Daily Investment Strategy
Daily focus：Fast Retailing Group (6288)
announced its first-quarter results ending November 3025, showing strong overall performance. Consolidated revenue increased by 14.8% year-on-year to JPY 1,027.7 billion, operating profit jumped significantly by 33.9% to JPY 210.9 billion, and profit attributable to owners of the parent company increased by 11.7% to JPY 147.4 billion. Benefiting from global business expansion and improved operational efficiency, the Group's gross margin improved by 0.7 percentage points to 55.2%. Based on its strong first-quarter performance, the Group has raised its full-year earnings forecast, expecting full-year revenue to reach ¥3.8 trillion and operating profit to reach ¥650 billion. The full-year dividend per share is projected to be ¥540, an increase from the previous year, demonstrating confidence in the business outlook.
Defense Budget Ignites Defense Stocks
The Trump administration's announcement of a $1.5tn defense budget triggered a strong rally in defense stocks, driving the DJIA up 0.6% to 49,266 points on Thursday, reflecting market optimism about increased defense spending. Meanwhile, the S&P 500 remained largely flat, focusing on the House's potential military intervention risks in Venezuela and Greenland. With Friday's crucial non-farm payroll data revealing the strength of the labor market, the Federal Reserve's future monetary policy direction faces a major test.
Hong Kong Stock Connect saw a net outflow of HK$4.9bn on Thursday, with Xiaomi Group-W (1810) experiencing the largest net inflow at HK$1.07bn, followed by Tencent Holdings (0700); the Tracker Fund of Hong Kong (2800) saw the largest net outflow at HK$6.28bn, followed by Hang Seng China Enterprises (2828).
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.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
