THE WATCHLIST
By Peter Lisbygd
Did you listen to our previous Stay Curious event on China Investment trends? Then you know that there are upcoming IPO’s of some of the biggest companies in China around the corner.
The Chinese stock market has been on a bumpy ride this first quarter of 2021, with new regulations in the tech sector.
Many of our users have requested concrete insights on interesting, Chinese companies to follow. That is why, we have created THE WATCHLIST, where we in a short form give you inspiration and insights on companies that is shaping the future of business.
CATL
Stock code: 300750
Contemporary Amperex Technology Co., Limited (CATL) is a global leader in the development and manufacturing of lithium-ion batteries and battery systems for new energy vehicles and energy storage systems.
CATL is already the supplier of automobile battery packs to the local champion NIO and to Tesla in China.
According to South China Morning Post the company is currently planning to build a US$5 billion plant in Indonesia being able to fulfill to a rising demand of electric vehicles in the world’s fourth-most populous nation.
The battery assembly plant in Indonesia is the second offshore factory for CATL, following its US$2 billion plant in Germany that will supply BMW when it begins production in 2021.
The new plant in Indonesia is expected to start production in 2024.
jd logistics
Stock code: Listing expected this June in Hong Kong
The logistics arm of one of Chinas well known e-commerce giants JD.COM has secured the Hong Kong Stock Exchange's approval for IPO this coming June.
The mother company JD.COM, which can be compared with the American rival Amazon has to a large degree builds its success on a strong in-house logistic engine and supply chain infrastructure.
According to Nikkei Asia the logistics unit of Chinese e-commerce platform is planning for a $4 billion initial public offering. Money what will be invested in further upgrade, expand its network, and develop its technology.
China's integrated supply-chain logistics services industry is expected to grow from 2.02 trillion yuan in 2020 to 3.2 trillion yuan by 2025 amid the digitalization of the economy, the company said.
JD Logistics is building on a base of 190,000 corporate customers across many different industries.
The company's revenues have soared, but it is still a loss-maker. It posted a net loss of 2.8 billion yuan in 2018, 2.2 billion yuan in 2019, and 11.7 million yuan in the first nine months of 2020, according to the prospect.
Sinopharm
Stock code: 01099
After exporting its vaccines to nations with more dramatic needs than China, the Chinese government has recently ramped up its nationwide covid-19 vaccine effort, driving huge grown among domestic vaccine producers.
Sinopharm, a state-owned entity, is one of the dominant pharmaceutical companies involved in this massive campaign that aims to have 40% of China´s 1,4 billion population vaccinated by the end of June 2021.
The stock has a stable, positive trend and could gain even further momentum if the vaccine will be approved by UN health agency. According to www.thehindu.com an approval by the UN health agency would mark the first time that a Chinese vaccine had ever been granted a so-called emergency use listing. This could trigger a broader rollout of the Chinese vaccine.
*Disclaimer: We are not bankers or wealth managers, but experts with our ear to the ground, who are conveying knowledge and insights. As always, we are not advising on investment, and any mention of concrete companies should not be taken as investment advice in any capacity.