Daily Investment Strategy
Daily focus：Pop Mart (9992)
With better-than-expected first-half results and strong guidance for full-year revenue exceeding RMB 30 billion and an adjusted net profit margin of 35%, the company's growth prospects are positive. This growth is primarily driven by an aggressive global store expansion strategy, supported by significantly increased supply chain capacity to meet market demand. In the short term, this week's launch of the new mini Labubu product is expected to serve as a catalyst and expand its customer base. Longer-term, the company is committed to establishing Labubu as a globally iconic brand and solidifying its market leadership.
Powell is set to deliver a speech at Jackson Hole on Friday
Powell's speech at Jackson Hole on Friday is viewed as an important clue for the Federal Reserve's monetary policy. Market expectations for a rate cut in September are as high as 81%, reflecting profound changes in the macroeconomic environment. The U.S. is currently facing the dual challenges of inflation and employment. July's employment data was weaker than expected and has been revised downward for three consecutive months, indicating a cooling labor market. Meanwhile, the tariff policies under the Trump administration continue to push up price pressures, with the core PCE inflation rate remaining at a high level of 2.8% for over a year. This risk of "stagflation" forces the Federal Reserve to balance carefully between fighting inflation and stabilizing employment. The start of a rate-cutting policy would mark a significant shift in the monetary policy cycle, expected to release global liquidity, especially supporting emerging market assets. At the same time, the weakening US dollar trend may accelerate the international reallocation of capital.
On Wednesday, the Stock Connect program recorded a net outflow of HKD 14.7 billion. Among stocks, Tencent Holdings (700) saw the largest net inflow of HKD 969 million, followed by Pop Mart International Group (9992). On the other hand, Tracker Fund of Hong Kong (2800) recorded the largest net outflow of HKD 10.3 billion, followed by Hang Seng China Enterprises Index ETF (2828).
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.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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