Navigating the Financial Waves: Comprehensive Company Analysis

Broker Name: CGS International

Date of Report: November 18, 2024

Introduction

CGS International, a reputable name in the financial sector, has released its latest report, offering an in-depth analysis of several prominent companies. This comprehensive guide delves into the financial performances, strategic directions, and market positions of NAVER Corp, Mermaid Maritime, and other key players. Investors and stakeholders are provided with valuable insights to make informed decisions.

NAVER Corp (035420): Riding the Uptrend

NAVER Corporation, a leader in internet services, is experiencing a promising uptrend. The company’s stock is showing signs of a bullish trend reversal, breaking out of a downtrend channel that began in January 2024. This marks a critical point, indicating the end of a bearish phase and signaling potential growth.

Key technical indicators suggest a strong upward momentum. The stock has successfully turned the 179,100 resistance into support, affirming new highs. The weekly chart reveals an accumulation range since October 2022, with a robust rebound off the 147,300 support level, suggesting a breakout is imminent.

Moreover, the Ichimoku indicator has formed a bullish golden cross, and the MACD histogram is positive, with the MACD/signal line rising post-crossover. A 23-period ROC above the zero line further confirms bullish momentum, supported by a rising directional movement index and increased volume on the breakout.

The recommendation for NAVER Corp is a “Technical Buy” with target prices ranging from 236,400 to 408,200, reflecting confidence in its continued upward trajectory.

Mermaid Maritime: Awaiting Key Order Wins

Mermaid Maritime, a key player in the maritime services sector, reported a slight decrease in 3Q24 revenue due to the completion of decommissioning contracts in the UK and Thailand. However, this was partially offset by stronger cable-laying activities.

The company has maintained its gross margin estimates for FY24F-26F but has revised revenue forecasts downward due to lower fleet utilization and decommissioning order assumptions. Excluding a forex loss of US\$2.7 million, the net profit aligned with estimates at US\$3.8 million. An improvement in the share of SG&A was a positive surprise.

Despite the challenges, the recommendation remains an “Add,” with a target price of S\$0.16. The announcement of new order wins is anticipated to act as a key catalyst for future growth.

Tencent: Resilient Game Revenue

Tencent Holdings, a giant in the gaming industry, is anticipated to maintain strong game revenue in the fourth quarter of 2024. The company’s robust portfolio and strategic initiatives continue to bolster its market position, ensuring sustained growth.

CSE Global: Clean Project Execution is Key

CSE Global, known for its engineering solutions, emphasizes the importance of clean project execution. The company’s ability to deliver projects efficiently and effectively remains a crucial factor in maintaining its competitive edge and ensuring future success.

Frasers Property Limited: Improved Performance Ahead

Frasers Property Limited is poised for better operating performance in the second half of FY24. The company’s strategic initiatives and operational efficiencies are expected to drive growth and enhance its market standing.

Conclusion

CGS International’s latest report provides a comprehensive analysis of key companies, offering investors valuable insights into market trends and potential opportunities. With detailed evaluations and strategic recommendations, this report serves as a critical tool for navigating the financial landscape.