China tech picks: PDD, JD.com, Alibaba, and Baidu compared

All four listed Chinese tech companies have seen sharp declines in stock value over the past year. PDD remains the standout investment option among them, growing revenue from $14.78B in 2021 to $61.75B in 2025, while maintaining a healthy 22.7% net income margin. This combination of growth, quality, and value is rare and makes PDD a top pick for many investors, although there are concerns about regulatory headwinds for its Temu subsidiary in Western markets.

JD.com shows a less bad 1-year return (-22.7%) compared to its peers, with a value case supported by a 47.4% upside potential and a 12.0% FCF yield. However, its logistics-heavy business structure with thin margins (9.3% gross and 1.5% net) makes it a riskier investment. Alibaba's market presence is notable, but its disappointing EPS misses and lackluster performance in its AI-cloud story have led to a current disappointing execution.

Its FCF yield of -4.3% is a significant concern. Baidu, the highest-risk investment among the four, is experiencing declining revenue (-4.2%) and collapsing margins, with negative ROE and a negative FCF yield. Despite this, its $5B buyback program and potential autonomous-vehicle optionality provide some upside potential. Overall, PDD emerges as the most compelling and stable investment option among the four Chinese tech companies, offering a unique combination of profitability, growth, and low risk, making it the best choice for investors seeking clean China exposure without taking on binary bets.