Daily Investment Strategy
Daily focus：Want Want（151）
Want Want announced its annual results, showing the group maintained steady growth. For the fiscal year 2024, total revenue was approximately RMB 23.511 billion, a slight decrease of 0.3% compared to last year. However, profit attributable to equity holders increased by 8.6% to RMB 4.336 billion. The gross profit margin improved to 47.6%, reflecting significant effectiveness in cost control and product mix optimization. The group continues to promote product innovation and diversified channel strategies by launching multiple new products and limited-edition WantWant milk, alongside rapid development of content e-commerce and OEM businesses, enhancing market competitiveness. Supply chain management and operating capital efficiency improved, with inventory turnover days shortened and the cash conversion cycle reduced by six days to 59 days.
The Federal Reserve's monetary policy may shift
The U.S. stock market rebounded strongly on Tuesday, with the S&P 500 index rising 1.1% to close to its February high, mainly benefiting from two positive factors. First, the ceasefire agreement between Israel and Iran announced by Trump has greatly eased market concerns about the expansion of the Middle East conflict and eliminated the risk of oil price surges and supply disruptions. More importantly, Fed Chairman Powell released a clear dovish signal when testifying in Congress, saying that the central bank may consider cutting interest rates in July, although it still needs to assess the potential impact of tariff policies on inflation. This statement echoed the White House's call for an immediate rate cut, injecting a shot in the arm to the market. The lead of technology stocks reflects investors' optimistic expectations for a low interest rate environment, while the 1.4% increase in the Nasdaq highlights the recovery momentum of growth stocks.
The Hong Kong Stock Connect recorded a net inflow of HK$2.59bn on Tuesday, of which Meituan (3690) recorded the largest net inflow of HK$790mn, followed by SMIC (0981). Xiaomi Group (1810) recorded the largest net outflow of HK$1.55bn, followed by Tencent (0700).
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.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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