South Korea Retail Research Insights: A Deep Dive into Key Company Analyses

Date: November 15, 2024 | Broker: CGS International

Discovering Trends in HD Hyundai Heavy Industries Co Ltd

Embark on a journey into the promising prospects of HD Hyundai Heavy Industries Co Ltd (329180). The latest report from CGS International highlights a bullish continuation for this shipbuilding giant, with a current price of 217,500 and a technical recommendation to buy. The company, known for its naval and industrial shipbuilding capabilities, is poised for growth with several technical indicators pointing to an upward trend.

Key technical highlights include a breakout from a bullish flag formation and a key bullish marobozu candle seen rebounding at the slope of the wedge. The Ichimoku indicator presents a strong bullish signal as prices trend above the kumo. The MACD and signal line remain elevated above the zero line, further supporting a positive outlook. Additionally, the stochastic oscillator confirms an oversold crossover, and the 23-period ROC has risen above the zero line, indicating a potential for growth. Volume expansion is another encouraging sign for investors. With target prices set at 270,400, 290,600, 310,000, and 340,100, the future looks bright for HD Hyundai Heavy Industries.

Riverstone Holdings: Bright Prospects for FY25F

Riverstone Holdings is showing promising signs for the fiscal year 2025. The company reported a 3Q24 net profit of RM72m, slightly down 0.5% quarter-on-quarter but up 22% year-on-year, surpassing expectations. The strong volume growth managed to offset FX-driven margin pressure. Looking ahead, the impending US tariff hike on Chinese gloves could boost Riverstone’s generic gloves sales in FY25F, while FX risks are expected to dissipate following the Trump win.

The report recommends an upgrade to “Add” with a target price raised to S\$1.10, citing better FY25F prospects. A year-end special dividend per share (DPS) is forecasted, bringing the FY24F dividend yield to an enticing 9.3%.

Luzhou Laojiao: Awaiting a Baijiu Demand Recovery

While the report doesn’t delve deeply into Luzhou Laojiao, it indicates a cautious stance as the company awaits signs of a recovery in baijiu demand. Investors are encouraged to keep a watchful eye on the market for any shifts in demand that could influence the company’s performance.

China Sunsine Chemical Holdings: Solid Profit Spreads Anticipated

China Sunsine Chemical Holdings is on the radar with expectations of firm profit spreads in the fourth quarter of 2024. The report suggests that the company is positioned well to capitalize on favorable market conditions, although specific figures and detailed forecasts are not provided.

Thai Oil: Navigating Uncertainty at the Clean Fuel Project (CFP)

Thai Oil is currently experiencing a period of uncertainty as the dust has not yet settled at the Clean Fuel Project (CFP). While the report does not provide an exhaustive analysis, it implies that investors should remain cautious and informed about developments within the project.

Concluding Thoughts

The insights provided by CGS International offer a comprehensive overview of key players in the South Korean retail sector. With detailed technical analyses and forward-looking recommendations, investors are equipped with valuable information to navigate the market. Whether it’s the bullish outlook for HD Hyundai Heavy Industries or the promising prospects for Riverstone Holdings, this report serves as an essential guide for informed investment decisions.