CanSino Biologics Inc (6185) – Bullish Uptrend in an Early Stage

CanSino Biologics Inc. (HKG: 6185) is showing a promising bullish uptrend. The company develops and manufactures biological vaccine products, serving customers worldwide. Our analysis indicates a technical buy with several key points:

• Entry Prices: 30.95, 25.58, 22.50
• Support Levels: 29.25, 24.35
• Stop Loss: 20.97
• Resistance Levels: 34.45, 40.00
• Target Prices: 35.21, 38.12, 40.00, 48.12

The stock has broken out of a larger rectangle range and rebounded above the key resistance turned support at HK\$24.35. This bullish breakout is confirmed by rising volume, and prices have closed above all Ichimoku indicators. The MACD histogram is positive, and the MACD/signal line stays elevated above the zero line. The Stochastic Oscillator is rising and has crossed above the 50-line, while the Directional Movement Index confirms the bullish strength. A volume spike further supports the bullish breakout.

Overall, CanSino Biologics Inc. is well-positioned for growth, with technical indicators pointing to a sustained upward movement.

Singapore Airlines (SIA) – 2QFY25 Weaker Than Expected

Singapore Airlines (SIA) reported a core net profit of S\$296m in 2QFY3/25, which was 29% below our S\$416m preview. The profit was also 54% lower year-on-year (yoy) and 32% lower quarter-on-quarter (qoq). Given that the 1QFY25 core net profit was ‘only’ 38% lower yoy and 21% lower qoq, the stock is likely to be sold off when the market reopens on Monday.

We reiterate a “Reduce” rating as yields continue to weaken. However, we lift our target price to S\$6 as we roll forward to end-CY25F, maintaining an unchanged price-to-book value (P/BV) of 1.1x (mean + 1 standard deviation).

Sembcorp Industries – Divesting Recycled Waste Asset

Sembcorp Industries is in the process of divesting its recycled waste asset. This move is part of the company’s strategic efforts to streamline its operations and focus on core business areas. The divestment is expected to impact the company’s financials positively, allowing for better allocation of resources and potential growth in other segments.

OCBC – On Track to Meet FY24F Targets

OCBC is on track to meet its FY24F targets, demonstrating strong financial performance and strategic execution. The bank’s focus on maintaining a robust balance sheet, improving asset quality, and enhancing customer experience has positioned it well for future growth. Investors can expect OCBC to continue delivering solid results, supported by a stable economic environment and prudent management practices.

United Overseas Bank (UOB) – Capital Return on the Cards

United Overseas Bank (UOB) is considering a capital return, which could be a significant development for shareholders. The bank’s strong capital position and consistent profitability provide a solid foundation for such a move. A capital return would enhance shareholder value and reflect UOB’s commitment to rewarding its investors while maintaining financial stability. Details on the capital return are expected to be announced in the coming months.

Market Overview

The market saw a strong performance at the end of the best week in 2024, driven by solid consumer sentiment data and optimism about President Donald Trump’s pro-growth agenda. Equities advanced for a fourth consecutive session, with the S&P 500 hitting its 50th record this year, extending its weekly gain to 4.7%. Tesla Inc. experienced a breakneck rally, catapulting the electric-vehicle maker back over the trillion-dollar mark.

Defensive shares took the lead on Friday after some groups reached ‘oversold’ levels. A significant \$20 billion flowed into US equity funds on the day Trump claimed victory, marking the highest inflow in five months. Small caps, which are expected to benefit from Trump’s protectionist stance, attracted the biggest inflow since March. The S&P 500 briefly topped the 6,000 mark, a psychologically significant milestone that could invite more investor interest in stocks.

Despite the post-election rally, some analysts caution that stocks may take a breather before rallying again into year-end. The S&P 500 rose 0.4%, the Nasdaq 100 was little changed, and the Dow Jones Industrial Average rose 0.6%. Treasury 10-year yields declined three basis points to 4.30%, and the dollar posted a sixth straight week of gains.