Daily Investment Strategy
Daily focus：BOC Hong Kong（2388）
BOC Hong Kong's financial results for fiscal year 2024 were in line with consensus, with pre-tax operating profit growth slightly exceeding consensus, and the dividend policy adjustment was seen as positive. Net interest margin increased due to the rise in HIBOR and improved deposit structure, asset quality remained excellent, and credit costs were lower than peers. However, total loans contracted by a rare 1.5% yoy. We are also optimistic about its potential earnings upside and shareholder return prospects.
Industrial Enterprises' Profits Down 0.3% Year-on-Year in the First Two Months
The National Bureau of Statistics released data on industrial enterprises' profits for the first two months of this year. Revenue grew by 2.8% in the first two months, accelerating by 0.7 percentage points compared to the previous value. As for total profits, the latest figures show a year-on-year decline of 0.3%. Although this is an improvement compared to the 3.3% decline for the whole of 2024, it contrasts sharply with the 10.2% growth in the same period last year. By industry type, the equipment manufacturing sector performed better, with operating income growing by 8.1% year-on-year, 5.3 percentage points higher than the average level of all industrial enterprises above the designated size. Profits turned from a year-on-year decline of 0.2% in 2024 to a growth of 5.4%, also outperforming the overall level of industrial enterprises, partly driven by the continued effects of the "two new" policies.
On Thursday, Stock Connect recorded a net inflow of HKD 4.14 billion, with Pop Mart (9992) recording the largest net inflow of HKD 725 million, followed by Alibaba (9988). The Tracker Fund of Hong Kong (2800) recorded the largest net outflow of HKD 1.44 billion, followed by Hang Seng China Enterprises Index ETF (2828).
Cheung Cho Shing, Joseph 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/ACQ030/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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