Daily Investment Strategy
Daily focus：Tsingtao Brewery (0168)
Net profit increased 2% year-over-year in the third quarter of 2025, with growth slowing due to flat revenue. Despite flat overall ASP, the company continued to optimize its product mix, with sales of mid- to high-end products increasing 6%, outperforming the market. Thanks to lower raw material costs and strict expense control, gross profit margin expanded by 1.4 percentage points year-over-year, while selling expenses decreased by 3%, contributing to a 10% year-over-year increase in core EBIT. However, reduced financial income and government subsidies, coupled with a higher tax rate, resulted in net profit growth far lower than the growth in core operating profit.
Gold prices fall below $4,000
The core macroeconomic driver of the current market is the framework agreement reached between China and the United States. The market has lifted its defensive posture regarding geopolitics and tariffs, with funds massively withdrawing from safe-haven assets, causing gold prices to fall below $4,000. Simultaneously, as the agreement eased concerns about China's export controls on rare earths, stocks related to rare earth and lithium mining fell. This strong "risk-on" trend is driving global stock markets (particularly trade-sensitive technology stocks and indices) to new highs, and market valuations are shifting from risk aversion to a re-pricing of economic growth and supply chain stability.
Hong Kong Stock Connect recorded a net inflow of HK$2.87 billion on Monday, of which SMIC (981) had the largest net inflow of HK$1.14 billion, followed by Tencent Holdings (700). On the other hand, Alibaba (9988) recorded the largest net outflow of HK$1.98 billion, followed by Li Auto (2015).
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.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.
