China’s central bank on Nov. 30 reduced the amount of cash that banks must set aside as reserves for the first time since 2008. “Policy easing is bullish for all Chinese companies,” Eric M. Jackson, president and founder of Ironfire Capital, said in a telephone interview. “It is particularly good for property developers and trickles down to the rest of the economy. There’s gradual improvement in the U.S. economy.”
Below are the top 10 U.S.-listed Chinese stocks with highest Return on Equity (ROE) ratio for the last 12 months. ROE shows a company’s efficiency in making profits from shareholders’ equity. It is equal to net profits divided by shareholders’ equity.
1. SouFun Holdings Limited (ADR) (NYSE:SFUN) closed Wednesday at $13.97, down 0.28.
SouFun Holdings Limited operates a real estate Internet portal in the People’s Republic of China. It offers marketing services primarily through advertisements on its soufun.com Website to real estate developers in the marketing phase of new property developments, as well as to real estate agencies and other home furnishing and improvement vendors who wish to promote their products and services, including home furnishing and improvement products and services, furniture, electronics, and other products.
SFUN has the highest Return on Equity of U.S.-listed Chinese stocks. SFUN advanced 24 percent last week to $14.21. Its ROE was 107.09% for the last 12 months. Its net profit margin was 33.83% for the same period.
2. Spreadtrum Communications, Inc (ADR) (NASDAQ:SPRD) closed Wednesday at $20.72, down 1.03.
Spreadtrum Communications, Inc., through its subsidiaries, operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. It offers a portfolio of integrated baseband processor solutions that support a range of wireless communications standards, including global system for mobile communication (GSM), general packet radio service (GPRS), enhanced data rates for GSM evolution (EDGE), time division synchronous code division multiple access (TD-SCDMA), and high speed packet access (HSPA), as well as offer an array of multimedia capabilities, such as MP3 digital audio playback, touch screen, JAVA acceleration, digital camera support, motion JPEG, MPEG4, AVS and H.264 digital video playback, and 64-channel polyphonic ringtone playback.
SPRD has the 2nd highest Return on Equity of U.S.-listed Chinese stocks. Its ROE was 58.82% for the last 12 months. Its net profit margin was 21.42% for the same period.
3. Baidu.com, Inc. (ADR) (NASDAQ:BIDU) closed Wednesday at $129.33, down 1.92.
Baidu, Inc., a member of the NASDAQ 100 index, provides Internet search services. The company offers a Chinese language search platform on its Website, Baidu.com; and a Japanese language search platform on its Website, Baidu.jp. Its search services enable users to find relevant information online, including Web pages, news, images, documents, and multimedia files through the links provided on its Websites.
BIDU has the 3rd highest Return on Equity of U.S.-listed Chinese stocks. Its ROE was 56.47% for the last 12 months. Its net profit margin was 46.00% for the same period.
4. Changyou.com Limited (ADR) (NASDAQ:CYOU) closed Wednesday at $24.93, down 0.68.
Changyou.com Limited develops and operates online games in the People’s Republic of China. It involves in the development, operation, and licensing of massively multi-player online role-playing games (MMORPGs), which are interactive online games that might be played simultaneously by various game players.
CYOU has the 4th highest Return on Equity of U.S.-listed Chinese stocks. Its ROE was 43.33% for the last 12 months. Its net profit margin was 50.66% for the same period.
5. China Eastern Airlines Corp. Ltd. (ADR) (NYSE:CEA) closed Wednesday at $19.48, down 0.14.
China Eastern Airlines Corporation Limited, together with its subsidiaries, operates in civil aviation industry. It provides passenger, cargo, and mail delivery and other transportation services. The company also provides airport ground, flight training, cargo logistics, airlines consultation, and repair and maintenance services. As of December 31, 2010, it operated a fleet of 355 aircraft, including 337 passenger aircraft and 18 freighters, as well as operated approximately 9,600 scheduled flights per week to a total of 30 countries and regions serving 182 domestic and foreign cities.
CEA has the 5th highest Return on Equity of U.S.-listed Chinese stocks. Its ROE was 40.12% for the last 12 months. Its net profit margin was 7.25% for the same period.
6. Rda Microelectronics Inc (ADR) (NASDAQ:RDA) closed Wednesday at $10.61, down 0.32.
RDA Microelectronics, Inc., a fabless semiconductor company, designs, develops, and markets radio-frequency and mixed-signal semiconductors for cellular, broadcast, and connectivity applications. Its products include power amplifiers, transceivers and front-end modules, FM radio receivers and transmitters, set-top box tuners, analog mobile television receivers, walkie-talkie transceivers, LNB satellite downconverters, and Bluetooth system-on-chips for mobile handsets.
RDA has the 6th highest Return on Equity of U.S.-listed Chinese stocks. Its ROE was 39.47% for the last 12 months. Its net profit margin was 14.23% for the same period.
7. Yanzhou Coal Mining Co. (ADR) (NYSE:YZC) closed Wednesday at $23.53, up 0.10.
Yanzhou Coal Mining Company Limited, together with its subsidiaries, engages in the mining, preparation, and sale of coal in China, Australia, Japan, and South Korea. It involves in manufacturing, washing, processing, and selling steam coal used in power plants; and coking and pulverized coal used in metallurgical mills for blast furnace injections. As of December 31st, 2010, the company owned and operated six coal mines with approximately 1,797.3 million tons of proven and probable reserves. It also holds interests in various coal mines in China and Australia.
YZC has the 7th highest Return on Equity of U.S.-listed Chinese stocks. Its ROE was 33.39% for the last 12 months. Its net profit margin was 30.21% for the same period.
8. CNOOC Limited (ADR) (NYSE:CEO) closed Wednesday at $196.10, down 2.42.
CNOOC Limited, through its subsidiaries, engages in the exploration, development, production, and sale of crude oil, natural gas, and other petroleum products. Its oil and natural gas properties are located in offshore China, which include Bohai Bay, western south China Sea, eastern south China Sea, and east China Sea, as well as in Indonesia, Iraq, and other regions in Asia; and Oceania, Africa, North America, and South America. As of December 31, 2010, the company had net proved reserves of approximately 2.99 billion barrels-of-oil equivalent, including approximately 1.92 billion barrels of crude oil and 6,458.3 billion cubic feet of natural gas.
CEO has the 8th highest Return on Equity of U.S.-listed Chinese stocks. Its ROE was 31.02% for the last 12 months. Its net profit margin was 30.19% for the same period.
9. Shanda Games Limited (ADR) (NASDAQ:GAME) closed Wednesday at $4.45, up 0.16.
Shanda Games Limited, an online game company, develops, sources, operates, and publishes online games in the People’s Republic of China. It also licenses its games to third parties. The company’s game portfolio includes massively multi-player online role-playing games (MMORPGs) in various genres, such as martial arts adventure, fantasy, side-scrolling combat, strategy web game, turn-based, and action; and advanced casual games in battle, fighting, side-scrolling combat, and racing genres.
GAME has the 9th highest Return on Equity of U.S.-listed Chinese stocks. Its ROE was 30.86% for the last 12 months. Its net profit margin was 26.56% for the same period.
10. China Southern Airlines Limited (ADR) (NYSE:ZNH) closed Wednesday at $26.91, up 0.45.
China Southern Airlines Company Limited provides commercial airline services in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. It principally engages in the provision of passenger, air cargo, and mail airline services. The company also offers logistics services; air catering services; property management services; aircraft and engine repair and maintenance services; pilot training services; flight simulation services; and airport ground services. As of December 31, 2010, it had a fleet of 422 aircraft, as well as a network reaching 898 destinations connecting 169 countries and regions, and cities worldwide.
ZNH has the 10th highest Return on Equity of U.S.-listed Chinese stocks. Its ROE was 30.79% for the last 12 months. Its net profit margin was 8.74% for the same period.
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