Daily Investment Strategy
Recommended Stock：China Unicom（762）
In 3Q24, the Group's operating revenue amounted to RMB 290.12 billion, up by 3.0% yoy. EBITDA reached RMB 80.40 billion, up by 2.0% yoy. Profit before income tax reached RMB 23.55 billion. The profit attributable to the equity shareholders of the Company reached RMB 19.03 billion, up by 10.3% yoy, maintaining double-digit growth. Computing power services continue to grow, with Unicom Cloud revenue reaching RMB 43.86 billion, up by 19.5% yoy. By promoting the accelerated development of AIDC through the intelligent transformation of data centres, data centre revenue reached RMB 19.69 billion, up by 6.8% yoy. This quarter’s profit increased by more than 10%, but Unicom Cloud’s revenue growth continue to slow down. Considering the dividend yield of more than 7% in 2025, the stock remains attractive for dividend earning purpose. Investors can accumulate the stock using dollar-cost averaging method. Target price: $7.8; Stop- Loss price: $6.4.
Fed Beige Book shows that contacts were somewhat more optimistic
According to Fed Beige Book, economic activity was little changed in nearly all Districts since early September, though two Districts reported modest growth. Most Districts reported declining manufacturing activity. Activity in the banking sector was generally steady to up slightly, and loan demand was mixed, with some Districts noting an improvement in the outlook due to the decline in interest rates. Reports on consumer spending were mixed, with some Districts noting shifts in the composition of purchases, mostly toward less expensive alternatives. Despite elevated uncertainty, contacts were somewhat more optimistic about the longer-term outlook.
Hong Kong Stock Connect had a net inflow of HK9.39bn on Wednesday of which CR Power (836) had the largest net inflow, reaching HK$1.08bn; followed by Tracker Fund (2800). CNOOC (883) recorded the largest net outflow at HK$0.31bn, 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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