Daily Investment Strategy
Recommended Stock：JD（9618）
Revenue increased by 5.1% to RMB260.4bn in 3Q24, resulting from a rebound in growth of electronics and home appliances, and sustained momentum in general merchandise. Non-GAAP diluted net income per ADS increased by 29.5% for 3Q24 to RMB8.68 from RMB6.70 in 3Q23. The October retail sales data in China shows a yoy growth of 4.8%, exceeding market expectations of 3.8% and the previous value of 3.2%. Among the various categories, the "household appliances and audiovisual equipment" sector, supported by government policies, saw a significant increase of 39.2%, up from the previous value of 20.5%. This reflects the effectiveness of consumption boosting policies. JD.com become the biggest beneficiary of macro policies, including home appliance trade-in programs, measures to stimulate the real estate market (increasing demand for home appliance) and consumer coupons. 3Q result beat expectations, the investment value of JD remains. Target price: $175.
Investors concern over a renewed global trade war; Fed members expect a gradual rate cut
Mexican President Claudia Sheinbaum Pardo said on Tuesday that any new tariffs imposed on Mexico would result in retaliatory tariffs. Trump's tariff threats have heightened fears that the world could return to a global trade war - a trend seen throughout much of his first term. Investors also weighed the release of the Federal Reserve meeting minutes on Tuesday afternoon. Fed members said they expect to cut interest rates in the future, but only "gradually."
Hong Kong Stock Connect had a net inflow of HK6.86bn on Tuesday of which Tracker Fund (2800) had the largest net inflow, reaching HK$0.86bn; followed by Alibaba (9988). XPeng (9868) recorded the largest net outflow at 65mn, followed by ZX INC (9890).
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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