Daily Investment Strategy
Recommended Stock：Meituan（3690）
In 3Q24, the number of instant delivery transactions (food delivery + Instashopping) reached 7.078 billion, a yoy increase of 14.5%, i.e. 76.93 million orders per day. Among these, the daily order volume for Instashopping exceeded 10 million, with both user numbers and transaction frequency achieving double-digit yoy growth. Since the end of September, a series of monetary and fiscal stimulus measures have been introduced, which help improve consumer sentiment in China, benefiting Meituan. Management sees that many new categories still have very low penetration rates in instant retail. As user consumption scenarios expand from basic needs like food and daily necessities to various aspects such as “eating, using, gifting, entertainment, and shopping,” the range of consumer goods will also expand, potentially increasing the average order value. Target price: $180.
S&P 500 retreats from record highs, Nvidia slides
The S&P 500 ended lower on Monday, weighed by weakness in technology stocks led by Nvidia, days ahead of key inflation data. Nvidia shares fell 2.6% after China launched an investigation into the chip maker for alleged violations of Chinese antitrust laws. Meanwhile, the November CPI, due to be released on Wednesday, will provide more clues about inflation, the U.S. economy and possible interest rate cuts.
Hong Kong Stock Connect had a net inflow of HK12.7bn on Monday of which Tracker Fund (2800) had the largest net inflow, reaching HK$5.63bn; followed by Alibaba (9988). Wuxi Bio (2269) recorded the largest net outflow at 0.56bn, followed by CNOOC (883).
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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