China & Hong Kong Stock Picks (December 2024)
CLSA's Feng Shui Index 2025 report & CMB International's 2025 China Strategy Outlook + Luckin Coffee, Meituan, Xiaomi, Tencent, Alibaba, NetEase, Nongfu Spring, YUM China, Tuhu Car, Ping An, etc.
Chinese New Year and the Year of the Wood Snake starts next week and Hong Kong based CLSA has been doing their Feng Shui Index 2025 report for a couple of decades with sector, property, Chinese zodiac sign (mine is predicted to have a good year - whatever that means… 🤑?), and celebrities sections:
You can decide whether applying Feng Shui to your portfolio (or any Chinese-Hong Kong portion of it) might be helpful…
Stocks covered by a couple of equity research providers for the month of December in this post include:
[Note: On desktop browsers, an autogenerated table of contents will appear on the left side linked to each stock. I will add those links below after publishing/emailing this post…]
China Hongqiao, Vesync, Hesai Group, VSTECS Holdings Ltd, Hansoh Pharmaceutical Group Company, China Resources Beverage Holdings (CR Beverage), Waterdrop, Tencent Music Entertainment Group, Foxconn Interconnect Technology (FIT Hon Teng), Luckin Coffee, Sany Heavy Equipment International Holdings, SenseTime, LK Technology Holdings Ltd, Bosideng International Holdings & Meituan
CMB International Capital Corporation, a wholly owned subsidiary of China Merchants Bank (SHA: 600036 / HKG: 3968 / OTCMKTS: CIHKY / OTCMKTS: CIHHF), has a monthly list of 20+ high conviction stock ideas - namely Chinese stock picks (see our May, June, July, August, September, October, November, December, January-February, March, April, May, June, July-August, September, October & November posts summarizing those) BUT these lists do not change too much from month to month.
However, they did not do one for December. Instead, they did a 398 page outlook (2025 China Strategy Outlook Beyond the Frost, There is Blossom) covering sectors and various stocks:
Stocks from the report covered later in this post:
China Semiconductors – Zhongji Innolight Co Ltd & NAURA Technology Group
China Technology – Xiaomi, BYD Electronic International Co Ltd & Foxconn Interconnect Technology (FIT Hon Teng)
Software & IT Services – Non-China stocks Salesforce (NYSE: CRM) and Palo Alto Networks (NASDAQ: PANW) (not covered in this post).
China Consumer Staples – Nongfu Spring
China Consumer Discretionary – Luckin Coffee & YUM China
China Automobiles – Geely Automobile Holdings, Xpeng Inc & Tuhu Car
China Healthcare – WuXi AppTec
China Capital Goods/Uranium – Zoomlion Heavy Industry & CGN Mining Co Ltd
China Insurance - China Pacific Insurance (Group) Co, Ping An Insurance, PICC Property and Casualty Co Ltd
China Property – Greentown Service Group Co
Our China, Hong Kong & Macau Stock Index also has a total of 246 Chinese stocks, 40 Hong Kong stocks and 7 Macau stocks.
And as always, this post is provided for informational purposes only (and to make your life easier…). It does not constitute investment advice and/or a recommendation…
🔬 Research analysis (including articles/blog posts from fund managers, etc.); 🎥 Video; 🎙️ Podcast; 🎬 Webinar; 📰 Newspaper/magazine article; 📯 Press release; 💻 Substack/blog/website article; ✅ Our own posts; 🗃️ Archived article; ⏰ Upcoming webinar or event; ⚠️ Disclosures or restricted access e.g. based on your location, investor status, etc.; 🇼 Wikipedia page; 🏷️ Tagged links to other posts about the stock.
China Hongqiao
🔬 China Hongqiao (01378 HK): Higher Net Profit Due to Increasing Gross Margin, "Buy" (Guotai Junan International) 2024-12-31 ⚠️ $
🔬 China Hongqiao (01378 HK): Positive Profit Alert, 2024 Net Profit Will Possibly Increase by 95%, Better than We had Expected (Guotai Junan International) 2024-12-18 ⚠️ $
🌐 China Hongqiao Group (HKG: 1378 / FRA: H0Q / OTCMKTS: CHHQF / CHHQY) 🇰🇾 - One of the world’s largest aluminum producer covering the entire aluminum industry chain. 🇼 🏷️
Price/Book (Current): 1.17
Forward P/E: 6.15 / Forward Annual Dividend Yield: 8.97% (Yahoo! Finance)
Vesync
🔬 Vesync (2148 HK) - Privatization amid trade headwinds and challenging capital market conditions (CMB International) 12-31-2024 ⚠️
🌐 Vesync (HKG: 2148 / OTCMKTS: VSYNF) 🇰🇾 - Small home appliances. Centralized smart home experience across 3 brands. 🏷️
Price/Book (Current): 2.28
Forward P/E: 8.25 / Forward Annual Dividend Yield: 5.73% (Yahoo! Finance)
Hesai Group
🔬 Hesai Group (HSAI US) - Road towards scalable intelligent driving starts from here; initiate at BUY (CMB International) 12-26-2024 ⚠️
🌐 Hesai Group (NASDAQ: HSAI) - Lidar products for autonomous mobility, robots, etc. Three-dimensional light detection & ranging (lidar) solutions. 🏷️
Price/Book (Current): 3.71
Forward P/E: 1.04 / Forward Annual Dividend Yield: N/A (Yahoo! Finance)
