Daily Investment Strategy
Recommended Stock：CKI（1038）
The U.S. export controls on semiconductor manufacturing equipment and memory chips has been taken effect. Meanwhile, Trump will take office this month. This increases uncertainty in the Hong Kong and A- share markets, prompting investors to consider defensive stocks, including CK Infrastructure.
The Group has diversified investments in Energy Infrastructure, Transportation Infrastructure, Water Infrastructure, Waste Management, Waste-to-energy, Household Infrastructure and Infrastructure Related Businesses. Its investments and operations span Hong Kong, Mainland China, the United Kingdom, Continental Europe, Australia, New Zealand, Canada and the United States. The diversification of its business and operational regions can help mitigate risks. The Group maintains a strong financial position, with cash holdings of HK$9.2 billion and a net debt to total capital ratio of 9.8% as of June 30, 2024. Cheung Kong Infrastructure and other strategic partners within the Cheung Kong Group, such as CK Property and Power Assets, all possess robust financial strength, putting them in favorable positions to capture global investment opportunities emerging in both existing and new industries. Target price: $63.
Atlanta Fed downgrades GDP
U.S. stocks fell on Thursday, with the Dow falling 152 points, or 0.4%, the S&P 500 falling 12 points, or 0.2%, and the Nasdaq falling 30 points, or 0.2%. The Atlanta Fed's GDPNow model revised its growth forecast for the fourth quarter of 2024. The model now predicts a seasonally adjusted annual growth rate of 2.6%, down from an earlier forecast of 3.1%. Tesla's vehicle deliveries hit a record high in the fourth quarter. However, the deliveries came in below consensus. The share price fell more than 6%. Meanwhile, Apple is offering discounts on its latest iPhones in China, a rare move that points to growing competition from rivals. Affected by this, the stock fell nearly 3% on Thursday.
Hong Kong Stock Connect had a net inflow of HK$6.5bn on Thursday of which China Mobile (941) had the largest net inflow, reaching HK$1.26bn; followed by ICBC (1398). Tracker Fund (2800) recorded the largest net outflow at $1.45bn, followed by SMIC (981).
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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