Daily Investment Strategy
Daily focus：Tencent（700）
First-quarter revenue reached RMB 180.022 billion, representing a 13% year-on-year increase, exceeding the market expectation of RMB 175.6 billion. Gross profit margin rose from 53% to 56%. Diluted earnings per share were RMB 5.129, and non-IFRS earnings per share were RMB 6.58, up 25% year-on-year, beating the market forecast of RMB 6.39. In the breakdown of results, both gaming and advertising businesses saw around 20% growth. Tencent also noted that its AI capabilities have made substantial contributions to several core businesses, significantly enhancing the performance of performance-based advertising and evergreen games.
Market await Federal Reserve Chair Jerome Powell’s scheduled speech
The market continues to monitor international trade developments. While eased China-U.S. trade tensions have boosted market sentiment, uncertainties remain regarding final tariff rates. Current focus centers on positive signals of de-escalation, as both major trading partners have demonstrated clear unwillingness to worsen trade conflicts, improving investors’ risk appetite. Meanwhile, although the Federal Reserve has warned of increased economic uncertainties and indicated it will assess the impact of U.S. tariffs before deciding on further rate cuts, market await Federal Reserve Chair Jerome Powell’s scheduled speech on Thursday.
Southbound Stock Connect recorded a net inflow of HKD 6.7 billion on Wednesday, among which Tracker Fund of Hong Kong (2800) saw the highest net inflow, reaching HKD 5.24 billion, followed by China Construction Bank (939). Xiaomi Corporation (1810) recorded the largest net outflow, amounting to HKD 1.54 billion, followed by Tencent Holdings (700).
Cheung Cho Shing, Joseph 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/ACQ030/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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