Daily Investment Strategy
Daily focus：Sasa International（178）
Sasa International announced its full-year results, with revenue of HKD 3.942 billion, down 9.7% year-on-year, mainly affected by the continued outbound travel of Hong Kong and Macau residents to Mainland China and overseas, coupled with a stronger US dollar, resulting in more cautious consumer spending by travelers. Gross profit declined 11.9% to HKD 1.571 billion, and gross margin dropped from 40.8% to 39.8%. Core profit fell to HKD 107 million, a decrease of 51.1% year-on-year. Full-year net profit was HKD 76.973 million, down 64.8% from last year. The group actively responded to market changes continue to optimize its product mix, enhance the online-to-offline (OMO) integration experience, and accelerate digital upgrades to respond to changing consumer habits.
Worsening tensions in the Middle East may become the biggest "gray rhino"
U.S. stock markets were closed for one day on Thursday due to a U.S. holiday, but market concerns about geopolitical tensions in the Middle East have not subsided. Israel has launched attacks on several Iranian oil and gas facilities since last Friday, including the South Pars gas field, the Farjam plant, the Shahran oil warehouse, and the Shahrei refinery. These military actions caused Brent crude oil prices to surge more than 4% to close at $76.45 a barrel, while West Texas Intermediate crude oil closed at $74.84 a barrel. President Trump stepped up his rhetoric against Iran, suggesting that the United States may authorize a military strike on Iran's uranium enrichment facilities, further exacerbating market uneasiness. Although global energy supplies are currently largely undisturbed, the possibility of escalating conflicts, especially the prospect of direct U.S. involvement in Israeli military operations, has put the market in a state of instability, and this tension is compounded by the Federal Reserve's concerns about inflation and economic growth.
Hong Kong Stock Connect recorded HK$1.43bn on Thursday, of which Xiaomi Group (1810) recorded the largest net inflow of HK$500mn, followed by China Construction Bank (0939). Tencent (0700) recorded the largest net outflow of HK$1.31bn, followed by Pop Mart (9992).
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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