Daily Investment Strategy
Daily focus：Xiaomi（1810）
Xiaomi announced its first-quarter results, reporting revenue of RMB 111.3 billion, up 47.4% year-on-year, beating market expectations of RMB 108.9 billion. Adjusted net profit rose 64.5% to RMB 10.6 billion, also surpassing the expected RMB 9.7 billion. Xiaomi President Lu Weibing stated that this is only the beginning of a high-growth phase, and the upward cycle is "far from over." The "Smart EV businesses" segment brought in RMB 18.6 billion, with a quarter-on-quarter growth of 11.5%. Its gross margin also improved from 20.4% last quarter to 23.2%, marking the fourth consecutive quarter of margin expansion since the automotive business launched.
Consumer confidence index finally rebounded
The US stock market rebounded strongly on Tuesday, with the S&P 500 index rising 2.05% to 5,899 points, ending a four-day losing streak. Market optimism was mainly due to President Trump's announcement that the 50% tariff on the European Union would be postponed until July 9, easing trade tensions. The consumer confidence index rebounded strongly after five consecutive months of decline, rising 12.3 points to 98.0 in May from 85.7 in April, far exceeding economists' expectations of 87.1. The expectation index jumped from a historic low of 55.4 in April to 72.8, indicating that consumers' pessimism about future income, business and employment prospects has eased.
The Hong Kong Stock Connect recorded a net inflow of HK$11.98bn on Tuesday, of which Tracker Fund of Hong Kong (2800) recorded the largest net inflow of HK$5.26bn, followed by Meituan (3690). Tencent (0700) recorded the largest net outflow of HK$1.18bn, followed by Alibaba (9988).
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