Daily Investment Strategy
Daily focus：Chow Tai Fook（1929）
Chow Tai Fook announced its annual results for the year ended 31 March 2025. Revenue fell 17.5% YoY to HK$89.656 billion, mainly due to weak consumer sentiment. Supported by product-mix optimisation and cost control, gross profit margin expanded by 5.5 percentage points to 29.5%, operating profit increased 9.8% to HK$14.746 billion, and operating profit margin rose to 16.4%. Profit attributable to shareholders decreased 9.0% to HK$5.916 billion as fair-value losses on gold lending widened.
Investor expect Fed will cut rate earlier than expected
U.S. stocks were boosted on Thursday by better-than-expected inflation data. The S&P 500 closed up 0.4%, led by technology stocks. The key May consumer price index (CPI) rose by only 0.1% month-on-month, lower than market forecasts. This mild data reinforced investors' expectations that the Federal Reserve will cut interest rates earlier. This optimism not only boosted the stock market, but also led to lower bond yields. At the same time, the U.S. dollar weakened on the expectation of rising interest rate cuts, falling to a three-year low against a basket of major currencies, reflecting that capital is flowing out of the U.S. economy.
Hong Kong Stock Connect recorded HK$5.58 billion on Thursday, of which Xpeng Motors (9698) recorded the largest net inflow of HK$770 million, followed by Innovent Biologics (1801). Alibaba (9988) recorded the largest net outflow of HK$1.64 billion, followed by Tencent (0700).
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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