Trendspotter: In-Depth Analysis of Hong Kong and Singapore Stocks

Broker Name: CGS International

Date: November 12, 2024

Yidu Tech Inc (HKG: 2158) – A Bullish Reversal in the Making

Yidu Tech Inc, a company specializing in medical data intelligence platforms, has recently shown promising signs of a bullish reversal. The stock, which operates healthcare solutions built on big data and artificial intelligence (AI) technologies in China, is currently priced at HK\$5.50.

Technical Analysis

• The stock has broken out of a larger falling wedge, forming a new pair of higher highs and lows. A strong bullish bar was observed on Monday.
• The bullish break above the HK\$4.50 resistance level, now turned support, confirms the bullish breakout of the long-term consolidative range.
• Prices have closed above all Ichimoku indicators.
• The MACD histogram is positive, and both the MACD and signal lines have risen steadily after crossing over at the bottom.
• The Stochastic Oscillator is rising and has crossed above the 50-line.
• The 23-period ROC rose sharply above the zero line, indicating a bullish divergence.
• The Directional Movement Index confirms the bullish strength.
• A volume spike supports the bullish bias.

Risk-averse traders might consider waiting for a pullback near the second entry price of HK\$4.50 before executing a buy order. The target prices are set at HK\$7.45, HK\$10.00, HK\$13.08, and HK\$20.00, with stop loss at HK\$3.17.

Singapore Airlines (SIN) – Weaker Than Expected 2QFY25 Results

Singapore Airlines (SIA) reported a core net profit of S\$296 million for 2QFY3/25, which was 29% below the preview of S\$416 million. This result was also 54% lower year-on-year and 32% lower quarter-on-quarter.

Financial Performance

• The 1QFY25 core net profit was 38% lower year-on-year and 21% lower quarter-on-quarter.
• Given the weaker-than-expected results, the stock is likely to be sold off when the market reopens on Monday.

The recommendation remains “Reduce” due to weakening yields, though the target price has been lifted to S\$6, rolling forward to end-CY25F with an unchanged P/BV of 1.1x (mean + 1 s.d.).

Sembcorp Industries (SIN) – Divesting Recycled Waste Asset

Sembcorp Industries is undertaking strategic moves to divest its recycled waste asset. This move is part of the company’s ongoing strategy to streamline operations and focus on core business areas.

Strategic Actions

• The divestment is expected to optimize the company’s asset portfolio and improve overall financial health.
• Investors should monitor the market response and potential impacts on the company’s stock performance.

OCBC (SIN) – On Track to Meet FY24F Targets

OCBC Bank is on track to meet its FY24F targets, demonstrating robust financial management and strategic execution.

Financial Outlook

• The bank’s performance indicators are aligned with its financial year targets.
• Investors should consider the bank’s consistent performance when evaluating their investment portfolio.

United Overseas Bank (SIN) – Capital Return on the Cards

United Overseas Bank (UOB) is considering a capital return, which could potentially enhance shareholder value.

Potential Benefits

• A capital return could provide direct financial benefits to shareholders.
• The bank’s strategic financial management is likely to bolster investor confidence.

Conclusion

The analysis of these companies reveals diverse financial landscapes and strategic maneuvers aimed at optimizing performance and shareholder value. Investors should closely monitor these companies’ progress and market responses to strategic actions. Stay tuned for more insightful financial analyses and updates.