Zhitong Hong Kong Stock Early Knowledge | The Federal Reserve maintains interest rates unchanged, Tencent plans to repurchase at least HKD 80 billion in shares this year

【Today's Headlines】

Federal Reserve Keeps Interest Rates Unchanged, Lowers U.S. Economic Growth Forecast

The Federal Open Market Committee (FOMC) has maintained the key borrowing rate in the range of 4.25%-4.5%, a level that has remained unchanged since December 2024. The FOMC has lowered its economic growth forecast and raised its inflation predictions. Officials now expect the economy to grow by only 1.7% this year, a downward revision of 0.4 percentage points from the last forecast in December 2024. In addition to the interest rate decision, officials updated their rate and economic forecasts for 2025 to 2027 and adjusted the pace of bond reduction. Despite the unclear impact of President Trump's tariff policies and fiscal policies of tax cuts and deregulation, officials still expect a further rate cut of 50 basis points in 2025 (the Federal Reserve typically adjusts in increments of 25 basis points, implying two rate cuts this year).

In its post-meeting statement, the FOMC noted that uncertainty in the current economic environment has "significantly increased," and the committee is "closely monitoring the dual risks" facing its dual mandate (employment and inflation). The Federal Reserve's goal is to maintain full employment and low inflation.

【Market Outlook】

U.S. Stocks Rise Overnight, NASDAQ Golden Dragon China Index Slightly Declines

Overnight, the Dow Jones Industrial Average rose by 383.32 points, an increase of 0.92%, closing at 41,964.63 points; the NASDAQ Composite rose by 246.67 points, an increase of 1.41%, closing at 17,750.79 points; the S&P 500 index rose by 60.63 points, an increase of 1.08%, closing at 5,675.29 points. Tesla (TSLA.US) rose by 4.6%, Apple (AAPL.US) rose by 1.2%, and NVIDIA (NVDA.US) rose by 1.8%. The NASDAQ Golden Dragon China Index slightly declined by 0.44%, while XPeng (XPEV.US) rose by 5%. The Hang Seng Index ADR fell, closing at 24,712.46, down 58.68 points or 0.24% from the Hong Kong close.

【Hot Topics Ahead】

Tencent (00700): Plans to Repurchase at Least HKD 80 Billion in Shares by 2025

On the evening of March 19, Tencent Holdings released its annual financial report for 2024. The report showed that Tencent achieved a revenue of RMB 660.3 billion for the year, a year-on-year increase of 8%; NON-IFRS net profit was RMB 222.7 billion, a year-on-year increase of 41%; gross profit margin increased from 48% in 2023 to 53%. The report indicated that Tencent's AI strategy has entered a phase of heavy investment: R&D expenditure for 2024 reached RMB 70.69 billion, with a cumulative investment of RMB 340.3 billion over seven years. Capital expenditure has achieved year-on-year triple-digit growth for four consecutive quarters, with annual capital expenditure exceeding RMB 76.7 billion, a year-on-year increase of 221%, setting a new historical high.

Tencent plans to further increase capital expenditure in 2025, expecting the capital expenditure to account for a low double-digit percentage of revenue. Additionally, Tencent's repurchase actions have been closely watched by the market, with an expected repurchase scale of at least HKD 80 billion in 2025.

During Tencent's annual report communication meeting, CEO Ma Huateng stated that in the field of embodied intelligence, Tencent hopes to become a partner of all robot manufacturers rather than replacing them in hardware, which aligns with our overall strategic goals Hong Kong Association of Sponsors: Suggests Aligning Public Shareholding Threshold with International Standards, Supports Establishing OTC Market and Allowing Retail Participation

According to Zhitong Finance APP, on March 19, the Hong Kong Stock Exchange (00388) concluded its consultation on the new stock pricing mechanism. The Hong Kong Association of Sponsors made several recommendations regarding the consultation, including aligning the public shareholding threshold for Hong Kong-listed stocks with international standards, supporting the establishment of an over-the-counter (OTC) market in Hong Kong, and allowing retail investors to participate. Additionally, the association disagreed with the suggestion in the consultation document that issuers adopt Mechanism A or Mechanism B to determine the minimum share allocation for the public offering, and opposed the removal of the requirement for 100 allottees in the placement.

Secretary for Financial Services and the Treasury, Christopher Hui: The Impact of Privatization and Delisting on the Overall Market is Not Significant

On March 18, Christopher Hui, Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region, responded to questions from legislators during a Legislative Council meeting, stating that over the past five years, the average number of companies privatized and delisted was 21 per year, and there has been no upward trend in privatization and delisting, which does not significantly impact the overall market.

This Year, China's Electric Bicycle Trade-in Program Surpasses 2 Million Units

On March 19, the Ministry of Commerce reported that as of March 18, China's electric bicycle trade-in program has sold a total of 2.044 million old bikes and purchased 2.044 million new bikes, driving new bike sales of 5.61 billion yuan. The progress is accelerating. From September to December 2024, a cumulative total of 1.38 million electric bicycles will be replaced, averaging 11,000 replacements per day. Since 2025, the average daily replacement of electric bicycles has been 27,000 units. In January 2025, 156,000 units were replaced, in February 863,000 units, and from March 1 to 18, 1.025 million units have been replaced. The contribution to improving people's livelihoods continues to grow. From the consumer side, over 2 million consumers have benefited from the electric bicycle trade-in policy this year, with total subsidy applications exceeding 1.2 billion yuan, averaging 610 yuan per person. From the sales side, more than 50,000 sales outlets have participated in the electric bicycle trade-in program this year, the vast majority of which are individual businesses and small enterprises, with an average sales boost of 107,000 yuan per store. This involves Hong Kong-listed Yadea Group Holdings (01585) and Tianneng Power International (00819).

Ministry of Transport and Three Other Departments: Using Ultra-Long Special Government Bond Funds to Subsidize Urban Bus Companies for Updating New Energy Buses and Replacing Power Batteries

The Ministry of Transport and three other departments issued a notice on the "Implementation Rules for Subsidies for Updating New Energy Urban Buses and Power Batteries in 2025." They will use ultra-long special government bond funds to provide fixed subsidies to urban bus companies for updating new energy urban buses and replacing power batteries. They encourage reasonable selection of the types of new energy urban buses to be replaced based on passenger flow changes and the development of the urban bus industry. Each bus will receive an average subsidy of 80,000 yuan; for those replacing power batteries, each bus will receive an average subsidy of 42,000 yuan. Local governments will determine the subsidy standards for updating new energy urban buses based on the demand and quantity ratio for replacing vehicles and power batteries. This involves Hong Kong-listed BYD Company Limited (01211) General Office of the CPC Central Committee and General Office of the State Council: Strengthen the Safety Management of Online Food Delivery

The General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued opinions on further strengthening the full-chain supervision of food safety. It mentioned the need to strengthen the safety management of online food delivery. Market regulatory authorities should urge online food ordering platforms and catering operators to fulfill their obligations under food safety laws and regulations and implement food safety responsibilities in the online food delivery process. The human resources and social security department should incorporate knowledge of food safety laws into the national vocational skill standards for delivery personnel. Online food ordering platforms and catering operators should establish training models suitable for workers in the online food delivery industry based on national vocational skill standards and actual conditions, enhancing training in food safety legal knowledge. Market regulatory authorities, together with departments such as industry and information technology and cybersecurity, should legally handle platforms with serious violations of food safety laws. Promote the implementation of "Internet + Open Kitchen" by platforms and merchants, strengthening supervision of takeout without dine-in and social oversight.

XPeng's "Land Aircraft Carrier" Flying Car Certification Progresses, Aiming for Type Certificate in October

Recently, the Civil Aviation Administration of China released the "Draft for Soliciting Opinions on Special Conditions for X3-F Aircraft," where X3-F refers to the flying body of XPeng's "Land Aircraft Carrier" flying car. On March 19, a relevant person in charge of XPeng stated that the release of this draft could serve as a general certification basis for future similar aircraft type certification, promoting the certification work of more similar aircraft. Regarding the airworthiness certification progress of the flying car, XPeng stated that the company will continue to advance the type certification work according to the original plan, hoping to complete the conformity verification work in October and obtain the type certificate. This involves Hong Kong-listed XPeng Inc. (09868).

XPeng Inc. (09868) announced that on March 19, 2025, the company conditionally granted a total of 28.5068 million restricted stock units to its chairman, executive director, and CEO He Xiaopeng, as well as major shareholder, under the 2025 share incentive plan (which is still pending adoption).

Yongsheng Medical (01612) Announces 2024 Performance, Profit Attributable to Shareholders Reaches HKD 69.167 Million, Up 20.76% Year-on-Year

Zhitong Finance APP reported that Yongsheng Medical (01612) announced its 2024 performance, with revenue of approximately HKD 801 million, a year-on-year increase of 11.6%; profit increased by 21.8% year-on-year to HKD 70.9 million, with profit attributable to shareholders reaching HKD 69.167 million, up 20.76% year-on-year; basic earnings per share were HKD 0.1075, and the final dividend was HKD 0.017.

Lee's Pharmaceutical (00950) Issues Earnings Upgrade, Expects Shareholders' Profit for 2024 to Increase to HKD 83 Million to HKD 106 Million Year-on-Year

Zhitong Finance APP reported that Lee's Pharmaceutical (00950) announced that the group expects to achieve an unaudited profit attributable to shareholders ranging from HKD 83 million to HKD 106 million for the year ending December 31, 2024, compared to approximately HKD 17 million for the year ending December 31, 2023 Nexteer Automotive (01316) Announces 2024 Results, Profit Attributable to Equity Holders Reaches $61.719 Million, Up 68% Year-on-Year

According to Zhitong Finance APP, Nexteer Automotive (01316) announced its 2024 results, with revenue of approximately $4.276 billion, a year-on-year increase of 1.65%. The profit attributable to equity holders reached $61.719 million, a year-on-year increase of 68%; earnings per share were $0.025, and a proposed dividend of $0.0087 per share.

Fosun Pharma (02196): HLX22 for Gastric Cancer Treatment Receives Orphan Drug Designation from the U.S. FDA

According to Zhitong Finance APP, Fosun Pharma (02196) announced that its subsidiary Henlius USA Inc. (a subsidiary of Shanghai Henlius Biotech, Inc.) received a letter from the U.S. FDA (U.S. Food and Drug Administration) stating that HLX22 (recombinant humanized anti-HER2 monoclonal antibody injection) for the treatment of gastric cancer (GC) has received Orphan Drug Designation.

Ping An Insurance (02318) Releases Annual Results, Net Profit Attributable to Parent Company Reaches 126.607 Billion Yuan, Up 47.8% Year-on-Year, Final Dividend of 1.62 Yuan per Share

According to Zhitong Finance APP, Ping An Insurance (02318) released its audited results for the year ending December 31, 2024, reporting operating revenue of 1,141.346 billion yuan, a year-on-year increase of 10.6%; operating profit attributable to shareholders of the parent company was 121.862 billion yuan, up 9.1%; net profit attributable to shareholders of the parent company was 126.607 billion yuan, up 47.8%; basic earnings per share were 6.89 yuan, with a proposed final dividend of 1.62 yuan per share for 2024.

United Imaging Healthcare (00512) Introduces Innovative Radiolabeled Drug Conjugate ITM-11, First Patient Dosing Completed in International Multicenter Phase III Clinical Trial in China

According to Zhitong Finance APP, United Imaging Healthcare (00512) announced that its introduced innovative radiolabeled drug conjugate (RDC) product ITM-11 has completed the first patient dosing in the international multicenter Phase III clinical trial (COMPOSE trial) in China. Previously, the group signed a strategic cooperation agreement with ITM Isotope Technologies Munich SE (ITM SE) in December 2021, obtaining exclusive development, production, and commercialization rights for three innovative RDC products, including ITM-11 and ITM-14D (TOCscan®) in the Greater China region (Mainland China, Hong Kong SAR, Macau SAR, Taiwan). The completion of the first patient dosing in the COMPOSE trial in China marks another significant research and development progress for the group in the field of nuclear medicine for cancer treatment Kingsoft Corporation (03888) Releases Annual Results, Shareholders' Profit Attributable to Owners Reaches RMB 1.552 Billion, Up 221% Year-on-Year

According to Zhitong Finance APP, Kingsoft Corporation (03888) released its annual results for the year ended December 31, 2024, with the group achieving revenue of RMB 10.318 billion, an increase of 21% year-on-year; profit attributable to owners of the parent reached RMB 1.552 billion, up 221% year-on-year; basic earnings per share were RMB 1.16, and a final dividend of HKD 0.15 per share is proposed.

Sichuan Jinchuan Technology (00580) Releases Annual Results, Shareholders' Profit Attributable to Owners Approximately RMB 103 Million, Up 224.98% Year-on-Year, Final Dividend of HKD 0.01 per Share

According to Zhitong Finance APP, Sichuan Jinchuan Technology (00580) released its annual results for the year ended December 31, 2024, with revenue increasing by approximately 52.7% to about RMB 1.61 billion; profit attributable to owners of the parent was approximately RMB 103 million, up 224.98% year-on-year; basic earnings per share were RMB 0.0639; a final dividend of HKD 0.01 per share is proposed.

Prudential (02378) Releases Annual Results, New Business Profit Increases by 11% to USD 3.078 Billion

According to Zhitong Finance APP, Prudential (02378) released its annual results for the year ended December 31, 2024, with new business profit increasing by 11% to USD 3.078 billion. After accounting for the impact of interest rates and other economic changes, new business profit remained roughly flat, while traditional embedded value new business profit also increased by 11%; adjusted pre-tax operating profit increased by 10% to USD 3.129 billion, and adjusted post-tax operating profit increased by 7% to USD 2.582 billion. The second interim dividend is USD 0.1629 per share.

World Gold Council (03939) Releases Annual Results, Shareholders' Profit Attributable to Owners Increases by 71.6% to Approximately RMB 575 Million

According to Zhitong Finance APP, World Gold Council (03939) released its annual results for the year ended December 31, 2024, with group revenue of RMB 1.876 billion, an increase of 42.6% year-on-year; profit attributable to owners of the parent increased by 71.6% to approximately RMB 575 million; basic earnings per share were RMB 0.657; a final dividend of RMB 0.145 per share and a special dividend of RMB 0.075 per share are proposed.

[Stock Highlights]

Weichai Power (02338): Benefits from New Guidelines for Phasing Out Old Trucks

The company's main business covers power systems, commercial vehicles, agricultural equipment, smart logistics, and other sectors, with well-known domestic and international brands such as Weichai Power Engines, Shaanxi Heavy Truck, Weichai Lovol Smart Agriculture, Fast Gearbox, and Hand Truck Axles. Weichai's net profit has a high correlation with heavy truck industry sales, and as the results of overseas mergers and acquisitions gradually emerge, the net profit growth rate has significantly outpaced industry sales and revenue growth since 2023.

Morgan Stanley published a research report, believing that Weichai Power has a 70% to 80% chance of stock price increase within the next 15 days, mainly due to the newly announced guidelines for phasing out old trucks. The firm believes that given the company's competitiveness in the LNG heavy truck engine sector and its large market share, the company will directly benefit as policies will stimulate further increases in LNG heavy truck penetration rates by 2025 [Disclaimer] This VIP information product is for communication and discussion purposes only and does not constitute any investment advice. Unauthorized reproduction is strictly prohibited. For more quality information and data products, please log in to the [Zhitong Finance] APP for inquiries.