Daily Investment Strategy
Daily focus：BYD（1211）
Recently, BYD issued nearly 130 million shares, causing a dilution that led to a drop in stock price, which is seen as a buying opportunity. The target price for BYD has been raised due to its advancements in intelligent driving technology. Intelligent driving relies heavily on large model training, and BYD's sales of over 4 million units in 2024 give it a significant advantage. The shift towards intelligent driving is expected to be a major trend this year, and BYD's large production volume provides it with a cost advantage, allowing it to maintain higher profit margins in a price war.
China Imposes Tariffs on Canada
Over the weekend, China announced tariffs on Canadian goods starting March 20, 2025. The tariffs include a 100% increase on rapeseed oil, oil cakes, and peas, and a 25% increase on aquatic products and pork. This move is part of the ongoing trade tensions, marking the first time China has imposed tariffs on a country other than the US during this trade war. China recent trade data showed a 2.3% increase in exports (below the expected 5%) and an 8.4% decrease in imports (expected to grow by 1%). The trade surplus expanded to 170.52 billion yuan, surpassing the expected 143.1 billion yuan. Exports to the US dropped from 14.6% of total exports last year to 14% in the first two months of this year.
On Friday, the Hong Kong Stock Connect saw a net inflow of Rmb 12.1 billion. Alibaba (9988) had the highest inflow at 3.58 billion HKD, followed by Tracker Fund of Hong Kong (2800). Semiconductor Manufacturing International Corporation (981) had the highest net outflow at 478 million HKD, followed by China National Offshore Oil Corporation (883).
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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