investment opportunities in china
TRANSCRIPT
(Case Study for ToTo Investor Dinner)
11.10.2016Jukka Blomberg
CEO, WealthyTec
www.wealthytec.com
Investment Opportunitiesin China
GROWTH OF CHINA’S GDPtrillions USD
Source: World BankAnnual GDP growth estimates: China 6,5%, USA 2.0%
2015 GDP per capita:• China: $7,925• USA: $55,837
GROWTH OF CHINA’S WEALTHtrillions USD
Source: Credit Suisse – The Global Wealth Report 20152028 wealth estimate is based on 2000-2015 wealth growth rates in each country
2015 wealth per adult:• China: $22,513• USA: $352,996
CHINA’S HOUSEHOLD CONSUMPTION
trillions USD
Source: World Bank, Demand InstituteDemand Institute’s consumption CAGR of 5.1% is more moderate than World Bank’s
2014 China:• $2,720 per capita• ~37% of GDP
SELECT CONSUMER CATEGORIES
Source: McKinsey, Demand Institute, World Bank
trillions USD
~55% of total householdconsumption
P/E (TTM) OF MAJOR INDEXES
Reporting dates: S&P500: 01.08.2016 | CSI300, Shanghai, H-Shares and HSI: 30.09.2016
YIELD (TTM) OF MAJOR INDEXES
Reporting dates: S&P500: 01.08.2016 | CSI300, Shanghai, H-Shares and HSI: 30.09.2016
%
TOP GROWTH CHIPS
List contains only US traded Chinese stocks with market cap > USD 5B
Vipshop
Baidu
Alibaba
Ctrip.com
ChinaEastern
TALEdu
NetEase
ChinaSouthern
ChinaTel.
NewOrientalEdu
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% (2y revenue growth: 2014-2015)
(2y earnings growth: 2014-2015)
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TOP GROWTH MIDCAPS
List contains only US traded Chinese stocks with market cap between USD 1B - 5B
YintechInvestmentHld.
YYInc.
NoahHldLtd.
Hollysys
ChinaBiologic…
ChinaLodgingGroup…51job Inc.
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YirendaiLtd.
MomoInc.
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(2y earnings growth: 2014-2015)
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% (2y revenue growth: 2014-2015)
”CHEAPEST” BY P/ETICKER
HNP HuanengPowerInternationalInc. 5,7 5,9
CEA ChinaEasternAirlinesCorporationLtd. 13,7 10,1
ZNH ChinaSouthernAirlinesCompanyLtd 13,9 11,3
HOLI HollysysAutomationTechnologiesLtd. 13,9 11,2
CHA ChinaTelecomCorpLtd 15,5 13,7
LFC ChinaLifeInsuranceCompanyLtd 17,4 39,8
BIDU BaiduInc. 22,1 13,5
NOAH NoahHoldingsLtd. 23,1 16,7
SHI SINOPECPetrochemicalLtd. 24,2 8,0
YY YYInc. 24,2 20,0
NAME 3Y P/E* P/E (TTM)
*) 3Y P/E = Price / 2013-2015 average earningsList contains only US traded Chinese stocksExcludes companies with market cap < USD 1B and stocks with decreasing earnings
HAND-PICKED STOCKS
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