To The Moon

🌟🌟🌟The Singapore Stock Exchange has just introduced 3 new Hong Kong and 3 new Thai Singapore Depository Receipts (SDRs) on 23 June.  I am super excited about the 3 latest Hong Kong SDRs  - JD.com, SMIC and PetroChina as they are gateways to China's innovation, consumption and energy future.  All 3 SDRs are accessible from the SGX with SGD pricing and low entry barriers of under SGD 250.

JD.com - The Undervalued Titan of China's AI Driven ECommerce

JD.com $JD HK SDR 10to1(HJDD.SI)$ is China's second largest ECommerce platform, operating a fully integrated logistics network.  It also runs JD Health, JD Logistics and JD Property, giving it a diversified tech retail ecosystem.

Q1 FY25 Highlights -

Revenue is RMB301.1 Billion (USD 41.5 billion), up 15.8% year over year

Net Income is RMB10.9 billion (USD 1.5 billion), up 53% year over year.

EPS is RMB 8.41(USD 1.16), up from RMB 5.65 year over year.

Retail Operating Margin is 4.9%, up from 4.1%.

Dividend Yield is 3% paid annually

Why Invest in JD.com?

Undervalued: JD.com has a P/E ratio of 8.0 despite strong earnings and buybacks

AI Driven Logistics : Proprietary smart warehousing and delivery

Omnichannel Reach : JD Daojia, 7Fresh and JD Takeaway

Resilient Supply Chain : End to end control builds efficiency and trust

Investor Angle - JD.com is a deep value play with strong fundamentals, growing dividends and a logistics moat.  It is quietly building momentum beneath the market's radar.

SMIC - China's Strategic Semiconductor Pillar

SMIC $SMIC HK SDR 5to1(HSMD.SI)$ is China's largest and most advanced pure play semiconductor foundry.   It manufactures chips for smartphones, IoT, automotive and AI applications, serving clients like Huawei, Qualcomm and Broadcom.  SMIC is a cornerstone of China's tech self sufficiency strategy.

Q1 FY 25 Highlights

Revenue is RMB 16.2 billion (USD 2.25 billion), up 28% year over year

Gross Profit is RMB 3.64 billion (USD 506 million). Gross Margin is 22.5%.

EBITDA is RMB 9.3 billion (USD 1.29 billion)

Net Profit is RMB 1.35 billion (USD 188 million)

Revenue Mix - 41% consumer electronics, 24% smartphones and 10% industrial /auto.

Why Invest in SMIC?

National champion in Semiconductors with 7nm production and 5nm in development. 

Strong demand from industrial and automotive sectors

Backed by China's state Semiconductor fund and policy tailwinds.

Investor Angle - SMIC is a long term strategic bet on China's chip independence and AI infrastructure.  There is no dividend paid but it has high potential for capital appreciation.

PetroChina - The Energy Giant with a Green Pivot

PetroChina $PetroCN HK SDR 1to2(HPCD.SI)$ is China's largest oil and gas producer.  It has integrated operations across exploration, refining and distribution.  It is also investing heavily in natural gas, hydrogen and renewables.

Q1 FY 25 Highlights 

Revenue is RMB 753.1 billion (USD 103.5 billion) down 7.3% year over year.

Net Profit is RMB 46.81 billion (USD 6.4 billion), up 2.3% year over year.

EPS is RMB 0.26

Operating Profit is RMB 46.1 billion (USD 6.3 billion) up 7% year over year

Why Invest in PetroChina

Resilient earnings despite lower oil prices 

Strong natural gas and renewables growth offsetting refining weakness

Robust balance sheet and disciplined capital expenditure (cut to RMB 262.2 billion for FY25)

Attractive Dividend yield of  7.8% paid twice a year.

Investor Angle - PetroChina is a dividend rich, defensive stock with upside potential from China's energy modernisation and global LNG demand.  It is quietly evolving into a hybrid energy powerhouse.

Why SDRs are Game Changers

SDRs are SGD denominated stocks with no foreign exchange risk.  Low minimum entry point, making it accessible to small retail investors. 

These 3 SDRs give a diversified exposure to Tech, Energy and Consumption sectors. 

Concluding Thoughts 

If you are looking to build China exposure the smart way - JD.com brings value and momentum while SMIC brings tech powered upside and PetroChina anchors it with great dividend yield.  These Singapore SDRs offer a rare combination of strategic access, strong fundamentals and seamless execution.  It is also about capturing the pulse of China's economic transformation and gaining access to megatrends of AI, automation, energy and rising middle class consumption. 

Smart money doesn't just chase growth, it aligns where the future is being built. 

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