Daily Investment Strategy
Daily focus：CafeDeCoral（341）
CafeDeCoral full-year results indicating the group faces multiple challenges. Full-year revenue slightly declined by 1.4% to HKD 8.568 billion, while profit attributable to shareholders dropped significantly by 29.6% to HKD 233 million. Excluding fair value losses on investment properties, profit still decreased by 25.2%. This was mainly due to sluggish economies in Hong Kong and Mainland China, weak consumer sentiment, and intense price competition. The market environment was especially severe in the second half during traditional peak seasons such as Christmas and Lunar New Year. Management described the market environment as having undergone a fundamental change. However, the group is proactively addressing adversity by introducing high-value-for-money menus, adjusting product mix, and enhancing the “Club 100” membership program to strengthen customer loyalty and stimulate spending demand.
The situation in the Middle East has deteriorated sharply, and oil prices have soared
Yesterday, US stocks closed lower amid safe-haven sentiment, with the S&P 500 index falling 0.8%. Market focus is on the escalating situation in the Middle East, which has fueled investor concerns as the conflict between Israel and Iran intensifies. President Donald Trump has turned tough on Iran, demanding its "unconditional surrender" and ending his G7 summit schedule early in response to the crisis, deepening market concerns that the United States may become more active in the conflict. This geopolitical uncertainty has pushed oil prices soaring more than 4%, with West Texas Intermediate crude futures approaching $75 a barrel, and investors worry that supply disruptions could push up inflation and affect economic growth.
Hong Kong Stock Connect recorded a net inflow of HK$6.3bn on Tuesday, of which China Construction Bank (0939) recorded the largest net inflow of HK$1.1bn, followed by Alibaba (9988); Tencent (0700) recorded the largest net outflow of HK$710mn, followed by CSPC Pharmaceutical Group (1093).
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