Sunday, September 15, 2013

Top China Companies To Watch In Right Now

The major U.S. indices extended their move lower this week, albeit at a slower pace than last week�� declines. Improvements in housing and jobs markets helped partially offset weakness caused disappointing corporate earnings and bearish Federal Reserve comments. Interesting, consumer confidence has risen to recent highs, while the same consumers continue to constrain their spending, hurting retail sales in July ahead of the key back-to-school season.

Foreign markets moved largely lower during the week, too. Britain�� FTSE 100 is down 0.9%, Germany�� DAX 30 is down 0.5%, and Japan�� Nikkei 225 is down nearly 6%. The eurozone has shown signs of improvement, thanks to Germany�� robust growth, while China�� rising inflation has sparked hopes that its slowdown won�� be as slow as many economists projected. But, with many markets still at their highs, expectations may be too lofty to justify right now.

Top China Companies To Watch In Right Now: Sina Corporation(SINA)

SINA Corporation provides online media and mobile value-added services (MVAS) in the People?s Republic of China. It provides advertising, non-advertising, and free services through SINA.com, Weibo.com, and SINA Mobile. SINA.com offers free interest-based channels that provide region-focused format and content, including news, sports, automobile-related news, finance, entertainment, luxury, technology, digital, tools, collectibles, video, music, and wireless application protocol, as well as interactive platform for fashion-conscious users to share comments and ideas on a range of topics, such as health, cosmetics, and beauty. The company's microblogging platform, Weibo.com, enables its users to follow the hottest topics being discussed online, as well as discussions related to people they know. Weibo accounts consist of celebrities, commercial enterprises, government entities, and grass root Internet users. Its SINA Mobile service allows users to receive news and informatio n, download ring tones, mobile games and pictures, and participate in dating and friendship communities. The company also offers SINA Game, which serves as an interactive platform that provides users with downloads and gateway access to popular online games; SINA eReading, a shop for book reviews; SINA.net, an enterprise solutions platform to assist businesses and government bodies; and SINA Mall, an online shopping Website. In addition, it provides a platform for Chinese bloggers; photo-sharing platform; free email, VIP mail, and corporate email for enterprise users; audio and video-based instant messaging tools; proprietary search technology; and classified advertising services, as well as hosts topic-specific discussion forums in Chinese language; and creates user-maintained and supported online communities. The company has strategic cooperation agreement with China Unicom (Hong Kong) Limited. SINA Corporation was founded in 1997 and is headquartered in Shanghai, the Peop le?s Republic of China.

Advisors' Opinion:
  • [By Victor Mora]

    Sina is an online media company that aims to serve Chinese consumers in and outside of China. The stock is now resting after seeing large declines in the last few years. Over the last four quarters, earnings and revenue numbers have improved, which has pleased investors. Relative to its peers and sector, Sina has been a poor relative performer, year-to-date. WAIT AND SEE what Sina does in coming quarters.

Top China Companies To Watch In Right Now: China Security & Surveillance Technology Inc. (CSR)

China Security & Surveillance Technology, Inc., together with its subsidiaries, manufactures, installs, distributes, and services surveillance and safety products, systems, and software in the People?s Republic of China. The company?s products include standalone digital video recorders (DVRs); embedded DVRs; mobile DVRs; real-time hard-compression coding cards; DVR compression boards; digital cameras; intelligent high-speed dome cameras; intelligent control system software platforms; perimeter security alarm systems; monitors; and radio frequency identification terminals and data collectors. It serves various customers, which include governmental entities, such as customs agencies, courts, public security bureaus, and prisons; non-profit organizations, including schools, museums, sports arenas, and libraries; and commercial entities consisting of airports, hotels, real estate, banks, mines, railways, supermarkets, and entertainment venues. The company is headquartered in S henzhen, the People?s Republic of China.

10 Best Small Cap Stocks To Invest In 2014: China Mobile(Hong Kong)

China Mobile Limited, an investment holding company, provides mobile telecommunications and related services primarily in the Mainland China. It offers various services comprising local calls, domestic long distance calls, international long distance calls, domestic roaming, and international roaming. The company also provides voice value-added services, including caller identity display, caller restrictions, call waiting, call forwarding, call holding, voice mail, and conference calls; customer-to-customer messages and corporate short message services; and mobile Internet access services. In addition, it engages in other data businesses, which primarily include multimedia messaging services; color ring services that enable users to customize the answer ring tone from various selection of songs, melodies, sound effects, or voice recordings; and mobile reading, mobile gaming, mobile video, mobile payment/wallet, mobile TV, mobile market, and Internet data center services. F urther, the company offers telecommunications network planning, design, and consulting services; roaming clearance services; technology platform development and maintenance services; and mobile data solutions, and system integration and development services, as well as operates a network and business coordination center. Additionally, China Mobile Limited sells mobile phone handsets and devices. As of March 31, 2011, it served approximately 600.8 million customers. The company was formerly known as China Mobile (Hong Kong) Limited and changed its name to China Mobile Limited in May 2006. China Mobile was founded in 1997. The company is based in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. China Mobile Limited is a subsidiary of China Mobile Hong Kong (BVI) Limited.

Top China Companies To Watch In Right Now: China Gerui Advanced Materials Group Limited(CHOP)

China Gerui Advanced Materials Group Limited engages in the manufacture and sale of cold-rolled narrow strip steel products in the People's Republic of China. The company converts steel manufactured by third parties into thin steel sheets and strips. It sells its products directly to its customers in a range of industries, including food and industrial packaging, construction and household decorations materials, electrical appliances, and telecommunications wires and cables industries. The company was formerly known as Golden Green Enterprises Limited and changed its name to China Gerui Advanced Materials Group Limited in December 2009. China Gerui Advanced Materials Group Limited is based in Zhengzhou, China.

Top China Companies To Watch In Right Now: 51job Inc.(JOBS)

51job, Inc. provides integrated human resource services primarily in the People?s Republic of China. . The company provides recruitment related advertising services, including print advertising services through 51job Weekly, which is a city-specific recruitment advertising publication that is published once a week and is distributed as an insert in local newspapers and/or on a stand-alone basis; and online recruitment services through its Website, www.51job.com. It also offers other human resource related services, such as business process outsourcing, which consist of social insurance and welfare payment processing, regulatory compliance, and payroll processing; and executive search services, as well as conducts training seminars in the areas of business management, leadership, sales and marketing, human resource, negotiation skills, financial planning and analysis, public administration, manufacturing, secretarial, and other skills for the general public and corporate cl ients. In addition, the company provides campus recruitment services; conducts salary, employee retention, and other human resource related surveys; organize and host annual human resource conferences and events, which include lectures, seminars, workshops, and networking opportunities for human resource professionals; and provides assessment tools to assist human resource departments in evaluating capabilities and dispositions of job candidates and existing employees, aiding employee placement, and allocating employee resources, as well as hiring and support services to employers on select recruitment projects. It provides recruitment and other human resource related services to employers through its sales offices, as well as through its sales and customer service call center. The company was founded in 1998 and is based in Shanghai, the People?s Republic of China.

Advisors' Opinion:
  • [By Robert Hsu]

    51Job, Inc. (JOBS) reported its financial results for the second quarter of 2011 on August 4. Some highlights:

    Total revenues came in at 332.4 million yuan, an increase of 26.7% from 262.4 million yuan year-on-year. Revenues from online recruitment services climbed a whopping 49%, while print advertising revenues declined 27.8%. Gross profit for the second quarter increased 34.1%, while gross margin expanded to 71.8%, compared with 68% year-on-year. Net income for the second quarter increased 53.6% to 83.5 million yuan, representing earnings per share of 2.82 yuan.

    Looking forward, the company expects for revenue to come in at a range of 335 million yuan to 345 million yuan. Overall, the company continues to make progress on its strategic initiatives, and has strongly increased spending per employer in its online business, as well as expanding its customer base in existing and new geographic regions.

    Shares sold off slightly after the earnings report, since EPS just slightly missed analyst expectations, but investors quickly realized that the long-term growth story was still intact and shares quickly climbed back. Going forward, one day of volatility will not affect fundamentals of this company and I remain bullish on JOBS. Buy it.

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