Daily Investment Strategy
Daily focus：Times Electric (3898)
Times Electric announced its Q3 2025 results, which were "broadly in line with market expectations." In Q3, the company's revenue was RMB 6.6 billion, a year-on-year increase of 9.58%; net profit attributable to shareholders of the listed company was RMB 1.05 billion, a year-on-year increase of 7.69%. For the first three quarters of 2025, total revenue reached RMB 18.8 billion, a year-on-year increase of 14.86%, and net profit attributable to shareholders was RMB 2.7 billion, a year-on-year increase of 10.85%. Despite the resilience of the performance, the company also faces challenges. Profit margins were under pressure due to changes in the product mix and declining prices for medium and low-voltage semiconductors. Management reiterated that the Yixing IGBT production line is operating at full capacity, while the silicon carbide (SiC) production line is expected to be completed by the end of the year.
Labor Market Resilience and Government Shutdown Pressure
US stocks rebounded 0.4% to 6,796 points yesterday. The ADP employment report showed that the private sector added 42,000 jobs in October, exceeding the expected 35,000 to 37,500, reversing the 29,000 job loss in September, reflecting the resilience of the labor market. Despite the government shutdown lasting 36 days, setting a record for the longest shutdown in US history, resulting in weekly economic losses of $15 billion, disrupting official data releases, and impacting Federal Reserve decisions, the shutdown is expected to drag down fourth-quarter GDP growth by 1 to 2 percentage points, with the nonpartisan Congressional Budget Office estimating a possible 1.15 percentage point decline. The economic impact of this shutdown is far greater than previous ones, especially during the holiday shopping season, potentially suppressing retail sales and spending.
Hong Kong Stock Connect saw a net inflow of HK$10.37bn on Wednesday, with the Southern Hang Seng Technology ETF (3033) seeing the largest net inflow at HK$1.29bn, followed by Alibaba (9988). On the other hand, Hua Hong Semiconductor (1347) recorded the largest net outflow at 640mn, followed by SMIC (0981).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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