Avoid the ex-growth stocks, invest in these that represent the 'future of China' instead: CIO

Selling China video game companies ecommerce property I understand and manufacturing stocks. Why is that? I’m particularly intrigued by video games. Most of them are ex growth. Yeah. I think a lot of investors been doing OK Sir. 10 cent Alibaba. Their growth numbers are OK profit margins are used to grow at 20 thirty 40% a year in the past, right. Corrected so much as well. They’ve fallen so much as well. They’ve corrected so much as, yes, that’s where there’s a split of view amongst the investors. For APS, we believe most of these companies are ex growth, Yeah. While some other investors believe that because they’ve dropped so much that the multiples have dropped to maybe 10 times today and therefore they’re undervalued. Now, they are undervalued only if they can continue to grow at maybe not 3040% a year like in the past. I said 1020%, right. But the extra of today, IE, they’re not going to grow at all for the next 3-5 years and 10 times earnings, which is slightly above the market average, I think they’re still expensive. I think one of the mistakes sometimes we make is that because the share price dropped so much, it is cheap and therefore it’s time to double down. I think that’s probably not quite correct because the future share price will depend on what on the future fundamentals, future growth. So we’re running out of time, but I do want to get some of your ideas in. You have an allocation to an auto component stock Bittel and you also like a satellite and AI provider Geovis. Very quickly if you could highlight why you like these names, I think they represent the future of China. As I said early on, you know the Chinese economy is being transformed from an infrastructure and property LED to invest this economic model to one that is innovative technology based economy and therefore we want to invest in in the future of China which will include the EV market in particular. You know today China is really already the the leader in electric vehicles or or EVs and I believe this is just the beginning of China’s EV industry. But we are not interested in the the car manufacturers because there’s a ongoing price war. It’s not ended yet. So instead we went downstream to to to invest in the, the component manufacturers and Biddle is a leading auto component manufacturer growing very strongly whereas Jovis is using satellites, AIA, big data to offer their services to the government, to businesses and the future to the consumers. It has grown at 50% a year in the past and going forward because it’s a new industry where demand is still very strong for their services, he can grow at 40% a year for many more years to come. So these are the sort of promising stars of China, if you will. Therefore, we are positive, you know, on these stocks.