Daily Investment Strategy
Daily focus：Alibaba Health（241）
Alibaba Health announced its financial results for FY2025. During the reporting period, the company’s total revenue reached approximately RMB 30.598 billion, representing a year-on-year increase of 13.2%. The gross profit margin rose to 24.3%, up 2.5 percentage points from the same period last year. Net profit reached approximately RMB 1.432 billion, a significant year-on-year increase of 62.2%. Adjusted net profit amounted to approximately RMB 1.95 billion, up 35.6% from last year, indicating an improvement in the company’s core operating capabilities.
Moody’s Downgrade the U.S. treasury rating
Despite Moody's decision to downgrade the U.S. credit rating, U.S. stock markets demonstrated resilience on May 19th, with major indices recovering from early losses to close mixed. The S&P 500 edged up 0.1%, while the DJIA rose 0.3%. Moody's lowered the U.S. government's credit rating from Aaa to Aa1, citing persistent, substantial fiscal deficits and the risks associated with refinancing debt in a high-interest-rate environment. Notwithstanding the bullish market trend, progress on the Republican tax and spending bill remains a key focus. Treasury Secretary Scott Bent has cautioned nations that their imports will face renewed tariff hikes if they fail to negotiate "in good faith" during the 90-day tariff suspension period, as the U.S. concentrates on securing agreements with 18 major trading partners. Concurrently, President Trump continues to exert pressure on companies such as Walmart to absorb tariff-related costs.
Hong Kong Stock Connect recorded a net inflow of HK$8.46bn on Monday, of which China Construction Bank (0939) recorded the largest net inflow of HK$860mn, followed by China Mobile; Tencent (0700) recorded the largest net outflow of HK$470mn, followed by Xiaomi (1810).
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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