China Yongda Automobiles Services Holdings Ltd (3669)
China Yongda Automobiles Services Holdings Ltd, a prominent player in the retailing of passenger vehicles, offers a comprehensive range of services including new and used vehicle sales and automobile rentals. The company is witnessing a technical buy signal according to CGS International’s research. The stock is on the brink of a bullish reversal, with strong indicators suggesting an upward momentum.
Key technical indicators include a breakout from its downtrend line since January 2023, an ascending triangle formation, and a substantial volume spike. The stock’s price has also closed above all Ichimoku indicators, and the MACD/signal line remains elevated above the zero line, showing a bullish bias. Stochastic Oscillator is on the rise, and the 23-period ROC has sharply ascended, indicating a bullish divergence.
The recommendation for China Yongda is a ‘Technical Buy’ with several target prices outlined: 3.15, 4.50, 6.30, and 9.05. The entry prices are set at 2.05, 1.59, and 1.24, with support levels at 1.53 and 1.18. The stop loss is positioned at 1.16. Investors are advised to watch the resistance levels at 2.23 and 3.92.
Mermaid Maritime
Mermaid Maritime, an offshore services company, faced a slight decline in its 3Q24 revenue due to the completion of decommissioning contracts in the UK and Thailand. This was partially offset by stronger cable-laying operations. Despite the revenue dip, the company managed to keep its 3Q24 net profit in line with expectations, excluding a forex loss of US\$2.7 million.
CGS International has broadly maintained its FY24F-26F gross margin estimates but reduced revenue forecasts based on lower fleet utilization and decommissioning order assumptions. An improvement in the share of SG&A was a positive surprise. The firm reiterates its ‘Add’ call for Mermaid Maritime, albeit with a lower target price of S\$0.16, emphasizing the announcement of new order wins as a key catalyst.
Tencent
Tencent’s gaming revenue is projected to remain robust in the fourth quarter of 2024, continuing its strong performance. While specific details on Tencent’s performance are not extensively covered, the indication of sustained strong revenue suggests a positive outlook for the company in the near term.
CSE Global
CSE Global is highlighted for its clean project execution, which is deemed critical for its future success. The company is expected to focus on efficient execution of its projects to maintain and enhance its operational performance.
Frasers Property Limited
Frasers Property Limited is expected to deliver better operating performance in the second half of FY24. The company is likely to benefit from improved operational metrics, which bode well for its financial health and investor sentiment.
Market Recap and Analysis
The report also discusses a broader market recap, noting that stocks fell on Friday, marking the worst week in over two months. The decline was attributed to the fading momentum of Trump trades and investor concerns over potential inflation from fiscal plans, leading to a 2.1% drop in the S&P 500 and over a 3% fall in the tech-heavy Nasdaq 100. Among the “Magnificent Seven” megacaps, all except Tesla saw a retreat, with Amazon, Nvidia, and Meta Platforms experiencing significant declines.
Disclaimer and Additional Information
The report concludes with a comprehensive disclaimer, noting that the content is for informational purposes only and is not intended as financial advice. It emphasizes the importance of investors conducting their own evaluations and consulting with professional advisers.
