Everest Medicines Ltd (HKG: 1952), Lendlease Global Commercial REIT (SGX: JYEU)
💊 Everest Medicines Ltd (HKG: 1952) – Riding the Wave of Technical Momentum
Recommendation: BUY
Target Prices: HKD 28.30, HKD 33.10, HKD 36.00, HKD 40.40
Stop Loss: HKD 13.45
Entry Prices: HKD 23.50, HKD 19.30, HKD 16.00
Broker: CGS-CIMB Securities
Investment Thesis: Everest Medicines Ltd – Strong Buy Signal with High Upside Potential
Everest Medicines Ltd, a leading biopharmaceutical company in China, is currently exhibiting significant technical momentum, with strong buy signals observed across multiple indicators. The stock is on an upward trajectory after breaking through key resistance levels, presenting investors with an attractive opportunity for growth.
- Technical Buy Signal: The stock has shown a breakout from key resistance levels, indicating upward momentum. The 5-wave triangle breakout pattern suggests further upside potential for the stock.
- Strong Support and Resistance Levels: Entry points are established at HKD 23.50, HKD 19.30, and HKD 16.00, with target prices ranging up to HKD 40.40. Stop-loss protection is recommended at HKD 13.45, ensuring that risks are managed effectively.
- Positive Market Sentiment: Everest Medicines is benefiting from strong market conditions, driven by its innovations and product pipeline. Its focus on oncology, immunology, and infectious diseases has placed it at the forefront of biopharmaceutical development in Asia.
Valuation and Financials:
The stock’s technical breakout offers a compelling buy signal, with a target price of up to HKD 40.40. The current price level of HKD 23.50 suggests considerable upside potential, with a risk-managed approach through the identified stop-loss level.
Share Price Catalysts:
- Continued technical strength and momentum-driven price action.
- Breakthrough developments in Everest’s biopharmaceutical pipeline.
- Increased market interest in biopharmaceutical stocks, especially those focused on oncology and infectious diseases.
🏢 Lendlease Global Commercial REIT (SGX: JYEU) – Strengthening Balance Sheet Through Strategic Asset Sale
Recommendation: ADD
Target Prices: S$0.650, S$0.680, S$0.730, S$0.780
Stop Loss: S$0.500
Broker: CGS-CIMB Securities
Last Price: S$0.595
Entry Prices: S$0.595, S$0.570, S$0.530
Investment Thesis: Lendlease Global Commercial REIT – Positive Outlook Following Jem Office Divestment
Lendlease Global Commercial REIT (LREIT) is set to benefit from its recent decision to divest the Jem office property. This sale is expected to significantly lower LREIT’s gearing ratio and strengthen its financial flexibility, positioning it for future growth.
- Impact of Jem Office Sale: LREIT’s decision to sell the Jem office is forecast to reduce its gearing from 40.9% to 35%, restoring its potential for inorganic growth. This divestment will help LREIT mitigate higher interest rates and improve its ability to acquire new assets in the future.
- Expected DPU Impact: While the sale may result in a slight 2.8% reduction in FY25’s DPU, the projected DPU for FY26 is expected to increase by 8.8%, driven by lower interest expenses and better capital management.
- Positive Technical Indicators: LREIT has broken out of a long corrective downtrend, forming a V-shaped recovery pattern. This technical breakout is supported by bullish indicators such as the MACD and ROC, both of which signal strong upward momentum.
Valuation and Financials:
LREIT is trading at an attractive FY25F DPU yield of 6.6%, with potential upside as high as S$0.780. The technical analysis supports further price increases, with healthy volume expansion and a positive momentum outlook.
Share Price Catalysts:
- Successful completion of the Jem office sale, leading to improved balance sheet strength.
- Continued positive rental reversions and occupancy rates at flagship properties like 313@Somerset and Jem.
- The potential for further acquisitions as LREIT’s financial position improves post-divestment.
Thank you
