BYD Co Ltd (1211): Bullish Continuation?

Last Price: HK\$275.00

BYD Co Ltd, a leading manufacturer of automotive products, has emerged as a strong player in the market with diversified operations spanning passenger cars, commercial vehicles, battery production, and rail transportation. According to the report, the company is showing promising technical indicators for a bullish continuation.

Technical Analysis Highlights:

• Breaking out of the falling wedge pattern, confirming the initial stage of bullish momentum.
• Stock is well-supported above the uptrend line.
• Ichimoku indicator demonstrates two out of three bullish crossovers.
• MACD and signal lines remain elevated above the zero line, indicating strong momentum.
• Stochastic Oscillator confirms an oversold crossover.
• 23-period Rate of Change (ROC) has risen above the zero line, supporting positive price action.
• Directional Movement Index reveals robust bullish strength.
• Volume surged above the 20-period average, adding further credibility to the bullish trend.

Key Trading Levels:

• Entry Prices: HK\$275.00, HK\$250.20, HK\$226.90
• Support Levels: HK\$294.40, HK\$226.80
• Resistance Levels: HK\$319.80, HK\$350.50
• Stop Loss: HK\$221.60
• Target Prices: HK\$304.10, HK\$324.00, HK\$350.00, HK\$400.00

The report reverses its prior sell recommendation (dated July 31, 2024) and now assigns a “Buy” rating based on the observed bullish momentum indicators.

Seatrium Ltd: Sequential Improvement Likely on Track

Seatrium Ltd (STM) is positioning itself for significant improvements, underpinned by strategic order wins and operational efficiency. The company recently secured BP’s Kaskida Floating Production Unit (FPU) project in December 2024, while the lapse of Golar Gandria’s conversion contract has been factored into the updated projections.

Key Financial Updates:

• FY24 order wins are estimated at approximately S\$14.4 billion, with a robust order book of S\$25 billion.
• The company maintains its S\$6 billion order win target for 2025.

Gross Margin Improvements:

Seatrium’s gross margin is expected to significantly improve:

• 2H24 Gross Margin: Projected at approximately 7%, up from 3.7% in 1H24.
• The improvement is attributed to the near completion of loss-making projects.

Valuation and Recommendation:

• Target Price: S\$2.90 (based on 1.5x CY25F P/BV, aligned with its 10-year average trading band).
• Rating: Add

Foshan Haitian Flavouring: Hong Kong Listing

The report briefly mentions Foshan Haitian Flavouring’s plans to list on the Hong Kong Stock Exchange (HKEX). This move indicates the company’s ambition to expand its presence and attract international investors. Further details on this development are not included in the report.

JD.com Inc: Stronger Benefits from Trade-In Program

JD.com Inc is leveraging its trade-in program to create stronger consumer benefits. This strategy aligns with the company’s focus on boosting customer engagement and driving sales through innovative approaches. The report does not provide detailed financial metrics but highlights the growing importance of the trade-in program in enhancing JD.com’s competitive edge.

Ping An Bank: Moving Past a Difficult Year

Ping An Bank is highlighted as recovering from a challenging year. While specific financial metrics are not disclosed, the report alludes to the company taking steps to regain stability and position itself for growth in the coming periods.