Daily Investment Strategy
Daily focus：Giant Biogene（2367）
As the third-largest medical aesthetic skincare brand in China, it focuses on core products including recombinant collagen and rare ginsenosides, with stable performance from its Comfy and Collgene brands. Recently, sales were temporarily affected due to issues with testing standards for recombinant collagen products, but management emphasized that the situation is controllable, and offline channels along with medical dressing products performed well, indicating a solid business foundation. The company actively promotes transparent communication and consumer education to enhance brand image and collaborates with research institutions to advance industry standards, consolidating its technological leadership. Benefiting from the structural growth trend in medical aesthetic skincare, Giant Biogene is expected to continue expanding its market share. However, intensified industry competition, R&D risks, and regulatory uncertainties remain challenges, and increased marketing expenses in the short term may pressure profit margins. Overall, the company possesses recovery momentum and long-term growth potential.
Israeli-Iranian conflict may erupt again
Investors are evaluating the latest developments in the Israel-Iran ceasefire agreement, while Trump indicated that the Israeli-Iranian conflict may erupt again, causing gold prices to rise once more. The day after the congressional hearing, Federal Reserve Chairman Powell again mentioned the outlook for interest rate cuts, emphasizing that high tariffs bring significant uncertainty, therefore requiring a wait-and-see approach with no consideration of rate cuts for now. Additionally, the Federal Reserve announced on Wednesday its proposal to relax an important capital rule, suggesting a reduction in capital requirements for holding companies under this ratio. Fed Chairman Powell explained that given the significant increase in relatively safe assets on bank balance sheets, the Federal Reserve’s reconsideration of related rules is a prudent move. Large banks indicated this could enhance their ability to increase holdings of Treasury bonds.
On Wednesday, the Stock Connect recorded a net inflow of HKD 9.57 billion. Among the stocks, CITIC Securities International (1788) saw the largest net inflow, reaching HKD 1.66 billion, followed by Semiconductor Manufacturing International Corporation (SMIC) (0981). Tencent Holdings (700) experienced the largest net outflow, amounting to HKD 550 million, with Alibaba (9988) coming in second.
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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