Daily Investment Strategy
Daily focus：361 Degrees（1361）
361 Degrees announced its 2024 performance, with revenue surpassing the RMB10 billion for the first time, reaching RMB 10.07 billion, better than the market expectation of RMB 9.96 billion, representing a YoY growth of 19.6%. Earnings per share also grew by 19.6% to RMB 0.556. The 2024 earnings met expectations, and the market expects earnings per share to grow at 13% in 2025, with a forward price-earnings ratio of 6.6 times and a PEG ratio of 0.5. However, the stock price is constrained by recent highs, so it is advisable to wait for a pullback.
PPI Unexpectedly Flat MoM, but Unlikely to Sustain
Following the release of the CPI index on Wednesday, which was below market expectations, the PPI index released yesterday also fell short of market expectations. It rose 3.2% year-on-year, lower than the market expectation of 3.3% and the previous value of 3.7%. Month-on-month, it remained flat, against market expectations of 0.3% and the previous value of 0.6%. As for core PPI, it rose 3.4% year-on-year, below the market expectation of 3.6% and the previous value of 3.8%. Month-on-month, it recorded a decline of 0.1%, the first drop since the revised value in July last year, against market expectations of a rise of 0.3% and the previous value of 0.5%. However, with Trump continuously increasing tariffs on imports such as steel in recent months, this cooling trend is unlikely to sustain, as import tariffs are expected to push up commodity prices in the coming months.
On Thursday, the Hong Kong Stock Connect recorded a net inflow of HKD 5.46 billion, with China Mobile (941) recording the highest net inflow of HKD 646 million, followed by XPeng Motors (9868). On the other hand, the Hang Seng China Enterprises Index (2828) recorded a net outflow of HKD 580 million, followed by Tencent Holdings (700).
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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