Daily Investment Strategy
Recommended Stocks：CHINA STATE CON（3311）
Chief Executive John Lee recently published the "Policy Address," mentioning that the government will plan with the AAHK for expanding the scale of the Airport City by more than double, building a new, world-leading landmark in the bay area among the Airport Island, the Hong Kong Port Island of the HZMB and Tung Chung East New Town. New projects will be developed to promote high-end commercial, tourist and leisure activities. These include creating an ecosystem for the arts industry, building the AsiaWorld-Expo Phase 2, developing a yacht bay with ancillary facilities, opening a food market for imported fresh food and providing more public spaces. These arrangements may benefit construction-related concepts, including China State Construction International. In recent years, the Group continued to promote the application of MiC technology in the Mainland market. The Group consolidated its sound market-leading position in the Hong Kong and Macau markets with the façade business taking the lead in terms of technology and growing rapidly. The Group’s results registered steady growth with newly signed contracts amounted to HKD125,130mn, representing a yoy increase of 29.2%. The unaudited revenue amounted to HKD61,755mn, increase 12.1% yoy. The operating profit amounted to HKD8,570mn, increase 10.3% yoy. The profit attributable to the shareholders increased by12.7% to HKD5,465mn. Considering the steady growth of the company's performance, MiC continues to promote business growth, and the opportunities brought by the development in HK and mainland China, the investment value of China State Construction remains. Target price: $12.3; Stop- Loss price: $10.6.
Retail sales data unexpectedly rises, showing strong consumer demand
U.S. retail sales rose 0.4% in September, accelerating from August's unrevised 0.1% gain, according to the Commerce Department. Economists had expected the figure to be 0.3%. Sales excluding automobiles surged 0.5%, well above forecasts of 0.1%. In addition, in terms of the labor market, the initial jobless claim in the week ended October 12 was also lower than expected.
Hong Kong Stock Connect had a net inflow of HK8.35bn on Thursday of which Sunac (1918) had the largest net inflow, reaching HK$0.87bn; followed by China Life (2628). Kuaishou (1024) recorded the largest net outflow at HK$0.10bn, followed by China mobile (941).
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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