Close menu

June 2nd, 2022 | 10:38 CEST

Alibaba, JinkoSolar and Hong Lai Huat: Stocks for the stimulus package

  • RealEstate
  • Asia
  • Investments
Photo credits:

Asian stocks have been under pressure in recent months due to the Chinese government's strict Zero-COVID strategy with hard lockdowns like in the economic hub of Shanghai. Now they could benefit from easing and a stimulus package. In order to achieve the GDP growth target of 5.5% in 2022, the government in Beijing has put together an economic stimulus package. With 33 measures, private consumption - including the purchase of cars and household appliances - is to be boosted and investments in major projects promoted. It is not only Chinese stocks such as Alibaba and JinkoSolar that should benefit from this. The real estate sector in the entire Asian region should also breathe a sigh of relief and, with it, the Hong Lai Huat share.

time to read: 3 minutes | Author: Fabian Lorenz

Table of contents:

    Fan Xian Yong, CEO, The Place Holdings
    "[...] We recognized that there is a lack of business models that combine innovative business concepts, such as "new retail" solutions and omni-channel strategies, with conventional business segments. [...]" Fan Xian Yong, CEO, The Place Holdings

    Full interview


    Hong Lai Huat: Optimistic, profitable and cheap

    The lifting of lockdowns and the stimulus package will likely revive the entire Asian region, including the real estate sector. If the Chinese real estate market is too hot for you, you should look at the share of Hong Lai Huat - the valuation appears attractive. With a market capitalization of just over EUR 30 million, the P/E ratio for 2021 is around 7.5, and the price-to-book ratio is below 0.4, plus there is a dividend yield of about 2.20%. The real estate developer and builder based in Singapore has decades of experience in the realization of public and private residential complexes as well as commercial and industrial buildings. Its current focus is on projects in up-and-coming Cambodia. 2019 saw the launch of the Royal Platinum mixed-use project. 90% of the units have already been sold to local and international buyers. At the IIF virtual investor conference, the Company expressed confidence. "After a difficult pandemic, we have left the crisis behind. Cambodia is the first country in the region to open up to vaccinated people. That has given our business a noticeable boost. Cambodia remains an attractive location for real estate projects," said Dylan Ong, General Manager and Executive Director of Hong Lai Huat. "After D'Seaview and Royal Platinum, there are two more projects in the pipeline in Cambodia. The project volume will increase significantly. Management and shareholders are pursuing a growth path together." The entire presentation can be accessed here.

    Indeed, Hong Lai Huat appears to have emerged from the Corona Crisis and is back to profitable organic growth. In 2021, revenue climbed 132% to EUR 11.20 million. The gross margin was a proud 62%. Hong Lai Huat improved net profit from continuing operations to EUR 4.09 million. In 2020, a loss of EUR 5.23 million had to be posted. The Company intends to grow organically and through acquisitions in the current year. The funds required for this are available.

    JinkoSolar: Will it succeed in overcoming resistance?

    Even without the economic stimulus package, things have been going well for JinkoSolar in recent weeks. The shares of the Chinese solar module and solar cell producer have held up very well and are trading below important resistance at around EUR 57. If Jinko can continue to report orders as recently, this should soon be overcome. Thus, the solar specialist had recently reported an expansion of the distribution partnership in Latin America. The partner is the Brazilian Aldo Solar, one of the largest distributors of solar energy solutions in Latin America. Aldo's market share in the distributed power generation segment is around 30%. Under the agreement, new N-type modules from JinkoSolar with a total capacity of about 600 MW will be distributed. Jinko had previously received an order to supply solar modules with a capacity of 200 MW from northern China. The solar modules have an efficiency of up to 24% and will be supplied to China General Nuclear Power Group (CGN).

    An economic stimulus package could boost Alibaba's share

    Alibaba shareholders have needed strong nerves in recent months. The shares of the Chinese tech giant have lost more than 50% of their value in the past 52 weeks. They are currently trading at around EUR 90. At its peak, it was once over EUR 250. The catastrophic share price development is primarily due to the political uncertainties in China. After all, the latest quarterly figures are quite respectable. Sales amounted to USD 32.2 billion and were thus 9% higher than in the same quarter of the previous year. Diluted earnings per share were USD 1.25. More people shopped online due to the lockdowns, and Alibaba reported over 1 billion active customers in China for the first time. Top sellers were groceries and drugstore items. Overall, analyst forecasts for revenue and profit were exceeded. The outlook was also positive. Management expects supply chain issues to slowly ease in the coming months. Alibaba should benefit from the easing measures and the economic stimulus package - which is intended to boost private consumption, among other things. Of 40 accompanying analysts, the majority recommend Alibaba's stock as a buy. The average price target is around USD 154 or the equivalent of around EUR 144.

    Asian shares have not had it easy in recent months. The easing and stimulus package in China should improve sentiment across the region. Shares such as Alibaba, Hong Lai Huat and Jinko should be able to benefit from this.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author

    Related comments:

    Commented by Armin Schulz on January 16th, 2024 | 07:30 CET

    Commerzbank, Globex Mining, Vonovia - Interest Rates, Commodities, Real Estate - Where is the most potential?

    • Mining
    • Gold
    • Commodities
    • RealEstate
    • Banking

    When it comes to investing one's money, investors have various options. Personal preferences and different risk tolerances play a crucial role in decision-making. Should one choose the security of a bank with fixed interest rate products, or does one venture into the potentially lucrative terrain of the commodities markets, where choices range between gold, oil and many other options? The third option would be real estate, the ownership of which is equated with value stability and protection against inflation. Experts recommend a diversified approach across these different areas to cushion fluctuations. We take a look at an interesting company from each sector.


    Commented by Fabian Lorenz on January 10th, 2024 | 07:30 CET

    Bayer with a blockbuster! Vonovia weak! And how are Desert Gold shares doing?

    • Mining
    • Gold
    • RealEstate
    • Pharma

    While the DAX, Dow & Co. started the new year weakly, Bayer shares are holding up surprisingly well and can maintain the price gains from the end of 2023. The share price is being supported by positive news. A new blockbuster is waiting in the wings. Vonovia shares, on the other hand, are suffering from profit-taking, although analysts see further upside potential. Is concrete gold celebrating a comeback? And what about real gold? The price has weakened recently, but analysts believe USD 2,200 per ounce is possible, and central banks continue buying heavily. This should benefit not only the major gold producers but also low-cost explorers such as Desert Gold.


    Commented by André Will-Laudien on November 20th, 2023 | 07:10 CET

    Furious debt mania, a thorough portfolio check is necessary! Allianz, Blackrock Silver, Deutsche Bank and Commerzbank in focus!

    • Mining
    • Silver
    • Gold
    • Investments
    • Banking
    • Debt

    From one high to the next - it is not just equities that are booming in Europe, the US and China; it is mainly debt. First Corona, then Ukraine, now Israel - there is no end to the flood of borrowing. Armaments are now being financed on credit, while the accompanying recession is draining the coffers. Real estate is becoming a hot topic: New builds are hardly affordable for families, and old buildings are swallowing up thousands of euros in green-tinted renovation costs. The Federal Constitutional Court has now put a retroactive stop to the creative spending culture in Berlin, and a new budget plan is necessary. Keeping a clear head as an investor in this environment is challenging. We look at the opportunities in the financial sector, but perhaps precious metals will also be the anchor that saves the day.