Daily Investment Strategy
Recommended Stock：Xiaomi（1810）
Xiaomi's 3Q24 saw a 30.5% yoy increase in revenue, reaching RMB92.5bn, beating market expectations. Most business segments outperformed projections, with the exception of "other income" categories. Management responded to the profitability situation of Xiaomi's automotive segment, stating that losses in Q3 for Xiaomi's vehicles decreased. This improvement is attributed to the fact that they are still in the early stages of production, which involves significant investment; however, marginal costs will decrease as production scales up. They indicated that the profit margins for Xiaomi's vehicles in Q4 are expected to improve compared to Q3. Target price: $32.
The holiday effect on retailers is yet to known
Data released by Salesforce on Thursday showed that online sales in the United States increased by about 4% during the first half of Thanksgiving this year, compared with 2% in the same period last year. It's a new sign that shoppers are enjoying deep discounts from retailers. However, this year's holiday shopping season from Thanksgiving to Christmas is expected to grow at the slowest pace in six years, according to separate reports from the National Retail Federation and Deloitte. And therefore, the holiday effect on retailers is yet to known.
Hong Kong Stock Connect had a net inflow of HK7.81bn on Thursday of which Alibaba (9988) had the largest net inflow, reaching HK$0.56bn; followed by Meituan (3690). Xiaomi (1810) recorded the largest net outflow at 64mn, 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.
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