Daily Investment Strategy
Daily focus：Fuyao Glass（3606）
In the first half of 2025, Fuyao Glass achieved revenue of RMB 21.45 billion, a year-on-year increase of 16.9%; pre-tax profit of RMB 5.79 billion, a significant year-on-year increase of 40.5%; net profit attributable to shareholders of the parent company reached RMB 4.804 billion, a year-on-year increase of 37.3%, with earnings per share of RMB 1.84, demonstrating a significant improvement in the company's operating efficiency. This profit growth was primarily driven by increased marketing efforts and a higher proportion of high-value-added products, as well as effective cost control and strengthened R&D and innovation. In the American markets, Fuyao continues to expand its market share and improve capacity utilization. The utilization rate of the second phase of its US factory is expected to reach 30% in 2025, rising to 70% in 2026, and is planned to be near full capacity in 2027.
August retail sales data beat consensus, boosting market confidence
After hitting a record high of 6,615 on Monday, the S&P 500 index retreated slightly to 6,606 on Tuesday, weighed down by cautious sentiment ahead of the Federal Reserve meeting. The hottest topic in the market was the US August retail sales data. The Commerce Department report showed a 0.6% month-on-month increase in retail sales, far exceeding market expectations of a 0.2% increase. Core retail sales (excluding autos and gasoline) also rose 0.4%. This strong performance was primarily driven by increased online shopping and spending on household goods, reflecting consumers' continued strong spending power despite high interest rates and easing recession fears. Technology and consumer stocks led gains following the data release, with Alphabet's market capitalization exceeding $3 trillion and Tesla's stock price rebounding 6%. This suggests the Fed may maintain a gradual path of interest rate cuts, rather than aggressive easing, to balance inflationary pressures.
Hong Kong Stock Connect recorded a net outflow of HK$3.19bn on Monday, with Alibaba (9988) receiving the largest net inflow of HK$3.03bn, followed by Meituan (3690). On the other hand, Tracker Fund of Hong Kong (2800) recorded the largest net outflow of HK$4.64bn, followed by Xiaomi Corporation (1810).
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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