Daily Investment Strategy
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Haitian Flavoring(3288): recorded steady growth in 2025, with full-year revenue reaching RMB 28.873 billion, a year-on-year increase of 7.32%; net profit attributable to shareholders was RMB 7.038 billion, an increase of 10.95%, both record highs. Benefiting from the decline in some raw material prices and increased production efficiency, the overall gross profit margin improved to 39.4%. However, sales and R&D expenses recorded significant increases of 18.7% and 8.1% respectively, reflecting that in an environment of slowing market recovery and fierce competition in the existing market, the company still faces heavy operating costs and brand promotion pressure to maintain its leading position. Management expects high single-digit revenue growth in 2026 and has set a challenging three-year compound annual growth target of 11.5% for net profit in its equity incentive plan.
Social Financing Data Falls Short of Market Expectations
The People's Bank of China released social financing data, which fell short of market expectations. March's social financing in China totaled 5.23 trillion RMB, lower than the market expectation of 5.4 trillion RMB. The increase in government bonds and RMB loans to the real economy was lower than the same period last year. Regarding household loans, the increase in short-term and medium-to-long-term loans was only half of that in the same period last year, reflecting insufficient consumer spending. As for corporate loans, short-term loan performance was not significantly different from the same period last year, but medium-to-long-term loans were 15% lower than the same period last year, indicating that overall market confidence remains weak.
Hong Kong Stock Connect saw a net inflow of HK$2.25 billion on Monday, with Xiaomi Group (1810) seeing the largest inflow at HK$270 million, followed by China National Offshore Oil Corporation (883). Tencent Holdings (700) recorded the largest net outflow at HK$1.69 billion, followed by Yangtze Optical Fibre and Cable (6869).
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.
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