From Barchart: 2024-05-01 09:55:48

Despite challenges in China’s property sector, the economy grew 5.3% in Q1. Bright prospects for China stocks like HUTCHMED, Autohome, and Youdao offer solid buying potential. China’s GDP beat Reuters’ poll expectations, driven by strong export volume and a surge in retail sales. Beijing aims to support economic recovery through tech innovation and foreign investments.

HUTCHMED (China) Limited (HCM) develops therapies for cancer and immunological diseases, with positive clinical trial results for fruquintinib. Revenue for FY2023 grew 96.5%, with strong earnings performance. Analysts expect a continued growth trend, with shares up 10.6% over the past month. HCM is rated a Buy in the POWR Ratings system.

Autohome Inc. (ATHM) offers online services for automobile consumers in China, with a strong dividend yield and solid financial metrics. Fourth-quarter revenue increased marginally year-over-year, with positive earnings growth potential expected for FY2025. ATHM is rated a Buy in the POWR Ratings system, making it a promising investment option.

Youdao, Inc. (DAO) provides online services in content, community, communication, and commerce. With impressive profit margins and growth projections, DAO’s stock has surged 7% over the past three months. Analysts forecast revenue growth for the first quarter of 2024, with strong earnings potential for the fiscal year. DAO is rated favorably in the POWR Ratings system.



Read more at Barchart: 3 Top China Picks for May With Strong Buy Signals