Daily Investment Strategy

Daily focus：Anta（2020）

With Trump 2.0 in play, the market widely expects China’s “Two Sessions” to roll out further consumption stimulus policies to counter external challenges. Earlier this year, the NDRC and Ministry of Finance launched the trade-in program of consumer goods, but as home appliances are durable goods and smartphones may last for years, the incremental impact on home appliances and smart phones of further stimulus may be limited. This time, the policy could potentially expand to a broader range of consumer goods, including sport wears. According to the China Chain Store & Franchise Association (CCFA), over 70% of shopping malls reported sales growth in 2024. A January survey of the top 100 mall operators and retailers revealed that more than half of shopping centers saw YoY increases in sales, foot traffic, and rental income. Further supporting this trend, Hang Lung Properties’ management recently revealed an improvement in tenant retail sales in 4Q24, with narrowing declines—a sign that the sector is stabilizing. Additionally, China recently raised salaries for civil servants nationwide, a move that could boost domestic demand and drive economic growth.          FILA’s recovery in 4Q24 has eased a key overhang on Anta’s fundamental. FILA’s growth momentum weakened in 2024, slowing from double-digit expansion in 2023 to a decline in 3Q24, sparking concerns as FILA has historically contributed cc. 40% of Anta’s operating profits. However, recently in 4Q24, both Anta and FILA brands posted high-single-digit growth, while other brands surged 50–55% YoY. Additionally, Amer Sports, in which Anta holds a 43% stake, reported a net profit of $15.4 million in 4Q24, reversing a $ 93 million loss a year earlier.               Anta’s multi-brand strategy enables it to cater to diverse consumer segments, positioning it ahead of industry peers. We choose Anta as one of our picks among the consumer sectors. Target price is HK$96.

The S&P 500 closed lower due to market concerns about trade war

On Tuesday, the S&P 500 plummeted as an intraday rebound led by Nvidia faded amid ongoing concerns about the global trade war. President Trump threatened that if Canada retaliates against the U.S. with a 25% import tariff, the U.S. will immediately increase its retaliatory tariffs by the same amount. Trump posted on Truth Social, saying, "Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!," Earlier, Canada’s Prime Minister Justin Trudeau announced that starting from the 4th, Canada would impose a 25% tariff on U.S. products worth a total of CAD 30 billion. Meanwhile, a 25% tariff on imports from Mexico and an additional 10% tariff on Chinese goods imported to the U.S. also took effect on Tuesday. In response, China's finance ministry stated that it will impose a 15% tariff on chicken, wheat, corn, and cotton imports from the U.S., while soybeans, sorghum, pork, beef, fruits and vegetables, aquatic products, and dairy will face a 10% tariff.

Hong Kong Stock Connect had a net outflow of HK$1.2bn Tuesday of which Alibaba (9988) had the largest net inflow, reaching HK$1.84bn; followed by BYD (1211). Tracker Fund (2800) recorded the largest net outflow at $6.14bn, followed by HSCEI ETF (2828).