Overview of Market Trends

As the financial year draws to a close, investors remain vigilant amidst a fluctuating market landscape. Recently, the S&P 500’s gain has been negligible, with the Nasdaq 100 seeing a modest 0.3% increase, while the Dow Jones Industrial Average slid by 0.2%. The anticipation surrounding the Federal Reserve’s potential rate cuts in December or January adds a layer of complexity to the investment climate.

Simcere Pharmaceutical Group Ltd (HKG: 2096)

Technical Buy Recommendation

Simcere Pharmaceutical Group Ltd, a leading pharmaceutical company focusing on central nervous system disease drugs and autoimmune disease therapeutics, is poised for a bullish continuation. The current stock price stands at 7.38, with an entry price range of 7.30, 6.80, and 6.30. Key technical indicators suggest a strong upward trend:

• The stock has broken out of a downtrend line initiated in January 2023, forming higher highs and lows indicative of an early uptrend.
• Prices have surpassed the pennant formation, confirming a bullish continuation.
• Trading above all Ichimoku’s indicators, with a rising MACD/signal line and a positive histogram.
• The 23-period Rate of Change (ROC) has crossed above the zero line.
• Directional movement index supports bullish strength, while volume exceeds the 20-period average.

With support levels at 6.16 and 5.10, and resistance at 7.60 and 11.00, the target prices are set at 8.85, 10.10, 13.22, and 15.00. The analyst recommends a “Technical Buy” based on these promising indicators.

Perfect Medical

Outlook for 2HFY25F

Perfect Medical has faced challenges, with a 15% year-on-year fall in core net profit for 1HFY3/25, largely due to weak consumption in Hong Kong and China. Revenue in China is expected to decline by approximately 10% in FY25F, attributed to fewer new store openings and no price adjustments. Despite these hurdles, an “Add” recommendation is reiterated, albeit with a revised target price of HK\$3.40, based on a 10x CY26F P/E.

L.K. Technology Holdings Ltd

Anticipated Recovery

L.K. Technology Holdings Ltd is expected to witness a sequential recovery in the second half of FY3/25FF. While detailed financial metrics are not provided, the outlook indicates a potential positive shift in performance, reinforcing investor confidence.

MIDI Utama Indonesia

An Underrated Alpha

MIDI Utama Indonesia emerges as an underrated alpha within its group. The insights provided highlight the company’s potential to outshine its peers, although specific financial figures or strategic plans are not elaborated upon in this report.

Bank Mandiri

Insights from BMRI Group Call

Bank Mandiri offers valuable takeaways from its BMRI group call, suggesting strategic initiatives aimed at bolstering its market position. However, the report does not delve into specific financial performances or forecast figures.