Trendspotter: In-depth Analysis of Key Market Players
Broker: CGS International
Date: November 19, 2024
NetEase Inc (9999): A Bullish Reversal on the Horizon
NetEase Inc, trading under the ticker 9999, has captured the attention of market analysts with its recent price action indicating a strong bullish reversal. The stock is positioned as a technical buy, supported by a series of indicators suggesting upward momentum.
The last observed price of NetEase Inc was HK\$135.90. The company has formed a potential double bottom, successfully sustaining above a critical support level at HK\$116.20. This technical formation is a promising signal of a bullish trend.
The stock has shown a strong gap-up from its bottom, bolstered by significant trading volume, suggesting increased investor interest and confidence. Further technical analysis reveals a crossover in the Ichimoku 9-period conversion and 26-period base line, alongside a MACD/signal line crossover at the bottom, indicating potential upward movement.
Additionally, the Stochastic Oscillator has shifted to an oversold signal, with a crossover at the oversold zone, further enhancing the bullish outlook. The 23-period Rate of Change (ROC) has risen above the zero line, showcasing bullish divergence and affirming the positive sentiment around this stock.
The resistance levels are set at HK\$164.60 and HK\$201.40, with target prices ranging from HK\$158.10 to HK\$210.40, suggesting potential for substantial gains. The bullish bias is further supported by a notable spike in volume.
ST Engineering: Navigating Through Market Bumps
ST Engineering has shown resilience in the face of market challenges, particularly in its 3Q24 performance. Defence revenue outperformed significantly, with a 31% year-over-year increase, while the Commercial Aerospace (CA) and Urban Solutions & Services (USS) segments had mixed results, with CA up by 7% and USS down by 5% year-over-year.
The company’s overall group revenue increased by 14% year-over-year, aligning with market expectations. Looking forward, FY24F revenue guidance for CA and USS, paired with robust broad-based defence growth, provides confidence for a strong 4Q24F revenue rebound, anticipated at 13% quarter-over-quarter.
The recommendation for ST Engineering remains an “Add,” with expectations of strong FY25F EPS growth of 15% year-over-year, driven by defence tailwinds, strong Maintenance, Repair, and Operations (MRO) demand, a Satcom rebound, and favorable rate conditions.
M&G Stationery Inc: Awaiting Consumer Demand Recovery
M&G Stationery Inc is currently in a holding pattern as it awaits a recovery in consumer demand. The company’s performance hinges on the broader economic landscape and consumer spending patterns, which are pivotal to its growth trajectory.
Economic Insights: Singapore’s Frontloading Pre-Tariff Strategy
Singapore’s economic update suggests that frontloading pre-tariff measures could potentially aid in boosting the Non-Oil Domestic Exports (NODX). This approach is aimed at mitigating the impact of impending tariffs and maintaining export competitiveness.
Sansiri: Anticipating a Strong 4Q24F Performance
Sansiri is gearing up for what is likely to be its strongest quarter of the year in 4Q24F. The company is poised to capitalize on favorable market conditions and strategic initiatives that could enhance its financial performance in the upcoming quarter.
In conclusion, each of these companies presents unique opportunities and challenges in the current market landscape. While NetEase Inc is on a bullish trajectory, ST Engineering shows promise with its diversified growth strategy. M&G Stationery Inc awaits a demand resurgence, and strategic economic measures in Singapore could bolster export figures. Sansiri stands ready to achieve significant gains in the final quarter of the year. Investors are advised to consider these insights carefully and align them with their investment strategies.
