Daily Investment Strategy
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MINIMAX (100): The company's revenue for fiscal year 2025 reached US$79.04 million, a significant year-on-year increase of 158.9%. Benefiting from improved model and system efficiency, gross margin climbed significantly from 12.2% to 25.4%. However, due to a fair value loss of nearly US$1.59 billion resulting from the increase in preferred stock valuation, the net loss for the year widened by 302.3% to US$1.872 billion. Excluding non-cash items, the adjusted net loss still increased slightly by 2.7% to US$251 million. Looking ahead, management anticipates a surge in AI capabilities in areas such as programming and office applications, and the company's strategy will gradually transform into a platform-based enterprise in the AI era. In summary, the company has demonstrated strong growth potential in top-tier growth and overseas commercialization, but the high R&D costs and substantial adjusted net loss indicate that its "growth through investment" phase is not yet over, and there is still a long way to go before achieving substantial profitability and positive cash flow.
The Iranian conflict triggered a surge in oil prices and inflation
The US-Israeli military action against Iran triggered a surge in oil prices and a sharp contraction in global risk appetite. However, thanks to bargain hunting by investors, the S&P 500 ultimately rose slightly by about 0.03%, closing at 6,881. Brent crude and WTI crude surged by about 9% and 8% respectively, with the former approaching $80 per barrel. Market concerns that a prolonged blockage in the Strait of Hormuz could force Brent crude to rise towards the $100 or even $120 per barrel range would significantly push up inflation expectations and US Treasury yields, weakening bets on a rapid interest rate cut by the Federal Reserve. For China, which is highly dependent on imported crude oil, a continued oil price risk premium could compress the profit margins of manufacturing and domestic consumption companies.
Hong Kong Stock Connect saw a net inflow of HK$16.21bn on Monday, with Southern Hang Seng Technology (3033) seeing the largest inflow at HK$3.12bn, followed by the Tracker Fund of Hong Kong (2800). Alibaba-W (9988) recorded the largest net outflow at HK$1.39bn, followed by Meituan-W (3690).
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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