Daily Investment Strategy
Daily focus：Zijin Mining (2899)
Zijin Mining is optimistic about its 2025 performance, expecting sustained copper and gold market strength to drive profitability. Q1 2025 net profit reached RMB 10.2bn, up 62% yoy, fueled by a 9.5% rise in copper output to 288 thousand tonnes and a 13% increase in gold output to 19 tonnes, primarily from Julong and Kamoa Copper Mines. Management forecasts full-year unit cost growth below 5% and plans to boost concentrate output by lowering beneficiation grades. To focus on high-value projects, Zijin divested non-core assets like Bullabulling Gold, reducing costs and risks. Products are mainly delivered to commodity exchanges, limiting U.S. tariff impacts, while U.S. dollar debt is being converted to yuan to manage currency risks. With strong production and risk mitigation, Zijin is confident in its 2025 market performance.
Markets continue to rebound after slight easing of tariffs
US markets rallied following President Trump’s recent announcement of potential tariff exemptions for the tech and auto sectors, boosting stocks and Treasuries. However, conflicting signals from the White House about semiconductor levies have sown uncertainty, tempering investor enthusiasm. Under the USMCA framework, compliant goods enjoy tariff-free trade, while non-compliant items face steep duties, highlighting the critical implications for businesses navigating this landscape. Concurrently, earnings season kicked off strongly, with Goldman Sachs reporting a 15% Q1 profit increase, fueled by robust stock trading, setting an optimistic tone. Attention now shifts to upcoming earnings from Bank of America, Citigroup, and TSMC, which will offer further insight into corporate health. Key economic releases, such as US retail sales and Chinese GDP, alongside Fed Chair Jerome Powell’s speech, are expected to steer market sentiment. Powell’s remarks on the economic outlook could sway expectations for interest rates, a pivotal factor for investors. While tariff relief and solid earnings foster cautious optimism, trade policy ambiguity and economic data volatility suggest a need for vigilance. These developments will likely shape market trajectories and influence sector dynamics in the near term.
The Hong Kong Stock Connect recorded a net inflow of HK$5.78bn on Tuesday, of which WuXi Biologics (2269) had the largest net inflow of HK$470mn, followed by China National Offshore Oil Corporation (0883); Kuaishou (1024) recorded the largest net outflow of HK$150mn, followed by Tencent (0700).
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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