Daily Investment Strategy
Daily focus：JD Health（6618）
The company delivered strong first-half results, with total revenue increasing 24.5% YoY and non-IFRS net profit soaring 35%. This growth was primarily driven by its core pharmaceutical business, where sales increased by over 30% YoY, driven by increased market demand and the trend toward online commerce. Furthermore, the company's gross profit margin improved due to a higher proportion of advertising revenue and supply chain optimization. Regarding its user base, the company has reached 200 million annual active users. Looking ahead, JD Health is actively developing its instant retail business, strengthening its omnichannel capabilities through the addition of forward warehouses and stores, demonstrating its strong growth potential and market expansion strategy.
SHCOMP reach ten year high
The current most watched macroeconomic theme is the dual driving effect of the Trump administration’s diplomatic and monetary policy expectations. Trump’s White House meetings with Ukrainian and European leaders, along with the 90-day extension of the US-China tariff truce, have significantly eased geopolitical risk premiums and provided support for global risk assets. Meanwhile, expectations for a Federal Reserve rate cut in September are becoming increasingly strong. On the Chinese side, the People’s Bank of China’s commitment to a moderately accommodative monetary policy stance, combined with market expectations for further stimulus measures, has seen the Shanghai Composite Index reach a near-decade high, reflecting investors’ optimistic sentiment about improved US-China relations, while the relative stability of US stocks demonstrates market confidence in the Federal Reserve’s policy pivot.
On Monday, the Stock Connect recorded a net inflow of HKD 1.38 billion, with China Life Insurance (2628) receiving the largest net inflow of HKD 670 million, followed by Alibaba (9988). On the other hand, the Tracker Fund of Hong Kong (2800) recorded the largest net outflow of HKD 6.41 billion, followed by the Hang Seng China Enterprises Index ETF (2828).
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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