Daily Investment Strategy
Daily focus：ANTA Sports（2020）
ANTA Sports has a solid growth outlook. Management maintains full-year sales guidance, and the main brand and other businesses are expected to record strong growth. Its subsidiary Amer Sports performed particularly well, with sales increasing by 23% in the first quarter and has raised its full-year revenue growth guidance, becoming the core growth engine. At the same time, FILA is in a critical transition period of brand reshaping, shifting from fashion to professional sports positioning, hoping to revive growth. The recent acquisition of Jack Wolfskin will help fill the gap in the mid-range outdoor market. With ANTA's past performance, it is expected to generate synergies in supply chain and retail operations in the long run, adding new impetus to the group.
US CPI lower than expected
China’s Ministry of Commerce International Trade Negotiation Representative and Vice Minister Li Chenggang stated that China and the United States have reached a framework agreement in principle to implement the consensus from the two countries’ leaders’ phone call on June 5th as well as the Geneva talks consensus. Both sides will report the meeting outcomes and the framework of measures agreed upon in principle to their respective national leaders. This round of negotiations has been a focal point for investors, with markets remaining highly sensitive to trade policy changes. However, a comprehensive agreement has not yet been finalized. On the economic data front, May’s Consumer Price Index (CPI) growth came in below expectations. Core CPI, excluding food and energy, showed monthly and annual increases of 0.1% and 2.8% respectively, both lower than the expected 0.3% and 2.9%.
Southbound Stock Connect recorded a net inflow of HKD 1.37 billion on Wednesday. Among the stocks, China Construction Bank (939) saw the highest net inflow at HKD 710 million, followed by Meituan (3690). Xiaomi Corporation (1810) recorded the largest net outflow at HKD 1.83 billion, followed by Tencent Holdings (700).
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.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
