Daily Investment Strategy
Recommended Stock：CCC（1800）
The Group has sped up the growth of emerging businesses, securing RMB390bn in new contracts, up 27% year-on-year. Key sectors include offshore wind power, Beidou tech, and offshore cable-laying. By 2030, the new urban infrastructure plan aims to make cities more resilient. As a leader, China Communications Construction Company is poised to benefit from government-backed infrastructure projects. The 3Q24 operating cash flow of the Group has improved, with a net outflow of RMB2.87bn. China's RMB10tn local government debt plan, announced in November, will provide more funds for settling outstanding payments and starting new projects, positively impacting the infrastructure sector. Target price: $6.28.
President Xi pledges more proactive economic policies in 2025
China's 2024 gross domestic product (GDP) is expected to exceed RMB130tn, President Xi said on Tuesday in his New Year's address, adding that the country would implement more proactive policies to promote growth in 2025. “The current economic operation faces some new situations, challenges from the uncertainty of the external environment, and pressure of transformation from old drivers of growth into new ones, but these can be overcome through hard work,” he said. At the same time, when reflecting on the past year, Xi mentioned that the country has fostered new quality productive forces in light of actual conditions, and has seen new business sectors, forms and models emerging. China's annual production of new energy vehicles has topped 10 million for the first time in 2024, and the country has made breakthroughs in integrated circuit, artificial intelligence, quantum communications and many other fields.
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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