Daily Investment Strategy
Daily focus：CATL（3750）
Net profit reached RMB30.5bn in the first half of 2025, a 33.3% yoy increase, primarily driven by strong battery shipments. During the period, gross profit margins from its power and energy storage battery businesses grew steadily. Looking ahead to the second half of the year, the company plans to launch new battery models and continue expanding its overseas business. Its German factory is already profitable, and its Hungarian plant is expected to be operational by the end of the year. However, the renewal of its Jiangxi lithium mine license remains pending approval. The company anticipates sustainable business growth driven by stable profits and overseas expansion.
Fed Fund rate remain unchanged
The U.S. Federal Reserve decided on July 30 to maintain the federal funds rate unchanged in the 4.25%-4.5% range, marking the fifth consecutive meeting where the interest rate level has been kept steady. Fed Chairman Powell stated at the press conference that “we have not made any decisions about September,” clearly indicating that the central bank needs more data to assess economic conditions. Regarding China-U.S. negotiations, the China-U.S. trade talks held in Stockholm on July 29-30 concluded with both sides agreeing to continue efforts to extend the tariff truce agreement, although no more specific and practically meaningful agreements were reached.
Southbound Stock Connect recorded a net inflow of HKD 11.7 billion on Wednesday. Among the stocks, Li Auto (2015) saw the highest net inflow at HKD 2.09 billion, followed by CSPC Pharmaceutical Group (1093). On the other hand, SMIC (981) recorded the largest net outflow at HKD 205 million, followed by Innovent Biologics (1801).
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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