Daily Investment Strategy
Recommended Stock：China Unicom (762)
In 3Q24, the Group's operating revenue amounted to RMB 290.12 billion, up by 3.0% yoy. EBITDA reached RMB 80.40 billion, up by 2.0% yoy. Profit before income tax reached RMB 23.55 billion. The profit attributable to the equity shareholders of the Company reached RMB 19.03 billion, up by 10.3% yoy, maintaining double-digit growth. Computing power services continue to grow, with Unicom Cloud revenue reaching RMB 43.86 billion, up by 19.5% yoy. By promoting the accelerated development of AIDC through the intelligent transformation of data centres, data centre revenue reached RMB 19.69 billion, up by 6.8% yoy. This quarter’s profit increased by more than 10%, but Unicom Cloud’s revenue growth continue to slow down. Considering the dividend yield of more than 7% in 2025, the stock remains attractive for dividend earning purpose. Investors can accumulate the stock using dollar-cost averaging method. Target price: $7.8; Stop- Loss price: $5.8.
Powell says there's no need for Fed to rush rate cuts given strong economy
Federal Reserve Chairman Jerome Powell said Thursday that strong U.S. economic growth will give policymakers enough time to decide how much and how quickly to cut interest rates. " The economy is not sending any signals that we need to be in a hurry to lower rates. The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully," Powell said in a speech Thursday. CME Group's FedWatch tool showed bets on a rate cut in December fell to 60% from 82.5% a day earlier.
Hong Kong Stock Connect had a net inflow of HK19.6bn on Thursday of which Tracker Fund (2800) had the largest net inflow, reaching HK$4.65bn; followed by Tencent (700). CNOOC (883) recorded the largest net outflow at HK$13.8mn, followed by Fourth Parad (6682).
Wen Kit Kenny 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/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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