Daily Investment Strategy
Daily focus：Shenzhou International（2313）
Shenzhou International has an optimistic performance outlook and expects profit growth to accelerate significantly in the second half of the year, mainly driven by gross profit margin expansion and capacity expansion. In terms of geopolitics, the company has a significant defensive advantage due to its low market share in the United States and its production layout in Vietnam. This strategic positioning enables it to effectively avoid high tariffs and grab market share from peers who rely on China's production capacity under the trend of global supply chain restructuring, thereby consolidating its growth potential.
US-Japan trade agreement
The achievement of the US-Japan trade agreement marks progress made by the Trump administration in reshaping the global trade landscape. This agreement not only sets a benchmark model for the upcoming August 1st EU negotiation deadline, but also reflects the United States’ approach to reducing trade conflict risks through bilateral negotiations. From a macroeconomic perspective, while the 15% tariff level remains higher than historical standards, it is considered moderate compared to the previously threatened 25-30% tariffs. Japan’s $550 billion investment commitment outlined in the agreement will contribute to US, while simultaneously alleviating market concerns about trade war escalation.
Southbound Stock Connect recorded a net outflow of HKD 1.32 billion on Wednesday. Among the stocks, China Life Insurance (2628) saw the largest net inflow, amounting to HKD 660 million, followed by SMIC (981). On the other hand, Tencent Holdings (700) recorded the largest net outflow of HKD 1.13 billion, 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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