China Retail Research Analysis

Broker Name: CGS International Securities

Date of Report: November 14, 2024

Beijing Kingsoft Office Software Inc (688111) – Technical Buy

Beijing Kingsoft Office Software Inc. has recently shown potential signs of an early bullish reversal, making it a compelling buy. The company’s last recorded price was 313.00, with a bullish rebound in place. Key technical indicators suggest a promising upward trend.

• The stock has broken out of the downtrend line that started in June 2023.
• A bullish engulfing break above the pennant indicates early signs of a bullish reversal of the cup and handle formation.
• Prices are trending above all Ichimoku indicators, signaling a resumption of the bullish trend.
• The stochastic oscillator has been rising, confirming bullish momentum.
• The MACD/signal line has risen after a crossover at the bottom, and the histogram is positive.
• The 23-period ROC is rising and has rebounded above the zero line.
• The directional movement index is rising in the early to mid-stage, indicating a potential return of bullish strength.
• Volume spikes upon rebounding, supporting bullish interest.

Key levels to watch include:

• Entry Prices: 313.00, 258.00, 205.84
• Support Levels: 213.12, 164.85
• Stop Loss: 178.40
• Resistance Levels: 322.86, 478.23
• Target Prices: 411.35, 503.40, 659.05, 700.50

Overall, Beijing Kingsoft Office Software Inc. is well-positioned for growth, with strong technical indicators pointing to a continued bullish trend.

SingTel – Cost Cuts Materialising Nicely

SingTel has been fine-tuning its financial strategies, demonstrating impressive cost-cutting measures that are paying off. The company has adjusted its FY25F EBIT guidance to reflect low double-digit growth year-on-year. A VRD of 1.4 Scts was proposed on top of an interim DPS of 5.6 Scts.

Significant achievements include:

• Cost-cutting efforts materialized nicely in 1H, leading to OPM expansion of +230bp year-on-year.
• Continued cost cuts are expected to drive FY26F OPM back to approximately 10%.
• Projected FY25F/26F yield is 5.3%/6.0%, indicating a solid return for investors.

With these positive developments, SingTel remains a strong “Add” recommendation, offering significant potential for investors seeking steady returns.

Hyphens Pharma International – Slowing Revenue Momentum

Hyphens Pharma International has been experiencing a slowdown in revenue momentum. While the company has made strides in various areas, the recent trend suggests a need for cautious optimism moving forward. The specifics of this slowdown were not detailed in the report, but it is a point of concern for potential investors.

Sime Darby Property Berhad – Stronger 3Q Earnings on the Horizon

Sime Darby Property Berhad is expected to report stronger earnings for the third quarter. The company’s strategic initiatives and market positioning are likely to contribute to this anticipated financial improvement. Investors should look forward to more detailed financial disclosures that will provide further insights into the company’s performance.

Star Petroleum Refining – The Restart of SPM Led to Strong GRM in 3Q

Star Petroleum Refining has shown a significant boost in its gross refining margin (GRM) in the third quarter, thanks to the restart of its Single Point Mooring (SPM) system. This development has positively impacted the company’s financial metrics, positioning it well for future growth.

Conclusion

The detailed analysis provided in this report highlights the varying performance and potential of the companies covered. Beijing Kingsoft Office Software Inc. stands out with strong technical indicators suggesting a bullish trend. SingTel’s effective cost-cutting measures make it a solid investment, while Hyphens Pharma International faces a slowdown in revenue momentum. Sime Darby Property Berhad and Star Petroleum Refining both show promising financial improvements, making them worth watching in the coming quarters.