Daily Investment Strategy
Daily focus：Huaneng Power International（0902）
As a major power generation company in China, Huaneng Power International has benefited from a diversified combination of coal and renewable energy. The recent decline in fuel costs has been particularly significant. The decline in coal prices in the second quarter has effectively alleviated the pressure of electricity price cuts and reduced electricity sales. The company has further consolidated its cost advantage by signing long-term contracts and adopting a high inventory strategy. Although the on-grid electricity price of coal-fired power has been reduced, Huaneng Power International has successfully alleviated the pressure with strict cost control and market-oriented sales strategies; as the substitution effect of hydropower weakens, the demand for coal-fired power generation has rebounded, driving the improvement of power generation. In terms of renewable energy, the company continues to promote the expansion of wind power and solar power installed capacity. Although the progress in the first half of the year was slightly lower than expected, the full-year target is still challenging. It is expected that construction will be accelerated in the second half of the year to further optimize the energy structure and enhance long-term growth momentum.
Trump posted multiple trade letters on Truth Social
President Trump posted multiple trade letters on Truth Social on Monday, announcing tariff increases on several countries: Japan, South Korea, Kazakhstan, and Malaysia will each face a 25% increase; South Africa will face a 30% increase; and Laos and Myanmar will face a 40% increase. Previously, Trump had indicated that some tariffs could reach levels of 70%, which has intensified market concerns. Investors worry that Trump’s erratic tariff policies could impact economic growth and inflation, which has also weakened the US dollar. These concerns have similarly caused the Federal Reserve to delay interest rate cuts, and the Fed’s previous meeting minutes are expected to reveal when most committee members might restart accommodative policies.
Southbound Stock Connect recorded a net inflow of HKD 12.06 billion on Monday. Among them, the Tracker Fund of Hong Kong (2800) saw the largest net inflow of HKD 2.5 billion, followed by Meituan (3690). Pop Mart (9992) recorded the largest net outflow, amounting to HKD 230 million.
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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