Company Highlights
- Singapore Post (SPOST SP): Currently positioned as a trading buy, Singapore Post’s technical indicators suggest a bullish trend with a potential price target of S$0.495.
- Hongkong Land Holdings (HKL SP): Hongkong Land shows strong technicals with a potential breakout in its stock price, supported by bullish MACD indicators.
Investment Recommendation: Buy Singapore Post and Hongkong Land Holdings
Investment Thesis
Singapore Post (SPOST SP) – Buy
- Singapore Post has formed a bullish technical pattern, indicating a potential bottom at S$0.405. The stock has moved above its 20-day moving average, supported by a bullish MACD.
- The stock’s upward momentum could push prices to test S$0.495 in the near term, with a recommended buy range between S$0.435 to S$0.440. A protective stop should be set at S$0.42.
- Institutional analysts have a fundamental buy rating with a longer-term target price of S$0.61, suggesting strong upside potential over the next few weeks.
Hongkong Land Holdings (HKL SP) – Buy
- The stock is consolidating within a pennant pattern and is trading above the cloud, indicating a likely breakout. The bullish MACD suggests rising momentum.
- Analysts recommend a buy for Hongkong Land within the US$3.74 to US$3.75 range, with a target price of US$4.14 and a stop-loss at US$3.57.
- The stock’s chart outlook is positive, and the consolidation phase could lead to higher price movements in the coming weeks.
Detailed Company Analysis
Singapore Post (SPOST SP)
- Financial Results: No significant updates on financial results, but the stock’s technical indicators suggest a potential rally.
- Stock Impact: With a target price of S$0.495 and a strong buy recommendation from institutional analysts, the stock is expected to perform well in the short to medium term.
- Earnings Revisions/Risks: No major risks identified. The stock’s technical setup is favorable for price appreciation.
- Valuation: Singapore Post’s institutional target price is S$0.61, representing strong upside from the current price.
- Share Price Catalysts: A bullish technical pattern and positive MACD could drive the stock price higher in the next few weeks.
Hongkong Land Holdings (HKL SP)
- Financial Results: Financial performance has been strong, with the company maintaining a robust balance sheet.
- Stock Impact: The consolidation pattern in the stock price indicates a potential breakout. Technical indicators point to a bullish trend.
- Earnings Revisions/Risks: No changes to earnings projections. Risks are minimal given the company’s solid financial footing.
- Valuation: The stock is trading at a favorable price with a target of US$4.14, providing an attractive opportunity for traders.
- Share Price Catalysts: A breakout from the current pennant pattern could push the stock higher in the short term.
Financial Targets
- Singapore Post (SPOST SP): Target price of S$0.495, with a buy recommendation. Stop-loss at S$0.42.
- Hongkong Land Holdings (HKL SP): Target price of US$4.14, with a buy recommendation. Stop-loss at US$3.57.
Recommendation Date: September 12, 2024
Broker Information: UOB Kay Hian