, up 40.2% sequentially and 143.5% year-over-year.
In addition, the company posted strong third-quarter earnings results, with total revenues coming in at $1.21 billion, up 209.7% year-over-year. In the meantime, Li Auto is increasing its production capacity. As part of the company’s ambition to extend its collection, more models will be released this year.
Li Auto stock has a Strong Buy consensus rating on TipRanks, based on 8 unanimous Buys. As for price targets, the average LI stock price prediction of $49.99 implies almost 55.7% upside potential from the current levels.
JD.com
JD.com, Inc. (JD) is an e-commerce company that sells a wide range of products through its website. It has actually been one of the market’s best-performing stocks.
JD.com is working hard to grow into new areas, including supermarkets and pharmacies, as well as electronics and appliances. In addition to this, the firm is working to improve its offline retail strategy.
On the financial front, the firm had a string of earnings beatings and a generally upbeat outlook. JD.com’s revenues and profitability increased in its most recent financial report, owing to robust growth in China’s domestic e-commerce sector.
Wall Street analysts have given JD.com a Strong Buy consensus recommendation, with 14 recent ratings, including 13 Buys and 1 Hold. The company is now trading at $70.07, with an average JD price target of $108.29 implying 54.6% gain from that point.
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Disclosure: At the time of publication, Shalu Saraf did not have a position in any of the securities mentioned in this article.
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