Daily Investment Strategy

Daily focus：Vitasoy（345）

Vitasoy reported full-year revenue of HKD 6.274 billion, representing a 1% year-on-year increase; gross profit margin improved by 1.3 percentage points to 51.3%. In terms of profitability, profit attributable to equity holders of the group reached HKD 235 million, a substantial year-on-year growth of 102%, with basic earnings per share rising from 10.9 HK cents to 21.9 HK cents. The group’s management highlighted that although short-term challenges include geopolitical tensions and increased consumer price sensitivity, they will continue to drive core products and innovation over the long term to enhance market share and profitability, with particular emphasis on the growth potential of the Mainland China market.

Monetary Policy outlook dominates market sentiment

U.S. stocks rebounded strongly yesterday, driven by news that President Trump might announce the Fed chairman candidate in advance. The S&P 500 index closed at 6,141, just one step away from its historical high. The market’s optimistic expectations for the outlook for monetary policy offset the negative impact of the 0.5% GDP contraction in the first quarter. Economists generally believed that the GDP contraction was mainly due to the distortionary effect of companies importing large amounts of goods before the implementation of tariffs, rather than to a deterioration in economic fundamentals. The Federal Reserve maintained a cautious stance and suspended interest-rate cuts until the long-term impact of tariff policies became clear. Although consumer spending grew by only 0.5%, the lowest level in four years, the easing of geopolitical risks in the Middle East and the mild performance of inflation data supported the market. Investors closely watched the May personal consumption expenditure price index, scheduled for release on Friday, which would further guide the Fed’s policy direction.

Hong Kong Stock Connect recorded a net inflow of HK$5.29bn on Thursday, of which SMIC (0981) recorded the largest net inflow of HK$900mn, followed by Innovent Biologics (1801). Tencent Holdings (700) recorded the largest net outflow of HK$570mn.