To The Moon

More or less all of the market is a “buy the dip” opportunity at the moment. Investors have sold off in droves because of risk-aversion, which has left many stocks undervalued. I personally like Chinese stocks, and all of the ones listed here areAmerican Depositary Receipts(ADRs). I’m aware that the country’s political situation is unpredictable and that new lockdowns are in place. However, there’s undoubtedly been an overreaction from most stock market participants.

Morgan Stanley’s(NYSE:MS) Lisa Shalettrecently opined: “Worries over China’s growth path and monetary policy have recently hampered equity performance, but investor concerns may be overblown.”

I’m in complete agreement with Shalett. As someone who understands investors’ overreaction to the ups and downsides, I can tell you that Chinese equities will surge once investors start acting rationally.

Bilibili (BILI)

Bilibili’s(NASDAQ:BILI) strength is its millennial and Gen-Z conversion rate. Approximately86%of Bilibili’s user base is aged 35 or below, meaning that the company’s well geared to take advantage of the future big spenders in China. Additionally, data suggests that China’s Gen-Z spends a 99% higher per-capita value on gaming than the rest of the Chinese population, conveying a promising future consumption trendline.

Furthermore, Bilibili recently beat its fourth-quarter earnings estimate by2 cents per shareamid a 37% year-over-year increase in monthly paying users. Moreover, BILI has propped up its research & development spending by 65% during the past financial year, which could lend it the opportunity to deliver superior offerings in a competitive market.

Bilibili stock is undervalued as its normalized price-to-sales (P/S) ratio is trading at a discount worth75.01%. In addition, BILI stock has traded down by nearly80%during the past year, leaving it oversold and overlooked. This puts it definitely at the top of my list of Chinese stocks to buy.

$Bilibili Inc.(BILI)$