Comprehensive Market Insights: An In-Depth Analysis of Key Players
Broker: UOB Kay Hian | Date: Tuesday, 26 November 2024
Olam Group: Riding the Uptrend
Olam Group is currently on an upward trajectory, with its stock price trading above the cloud. This positive movement is supported by a bullish crossover of conversion and base lines, alongside a strong and bullish MACD. These indicators suggest an increased likelihood of the stock price testing S\$1.30. Investors are advised to consider a trading buy range between S\$1.17-1.18, with a protective stop at S\$1.13. The stock’s current price stands at S\$1.19, with a projected target price of S\$1.30. The expected timeframe for this stock to hit its target range is approximately 1-2 weeks, assuming the stock reaches the entry price range within three trading days.
Delfi: Potential Bearish Pattern Ahead
Delfi is showing signs of a potential bearish flag pattern, with prices declining after forming a top at S\$0.88. The RSI is moving below its neutral level, indicating possible further declines. The trading sell range is suggested between S\$0.820-0.825, with the last price noted at S\$0.825. A protective stop is recommended at S\$0.835, with a target price of S\$0.745. Delfi’s institutional research holds a fundamental HOLD stance with a target price of S\$0.86.
CSE Global: Benefiting from Data Centre Projects
CSE Global reported a robust 3Q24, with revenue reaching S\$214 million, marking a 15% year-on-year increase, aligning with expectations. This performance brings the 9M24 revenue to 75% of the full-year estimate. The growth was driven by electrification, which rose by 22% year-on-year due to faster-than-expected project execution in the US, despite delays caused by the hurricane season. Communications revenue increased by 12% year-on-year, bolstered by government and retail sectors in Australia, while automation saw a 7% rise due to government revenue growth in the Asia Pacific.
Despite a muted 3Q24 with a 38% decline in order wins, the outlook for 4Q24 is promising, with CSE announcing major contracts worth around S\$129 million in the US. CSE remains optimistic about capturing demand in the electrification space and maintaining its dividend yield at 6.3%. The company is recommended as a BUY with a target price of S\$0.59, based on a 13x 2025F PE.
China and Hong Kong Property: Navigating Geopolitical Risks
In November 2024, both new and second-hand home transactions in major mainland cities showed positive month-on-month growth. However, listing prices continued to trend downwards. Meanwhile, Hong Kong’s property market showed a 0.7% week-on-week decline in the CCL index, despite a rebound since September. Rising geopolitical risks and uncertainties about rate cuts continue to weigh on property sales recovery. The Central Economic Work Conference in December is an essential event to monitor for future developments.
In terms of recommendations, the report maintains a MARKET WEIGHT on China’s property sector, with a top pick of COLI for its resilient sales and strong presence in high-end property segments. The Hong Kong property market also remains at MARKET WEIGHT due to its strong rental yields and potential influences from China’s macroeconomic recovery.
Conclusion
This financial analysis presents a comprehensive view of the current market dynamics affecting key players such as Olam Group, Delfi, CSE Global, and the broader property sectors in China and Hong Kong. The insights provided can guide investment decisions amidst prevailing economic and geopolitical uncertainties.
