Daily Investment Strategy
Daily focus：Fast Retailing (6288)
Announced interim results for the six months ended February 28, 2025. The Group recorded revenue of Yen 1,790.1bn, up 12.0% yoy; operating profit of Yen 304.2bn, up 18.3% yoy; and profit attributable to owners of the parent company of Yen 233.5bn, up 19.2% yoy, setting a record high performance. Based on the performance in the first half of the year, the company raised its full-year forecast, expecting operating profit for the year ending August 31, 2025 to increase from Yen 530bn to Yen 545bn, profit before income tax to increase from Yen 585bn to Yen 635bn, and profit attributable to owners of the parent company to increase from Yen 385bn yen to Yen 410bn.
145% Total Tariffs to China trigger Market Turmoil
The White House's clarification that total tariffs on Chinese goods would reach 145%, higher than the previously announced 125%, sent shockwaves through markets, erasing much of Wednesday's historic rally. This development comes amid President Trump's broader trade policy shift, which included a 90-day pause on "reciprocal" tariffs for over 75 countries but maintained aggressive measures against China. Markets reacted violently, with major indices dropping 2.5-4.3% as investors reassessed the escalating US-China trade war. The heightened tensions suggest a prolonged economic conflict between the world's two largest economies, potentially disrupting global supply chains and increasing inflationary pressures.
The Hong Kong Stock Connect recorded a net outflow of HK$4.03bn on Thursday, of which Xiaomi (1810) recorded the largest net inflow of HK$2.35bn, followed by Alibaba (9988); Tracker Fund of Hong Kong (2800) recorded the largest net outflow of HK$15.18bn, followed by Hang Seng China Enterprises (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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