Daily Investment Strategy
Daily focus：Kingsoft Cloud（3896）
Kingsoft Cloud revenue for the first quarter of 2025 reached RMB 1.97 billion, representing a year-on-year growth of approximately 11%, but slightly below market expectations. Among this, Public Cloud Services (PCS) and Enterprise Cloud Services (ECS) recorded year-on-year growth of 14% and 5%, respectively. The adjusted EBITDA margin increased from 15.7% in the previous quarter to 16.1%, reflecting high-margin revenue growth driven by AI computing power demand. The adjusted loss amounted to RMB 188 million, exceeding the market expectation of RMB 104 million. Market demand for AI computing power continues to grow rapidly, and it is expected that related business segments will accelerate growth throughout the year. Meanwhile, demand from state-owned enterprises and government sectors for large model technology integration continues to increase.
US stocks rise as court blocks tariffs
All three major US stock indexes recorded gains on Thursday, but the market focus was mainly on the major developments in Trump's tariff ruling. The US International Trade Court ruled on May 28 that Trump's invocation of the International Emergency Economic Powers Act to impose large-scale tariffs exceeded the president's authority. The court held that the Constitution gives Congress exclusive power to regulate foreign trade. The "Liberation Day" tariff was originally planned to impose a tax rate of up to 145% on imported goods, mainly targeting trade deficit countries such as China, Mexico and Canada. The ruling temporarily eased market concerns about trade policy uncertainty, but the US government may seek other ways to implement tariff measures. In addition, the US government has appealed the ruling and may seek a stay of execution while the case progresses to the Supreme Court. At the same time, the upcoming G7 summit in mid-June will become an important indicator for observing the direction of US trade policy.
Hong Kong Stock Connect recorded a net inflow of HK$4.4bn on Thursday, of which Meituan (3690) recorded the largest net inflow of HK$1.0bn, followed by ZhongAn Online (6060). Semiconductor Manufacturing International Corporation (0981) recorded the largest net outflow of HK$560mn, followed by Xiaomi Group (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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