Daily focus：Fuyao Glass（3606）
In the first half of 2025, Fuyao Glass achieved revenue of RMB 21.45 billion, a year-on-year increase of 16.9%; pre-tax profit of RMB 5.79 billion, a significant year-on-year increase of 40.5%; net profit attributable to shareholders of the parent company reached RMB 4.804 billion, a year-on-year increase of 37.3%, with earnings per share of RMB 1.84, demonstrating a significant improvement in the company's operating efficiency. This profit growth was primarily driven by increased marketing efforts and a higher proportion of high-value-added products, as well as effective cost control and strengthened R&D and innovation. In the American markets, Fuyao continues to expand its market share and improve capacity utilization. The utilization rate of the second phase of its US factory is expected to reach 30% in 2025, rising to 70% in 2026, and is planned to be near full capacity in 2027.
August retail sales data beat consensus, boosting market confidence
After hitting a record high of 6,615 on Monday, the S&P 500 index retreated slightly to 6,606 on Tuesday, weighed down by cautious sentiment ahead of the Federal Reserve meeting. The hottest topic in the market was the US August retail sales data. The Commerce Department report showed a 0.6% month-on-month increase in retail sales, far exceeding market expectations of a 0.2% increase. Core retail sales (excluding autos and gasoline) also rose 0.4%. This strong performance was primarily driven by increased online shopping and spending on household goods, reflecting consumers' continued strong spending power despite high interest rates and easing recession fears. Technology and consumer stocks led gains following the data release, with Alphabet's market capitalization exceeding $3 trillion and Tesla's stock price rebounding 6%. This suggests the Fed may maintain a gradual path of interest rate cuts, rather than aggressive easing, to balance inflationary pressures.
Hong Kong Stock Connect recorded a net outflow of HK$3.19bn on Monday, with Alibaba (9988) receiving the largest net inflow of HK$3.03bn, followed by Meituan (3690). On the other hand, Tracker Fund of Hong Kong (2800) recorded the largest net outflow of HK$4.64bn, followed by Xiaomi Corporation (1810).
The Hang Seng Index opened 90 points higher before fluctuating upwards. The Hang Seng Index closed at 26,438 points, down 8 points, or 0.03%. The China Enterprises Index closed at 9,386.39 points, up 1 point, or 0.02%. The Hang Seng Tech Index closed at 6,077 points, up 34 points, or 0.56%. The total market turnover for the day was HK$294.069 billion. Internet medical platform stocks came under pressure, with Alibaba Health (241) falling 3.9% and JD Health (6618) falling 5.8%. Trip.com(9961) rose 4.1% due to speculation before the National Day Golden Week.
Source: KGI Investment Products and Solutions Department
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August nonfarm payrolls rose only 22k, far below expectations of 75k. In addition, the Labor Department revised down job gains between Mar 2024 and Mar 2025 by 911k—the largest downward adjustment on record. The weak data reinforced expectations for a Fed rate cut in September…