Daily Investment Strategy
Daily focus：Q Technology（1478）
Q Technology (1478) has released its annual results for the year ended December 31, 2024. The company recorded revenue of approximately RMB 16.151 billion in 2024, representing a YoY increase of 28.9% compared to 2023. Gross profit reached approximately RMB 985 million, growing by 93.6% YoY, with gross profit margin improving from 4.1% in 2023 to 6.1%. Profit for the year was approximately RMB 279 million, showing a substantial YoY increase of 234.1%. Notably, the fingerprint recognition module business successfully turned from loss to profit.
US retail sales fall short of consensus, recession risk rises again
US retail sales rose by a modest 0.2% in February 2025, falling short of the forecasted 0.6% increase, following a downwardly revised 1.2% decline in January (the biggest drop since July 2021). This weaker-than-expected performance has intensified concerns about consumer spending patterns and overall economic health. While the control group (which excludes volatile categories and feeds into GDP calculations) rebounded by 1% after January’s decline, only six out of thirteen retail categories registered increases - down from eight three months ago and ten a year ago. Key durable goods components like motor vehicles and furniture declined, with the most significant drops occurring at department stores (-1.7%), dining establishments (-1.5%), and gas stations (-1%). These figures suggest consumers are becoming more cautious amid economic uncertainty, redirecting spending toward necessities like food and health items while pulling back from discretionary purchases. The lackluster retail performance, combined with declining consumer confidence (which saw its largest monthly drop since August 2021), is fueling concerns about economic deceleration and potential recession risks. Analysts expect these developments may influence the Federal Reserve to adopt a slightly more dovish stance in its upcoming economic projections.
Hong Kong Stock Connect recorded a net inflow of HK$10.48bn on Monday, of which Tracker Fund of Hong Kong (2800) recorded the largest net inflow of HK$2.01bn, followed by Li Auto (2015); Semiconductor Manufacturing International Corporation (SMIC) recorded the largest net outflow of HK$490mn, followed by Xiaomi Group (1810).
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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