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Sino Land (83): interim results for the year ending 2025 show that, excluding changes in the fair value of investment properties, underlying profit slightly decreased to HK$2.22 billion. Including revaluation losses, net profit fell to HK$1.533 billion. Despite the profit decline, the Group maintained its interim dividend of HK$0.15 per share and possessed ample net cash of HK$51.402 billion, demonstrating strong defensive capabilities. Looking ahead, the interest rate cut cycle and talent acquisition programs will provide positive support for the local property market. In summary, the Group's strong net cash position allows it to remain flexible in a volatile environment and will continue to employ a prudent strategy to seek investment opportunities to enhance long-term value.
Geopolitical risks between the US and Iran escalate
The US Producer Price Index (PPI) rose sharply by 2.9% year-on-year in January, significantly higher than the market expectation of 2.6%; the month-on-month increase was 0.5%, also significantly exceeding the expected 0.3%. Furthermore, the core PPI, excluding food and energy, rose by 3.6% year-on-year, also exceeding Wall Street's forecast of 3.0% and the previous value of 3.3%, with the month-on-month increase also exceeding market expectations of 0.8%. This broader-than-expected inflation in the production sector was primarily driven by rising service sector costs, reflecting persistent price pressures in labor-intensive sectors. In addition, geopolitical tensions continue to escalate. Following the attacks launched by the US and Israel on Saturday, Iran retaliated by attacking several Middle Eastern allies, such as Israel. Trump warned that if Iran retaliates, the US will respond with unprecedented force. This will likely drive up oil and gold prices in the short term.
Hong Kong Stock Connect saw a net inflow of HK$14.997 billion on Friday, with the Tracker Fund of Hong Kong (2800) seeing the largest inflow at HK$8.385 billion; followed by the Hang Seng China Enterprises Index (2828). Yangtze Optical Fibre and Cable (6869) recorded the largest net outflow at HK$505 million, followed by Kuaishou-W (1024).
The US-Israeli military strikes against Iran triggered a surge in oil prices and a decline in Asia-Pacific stock markets. The HSI opened 324 points lower and subsequently fell as much as 747 points, closing down 570 points or 2.1% at 26,059. The HSCEI fell 157 points or 1.8% to 8,701, and the HSTECH fell 148 points or 2.9% to 4,989. Total market turnover was HK$357.7bn. Oil prices surged significantly, with PetroChina (0857) and CNOOC (0883) rising 4.1% and 5.6% respectively, and CNOOC Services (2883) rising 7%. Among energy transportation stocks, COSCO Shipping Energy Transportation (1138) rose 7%.
Source: KGI Investment Products and Solutions Department
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