China’s 8 Most Profitable US-Listed Tech Stocks in 2011

(Photo source: People's Daily Online)

Despite fears of a very bad year for Chinese tech stocks after the fraud at Longtop (formerly NASDAQ: LFT), a new list from China Analyst reveals that the majority of the top ten most profitable U.S.-listed Chinese stocks for the last 12 months were tech/web companies.

It’s actually doubly surprising, after an IPO Dashboard study back in October showed that tech IPOs were performing the worst, with an average growth rate of -19.43 percent. Yep, that’s a minus symbol right there. But, from the look of the top ten list, a number of China’s web behemoths weathered a stormy year.

Out of the ten on the line-up, eight are tech/web companies, and mostly big hitters:

1. Giant Interactive (NYSE:GA):
Giant isn’t even China’s biggest online gaming publisher, but it’s doing well, seeing its net profit margin at 52.23 percent for the last 12 months, and its operating profit margin was at 55.76 percent for the same period.

When we last looked at market share in online gaming in China in terms of revenue, Giant was in sixth place, while Changyou (below) was fifth.

2. Changyou (NASDAQ:CYOU):
Proving that social gaming and MMOs can be great business, Changyou is in the exact same field as Giant. Its net profit margin was 50.66 percent for the last 12 months. Its operating profit margin was 57.94 percent for the same period.

3. Baidu (NASDAQ:BIDU):
Baidu needs no introduction, and can now lay claim to being China’s third most profitable US-listed stock this year. Its net profit margin was 46 percent for the last 12 months. Its operating profit margin was 52.53 percent for the same period.

4. Netease (NASDAQ:NTES):
Netease is actually in third place in terms of online gaming revenue in the country, but it’s fourth in this particular list. The company might be better known for its 163.com web portal and email service, and its fledgling Youdao.com search engine. Its net profit margin was 44.36 percent for the last 12 months. Its operating profit margin was 46.77 percent for the same period.

7. SouFun (NYSE:SFUN):
Skipping down to seventh place in this ranking, SouFun is a massively popular real-estate portal. Its net profit margin was 33.83 percent for the last 12 months and its operating profit margin was 41.57 percent for the same period.

8. Ctrip (NASDAQ:CTRP):
Ctrip is a travel e-commerce site whose main rivals are eLong (NASDAQ:LONG) and the Baidu-invested Qunar. Its net profit margin was 32.11 percent for the last 12 months. Its operating profit margin was 33.57 percent for the same period.

9. AutoNavi (NASDAQ:AMAP):
AutoNavi makes GPS gear and apps, and it certainly didn’t get lost en route to a profitable year. Its net profit margin was 32.10 percent for the last 12 months and its operating profit margin was 30.98 percent for the same period.

10. Sohu (NASDAQ:SOHU):
Lastly, another old-skool Chinese web portal shows that dinosaurs can learn how to stay relevant – are you watching, Yahoo (NASQAQ:YHOO)? – with profit margins of 30.61 percent for the last 12 months and an operating profit margin of 34.88 percent for the same period.

If you’re curious, the missing fifth and sixth places belong to China Kanghui Holdings (NYSE:KH), and Noah Holdings (NYSE:NOAH) respectively, neither of which are tech or web related.