Daily Investment Strategy
Recommended Stock：JD.com (9618)
JD.com will announce its results on November 14. The market expects the group’s adjusted EBITDA to rise 5.6% to RMb13.62bn in the 3Q24, and quarterly revenue to reach RMb259.7bn, a yoy increase of 4.8%. This accelerated from the 1.2% annual growth rate in the 2Q24. Benefiting from the " trade-in subsidy", JD.com's sales of home appliance more than doubled on average between August 26 and September 21. JD.com can be said to be the biggest beneficiary of macro policies, including home appliance trade-in programs, measures to stimulate the real estate market (increasing demand for home appliance) and consumer coupons. Target price: 175, stop loss price: 130.
US CPI data in line with expectations
Data on Wednesday showed that the CPI rose 2.6% yoy in October, higher than the 2.4% increase in September. It rose 0.2% mom, matching September's pace. Excluding volatile items such as food and fuel, core CPI rose 3.3% yoy and 0.3% mom, in line with September. These data were in line with expectations and eased market concerns. This comes after Minneapolis Fed President Neel Kashkari warned on Tuesday that the Fed may keep interest rates unchanged in December if inflation accelerates unexpectedly. This release supports a 25 bps cut from the FOMC in December.
Hong Kong Stock Connect had a net inflow of HK4.5bn on Wednesday of which Tencent (700) had the largest net inflow, reaching HK$1.75bn; followed by Alibaba (9988). Tracker Fund (2800) recorded the largest net outflow at HK$8.36bn, 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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