Trendspotter: Bullish Continuation and Promising Prospects Ahead
Singapore Retail Research | March 7, 2025
ComfortDelGro Corp Ltd – Bullish Continuation Back in the Picture
ComfortDelGro Corporation Limited is a provider of land transportation services, offering bus, taxi, rail, car rental and leasing, automotive engineering services, inspection and testing services, driving center, insurance broking services, and outdoor advertising.
According to the technical analysis, ComfortDelGro is showing signs of an early uptrend trend and is poised to go higher based on the strong price action display. The stock has formed a V-shaped bottom, and the closure above S\$1.42 resistance turned support has confirmed the upside reversal. The weekly chart shows that the upside remains intact as prices remain supported above the 200-EMA, and the bullish flag pattern indicates a bullish continuation. Prices are trending above all Ichimoku indicators, the Stochastic Oscillator has confirmed the oversold crossover, the 23-period ROC is rising steadily and has closed above the zero line, and the Directional Movement Index is steadily showing bullish strength. Furthermore, the volume has been expanding in a healthy fashion.
The analyst recommends a Technical Buy on ComfortDelGro Corp Ltd, with the following entry prices, stop loss, and target prices:
- Entry Price(s): 1.45, 1.42, 1.37
- Stop Loss: 1.32
- Target Price 1: 1.55
- Target Price 2: 1.64
- Target Price 3: 1.75
- Target Price 4: 1.80
HKG: AIA Group – Tackling Low-Hanging Fruits
AIA Group is a leading life insurance provider in the Asia-Pacific region. The report suggests an opportunity for AIA to re-rate upon disclosure of more financial targets or positive revisions to existing targets at its FY24F results. The previous announcements of targets at its 1Q24 and 1H24 helped its share price increase 6% on both those dates. AIA’s disclosure of targets lags other HK-listed financial institutions with global operations, and the analyst identifies possible easy wins for target disclosures.
The analyst reiterates an Add rating on AIA Group, with a target price of HK\$103, primarily as they raise the weightings of a P/BV-based valuation to 50% to reflect a greater focus on operating ROE.
HKG: New World Development – Stringent Measures in Place to Deleverage
The report provides an update on New World Development, a Hong Kong-based conglomerate with diversified business interests.
MAL: Economics Update – Peak Uncertainties, but Support Not Needed
The report offers an economic update on Malaysia, discussing the current state of uncertainties and the need for support measures.
MAL: Mr D.I.Y. Group (M) Bhd – FY25F Will Be a Better Year for MRDIY
The report analyzes the prospects of Mr D.I.Y. Group (M) Bhd, a leading home improvement retailer in Malaysia, suggesting that FY25F will be a better year for the company.
CGS-CIMB Research
March 7, 2025
