Daily Investment Strategy
Recommended Stock：China State Construction International（3311）
From December 24 to 25, the National Housing and Urban-Rural Development Work Conference was held in Beijing. The conference clarified the key tasks for 2025, emphasizing the implementation of "four cancellations, four reductions, and two increases" in various existing and new policies to strongly support housing demand. Additionally, there will be increased efforts to implement transformations of urban villages and dilapidated housing, continuing to expand urban village renovation projects on top of the additional 1 million units. China State Construction International's Modular Integrated Construction (MiC) technology has advantages that can benefit from national policies. Meanwhile, the management of the Group has clear guidance for the future, including increasing its dividend payout ratio from "approximately 30%" to "not less than 30%" in 2024, with more than double-digit growth in net profit margin, and newly signed contracts reaching HK$210 billion. Looking forward, operating cash flow will continue to improve, and the dividend payout ratio may also gradually increase. Overall, the prospect visibility is high. Target price: $13.6.
The MIIT expects the industrial added value to growth by approximately 5.7% year-on-year in 2024
The Ministry of Industry and Information Technology (MIIT) expects the industrial added value of enterprises above a designated size to grow by approximately 5.7% year-on-year in 2024. The added value of the manufacturing sector is expected to remain stable as a proportion of GDP. In fact, this year's industrial added value has been relatively stable compared to other economic data such as retail sales and fixed asset investment. The MIIT stated that manufacturing sector investment mechanism will be establish in the future, supporting the creation of an independent and controllable industrial supply chain.
On Friday, southbound funds saw a net inflow of 8.49 billion HKD. SMIC (981) received the highest inflow of 1.39 billion HKD, followed by Lenovo Group (992). Meituan (3690) recorded the highest net outflow of 450 million HKD, 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.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
