Daily Investment Strategy

Daily focus：China Feihe（6186）

China Feihe has issued a profit warning, indicating that the company is facing significant operational pressure. Revenue for the first half of the year is expected to decline by 8-10% year-on-year, reaching RMB 9.1 to 9.3 billion, while net profit is projected to drop sharply by 37-47%, to RMB 1.0 to 1.2 billion, far below market expectations. The company also announced it will repurchase no less than RMB 1 billion worth of shares (up to 10% of total share capital) before the end of the year and commits to a cash dividend payout of no less than RMB 2 billion in 2025, with an expected dividend yield of about 4.2%-7.6%, aiming to stabilize the stock price. Although the company holds certain advantages in brand strength, cash flow, and dividend policy, short-term performance pressures and intense industry competition have raised market doubts about its growth momentum.

Copper tariffs trigger supply chain reshaping

The S&P 500 fell 0.1% to 6,225.52 points in the past 24 hours, continuing the volatile pattern since early July. The 50% copper import tariff announced by President Trump has become the most concerned topic in the market. This move not only pushed copper prices up by more than 10%, but also had a profound impact on the global supply chain. As a key raw material for electronic equipment, machinery and automobile manufacturing, the sharp rise in copper prices will directly translate into increased manufacturing costs, especially in the context of the continued boom in the construction of artificial intelligence data centers. Market analysts generally believe that this tariff policy will force companies to reassess their supply chain layout and accelerate inventory hoarding from major copper exporters such as Chile. Although investors initially viewed this as a negotiating strategy, if the August 1 deadline is indeed implemented, it will cause structural cost pressure on technology and manufacturing industries that rely on copper materials, thereby affecting corporate earnings expectations in the third quarter.

Hong Kong Stock Connect recorded a net inflow of HK$390mn on Monday, of which Alibaba (9988) recorded the largest net inflow of HK$1.41bn, followed by Meituan (3690). Tracker Fund of Hong Kong (2800) recorded the largest net outflow of HK$980mn, followed by Tencent (0700).