Daily focus：Chow Tai Fook (1929)
Chow Tai Fook announced its interim results for fiscal year 2026, demonstrating resilience amidst a volatile macroeconomic environment. Revenue reached HK$38.986 billion, a slight decrease of 1.1% year-on-year, but gross profit margin remained at a record high of 30.5%, benefiting from rising gold prices and an optimized product mix. Thanks to rigorous cost control, operating profit increased by 0.7% year-on-year to HK$6.823 billion, with the operating profit margin widening to 17.5%, a five-year high. Profit attributable to shareholders remained flat at HK$2.534 billion, and an interim dividend of HK$0.22 per share was declared, representing a payout ratio of approximately 85.7%.
Black Friday shopping traffic hits record high
US stocks rebounded on strong consumer data, with the National Retail Federation (NRF) reporting record-high Black Friday shopping traffic, demonstrating strong consumer will to spend despite rising prices. Online sales on Black Friday reached $11.8 billion, a 9.1% year-on-year increase. Strong domestic demand data eased economic concerns, coupled with market expectations of further interest rate cuts at next week's Federal Reserve meeting, driving the index higher.
Hong Kong Stock Connect saw a net inflow of HK$4.1 billion on Tuesday, with Meituan (3690) experiencing the largest net inflow at HK$592 million, followed by Xiaomi Group (1810). On the other hand, Tencent Holdings (700) recorded the largest net outflow at HK$381 million, followed by SMIC (981).
Hong Kong stocks opened lower and continued to decline throughout the day, with trading volume shrinking significantly as the market entered the quiet period of December. The Hang Seng Index closed at 25,760 points, down 334 points or 1.28%; the H-share Index fell 154 points or 1.68% to 9,028 points; and the Hang Seng Tech Index dropped 89 points or 1.59% to 5,535 points. Total market turnover shrank to HK$164.4 billion. Technology stocks were generally under pressure, with Kingdee International (0268) falling 4.5% and NetEase (9999) falling 2.9%. China Aluminum (2600) rose 4%, and China Hongqiao (1378) rose 2.3%.
Source: KGI Investment Products and Solutions Department
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