With NIO in spotlight, I am sort exploring chinese market. NIO is struggling so i thought it is good time to buy. Then when you look at long time chinese car companies' which has been there for some time, i am not seeing much hope. Lets NIO gets successful and reaches the market cap of more mature companies like SAIC, Geely, GAC which seems to be some of prominent chinese car manufacturers. Of course, NIO may get international recognition (there is an office in San Jose CA US) and far surpassese these companies but lets say it reaches near to the level of these companies. Then by market cap: GAC - 112B HKD which is 14B USD valuation Geely - Jun 2019 Q revenue/net income: 23B/2B CNY which translates to 3B USD/333M USD. meeh. SAIC - 204B / 7B - revenue / netincome for 2019 Sep which translates to 34B / ~1B in revenue which is not bad but then compare these companies to chinese big ones mostly in tech: BABA - staggering 558B USD valuation, last quarter earning 161B USD revenue/18.2 per share earning which is 2.5B*18.2=45.5B USD net income. TENCENT - 474B USD valuation , last quarter earning 97B billion USD revenue / 2.55 per share earning which is 24.4B billion USD in net income. which leads me to question, with chinese internet tech company are so successful even challenging GOOG, AAPL in terms of market space, but people barely know about GAC, GEELY and SAIC and they are not much prominent and not earning much. By gauging them as a barometer, i dont NIO becoming successful car manufacturer or will they? Or could it have any hope of getting to the level of BABA, tencent etc.,? Because they are so cheap now at 4$ stock price and less than 5B$ USD in valuation.
so chinese in general sucks in HW? Haha that may be true when u think about their CPUs but they are catching up not?