Daily Investment Strategy
Daily focus：China Unicom（762）
Market suggest that over the next three years, China Unicom’s revenue growth will outpace that of its two major peers. The key factor lies in its cloud computing business commanding the highest share of total revenue. As cloud services emerge as a new growth engine in the telecommunications industry, China Unicom’s competitive advantage in this domain positions it to achieve more robust overall revenue growth. China Unicom’s current dividend payout ratio stands at 60%, lower than the approximately 70% payout ratios of China Mobile and China Telecom. Historical data indicates a consistent upward trend in the company’s dividend payout ratio in recent years. It remains room for improvement.
The results of the U.S. interest rate decision will be announced early Thursday morning HKT
Data released by the U.S. Department of Commerce on Tuesday shows that the trade deficit in March increased by 14% month-on-month, reaching $140.5 billion. Economists surveyed by Bloomberg had a median estimate of a $137.2 billion deficit. Imports rose by 4.4% to a record $419 billion, while exports saw a slight increase of 0.2%. The sharp rise in the trade deficit was mainly driven by businesses rushing to import ahead of the reciprocal tariffs imposed by Trump in April. Although the U.S. is currently negotiating with other countries, no formal agreements have been announced yet. Meanwhile, the Federal Reserve is holding its first interest rate meeting since Trump’s announcement of reciprocal tariffs, and the results will be released early Thursday morning Hong Kong time—one of the key focuses of the market.
On Tuesday, the Stock Connect recorded a net inflow of HK$135 billion. Among them, the Tracker Fund of Hong Kong (2800) had the largest net inflow at HK$4.55 billion, followed by Meituan (3690). Xiaomi (1810) recorded the largest net outflow of HK$490 million, followed by CSPC Pharmaceutical Group (1093).
Cheung Cho Shing, Joseph is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/ACQ030/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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