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.
Investors cheered Trump’s decision to nominate Bessent
Bessant's nomination helps remove a major uncertainty from the market, as the Treasury Secretary role is one of the most influential figures in the cabinet over economic and trade regulation. Bessant has called for tax reform and deregulation of U.S. companies. He also opposed overly strict trade tariffs, reducing the possibility of a costly trade war under the Trump administration. The dollar fell after Bessant's nomination, while U.S. Treasury yields also fell. In addition, there are reports that Israel and Lebanon's Hezbollah are close to reaching a ceasefire agreement, which may mark an easing of the long-term conflict in the Middle East, which also boosted the overall market sentiment.
Hong Kong Stock Connect had a net inflow of HK1.20bn on Monday of which Alibaba (9988) had the largest net inflow, reaching HK$0.85bn; followed by China Mobile (941). Meituan (3690) recorded the largest net outflow at 1.54bn, followed by SMIC (981).
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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