Comprehensive Analysis of Hong Kong Retail Stocks – November 6, 2024

By CGS International

Overview of Market Trends

The global markets experienced significant movements on the eve of the US presidential elections. Notably, tech giants led the rally, with the S&P 500 rising by 1.2% and the “Magnificent Seven” megacaps climbing by 1.8%. This uptick was partly driven by Palantir Technologies Inc.’s announcement of “unwavering demand” for artificial intelligence, propelling Nvidia Corp. to surpass Apple Inc. as the largest company in the world.

Cromwell European REIT (SIN)

Portfolio Stability and FY25F Refinancing

• Performance: Cromwell European REIT reported a 7.0% increase in Net Property Income (NPI) for 3Q/9M24, aligning with 25.9% of the full-year forecast.
• Refinancing: The company has secured loans and is waiting for an opportune moment to reissue bonds maturing in FY25.
• Recommendation: The strong portfolio and effective capital management strategies lead to a reiterated “Add” recommendation.

Elite UK REIT (SIN)

Progress and Forward Steps

Elite UK REIT is making significant strides forward. The company’s robust performance and strategic initiatives underpin its positive outlook.

Netlink NBN Trust (SIN)

Resilient DPS Growth

Netlink NBN Trust has showcased resilience with a 1.1% year-on-year growth in its Distribution Per Unit (DPS), reflecting its stable business model and consistent performance.

CapitaLand Integrated Commercial Trust (SIN)

Integrated Commercial Operations

CapitaLand Integrated Commercial Trust continues to excel with its integrated commercial operations, affirming its position in the market.

Tencent Holdings Ltd (HKG: 700)

Technical Buy Recommendation

• Last Price: HK\$427.80
• Entry Prices: HK\$427.80, HK\$400.00, HK\$380.10
• Support Levels: HK\$400.40, HK\$386.40
• Stop Loss: HK\$359.20
• Resistance Levels: HK\$474.00, HK\$523.00
• Target Prices: HK\$474.82, HK\$500.00, HK\$525.00, HK\$560.82

Tencent Holdings Ltd has demonstrated a robust bullish trend, surpassing the previous target price of HK\$470.50. Key indicators include:

• The stock has broken out of a falling wedge/flag formation with a bullish engulfing candle.
• Prices remain within the uptrend channel established over the past 10 months since March 2024.
• The weekly chart indicates a bullish golden cross and has yet to reach the 123.6% Fibonacci expansion target.
• A bullish closure above the Kumo cloud signifies that the uptrend continues.
• The MACD histogram is positive, with the MACD and signal lines elevating above the zero line.
• The Stochastic Oscillator is supported above the 50-line.

Company Description: Tencent Holdings Limited is a conglomerate offering services such as social networks, music, gateway websites, e-commerce, mobile gaming, payment systems, entertainment, artificial intelligence, and technology solutions globally.

Disclaimer

This report is intended for informational purposes only and should not be considered as an offer, recommendation, or solicitation to buy or sell any securities. The information contained within is based on data believed to be reliable at the time of publication but is not guaranteed to be accurate or complete.