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.
U.S. third-quarter GDP falls short of expectations
The U.S. economy grew at a slower-than-expected pace in the third quarter, at 2.8%, below expectations of 3%. However, employment data released on Wednesday showed that the job market was stronger than expected. Private payrolls rose by 233,000 in October, up from a revised 159,000 the previous month and reaching the highest level in more than a year, according to the latest ADP report. The market is currently focusing on the non-farm payrolls data released this Friday.
Hong Kong Stock Connect had a net inflow of HK4.77bn on Wednesday of which Alibaba (9988) had the largest net inflow, reaching HK$0.74bn; followed by Xiaomi (1810). Tracker Fund (2800) recorded the largest net outflow at HK$3.8bn, followed by HSCEI ETF (2828).
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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