Hello,
I see that Alibaba and Niu's revenues/earnings were significantly hit during CCP's crackdowns, but I don't understand why exactly were they hit by politics alone? Is Chinese Communist Part to blame for Alibaba dropping from 150 billion Yuan earnings in 2021 to 52 billion a year later?
Niu managed to somehow achieve 50 million net loss in 2022 compared to 225 million profits in 2021.
One could blame it on Covid, but they haven't been much impacted in 2020, as we can see on the financial statements.
I know I am generalizing here a lot, but the same thing happened with other Chinese stocks like Douyu and Tencent (TME).
I feel like those companies are not just undervalued, but actually at probably close to their fair price considering the horrible performance and political risks. I mean I purchased BABA at average price of 216$ when people were giving it a price prediction of 300-350$ in just a year. My average price for NIU is 15$ and it was rapidly growing back then. Now both are quite cheaper and still can't say they are undervalued.
Why the Chinese government decided to scare away investors and ruin those good companies at least for couple of years? Aren't they overall losing a lot by all these crackdowns? Why they hate the free market so much?
What do you expect to happen in the next 2-5 years with those companies?
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