BEKE rolls out HK buyback shield; Xiaomi faces earnings test tonight | Daily News Recap

0526 ｜Dolphin Focus

🐬 Macro / Sector

1. The US and Iran reportedly agreed on a memorandum-of-understanding framework under which Iran would reopen the Strait of Hormuz within 30 days of signing, the US would unfreeze $12bn of Iranian assets, and both sides would implement a ceasefire. This would ease Middle East geopolitical tensions in the near term and stabilize global energy supply chains, as ~30% of crude flows through the Strait. Beneficial for a pullback in oil prices and a rebound in energy stocks. However, the arrangement appears temporary and does not address core issues such as the nuclear file, leaving long-term execution uncertain.

2. Hang Seng Indexes announced its quarterly rebalancing: the HS Index adds BeiGene, J&T Express‑W and Aluminum Corp of China; the HS China Enterprises Index adds Hansoh Pharma and Akeso; the HS Tech Index adds Zhipu AI and MiniMax‑W, effective Jun 8. The indices further broaden coverage into new‑economy areas such as innovative drugs and AI foundation models. This should attract passive inflows into the additions and improve liquidity.

🐬 Single Stocks

1.$JD.com(JD.US)

JD is said to be evaluating a £2bn acquisition of the UK legacy e‑commerce player The Very Group, which generates over £2bn in annual revenue and includes a consumer finance arm. The deal would give JD rapid access to local brands, logistics and 4.4mn active users in the UK, helping close its localization gap in Europe and accelerate global expansion. Key risks include cultural integration, tighter UK financial regulation and leverage pressure.

2.$KE(BEKE.US)

BEKE executed its first buyback in HK (~HK$20mn) while stepping up buybacks in the US; combined repurchases on the day totaled about $12.5mn, a two‑year high. Backed by improving Q1 profitability, the buyback signals management confidence in fundamentals and cash generation, optimizes the capital structure and enhances shareholder returns. Positive for share price recovery and for stabilizing expectations on post‑property services.

3.$Uber Tech(UBER.US)

UBER has built a 19.5% stake to become Delivery Hero’s largest shareholder; its prior €11.5bn offer was rejected, and it plans to raise the bid. The acquisition aims to counter DoorDash’s global expansion, address delivery gaps in Europe and EM, and build a third global pillar in food delivery. Significant market overlap raises antitrust risks, while a high‑premium deal would add financial strain for UBER.

4. Xiaomi and MINISO report earnings today.

🐬 Top Gainers

A‑shares: Gold, aluminum, security & alarm services. HK: Computer & electronics retailers, diversified metals & mining, agricultural machinery. US: Aluminum, commercial printing, hardware & equipment distributors.

🐬 Watch Tomorrow

1. Kuaishou and PDD report earnings.

Risk disclosure and statement: Dolphin Research Disclaimer and General Disclosure