Daily Investment Strategy
Recommended Stock：CCB（939）
Due to narrower net interest margins and weak fee income, CCB’s PPOP decreased by 4.1% yoy in 3Q24, but net profit grew by 3.8% yoy. CCB maintained stable asset quality in 3Q24, with NPL ratio of 1.35%, down by 0.02ppts from the end of the previous year. The bank's credit cost for the third quarter was 34bps, decreasing by 26 bps qoq and by 15 bps yoy, contributing to a moderate profit growth. The provisions release may indicate that CCB's full-year profit and dividend outlook for 2024 to be positive. The forecasted dividend yields for 2024 and 2025 are projected at 7.1% and 7.24%, respectively. This attractive dividend yield can provide downside protection for the stock price. Target price: $7; Stop- Loss price: $5.5.
Trump, Harris set for tight presidential race
Investors are largely on edge ahead of Tuesday's presidential election, with recent polls showing a close race between Trump and Harris. The recent rise in U.S. Treasury yields suggests some investors are preparing for a Trump victory, anticipating more inflationary policies. Aftershocks in markets could depend on which party controls Congress. If the United States has a divided Congress, it will be difficult to pass major legislative reforms. A sweeping Republican or Democratic victory, however, could mean ambitious spending plans or tax reform.
Hong Kong Stock Connect had a net inflow of HK3.27bn on Monday of which Xiaomi (1810) had the largest net inflow, reaching HK$0.45bn; followed by Innovent (1801). Tracker Fund (2800) recorded the largest net outflow at HK$1.19bn, followed by CNOOC (883).
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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