Daily Investment Strategy
Daily focus：Tongcheng Travel（780）
Tongcheng Travel announced its first-quarter results, with revenue increasing by 13.2% year-on-year to RMB 4.377 billion, in line with market expectations. Adjusted net profit rose by 41.1% to RMB 788 million, surpassing the market consensus of RMB 734 million. The better-than-expected performance was mainly driven by gross margin expansion exceeding market forecasts. Tongcheng stated that travel demand continued to surge in the second quarter, and the company remains optimistic about the growth prospects of China’s tourism industry in 2025.
The U.S. Government Plans to Impose an Additional 50% Tariff on EU Imports
Tariff policies under Donald Trump have shifted again, as the U.S. government plans to impose an additional 50% tariff on goods imported from the European Union. The aim is to encourage European manufacturing companies to relocate their production bases to the United States, which has once again sparked market concerns. Additionally, there is mention of a proposed 25% tariff on iPhones not manufactured in the U.S. However, the market believes that since Apple’s main production facilities are located in China and some capacity is in India, the increased tariffs could negatively impact Apple’s sales performance in the U.S., potentially causing short-term volatility in Apple’s supply chain.
On Friday, the Southbound Stock Connect recorded a net outflow of HKD 1.14 billion. Meituan (3690) saw the highest net inflow at HKD 840 million, followed by China Construction Bank (939). The Tracker Fund of Hong Kong (2840) recorded the largest net outflow at HKD 2.32 billion, followed by Tencent (700).
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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