Foxconn Industrial Internet Co Ltd (601138): Technical Buy

Foxconn Industrial Internet Co Ltd has shown significant bullish potential, making it a compelling buy. The last price was recorded at 27.01, with a weakened resistance. The company, known for its network equipment development, has a promising outlook.

Key Technical Indicators

• Entry Prices: 27.01, 25.00, 22.70
• Support Levels: 23.28, 19.78
• Stop Loss: 20.30
• Resistance Levels: 28.54, 32.23
• Target Prices: 32.15, 36.40, 40.05, 50.50

Technical Snapshot

• The stock has broken out of the pennant formation with a strong bullish candle accompanied by rising volume.
• The larger ascending triangle suggests a bullish break to the upside, as the resistance zone at RMB25.85-28.54 has been tested multiple times, weakening the resistance.
• Volume has been expanding steadily for the past 32 daily periods.
• Prices are trending above all Ichimoku indicators, forming a potential three bullish golden crosses.
• The stochastic oscillator has been rising, confirming the bullish momentum.
• The MACD/signal line has been rising and stays elevated above the zero line, with a positive histogram.
• The 23-period ROC is rising and has rebounded above the zero line.

Seatrium Ltd: Execution is Still Key

Seatrium Ltd has secured an LOI for the Penta Ocean heavy lift vessel, with an estimated EPC contract value of US\$400m-500m by 1Q25. The company has a healthy pipeline and enquiries for 2024/2025, including FPSOs, rigs, and energy transition projects.

3Q24 Business Update

• Legacy projects are on track for end 2024/early 2025 delivery.
• The company is not adversely worried about potential uptick in cost overruns.
• Maintain Add and TP of S\$2.69.
• Catalysts include conclusion of CAD/MAS document investigation, sequential margin improvement, and order wins.

WHA Corporation: 3Q24 Misses on FX Loss and Expenses

WHA Corporation’s 3Q24 performance fell short due to foreign exchange losses and expenses. Detailed analysis and future projections were not provided in the report.

Sunway Bhd: Expect Strong 3Q to Pave Way for Upgrades

Sunway Bhd is expected to see a strong 3Q24 performance, which may lead to potential upgrades. Detailed analysis and future projections were not provided in the report.

Praram 9 Hospital: Boosted by Foreign Patient Traffic

Praram 9 Hospital has seen a boost in its performance due to increased traffic from foreign patients. Detailed analysis and future projections were not provided in the report.

Market Overview and Key Insights

Asian equities experienced a drop of up to 1.3%, led by heavyweights including Tencent Holdings and Meituan. Chinese companies listed in Hong Kong shed 1.7%, while China’s CSI 300 benchmark fell as much as 1.4% before closing with modest gains. Lingering concerns about the outlook of the world’s No. 2 economy persist, especially after Beijing’s 10 trillion yuan program to defuse local governments’ debt risk.

Economic Outlook

• UBS lowered its 2025 growth forecast for China following Donald Trump’s election, expecting around 4% expansion for 2025, with a considerably lower pace in 2026.
• Oil turned flat after falling earlier due to a soft outlook for top importer China, while iron ore declined toward \$100 a ton.

Conclusion

The detailed analysis indicates that Foxconn Industrial Internet Co Ltd is poised for a bullish continuation, making it a strong buy. Seatrium Ltd, WHA Corporation, Sunway Bhd, and Praram 9 Hospital show varying degrees of performance and potential, with specific catalysts and market conditions influencing their outlook.