Daily Investment Strategy
Recommended Stock：Xiaomi（1810）
Xiaomi's 3Q24 saw a 30.5% yoy increase in revenue, reaching RMB92.5bn, beating market expectations. Most business segments outperformed projections, with the exception of "other income" categories. Management responded to the profitability situation of Xiaomi's automotive segment, stating that losses in Q3 for Xiaomi's vehicles decreased. This improvement is attributed to the fact that they are still in the early stages of production, which involves significant investment; however, marginal costs will decrease as production scales up. They indicated that the profit margins for Xiaomi's vehicles in Q4 are expected to improve compared to Q3. Target price: $32.
Powell said Fed can take cautious approach to rate cuts
Although private payrolls data for November released on Wednesday was less than expected, economists still believe that the labor market remains solid. Meanwhile, Federal Reserve Chairman Jerome Powell said the Fed could take a "little more cautious" approach in cutting interest rates to neutral as economic conditions remain good. In his last public speech before the Fed's Dec. 17-18 meeting, Powell said "the economy is stronger than we thought it was going to be in September...the labor market is better. "
Hong Kong Stock Connect had a net inflow of HK10.36bn on Wednesday of which CCB (939) had the largest net inflow, reaching HK$0.52bn; followed by CNOOC (823). Tracker Fund (2800) recorded the largest net outflow at 11bn, followed by HSCEI ETF (2828).
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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