Daily Investment Strategy
Daily focus：WuXi AppTec（2359）
In the first half of 2025, WuXi AppTec’s revenue reached RMB 20.8 billion, representing a year-on-year increase of 21%. Adjusted net profit was RMB 6.3 billion, up 44% compared to the same period last year. The management has raised the full-year 2025 revenue guidance to RMB 42.5-43.5 billion, higher than the previous range of RMB 41.5-43.0 billion, expecting growth in continuing operations to accelerate to 13%-17%. The company maintains a capital expenditure plan of RMB 7-8 billion but expects free cash flow to reach RMB 5-6 billion, exceeding the previous estimate of RMB 4-5 billion.
US stocks' six-day winning streak ended as US-China negotiations failed.
Ahead of the Federal Reserve meeting, the S&P 500 index snapped its six-day record-breaking streak, closing down 0.3% at 6,371 on Tuesday. While the weekend's announcement of a US-EU trade agreement, which set a baseline tariff rate of 15% instead of the previously threatened 30%, brought positive sentiment to the market, investors' attention has shifted to the Fed's policy decision and the upcoming peak earnings season. US-China trade talks concluded in Stockholm without an agreement on extending the tariff truce, with Treasury Secretary Bensant stating that the final decision rests with President Trump. This week, four of the "Big Seven" tech companies will report earnings. Analysts expect these tech giants to report a 14% year-on-year increase in earnings, far exceeding the 3.4% increase for other S&P 500 stocks, which will provide important guidance for future market trends.
Hong Kong Stock Connect saw a net inflow of HK$12.72bn on Tuesday, with Xiaomi (1810) receiving the largest inflow of HK$1.66bn, followed by Tencent (0700). Pop Mart (9992) recorded the largest net outflow of HK$350mn, followed by Meituan (3690).
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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