Daily Investment Strategy
Recommended Stock：CKI（1038）
The Group recorded net profit of HK$4.31bn in 1H24, a 2% yoy increase. The profit contribution from the UK business was HK$1.86bn, up 17% yoy. The Group has diversified investments in Energy Infrastructure, Transportation Infrastructure, Water Infrastructure, Waste Management, Waste-to-energy, Household Infrastructure and Infrastructure Related Businesses. Its investments and operations span Hong Kong, Mainland China, the United Kingdom, Continental Europe, Australia, New Zealand, Canada and the United States. Most of the profit of the Company comes from overseas, and therefore can benefit from the USD softness amid rate cut cycle. The Group maintains a strong financial position, with cash holdings of HK$9.2 billion and a net debt to total capital ratio of 9.8% as of June 30, 2024. Cheung Kong Infrastructure and other strategic partners within the Cheung Kong Group, such as CK Property and Power Assets, all possess robust financial strength, putting them in favorable positions to capture global investment opportunities emerging in both existing and new industries. Target price: $62; Stop- Loss price: $48.
Jobless claims less than expected
The number of people applying for initial jobless claim in the United States unexpectedly fell by 15,000 to 227,000 last week, less than the 242,000 expected, as the job market maintained a fairly healthy tone. The Federal Reserve's Beige Book report released on Wednesday said employment "increased slightly" in early October, and strong employment data earlier this month helped the market reassess the possible extent of the Fed's future interest rate cuts.
Hong Kong Stock Connect had a net outflow of HK0.46bn on Thursday of which Xiaomi (1810) had the largest net inflow, reaching HK$0.54bn; followed by Alibaba (9988). Tracker Fund (2800) recorded the largest net outflow at HK$1.96bn, followed by Tencent (700).
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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