Trendspotter: Comprehensive Analysis of Key Companies in the Retail Sector

Broker Name: CGS International

Date of Report: September 30, 2024

YG Entertainment Inc (122870): A Technical Rebound in Sight

In a recent analysis, YG Entertainment Inc. is spotlighted for its promising rebound potential. The company’s stock, priced at 37,850, is seen as undergoing a bottoming out reversal. The entry points are strategically positioned at 37,850, 33,000, and 29,500, with support levels at 33,050 and 29,900. The stop loss is advised at 26,900, while resistance levels are noted at 38,700 and 47,800.

The target prices set for this stock are ambitious, with potential to reach 47,400, 50,600, 60,000, and even 70,100. The analysis draws attention to several technical indicators that suggest a bullish trend:

• The stock has successfully broken out of a downtrend line that began on May 23, 2023.
• Ichimoku analysis indicates a strong bullish signal as prices have trended above the kumo.
• The MACD histogram has turned positive, signaling potential upward momentum.
• The stochastic oscillator confirms an oversold crossover, indicating a buying opportunity.
• The 23-period Rate of Change (ROC) has risen above the zero line, suggesting positive momentum.
• Both the DM+ and ADX indicators have climbed above the 25-level, showcasing strong bullish strength.
• Volume has spiked in the past two periods, indicating heightened investor interest.

YG Entertainment Inc. is renowned for its role in producing and marketing music, artist management, and concert production. This analysis recommends a technical buy, highlighting potential long-term gains.

Mermaid Maritime: Navigating New Waters

Mermaid Maritime, a prominent player in the maritime industry, is navigating toward a prosperous future. As of the second quarter of 2024, the company boasts an orderbook valued at US\$976 million, marking an 11-year high. This impressive feat is attributed to new decommissioning orders and the renewal of Inspection, Repair, and Maintenance (IRM) contracts at higher values.

With limited new builds over the past decade, global vessel supply remains tight, leading to an increase in fleet utilization. Mermaid Maritime’s fleet utilization soared to over 80% in the first half of 2024, compared to 50% in 2021. Analysts anticipate significant growth, with projected net profit increases of 22% and 70% in fiscal years 2024 and 2025, respectively, driven by large-scale decommissioning projects and high-margin cable-lay orders.

The stock currently trades at a 33% discount compared to global peers’ 2025 forward price-to-earnings (P/E) ratio. The recommendation is an “Add” with a target price of S\$0.20, based on an 11x 2025F P/E ratio.

China’s Stimulus Impact on Durable Products

The Chinese government’s ongoing stimulus policies are gradually taking effect in the durable products sector. These measures aim to invigorate the economy and stimulate consumer demand, fostering growth in various industries.

Siloam International Hospitals: What’s Next Post-CVC Acquisition

Following its acquisition by CVC Capital Partners, Siloam International Hospitals is positioned for strategic growth and expansion. The healthcare provider is expected to leverage this partnership to enhance its service offerings and expand its footprint in the region.

Conclusion

This comprehensive analysis provides valuable insights into the current trends and potential opportunities within the retail sector. Investors are encouraged to consider these detailed evaluations when making informed investment decisions. The recommendations and technical insights offer a roadmap for navigating the dynamic landscape of these industries.