Daily Investment Strategy
Daily focus：China Mobile（941）
Reported stable growth in both its core business and digital transformation in its 2024 performance, showcasing its market leadership. The annual operating revenue reached RMB 1.04 trillion, a year-on-year increase of 3.1%. Net profit increased by 5% year-on-year to RMB 138.4 billion, and the company announced an annual dividend of HKD 5.09 per share, a year-on-year increase of 5.4%, corresponding to an annual payout ratio of 73%. Additionally, the management reiterated that starting from 2024, the profit distributed in cash over three years will gradually increase to more than 75% of the profit attributable to shareholders for the year, continuously creating greater value for shareholders. China Mobile's business has a certain degree of stability, providing investors with high visibility of dividend yields, making it a safe haven in times of market volatility.
Reciprocal tariffs are finally introduced, and many Asian countries are not immune
President Trump announced a comprehensive "reciprocal tariff" policy, imposing a 10% base tariff on all countries starting at 12:01 a.m. (EST) on April 5, and higher reciprocal tariffs on specific countries on April 9. The reciprocal tariffs are calculated based on the tariffs and other trade barriers that countries impose on the United States and are about half of the total amount those countries impose on the United States. Specifically, China would face tariffs of 34% (based on a White House calculation of a 67% charge to the U.S.), the EU 20%, Japan 24%, Vietnam 46%, South Korea 25%, India 26% and Taiwan 32%. Cambodia faces the highest reciprocal tariff at 49%. Trump said the tariffs would remain in effect until he determined that the threats posed by trade deficits and asymmetric treatment were addressed or mitigated. It is worth noting that the 34% reciprocal tariff on China will be superimposed on the existing 20% tariff, so that China actually faces a tariff rate of 54%. Trump described the move as a "declaration of economic independence" aimed at addressing America's chronic trade deficit.
Hong Kong Stock Connect recorded HK$11.7bn on Wednesday, of which Xiaomi (1810) recorded the largest net inflow of HK$2.04bn, followed by Alibaba (9988); WuXi Biologics (2269) recorded the largest net outflow of HK$150mn, followed by RoboSense (2498).
Cheung Cho Shing, Joseph 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/ACQ030/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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