Daily Investment Strategy
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Prada (1913): reported net revenue of €5.718 billion in 2025, a 9.1% increase at constant exchange rates, though the reported growth was only 5.3% due to negative exchange rate effects. Net profit rose slightly by 1.6% year-on-year to €852 million, with an adjusted EBIT margin of 23.2%. A net financial loss of €466 million was recorded at the end of the year due to financing and capital expenditures related to the acquisition of Versace. The company proposed a dividend of €0.166 per share. Looking ahead, the Group will face a period of growing pains in business integration in the short term. Affected by creative transition and repositioning measures, Versace is expected to experience a decline in revenue and continue to incur operating losses in 2026, which will dilute the Group's overall EBIT margin next year. Nevertheless, the Group remains committed to driving above-market growth, and expects overall profitability to gradually improve from 2027 onwards as its distribution network is optimized and brand appeal increases.
China's 2026 Economic Growth Target
The opening of the Fourth Session of the 14th National People's Congress of China mentioned this year's economic growth target. The official GDP growth target for 2026 has been lowered to a range of 4.5%-5%. If the target is achieved in 2026, the growth rate will be the lowest in nearly 35 years. Furthermore, the government has not increased the quota for special treasury bonds and special-purpose bonds, and the fiscal deficit will remain at the 2025 level. However, a positive attitude is taken towards inflation, which will drive prices from negative to positive and boost nominal economic growth.
Hong Kong Stock Connect saw a net outflow of HK$27.735 billion on Thursday. Tencent Holdings (00700) saw the largest inflow at HK$1.541 billion, followed by CNOOC (00883). The Tracker Fund of Hong Kong (02800) recorded the largest net outflow at HK$13.661 billion, followed by Hang Seng China Enterprises Fund (02828).
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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