Top Chinese stocks to watch this week: PDD, Li Auto, Ehang

This week will be important for the stock market as NVIDIA publishes its financial results on Wednesday. NVIDIA is watched closely because of its role in the artificial intelligence industry. This article highlights some of the top Chinese stocks to watch this week, including PDD Holdings (PDD), Li Auto (LI), and Ehang (EH).

EHang Holdings (EH)

EHang Holdings is one of the top Chinese stocks to watch this week as it publishes its financial results. These numbers come after the stock dropped by over 43% from its highest point this year.

EHang is one of the top players in the electric vertical take-off and landing (eVTOL) industry that analysts believe will continue doing well in the long term. 

Unlike its American counterparts like Joby Aviation and Archer Aviation, EHang is already in business and delivering product. 

The most recent financial results showed that its revenue jumped by 190% in the fourth-quarter and 288% in the full year. It delivered 216 units last year and has already achieved non-GAAP profitability.

EHang’s revenue rose to $22.5 million in the fourth quarter. It made a net loss of $6.4 million, and the management expects to break even this year.

Its advantage is that it has a first-mover advantage in the Chinese market, and is now expanding in other countries like Japan, Thailand, and Mexico. It has also announced plans to expand in Yunfu, Hefei, Weihai, and Beijing. It also has a backlog of over 1,200 aircraft.

PDD Holdings (PDD)

PDD Holdings is another top stock to watch this week, as the parent company of Pinduoduo and Temu publishes its financial results. 

These will be notable results as the company will discuss the end of de minimis and its impact on Temu. de minimis is a government policy that let products worth less than $800 come to the US without paying taxes. 

PDD’s earnings will showcase whether its business continues to grow. The most recent earnings showed that its fourth-quarter revenue rose by 24% to $15.15 billion, while its operating profit rose by 14% to $3.5 billion. 

The annual revenue jumped by 59% to $27 billion, helped by the strong growth of Temu, a company that is known for cheap stuff. 

PDD has one of the best balance sheets in Corporate China. It ended the year with over $56 billion in current assets, with $7.9 billion being cash and cash equivalents and $37 billion being short-term investments. It also has $9.7 billion in restricted cash. 

Wall Street analysts anticipate the numbers to show that its revenue rose by 18.7% to 103.1 billion CNY and its earnings per share to be CNY 18.96.

Li Auto (LI)

Li Auto is another top Chinese EV stocks to watch this week as the EV company publishes its financial results. These numbers come as the stock has jumped by over 50% from the lowest point this year.

Analysts anticipate the results to show that Li Auto’s revenue dropped slightly in the first quarter to CNY 25 billion. The earnings per share is also expected to fall from CNY 1.21 to CNY 0.64. 

Li Auto will then resume its growth, with analysts expecting its annual revenue to be CNY 169 billion, up by 17.2% from last year. 

Recent results numbers showed that its deliveries are still growing. It delivered 33,939 vehicles in April, up by 31% from the same period last year. Its March deliveries were 36,674. 

Analysts are largely bullish on the Li Auto stock price, with the average target of $33.77, up from the current $28.9.