Daily Investment Strategy
Daily focus：Huaneng Power（902）
Huaneng Power financial performance in the first half of 2025 was stable and exceeded market expectations. The company’s net profit for the first half of 2025 reached approximately RMB 9.578 billion, a year-on-year increase of more than 23%, demonstrating significant effectiveness in cost control. Fuel costs decreased by over 14.4%, offsetting the negative impact of declines in power generation volume and electricity prices. New energy is a highlight of Huaneng’s capacity growth. Nearly 8,000 megawatts of new capacity was added in the first half of 2025, a year-on-year increase of more than 1.6 times. More than half of the new capacity was solar, while wind power and thermal power accounted for about 24% and 22% respectively, reflecting the company’s active transition to clean energy. The target of adding 10GW of new energy capacity by 2025 appears highly achievable. Looking ahead to the second half of the year, Huaneng will accelerate new energy projects, optimize the power generation structure to cope with the downward pressure on market electricity prices and new energy consumption, and continue to strengthen cost management and market competitiveness.
AI Drives Divergence in Tech Stocks
The S&P 500 fell 0.4% to 6,339 on Thursday, snapping its earlier rally, reflecting market concerns about accelerating inflation and policy uncertainty. Microsoft and Meta were bright spots thanks to strong AI performance. Microsoft's market capitalization surpassed USD4tn, while Meta's advertising revenue grew by 22%, exceeding expectations. Shares of both companies rose 5% and 12%, respectively. However, despite beating revenue and earnings expectations, Amazon fell 3% due to slowing cloud service growth and tariff pressure on its retail business. The Federal Reserve's preferred inflation measure, PCE, rose to 2.6% in June, while core PCE remained at 2.8%, well above the central bank's 2% target. Economists attribute this to the impact of tariffs on commodity prices. With the August 1st tariff deadline approaching, Trump has reached 15% tariff agreements with Japan, South Korea, and the European Union, but progress remains elusive with major trading partners such as Canada and China. Geopolitical uncertainty continues to weigh on market sentiment, with pharmaceutical stocks generally declining due to government demands for price cuts.
Hong Kong Stock Connect saw a net inflow of HK$13.13bn on Thursday, with the largest net inflow of HK$2.41bn going to the Tracker Fund of Hong Kong (2800), followed by the Hang Seng China Enterprises ETF (2828). Meanwhile, Laopu Gold (6181) saw the largest net outflow of HK$280mn, followed by CSPC Pharmaceutical Group (1093).
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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