Daily Investment Strategy
Daily focus：361 Degrees（1361）
361 Degrees achieved a solid financial performance in the first half of 2025, with revenue increasing by 11.0% year-on-year to RMB 5.7 billion. Profit attributable to equity holders grew by 8.6% to RMB 858 million, and earnings per share rose to RMB 0.415. Net cash inflow from operating activities surged by 227.2% to RMB 524 million, reflecting healthy operational cash flow. The board proposes an interim dividend of 20.4 HK cents per share, maintaining a payout ratio of 45.0%.
Inflation data eases concerns about rate cuts
July's CPI rose 0.2% MoM and 2.7% YoY, while the core CPI rose 0.3% MoM and 3.1% YoY. The market interpreted this as "overall inflation is under control, but core inflation remains stubborn," supporting expectations of a September rate cut. The S&P 500 closed up approximately 1.1% that day, reaching a new closing high. Details show that rents continue to support prices, partially offset by weak energy prices. Meanwhile, rising prices for tariff-related goods and services are creating structural pressures, potentially slowing the subsequent decline in inflation. If the Fed initiates rate cuts in September, financial conditions will further ease, supporting risk asset valuations. However, the stubborn nature of core service inflation and the pass-through of tariffs may limit the extent of rate cuts throughout the year. The path of interest rates remains dependent on the consistency of subsequent price and employment data.
The Hong Kong Stock Connect recorded a net inflow of HK$9.45bn on Tuesday, of which Tracker Fund of Hong Kong (2800) saw the largest net inflow of HK$4.16bn, followed by Hang Seng China Enterprises (2828); Kuaishou (1024) recorded the largest net outflow of HK$2.37bn, followed by Hua Hong Semiconductor (1347).
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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