Daily Investment Strategy
Daily focus：JD.com (9618)
JD.com announced its Q3 2025 results, with total revenue of RMB 299.1 billion, a year-on-year increase of 14.9%, exceeding market expectations. Non-GAAP net profit reached RMB 5.8 billion, also exceeding expectations. JD Retail revenue grew by 11.4%. Looking ahead, management is cautious about Q4, mainly due to the extremely high base of comparison brought about by the "trade-in" policy for home appliances. The company affirmed that the food delivery business is a long-term investment strategy and plans to continue investing in artificial intelligence over the next three years. Daily necessities and advertising services are considered important growth engines for the future, and the company maintains its long-term profit margin target of high single digits.
China's economic data shows a slowdown
On Friday, China's National Bureau of Statistics released several data points, but the overall picture was weak. Fixed asset investment and industrial value-added both fell short of market expectations, while retail sales growth exceeded expectations, only slightly softening compared to the previous month. Fixed asset investment growth has slowed significantly since April, recording a 1.7% decline in the first ten months, marking the second consecutive month of negative growth. As for industrial value-added, growth fell to its lowest level since the beginning of the year, at 4.9%. Even though high-end manufacturing maintained high growth, the rate of increase dropped sharply to 7.2%, far below the average growth of 9.6% over the past nine months. Retail sales growth slowed as expected, with month-on-month sales growth almost flat, reflecting that despite the support of the Golden Week holiday, consumer spending did not further improve.
Hong Kong Stock Connect saw a net inflow of HK$12.8 billion on Friday, with Alibaba (9988) seeing the largest net inflow at HK$2.26 billion, followed by Tencent Holdings (700). On the other hand, China Life (2628) recorded the largest net outflow at 260 million yuan, 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.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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