Daily Investment Strategy
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Hang Lung Properties (101): Total revenue for 2025 is projected to decline 11% year-on-year to HK$9.95 billion, primarily due to a significant decrease in property sales revenue. However, underlying net profit attributable to shareholders bucked the trend, rising 3% to HK$3.202 billion, exceeding market expectations and reflecting the resilience of its core leasing business. The company declared a final dividend of HK$0.4 per share, maintaining the full-year figure at HK$0.52, and offered a scrip dividend option. In terms of financial position, the net debt-to-equity ratio decreased to 32.7%, indicating that deleveraging has begun and the financial foundation remains sound. Looking ahead, the expected opening of Hangzhou Hang Lung Plaza in 2026 and the ongoing expansion project of Shanghai Hang Lung Plaza will become new drivers of revenue growth. With the major capital expenditure cycle past, the company will continue to implement the "Hang Lung V.3" strategy and focus on deleveraging to optimize its capital structure.
US January Manufacturing Data Beats consensus
The S&P 500 performed strongly, closing up 0.54% at 6,976 points, nearing its all-time high. Market focus was on the better-than-expected US January ISM manufacturing data, which showed factory production expanding at its fastest pace in nearly four years, significantly boosting investor confidence in economic growth. Detailed data indicated that both new orders and output rebounded, showing that domestic demand remains highly resilient in the current interest rate environment. This not only effectively alleviated concerns about an economic recession but also further supported the valuations of industrial and cyclical sectors. For investors, the strong expansion in manufacturing provides solid support for US stocks, suggesting that profit growth momentum is spreading from the technology sector to a broader range of real-economy sectors.
Hong Kong Stock Connect recorded a net inflow of HK$1.91bn on Monday, with Tencent Holdings (0700) recording the largest net inflow at HK$1.3bn, followed by Xiaomi Group (1810); Hua Hong Semiconductor (1347) recorded the largest net outflow at HK$635mn, followed by Zijin Mining (2899).
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.
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