Kingsoft Corp Ltd (3888): A Bullish Continuation

Kingsoft Corporation Ltd. is a distinguished name in the computer software sector, noted for its role-playing games and innovative security, word processing, and spreadsheet software. Recent analysis indicates a strong bullish continuation for Kingsoft, based on several technical indicators. The company has successfully broken out of the secondary downtrend line since April 2023, forming higher highs and lows on a larger scale.

A bullish rebound at HK\$27.90 further reinforces the positive outlook, particularly after a breakout above the flag formation, confirming continued upward momentum. The weekly chart highlights a clear break above the major downtrend line observed since February 2021, suggesting the end of a corrective phase for Kingsoft. Additionally, prices are trending above all Ichimoku lines, with a positive MACD/signal line and a rising Stochastic Oscillator.

The 23-period ROC has also risen above the zero line, and the Directional Movement Index is positive, supported by healthy volume expansion. Analysts recommend a long-term technical buy on Kingsoft, with target prices set at HK\$40.10, HK\$49.80, HK\$57.40, and HK\$70.00, following the achievement of the second target price at HK\$32.90.

Frencken Group Ltd: Navigating Industry Challenges

Frencken Group Ltd, a key player in its industry, recently reported its 9M24 net profit, which fell below expectations. The company achieved a revenue of S\$571.3 million, marking a 6.7% year-on-year increase, aligning with 74% of the full-year forecast. However, it was slightly below the Bloomberg consensus of 72%. The net profit of S\$27.3 million, representing a 42.5% year-on-year increase, accounted for 63% of both the company and Bloomberg’s full-year expectations, indicating a miss.

Despite this, the outlook remains positive with an “Add” recommendation, as the semiconductor industry is anticipated to recover gradually over the next couple of years, specifically in 2025-26. Investors are encouraged to consider this potential recovery when evaluating Frencken Group’s prospects.

XPeng Inc: Setting Ambitious Targets

XPeng Inc, a significant player in the automotive sector, is eyeing double-digit vehicle production and sales momentum (VPM) in the fourth quarter of 2024 and the fiscal year 2025. This ambitious target underscores the company’s commitment to growth and market expansion.

Sime Darby Property Berhad: Meeting Expectations

Sime Darby Property Berhad reported its 9MFY24 results that aligned with market expectations, indicating stable performance within the property sector. This consistency reinforces investor confidence in the company’s strategic direction and operational execution.

Market Observations: Broader Trends

The report also highlights some broader market trends, notably the impact of Nvidia Corp’s revenue forecast on the technology sector. Nvidia’s stock has nearly tripled in 2024, and its performance often influences smaller stocks, as observed with the Russell 2000 index. The report notes that Nvidia’s results are seen as a critical catalyst for the year, even outpacing the significance of the Federal Reserve’s upcoming December meeting.

Furthermore, the tension between Ukraine and Russia has added to market volatility, affecting the S&P 500 and Nasdaq 100, while the dollar has strengthened. An auction of 20-year bonds received a lukewarm reception, reflecting a cautious tone on Wall Street.