UPDATE
So far in 2021 biggest winners have been NIO, BILI , PDD, XPEV, GDS, NIU, HMI, 1810:HK. While my biggest losers are OCFT and 1833:HK.
Hence, I'm going to do a little write up on some of the interesting Chinese stocks (Some of which, I have small positions in). My goal is trying to replicate my previous successes (hopefully not failures). In this bull market, it's kind of hard to actually lose money. Who knows till when it will last though. For the remaining of the Chinese Ox year, I'm still bullish with the Chinese market and I don't seem to be the only one.
Niu Technologies (NASDAQ:NIU)
They have recently announced that they are in a negotiation with Gojek (The biggest ride hailing service in Indonesia). Source : Chinese electric scooter maker Niu to supply Gojek: Reports
Indonesia is also a big motorcycle market (I should know, I'm from Indonesia). It seems to be a backdoor in trying to grab market share. Indonesia has its own brand of e-bike (Gesit) which doesn't seem to gain any traction. I'd say it's more on the unreadiness of the supporting infrastructure. Though the current price point of Niu's offering is a bit high. My own strategy will be to enter slowly in small positions due to the uncertainty of the situation. Bluebird (biggest taxi company in Indonesia) bought BYD cars. However, as I understand it's a super small fleet so we should expect the same for Niu. I'd buy more once the deal is confirmed and I've read some feedbacks from Niu drivers in Indonesia. I'd be 100% convinced if they managed to get the deal to work and Niu started to gain traction in Indonesia.
Agora Inc (NASDAQ:API)
Clubhouse doesn't need any introduction and it is probably at the beginning of its popularity. Clubhouse is using Agora technology as the backend. Source: Behind Clubhouse, Agora is playing in the big leagues. Since Clubhouse is banned in China, Chinese apps inspired by Clubhouse will probably be coming out soon. Hopefully they'll make use of Agora even more!
Tony Zhao, the founder and CEO, 's mission of building Agora is to enable immersive virtual interaction with anyone anywhere on any apps.
Clubhouse pays Agora $0.99 per 1000 minutes. Clubhouse currently has around 6 million members. Revenue from Clubhouse should continue to grow.
Financially, Agora's growth seems to be very healthy (80.2% revenue growth year-on-year in Q3 2020).
Disclosure : I initated small positions in both of them.
My strategy is buying a small positions if I like what I read about the stocks and will continue to average up especially if there is any dips. Hence building my positions over time. I maintain roughly 40-40-20 allocation in China, US and Singapore.
Comments
Post a Comment