Conversation 164:

Will China be the only growth game in town?

As the first to be hit by Covid and therefore the first to show signs of recovery, will China get an economic slingshot effect over the rest of the world?

Rahul Chadha is the Chief Investment Officer of Mirae Asset Global investments Management which has US$147 billion of investor’s funds under management.

In particular, Rahul manages a fund that invests across Asia, excluding Japan, and so I was keen to get his thoughts on how China is shaping up against the Covid backdrop. I also wanted to explore some of the stocks he has invested in and find out why.

These include Alibaba, Tencent, Samsung, and lesser known Kingsoft Cloud.

During our chat he also threw in a wild card stock which he believes is worth watching.

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WHAT DO ALIBABA, TENCENT, SAMUNG, KINGSOFT DO ? I TECHNICALS AND FUNDAMENTALS

ABOUT ALIBAB A:

{NASDAQ:BABA]

Alibaba is the world’s largest online and mobile commerce company, measured by GMV (CNY 5.7 trillion/$846 billion for the fiscal year ended March 2019). It operates China’s most-visited online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). Alibaba's China marketplaces accounted for 68% of revenue in fiscal 2019, with Taobao generating revenue through advertising and other merchant data services and Tmall deriving revenue from commission fees. Additional revenue sources include international retail/wholesale marketplaces (7%), cloud computing (7%), digital media and entertainment platforms (6%), Cainiao logistics services (4%), and innovation initiatives/other (1%). Mobile GMV accounted for roughly 85% of consolidated GMV in fiscal 2019.

ABOUT TENCENT:

{NASDAQ:TME]

Tencent Music Entertainment Group is an online music entertainment platform in China. Its platform comprises of online music, online karaoke and music-centric live streaming services, supported by content offerings, technology and data.

ABOUT SAMSUNG:

{GB:SMSN] The shares of Samsung don't trade on major exchanges like Nasdaq and NYSE in the U.S. It is listed on the Korean exchange and available as GDR in London and Luxembourg.

Samsung Electronics is a diversified electronics conglomerate that manufactures and sells a wide range of products, including smartphones, semiconductor chips, printers, home appliances, medical equipment, and telecom network equipment. About 56% of its profit is generated from semiconductor business, and a further 30%-35% is generated from its mobile handset business, although these percentages vary with the fortunes of each of these businesses. It is the largest smartphone and television manufacturer in the world, which helps provide a base demand for its component businesses, such as memory chips and displays, and is also the largest manufacturer of these globally.

ABOUT KINGSOFT CLOUD:

{NASDAQ:KC]

Kingsoft Cloud Holdings Ltd is an independent cloud service provider in China. The company has built a cloud platform consisting of cloud infrastructure, cloud products and industry-specific solutions across public cloud, enterprise cloud and AIoT cloud services. Its products and service include Cloud Server, Cloud hard disk, Virtual private network, Relational Database, and others. Geographically, the firm operates in China.

TECHNICAL AND FUNDAMENTALS

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