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Pop Mart(9992): announced its full-year results for 2025, with revenue reaching RMB 37.12 billion, a robust year-on-year increase of 184.7%. Profit surged 293.3% to RMB 13.01 billion, while adjusted net profit also recorded a 284.5% increase. Although core data met expectations, significant divergence in performance details raised market concerns about future growth momentum. While China and the Asia-Pacific region recorded stable growth of 134.6% and 157.6% respectively, the performance in the European and American markets clearly lagged behind. Particularly in the European market, although the apparent growth rate reached 506.3%, annual revenue was only 1.45 billion RMB, far below the previously optimistic market expectation of 2 billion RMB. The market has begun to question its ability to penetrate the Western market. Management's revenue growth guidance for 2026 is no less than 20%, significantly lower than the market's general expectation of over 30%. This indicates that analysts will revise their earnings forecasts downwards, putting pressure on short-term valuations. Currently, the adjusted forward P/E ratio is approximately 13 times, which is close to being one standard deviation below the average. However, investors should still be wary of short-term stock price volatility caused by downward revisions in earnings forecasts and target prices.
Google's release of its KV caching compression technology
The market was initially pressured by inflation concerns, but rumors of a "peace plan" spread, and falling oil prices significantly eased pressure on transportation and energy costs, leading to a collective rise in energy-price-sensitive sectors such as aviation and cruise lines. On the other hand, Google's release of its KV caching compression technology raised market expectations of a shock to storage demand, causing a general decline in storage stocks such as Micron and SanDisk.
Hong Kong Stock Connect saw a net inflow of HK$22.323 billion on Wednesday, with the Tracker Fund of Hong Kong (02800) seeing the largest inflow at HK$11.38 billion, followed by the Hang Seng China Enterprises Fund (02828). China National Offshore Oil Corporation (00883) recorded the largest net outflow at HK$1.057 billion, followed by Tencent Holdings (00700).
The Hang Seng Index closed at 24,856 points, down 479 points or 1.9%. The Hang Seng Tech Index closed at 4,761 points, down 161 points or 3.3%. The Hang Seng China Enterprises Index fell 192 points or 2.2% to 8,389 points. Total market turnover was HK$261.6 billion. Technology stocks softened again, with Alibaba (9988) down 4.6% and Kuaishou (1024) down 14%.
Source: KGI Investment Products and Solutions Department
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The U.S.–Israel–Iran conflict continues, keeping Brent crude above USD 100 per barrel. Markets expect high oil prices to intensify inflation risks, prompting central banks to adopt hawkish stances...