Jinwu Financial News | The Hang Seng Index closed at 17,284 points on Thursday (25th), up 83 points, or 0.48%. The daily turnover was 119.012 billion yuan. The national index rose 0.3% to 6120; the index fell 0.5% to 3554. Domestic housing stocks showed outstanding performance. China Overseas (00688) announced yesterday afternoon that operating profit increased 22.2% per year in the first quarter after excluding net exchange gains and losses, and the stock price surged 6.3% today, making it the best blue chip; Damascus Friends (01299) has a high chance of rising in the coming month, reaffirming its “holding” rating and rising 2.2% throughout the day; the Hong Kong Stock Exchange (00388) appointed Tang Jiacheng as Chairman of the Board of Directors, closing 3.3%.

The Dow closed at 38085 points on Thursday (25th), down 375 points, or 0.98%; the index fell 0.46% to 5048 points; and the NASDAQ fell 0.64% to 15,611 points. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, rebounded 0.75%. European stocks developed individually, with French and German stocks falling by 0.93% and 0.95% respectively. British stocks were supported by news of mining mergers and acquisitions, and the closing market rose 0.48%. Among the blockbuster stocks, Meta's performance beat expectations, but plans to increase investment in artificial intelligence (AI) raised investors' concerns, dragging down 16%, and closed down 10.6%, with a market capitalization of 1.12 trillion US dollars, which meant that the company's CEO Zuckerberg's personal wealth shrunk by 18 billion US dollars. In the Bloomberg Billionaires Index, his net personal net worth was 157 billion US dollars, once again surpassed by Tesla (Tesla) CEO Musk. Musk became the third-richest person in the world. The stock prices of Alphabet and Microsoft, which announced results after closing on Thursday, fell 2% and 2.5%, respectively. The Asia-Pacific stock market moved individually this morning (26th). The Nikkei 225 Index now reports 37,649 points, up 20 points, or 0.06%. The South Korea Composite Index now stands at 2,653 points, up 24 points, or 0.93%. The market hopes that Sino-US relations will ease, and the Hang Seng Index will rise and fall in the 10,000 range.

Market Focus: Prada (01913)

Prada (1913) disclosed the results for the first quarter of 2024. At a fixed exchange rate, it recorded net revenue of 1,187 million euros, an increase of 16.5% over the same period in 2023. Among them, net retail sales increased 17.9% over the same period in 2023, and net retail sales accounted for 90% of total net revenue, becoming the company's main source of revenue. Net retail sales of the Prada brand increased 7%, while MiuMiU's net retail sales increased 89%. By region, retail sales in the Asia-Pacific region continued to grow, up 15.7% year on year; Europe continued to grow, up 18.1% year on year; America increased 5% year on year; Japan showed strong performance, up 46% year on year, mainly driven by strong local consumption and tourists; and the Middle East increased 15% year on year. The author expects the Group's revenue to continue to grow and gross margin to continue to expand in 2024. In addition, L'Oréal Group and the Group signed a global long-term license agreement to create, develop and distribute luxury beauty products for the MiuMiU brand, and are optimistic about the future room for Prada and MiuMiU to increase their market share.

Target price $67 Stop loss price $58

(The author is a licensed person of the Securities Regulatory Commission and the author does not hold the above shares)

Author: Dr. Deng Shengxing, Managing Partner, Yibo Capital Asia Limited