China & Hong Kong Stock Picks (May 2025)
Who is the Chinese EV Evergrande 2.0 + Li Auto, Xiaomi, PDD Holdings, Haier, Yum China, Vitasoy, Wharf Holdings, Luk Fook Holdings, Nissin Foods, Swire Properties, Link REIT, Cafe De Coral, AIA, etc.
Our June 9th post noted how around the 1:25:47 mark in the latest episode of The China Show discussed how Chinese EVs are increasingly a huge Ponzi scheme just like what happened some years ago with shared bicycles.
Desmond Shum, the author of Red Roulette: An Insider's Story of Wealth, Power, Corruption, and Vengeance in Today's China and who’s billionaire (now ex-) wife Whitney Duan (Duan Weihong) “disappeared” for several years in a corruption crackdown, recently added to the speculation by posting this on X:
In addition, he also speculated about who is “Evergrande 2.0” in China’s auto sector:
Stocks covered by a couple of equity research providers in this post:
[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…]
Sany Heavy Equipment International Holdings, Li Auto Inc., Xiaomi, PDD Holdings, Kuaishou Technology, EHang Holdings, Meituan, Tongcheng Travel, BaTeLab, Topsports, Baozun, Kanzhun Limited, iQIYI, Baidu, Xpeng Inc., Weibo, Sun Art Retail Group Ltd, ZTO Express, Naura Technology, Bilibili, Trip.com, Leapmotor, Geely Automobile, Angelalign, Alibaba, Ke Holdings, NetEase, Nexteer Automotive Group, VSTECS Holdings, CGN Mining, InnoCare Pharma, Tencent, JD.com, Tencent Music Entertainment Group, Hua Hong Semiconductor, Foxconn Interconnect Technology (FIT Hon Teng), BeiGene, Haier Smart Home, Yum China, China Life Insurance & Will Semiconductor Co Ltd
Hong Kong stocks:
[Note: Access to some DBS Insights Direct pieces might be restricted depending on your location or browser.]
DFI Retail Group Holdings Ltd, Link Real Estate Investment Trust, Vitasoy International Holdings Ltd, Wharf Holdings Ltd, Hongkong Land Holdings Ltd, Sands China Ltd, Luk Fook Holdings International Ltd, BOC Hong Kong Holdings Ltd, HKR International Ltd, Samsonite International SA, China Aircraft Leasing Group Holdings Ltd, Nissin Foods Co Ltd, Tai Cheung Holdings Ltd, Swire Properties Ltd, Hutchison Port Holdings Trust, Galaxy Entertainment Group Ltd, Budweiser Brewing Company APAC Ltd, Techtronic Industries, Sun Hung Kai Properties Ltd, Cafe De Coral Holdings Ltd, ASMPT Ltd, Prada SpA & AIA Group Ltd.
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 2023 - May, June, July, August, September, October, November & December; 2024 - January-February, March, April, May, June, July-August, September, October, November & December; 2025 - January, February, March & April posts summarizing those) BUT these lists do not change too much from month to month. Stocks covered by the CMBI May 2025 list (including additions and deletions) and included in this post with updated stats and charts include:
Geely Automobile, Xpeng Inc., Zoomlion Heavy Industry, Sany Heavy Industry, Atour Lifestyle Holdings, ANTA Sports Products, Luckin Coffee, Yum China, Proya Cosmetics, China Resources Beverage Holdings (CR Beverage), BeiGene, Innovent Biologics, AIA Group Ltd, PICC Property and Casualty Co Ltd, Tencent, Alibaba, Trip.com, Greentown Service Group, Xiaomi, BYD Electronic International, Horizon Robotics, Will Semiconductor Co Ltd, BaTeLab, Naura Technology & Salesforce
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
Sany Heavy Equipment International Holdings
🔬 SANY International (631 HK) - 1Q25 net profit surged 23% YoY, holding up better-than-feared (CMB International) 05-30 2025 ⚠️
🌐 Sany Heavy Equipment International Holdings (HKG: 0631 / FRA: YXS / OTCMKTS: SNYYF) 🇰🇾 - Mining & Logistics Equipment. Mining equipment, logistics equipment, robotic, smart mine products & spare parts. 🇼 🏷️
Price/Book (Current): 1.57
Forward P/E: 8.47 / Forward Annual Dividend Yield: 4.48% (Yahoo! Finance)
Li Auto Inc.
🔬 Li Auto Inc. (LI US/2015 HK) - Facelifted Mega offers more confidence in BEVs (CMB International) 05-30 2025 ⚠️
🌐 Li Auto (NASDAQ: LI) 🇰🇾 - Designs, develops, manufactures & sells premium smart electric vehicles. 🇼 🏷️
Price/Book (Current): 2.92
Forward P/E: 19.16 / Forward Annual Dividend Yield: N/A (Yahoo! Finance)
Xiaomi
🔬 Xiaomi (1810 HK) - 1Q25 strong beat; Positive on premiumization, YU7 ramp-up and SoC breakthrough in 2H25E (CMB International) 05-28 2025 ⚠️
🔬 Xiaomi (1810 HK) - Key takeaways from product launch event: Self-developed 3nm SoC debut is the bright spot (CMB International) 05-23 2025 ⚠️
🔬 Xiaomi (1810 HK) - 1Q25 Preview: Expect strong results ahead; regained No.1 in China amid Apple weakness (CMB International) 05-02 2025 ⚠️
🌐 Xiaomi (HKG: 1810 / SGX: HXXD / FRA: 3CP / OTCMKTS: XIACF) 🇰🇾 - Consumer electronics & smart manufacturing company. Smartphones & smart hardware connected by an IoT platform at its core. 🇼 🏷️
Price/Book (Current): 5.17
Forward P/E: 33.33 / Forward Annual Dividend Yield: N/A (Yahoo! Finance)
PDD Holdings
🔬 PDD Holdings (PDD US) - Investment to enhance platform ecosystem, user retention impacted ST earnings (CMB International) 05-28 2025 ⚠️
🌐 PDD Holdings (NASDAQ: PDD) or Pinduoduo - Pinduoduo & Temu eCommerce marketplaces. 🇼 🏷️
Price/Book (Current): 3.20
Forward P/E: 10.99 / Forward Annual Dividend Yield: N/A (Yahoo! Finance)
