💰 The markets turned from gains to losses, with NFLX driving media stocks to rise.
💹 $WL DELICIOUS(09985)$/$NONGFU SPRING(09633)$/$ZHOU HEI YA(01458)$: Expanding the domestic consumption market is a crucial strategy for China.
📣 Stay tuned, supercharge purchasing power through CashBoost!
Worth the hype 🙌🏻
| Market recap
Major indexes opened high but closed lower, with $S&P 500(.SPX)$ and $NASDAQ(.IXIC)$ falling by 0.17%, and 0.05%, respectively.
Big techs showed mixed results; $NVIDIA(NVDA)$ rose by 1.35%, but after announcing a $5.5 billion charge related to H20 chips, it plummeted by over 5% in after-hours trading. Conversely, $Netflix(NFLX)$ rose by 4.83%.
$NASDAQ Golden Dragon China Index(HXC)$ dropped by 0.49%, while standout stocks included the AI pharmaceutical company $BGM Group Ltd(BGM)$, up 8.7%, hotel group $H World Group(HTHT)$, up 3.9%, media companies $iQiyi Inc.(IQ)$, up 6.7%, and $Tencent Music(TME)$, up 1.3%.
Megacaps - booming Netflixonomics
$Netflix(NFLX)$ provided a lifeline to the market with its impressive growth targets.
The company revealed its growth blueprint through 2030, intending to double its annual revenue from last year's $39 billion and increase global advertising revenue to approximately $9 billion. Additionally, an ambitious growth target was announced: by 2030, operating profit is expected to rise from the current $10 billion to $30 billion.
It feels like a return to 2018, long before "Mag 7" was ever coined... From Mag 7, then back to MAMAA, welcome back to the era of FANG. Goodbye Trumponomics, it's Netflixonomics now.
MAGA - ‘no dumping of U.S. Treasuries’
Looking ahead, uncertainty remains regarding tariff policies. At this critical moment, U.S. Treasury Secretary Scott Bessent in an interview swiftly intervened, stating that there is no dumping of U.S. Treasuries, and that the dollar remains the world's reserve currency while the U.S. government continues to pursue a "strong dollar policy." The fluctuating tariff policies have gradually desensitized the market, even triggering widespread disdain. From Reddit: "Every f***ing day with this sh*t. If this doesn’t cause a massive blue wave in 2026, I don’t know if this country will ever get better."
Top movers & IPO watch
Driven by NFLX, the movvie and entertainment sector led U.S. stocks with $Spotify Technology S.A.(SPOT)$ up 4.2%, $Warner Bros. Discovery(WBD)$ up 2.9%, and $Cinemark(CNK)$ up 1.6%.
The upcoming IPO of $Chagee Holdings Limited(CHA)$ is expected to make it the first Chinese tea brand listed on U.S. stock markets. Aspiring to become the "Starbucks of China," can it replicate the impressive achievements of Mixue Ice City? Investors are eagerly watching.
In the Hong Kong market, card game manufacturer KaYou has updated its IPO materials. The company projects revenue of 10.057 billion yuan in 2024, a 278% year-on-year increase. With strong IPs like Nezha, Ultraman, and My Little Pony, it has been dubbed the "elementary school student frenzy."
| China's $6.4T consumer market
In Q1 2025, China's economy continued the recovery trend of Q4 last year, with a year-on-year GDP growth of 5.4% and several economic indicators exceeding market expectations. In 2023, China's consumer market has reached an unignorable size of $6.4T.
However, risks remain as external disruptions, exemplified by "reciprocal tariffs," pose significant challenges in Q2.
In the medium to long term, to guard against the risks of U.S.-China decoupling, China aims to develop into the world's largest consumer market, leveraging its vast consumption potential to gain global market influence. A combination of significant consumption potential, demographic advantages, technological strength, and supportive national policies forms the basis for this development.
| Summertime special
Embrace this summer with snacks and beverages! While delicious, moderation is key.
Nongfu Spring
As a leader in China's soft drink industry, $NONGFU SPRING(09633)$ has demonstrated robust growth through its dual-driven strategy in bottled water and beverages.
Since its establishment in 1996, the company has not only dominated the Chinese market but has also become the world's second-largest bottled water company.
From 2018 to 2023, Nongfu Spring achieved a 16% compound annual growth rate (CAGR) in revenue and a 27% CAGR in net profit, showcasing its exceptional profitability.
Weilong Delicious
$WL DELICIOUS(09985)$ is a national brand in China’s snack industry.
As an undisputable leader, it has successfully launched multiple best-selling products through continuous innovation and health upgrades, further solidifying its market position. In 2024, Weilong Delicious achieved a 28.6% revenue growth and a 21.4% increase in net profit due to the launch of successful innovative healthy snack products.
According to CBNDATA, China's spicy snack food market is expanding at an average CAGR of 9.6%, and it is expected to exceed 273.7 billion yuan by 2026, becoming one of the most promising segments in the food and beverage sector.
Zhou Hei Ya
Driven by expectations for domestic demand policies and a turnaround in performance, $ZHOU HEI YA(01458)$'s stock price has continued to rise.
The company has significantly improved single-store revenue by closing underperforming stores and focusing on key business districts, resulting in a 4.4 percentage point increase in gross margin to 56.8%.
The company is actively implementing a buyback plan to boost stock prices, planning to increase the buyback limit by up to HK$ 100 million, which led to a nearly 9% increase in intraday trading on April 15.
Stay tuned. Comment, like and subscribe to @Tiger_Contra.
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