Daily Investment Strategy
Daily focus：Li Auto（2015）
Li Auto announced first-quarter results: total revenue was RMB 25.9 billion, up 1.1% year-on-year; automotive sales revenue was RMB 24.7 billion, vehicle gross margin 19.8%, overall gross margin 20.5%; operating profit was RMB 271.7 million, operating margin 1.0%; non-GAAP net profit was RMB 1,014.3 million, down 20.5% year-on-year, in line with market expectations. Management noted that the upgraded L series has outperformed expectations, and confident that monthly sales will soon exceed 50,000 units, thereby driving the achievement of the full-year growth targets.
China Manufacturing PMI remained in contraction
China’s manufacturing PMI remained in contraction territory. In May, the manufacturing PMI stood at 49.5%, below the cut-off point but up 0.5 percentage point from the previous month. Market demand stayed weak, with the new orders index at 49.8% (up 0.6) and the new export orders index at 47.5% (up 2.8). The factory gate prices index was 44.7, marking the 12th consecutive month of contraction and dipping slightly from the prior reading, reflecting pressure on producers’ profitability. In the non-manufacturing sector, the services PMI came in at 50.2%, a 0.1 increase from April, indicating continued but moderate expansion in service activity.
The Hong Kong Stock Connect on Friday, there was a net inflow of HK$9.6 billion. Meituan (3690) saw the largest inflow of HK$1.92 billion, followed by China Construction Bank (939). The Tracker Fund of Hong Kong (2800) recorded the biggest net outflow of HK$890 million, followed by Tencent Holdings (700).
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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