In light of the Asian population celebrating Lunar New Year, five Chinese stocks with high financial strength and owned by at least one of the “Tiger Cub” firms include JD.com Inc. (JD, Financial), NetEase Inc. (NTES, Financial), Vipshop Holdings Ltd. (VIPS, Financial), Zai Lab Ltd. (ZLAB, Financial) and HUYA Inc. (HUYA, Financial) according to the All-in-One Screener, a Premium feature of GuruFocus.
On Tuesday, Asian countries celebrated the start of a new lunar year. The Chinese zodiac consists of 12 animals, one for each year in a 12-year cycle. This year is the Year of the Tiger, which represents characteristics like “bravery, courage and strength” according to an article sourced from USA Today.
In light of the new year, GuruFocus’ All-in-One Screener listed five Chinese stocks with a financial strength rank of at least 7 and are owned by at least one of the “Tiger Cub” firms as of the latest portfolio filing: Chase Coleman (Trades, Portfolio)’s Tiger Global Management, Andreas Halvorsen (Trades, Portfolio)’s Viking Partners LP, Lee Ainslie (Trades, Portfolio)’s Maverick Capital, Philippe Laffont (Trades, Portfolio)’s Coatue Asset Management and Steve Mandel (Trades, Portfolio)’s Lone Pine Capital. The five gurus studied under Tiger Management leader Julian Robertson (Trades, Portfolio).
JD.com
Four Tiger Cubs own shares of JD.com (JD, Financial) as of the third quarter of 2021, with a combined weight of 10.96%. Coleman’s Tiger Global owns 51,139,125 shares, giving the position 7.10% equity portfolio weight.
Shares of JD.com traded around $75.10, showing the stock is fairly valued based on Tuesday’s price-to-GF Value ratio of 0.94.
GuruFocus ranks the Beijing-based e-commerce company’s financial strength 7 out of 10 on the back of a solid Piotroski F-score of 6 and a strong Altman Z-score of 4.17 despite interest coverage ratios underperforming more than 66% of global retail competitors.
Other gurus with holdings in JD.com include Chris Davis (Trades, Portfolio)’ Davis Select Advisors, Halvorsen’s Viking and Laffont’s Coatue.
NetEase
Shares of NetEase (NTES, Financial) traded around $101.89, showing the stock is significantly undervalued based on Tuesday’s price-to-GF Value ratio of 0.46.
GuruFocus ranks the Hangzhou, Zhejiang-based gaming media company’s financial strength 7 out of 10 on the back of a strong Altman Z-score of 5.69 despite debt ratios underperforming approximately 60% of global competitors.
Gurus with holdings in NetEase include Fisher Investments and Mandel’s Lone Pine.
Vipshop
Shares of Vipshop (VIPS, Financial) traded around $9.48, showing the stock is significantly undervalued based on Tuesday’s price-to-GF Value ratio of 0.48.
GuruFocus ranks the Guangzhou, Guangdong-based retail company’s financial strength 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a strong Altman Z-score of 4.27 and interest coverage and debt ratios that are outperforming more than 88% of global competitors.
Gurus with holdings in Vipshop include David Herro (Trades, Portfolio)’s Oakmark International Fund and Ainslie’s Maverick Capital.
Zai Lab
Shares of Zai Lab (ZLAB, Financial) traded around $53.04, showing the stock is significantly undervalued based on Tuesday’s price-to-GF Value ratio of 0.10.
GuruFocus ranks the Shanghai-based biotech company’s financial strength 7 out of 10 on several positive investing signs, which include a strong Altman Z-score of 17.26 and a cash-to-debt ratio that outperforms more than 68% of global competitors.
Gurus with holdings in Zai Lab include Baillie Gifford (Trades, Portfolio) and Halvorsen’s Viking Global.
HUYA
Shares of HUYA (HUYA, Financial) traded around $6.77, showing the stock is significantly undervalued based on Tuesday’s price-to-GF Value ratio of 0.23.
GuruFocus ranks the Guangzhou, Guangdong-based streaming company’s financial strength 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a strong Altman Z-score of 3.97 and debt ratios that outperform more than 90% of global competitors.
Coleman’s Tiger Global Management has a holding in HUYA.
