Overview

This comprehensive report delves into the latest market trends, stock performance, and investment opportunities within Hong Kong’s retail sector. We provide an in-depth analysis of several key companies, including Laekna Inc, Techtronic Industries Co, and China Resources Beer. Stay informed with our detailed insights and expert recommendations.

Laekna Inc (2105) – Technical Buy

Price: HK\$11.54

Laekna Inc, a clinical-stage biotechnology company, is showing early signs of a bullish trend. The company is known for its research and development of adenosine triphosphate (ATP) competitive protein kinase B (AKT) inhibitor and androgen synthesis inhibitor, targeting treatments for ovarian cancer, prostate cancer, and breast cancer.

Technical Snapshot

• Entry Prices: HK\$11.54, HK\$8.60, HK\$5.20
• Support Levels: Support 1: HK\$8.51, Support 2: HK\$5.14
• Stop Loss: HK\$2.48
• Resistance Levels: Resistance 1: HK\$13.12, Resistance 2: HK\$16.20
• Target Prices: TP1: HK\$16.48, TP2: HK\$18.74, TP3: HK\$21.40, TP4: HK\$27.00

Key Observations

• The stock has broken above its consolidative range since February 2024, forming higher highs and lows after the breakout.
• A strong bullish break above the key psychological resistance of HK\$10.00 confirms the continuation of the uptrend.
• Prices are trending above all Ichimoku indicators, showcasing strong market confidence.
• The MACD histogram is positive, with the MACD/signal line rising after a crossover at the bottom.
• The Stochastic Oscillator is rising, indicating growing momentum.
• The 23-period ROC remains above the zero line, supporting the bullish sentiment.
• The Directional Movement Index reflects strong bullish strength.
• Volume has risen significantly, confirming the breakout.

Techtronic Industries Co – Milwaukee’s Tools to Support Higher GPM

Techtronic Industries Co is expected to deliver a strong performance in the second half of 2024, primarily driven by its Milwaukee brand, despite weaker performance from Ryobi.

Key Forecasts

• Strong Milwaukee performance is anticipated in 2H24F, with continued double-digit sales growth in FY25F.
• The new product rollouts are likely to enhance Techtronic Industries’ gross profit margin (GPM).
• Recommendation: Reiterate Add, with a higher target price of HK\$127, based on 24x P/E in FY25F.

China Resources Beer – Improved Sales Growth

China Resources Beer has shown signs of improved sales growth month-on-month from September. This positive trend is expected to continue, driven by strategic initiatives and market demand.

Conclusion

Our analysis highlights promising opportunities within Hong Kong’s retail sector. Laekna Inc is positioned for a bullish trend, Techtronic Industries Co is set to benefit from strong Milwaukee performance, and China Resources Beer is experiencing improved sales growth. Investors are encouraged to consider these insights for informed decision-making.

Disclaimer

This report is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult with financial advisors before making any investment decisions. CGS International is not liable for any losses or damages arising from the use of this report.