Daily Investment Strategy
Recommended Stock：Trip.com (9961)
Trip.com reported a 16% yoy increase in net revenue in 3Q24, reaching RMB 15.9 billion, beating the expected RMB 15.64 billion. The adjusted EBITDA was RMB 5.7 billion, beating the expected RMB 5.28 billion and recorded growth compared to the RMB 4.6 billion in 3Q23. During the period, outbound travel continued to show rapid growth, with international OTA platform hotel and flight bookings increasing by over 60% yoy. Outbound hotel and flight bookings have fully recovered to 120% of pre-pandemic levels in 2019. Currently, the outbound travel market in China is characterized by both short- distance and longer-distance destinations, with Southeast Asia being one of the most popular regions, while emerging destinations like the UAE are attracting more travelers from China. Trip.com consistently grow at faster rate than the overall industry. With the increase in international flight availability and relaxed visa rules, its overseas operations are poised to benefit from a rebound in market demand. Target price: $570; Stop- Loss price: $420.
Putin alters nuclear strike threshold
Russian President Vladimir Putin warned the US that the threshold for using nuclear weapons has been lowered, a new stance after President Joe Biden allowed Ukraine to use American weapons to strike inside Russia. Russia would now consider a nuclear strike if it, or its ally Belarus, faced aggression "with the use of conventional weapons that created a critical threat to their sovereignty and (or) their territorial integrity", the new doctrine said. Treasury prices rose, yields fell, and gold prices rose as investors turned to safe-haven assets.
Hong Kong Stock Connect had a net inflow of HK1.97bn on Tuesday of which Tencent (700) had the largest net inflow, reaching HK$0.58bn; followed by Xiaomi (1810). Tracker Fund (2800) recorded the largest net outflow at 2.45bn, followed by HSCEI ETF (2828).
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.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
