Market Overview - The Hang Seng Index is expected to rise towards 26,000 points due to the postponement of tariffs by the US and a stable economic outlook in mainland China, although corporate earnings improvements are limited [2] - Active trading in the Hong Kong market indicates a positive risk appetite, with capital rotating across different sectors [2] Macro Focus - The State-owned Assets Supervision and Administration Commission (SASAC) encourages state-owned enterprises to lead in resisting "cut-throat" competition and to optimize the allocation of state capital [8] - The European Central Bank (ECB) has maintained interest rates while awaiting clarity on US tariff policies, with inflation rates reaching 2% [9] - The US Federal Reserve is expected to reduce interest rates twice this year, with a total reduction of 0.5 percentage points [4] Corporate News - Pop Mart (9992) is increasing production monthly and has denied engaging in "hunger marketing," while exploring a potential movie collaboration with a Hollywood company [10] - JD.com (9618) is in negotiations to acquire German electronics retailer Ceconomy for approximately €2.2 billion [10] - OSL Group (0863) plans to raise HK$23.55 billion through a share placement at a 15.34% discount [10] - Sinopec (0386) reported a 2% increase in oil and gas production for the first half of the year [10] - Kwan Tai Group (0148) expects a more than 70% increase in interim net profit [10] Industry Insights - The mainland is implementing measures to regulate low-price competition and address "involution" in various industries [8] - The automotive market in Europe experienced its largest decline in ten months, with electric vehicle growth slowing [9] - The Chinese government is enhancing financial services for rural reforms and encouraging the issuance of "three rural" bonds [8]

Market Overview - The Hang Seng Index is expected to rise towards 26,000 points due to the postponement of tariffs by the US and a stable economic outlook in mainland China, although corporate earnings improvements are limited [2] - Active trading in the Hong Kong market reflects a positive risk appetite, with capital rotating across different sectors [2] - New trade negotiations between China and the US are set to begin, contributing to a more favorable trade environment [2] Company Insights: Xtep International (1368) - Xtep's total retail sales volume (RSV) showed a slight year-on-year slowdown in Q2 2025, with online sales performing better than offline [9] - The company plans to gradually recover 100-200 stores for direct-to-consumer (DTC) transformation starting in Q4 2025, with a total of about 500 stores targeted for recovery by FY26E [9] - Xtep's management expects a net profit growth of over 10% year-on-year for FY25E, maintaining a stable retail discount level of 25-30% [9] Company Insights: Anta Sports (2020) - Anta reported stable performance in Q2 2025, with its main brand and FILA showing low single-digit and mid-single-digit growth, respectively [14] - The company has reaffirmed its FY25E guidance, expecting growth rates of high single digits for its main brand and over 30% for other brands [14] - Anta is focusing on optimizing its offline store structure and managing online discounts to maintain brand image and profitability [14] Financial Projections - Xtep's revenue is projected to grow from 8,423 million RMB in FY23A to 11,412 million RMB in FY25E, with a compound annual growth rate (CAGR) of approximately 7% [10] - Anta's revenue is expected to increase from 10,074 million RMB in FY24A to 12,935 million RMB in FY26E, reflecting a robust growth trajectory [10] Valuation Metrics - Xtep's FY25E price-to-earnings (P/E) ratio is projected at 9.6x, which is significantly below its 5-year average valuation [9] - Anta's FY25E P/E ratio is estimated at 17.0x, also below its 10-year average, indicating potential undervaluation [14]

Core Insights - The report highlights the ongoing trends in the U.S. stock market, with the Dow Jones showing slight gains and the S&P 500 reaching a new historical high, indicating a robust market environment [9][11] - The report emphasizes the continuous development of artificial intelligence (AI), suggesting that the fundamental factors supporting the S&P 500 are stronger than during the dot-com bubble 25 years ago [9] - The report notes a decline in U.S. Treasury yields, which may influence investment strategies, particularly in products linked to interest rates [9] Market Overview - The Hang Seng Index stabilized above 25,000 points, reaching a 3-year and 8-month high, with significant inflows from northbound capital [13] - The report mentions that the advertising expenditure in Hong Kong continues to decline, with a 6% year-on-year drop in Q2 2025 [13] - The report indicates that global investors are diversifying away from U.S. dollar investments, with foreign capital increasing its holdings in domestic stocks and funds in China [13] Company-Specific Insights - The report discusses the performance of General Motors (GM), which reported a 35.39% year-on-year decline in net profit for Q2, attributing the drop to tariff costs [11] - Lockheed Martin's net profit fell by 79.2% year-on-year due to project provisions, indicating challenges in the defense sector [11] - Texas Instruments reported a 15% year-on-year increase in net profit for Q2, with revenue rising by 16%, reflecting strong operational performance [11][18] Investment Recommendations - The report recommends buying shares of Dongfang Zhenxuan (1797), highlighting a 28% year-on-year growth in GMV for June 2025, marking a return to growth for its core business [22] - Zhongsheng Holdings (881) is identified as a leading automotive dealer in China, with over 400 dealerships and a strong customer base, making it a focus for upcoming financial reports [22] - Grab Holdings Limited (GRAB) is recommended for its strong user ecosystem and potential for cross-selling in Southeast Asia [24]

Group 1 - The market has shown a strong upward trend, with the index rising from 19,600 to 25,130 points, indicating a "buy" signal with resistance levels at 25,194 and 25,961 points [1] - HSBC Holdings has reached a significant price point of 100 HKD, with a closing price of 99.7 HKD, and a strong buy signal is indicated with resistance levels at 101 HKD and 106 HKD [3] - BYD's stock price closed at 134.2 HKD, breaking through the upper Bollinger Band, with a buy signal and short-term resistance levels at 140 HKD and 144.8 HKD [5] - Zijin Mining has seen a three-day rise, closing above both daily and weekly chart tops, with a strong buy signal and short-term resistance levels at 23.4 HKD and 24.4 HKD [8] - SMIC has a buy signal with resistance levels at 50.4 HKD and 53.4 HKD, as investors anticipate a breakout above 49 HKD [11] - China Shenhua has also shown a strong upward trend, with a buy signal and resistance levels at 36.1 HKD and 37.9 HKD, suggesting investors should consider closer-to-the-money products [14]

Market Overview - The Hang Seng Index is challenging the 25,000 point mark, with active trading and a positive risk appetite despite limited corporate earnings improvement [2][6] - The market is awaiting catalysts such as potential China-US summits or unexpected policies from mainland China to drive further gains [2] Sector Focus - The focus for today includes the release of China's one-year and five-year Loan Prime Rate (LPR) [3] Macro Focus - The Chinese government is encouraging foreign investment through various measures to enhance project service guarantees and optimize land allocation [7] - Foreign Direct Investment (FDI) in China decreased by 15.2% year-on-year in the first half of 2025, with a notable decline in the manufacturing sector [7] - The Ministry of Finance announced plans for a more proactive fiscal policy in the second half of the year [7] - The People's Bank of China maintained the LPR at 3% for one year and 3.5% for five years, aligning with market expectations [7] - The Ministry of Industry and Information Technology is promoting innovation in future industries, including humanoid robots and digital transformation in various sectors [7] Corporate News - Xinyi Solar's product prices have dropped, leading to an expected profit decline of 56%-66% for the first half of the year [4] - Meituan, JD.com, and Ele.me were summoned by the market regulator to ensure rational competition in the food delivery sector [8] - HSBC is reportedly dissolving a team focused on managing geopolitical risks despite increasing threats [9] - Ant Group is collaborating with Citibank to enhance foreign exchange risk management using AI technology [9] - Meituan and Alibaba's Taobao are engaged in a price war, reportedly spending 1.6 billion RMB on promotions [9]

Market Overview - The Hang Seng Index is facing resistance at 24,700 points, with a forecasted P/E ratio of 11 times over the next 12 months [2] - The index experienced fluctuations, reaching a high of 24,672 points before closing at 24,498 points, down 0.1% [5] Macro Focus - U.S. retail sales increased by 0.6% in June, exceeding expectations and reversing a two-month decline [3][8] - The unemployment rate for individuals aged 16 to 24 in mainland China decreased to 14.5%, marking a four-month decline [7] - The People's Bank of China conducted a reverse repurchase operation of 450.5 billion yuan, maintaining the interest rate at 1.4% [7] Company News - Luk Fook Holdings reported a 13% increase in overall retail value for the first quarter, reversing previous declines [9] - Federation Pharmaceutical is raising approximately 2.2 billion HKD through a share placement at a discount of 7.9% [9] - Ideal Auto has opened pre-orders for its i8 model, with expected prices starting from 350,000 yuan [9] - October Rice reported a projected net profit increase of at least 90% for the first half of the year [9] - Changjie Tong anticipates a profit of 31 to 37 million yuan for the first half of the year, driven by strong cloud service performance [9] Sector Insights - The biotechnology sector is expected to benefit from new measures supporting the high-quality development of innovative drugs [6] - The tourism sector is seeing an increase in cross-border traffic, indicating a potential rise in summer tourism [6] - Brokerage stocks are gaining traction as the Shanghai Composite Index surpasses 3,500 points, continuing the trend of A+H listings [6]

Company Recommendation - BYD Electronics (0285) is recommended for purchase with a target price of HKD 38.50, indicating a potential upside of 16.7% from the current price of HKD 33.95 [2][10] - The catalysts for growth include the lifting of the EDA ban in the US and the completion of the US-Vietnam trade agreement, which is expected to ease concerns regarding upstream supply chain pricing and gross margin pressures [2][10] - The company is diversifying into AI servers, liquid cooling, and Autonomous Mobile Robots (AMR), with a strong partnership with NVIDIA, which is anticipated to drive new growth momentum [2][10] Valuation - The current price corresponds to a forecasted P/E ratio of 13.2x for FY25E and 11.2x for FY26E, with FY26E valuation being 29% lower than the 5-year average [2][10] - The expected revenue and net profit compound annual growth rates for FY24-FY27E are 11.6% and 22.4%, respectively [2][10] Market Review - The Hang Seng Index is facing resistance at 24,700 points, influenced by US-China trade negotiations and limited progress in economic stimulus from mainland China [2][4] - The market is experiencing a slowdown in capital inflow from Northbound trading, with corporate earnings showing limited improvement [2][4] Industry Insights - The automotive sector in China is showing resilience, with a 22.2% year-on-year increase in vehicle exports in June, and production and sales also reflecting positive growth [11] - The construction and real estate sectors are seeing increased land sale revenues, particularly in first and second-tier cities, with a 40% increase in land sale amounts [11] - The gaming industry in Macau is expected to benefit from strong summer season revenues, with June's gaming income exceeding expectations [5]

Market Overview - The Hang Seng Index is facing resistance at 24,700 points, with a projected P/E ratio of 11 times over the next 12 months [2] - The recent US-China trade talks have led to a temporary reduction in tariffs, but further progress remains uncertain, impacting corporate earnings and capital inflow [2][4] - The Hang Seng Index closed at 23,892 points, down 1.06% year-to-date, while the Hang Seng Tech Index fell by 1.76% [6] Economic Indicators - The US Federal Reserve maintained interest rates, with expectations of two rate cuts totaling 0.5% this year, reflecting cautious optimism about inflation [5][8] - China's June CPI unexpectedly rose by 0.1%, ending four months of deflation, while PPI fell by 3.6%, the largest drop in two years [9] - The National Development and Reform Commission estimates China's economy could reach 140 trillion yuan this year, emphasizing the importance of innovation in economic growth [9] Corporate News - New World Development is reportedly seeking to sell its K11 properties in Hangzhou and Shenzhen, aiming to attract investment from private firms [10] - Longfor Group's debt restructuring plan has been approved by creditors, allowing for adjustments in repayment arrangements [11] - BYD has achieved significant advancements in smart parking technology, promising comprehensive safety coverage for users [10] Sector Focus - Macau's June gaming revenue exceeded expectations, indicating a strong recovery as the summer peak season approaches [7] - The online music sector faces intensified competition, prompting a potential shift of funds towards more visible tech stocks [7] - The global PC shipment volume increased by 6.5% year-on-year in Q2 2025, with Lenovo leading the market share at 24.8% [9]

Market Overview - The Hang Seng Index is facing resistance at 24,700 points, with a projected P/E ratio of 11 times over the next 12 months [2] - The index closed at 23,916 points, down 0.64% year-to-date, while the Hang Seng China Enterprises Index fell 0.45% [4] - The market is experiencing a slowdown in capital inflow from mainland investors, and corporate earnings improvements are limited [2][5] Macro Focus - The U.S. Federal Reserve maintained interest rates, with expectations of two rate cuts totaling 0.5% this year, reflecting a cautious stance on future inflation uncertainties [3] - OPEC+ has agreed to increase production by 548,000 barrels per day in August, exceeding market expectations, which may limit the upward potential of international oil prices [8] Company News - China Feihe (6186) expects a decline in half-year earnings, projecting net profit between 1 billion to 1.2 billion RMB, with a total dividend of no less than 2 billion RMB for the year [9] - Xiaomi (1810) has officially delivered its first batch of the YU7 SUV, priced between 253,500 to 329,900 RMB, with significant initial order numbers [9] - BYD (1211) reported a 54.4% month-on-month increase in sales of its Tang L model, reaching 12,700 units in June [9] - NIO (9866) announced that its L90 model will be priced below 300,000 RMB, with a product launch event scheduled [9] Industry Insights - The biotechnology sector is expected to benefit from new government measures supporting the high-quality development of innovative drugs [6] - Macau's gaming revenue in June increased by 19% year-on-year, significantly exceeding expectations, indicating a recovery in the gaming industry [6] - The textile industry anticipates improved orders as Nike's performance is expected to stabilize [6] Economic Indicators - China's smartphone shipments fell by 22% year-on-year in May, with 5G phone shipments decreasing by 17% [8] - The average price of international tickets from mainland China has decreased by 15% this summer, with significant drops in prices for flights to Canada and Japan [8]

Market Overview - The Hang Seng Index is facing resistance at 24,700 points, with a projected P/E ratio of 11 times over the next 12 months, following a reduction in tariffs between the US and China [2] - The market sentiment remains cautious due to limited progress in US-China trade talks and a lack of significant economic stimulus from mainland China [2] Macro Focus - The Caixin China Services PMI fell to 50.6 in June, below expectations, indicating a slowdown in service sector expansion [3][8] - Retail sales of new energy vehicles in China increased by 25% year-on-year in June, with a penetration rate of 52.7% [8] - The Ministry of Commerce plans to strengthen guidance on second-hand vehicle exports, aiming to support the development of the second-hand car market [8] - The Macau gaming sector saw a 19% year-on-year increase in June gaming revenue, exceeding expectations [6] Company News - Alibaba issued over 12 billion HKD in zero-coupon convertible bonds for Alibaba Health [3] - Geely Auto is entering the Italian market, while XPeng's G7 model starts at 195,800 RMB [3] - HSBC Holdings sold its UK insurance business for approximately 260 million GBP [3] Industry Insights - The biotechnology sector is expected to benefit from new measures supporting the high-quality development of innovative drugs [6] - The textile industry anticipates improved orders as Nike's performance is expected to stabilize [6] - The solar industry is facing challenges due to low-price competition, prompting the Ministry of Industry and Information Technology to call for comprehensive governance [9] IPO Market - KPMG estimates that the total amount raised from new IPOs in Hong Kong could reach up to 250 billion HKD this year, with over 200 applications currently being processed [9]