CGS International

May 14, 2025

Navigating Market Trends: Geo Energy Resources Ltd Uptrend and Foshan Haitian Flavouring Analysis

Market Overview: Tech Rally and Trade Tension Ease

• The stock market experienced a rally driven by major technology companies, offsetting earlier losses for the year [[1]].
• Optimism grew due to speculation that trade war tensions involving President Donald Trump are easing, coupled with inflation data indicating limited pressures [[1]].
• Equities approached levels not seen since February, coinciding with the S&P 500’s recent all-time high [[1]].
• The S&P 500 index increased by almost 1% on Tuesday, with chipmakers spearheading the gains following news of a potential deal to enhance Saudi Arabia’s access to AI products from companies like Nvidia Corp. and Advanced Micro Devices Inc [[1]].
• Short-term Treasury yields declined amid expectations of two Federal Reserve rate cuts within the year [[1]].
• A positive earnings season and a reduction in global trade tensions have boosted investor confidence after doubts about equities meeting high profit growth expectations [[1]].
• Easing trade tensions between the US and China suggest a moderation of the Trump administration’s aggressive tariff policies [[1]].
• A temporary agreement to de-escalate the trade war with China has diminished concerns about the economic impact of tariffs [[1]].
• US inflation in April was lower than expected, with stable prices for clothing and new cars, indicating limited pressure for companies to pass on tariff costs to consumers [[1]].
• Chris Zaccarelli from Northlight Asset Management noted that the markets’ concerns about a tariff-induced recession and high inflation have diminished [[1-2]].
• High valuations and market concentration remain risks, but markets are expected to react positively to the latest data and the easing of trade tensions [[2]].

CHN: Foshan Haitian Flavouring – Investor Day Highlights

• Management indicates that the HK listing is a strategic move to boost global competitiveness, with fundraising not being the primary goal [[2-3]].
• Haitian anticipates consistent sales growth in its traditional condiment products and plans to introduce healthier, more nutritious options [[2-3]].
• Compound condiments are emerging as a significant high-growth segment [[3]].
• Sales are projected to grow by 10.5%, and net profit by 11.4% in FY25F, driven by increased demand from both B2B and B2C clients [[3]].
• The “Add” rating is reiterated with an unchanged DCF-based Target Price (TP) of Rmb56, based on a Weighted Average Cost of Capital (WACC) of 8.3% and Terminal Growth Rate (TG) of 3% [[3]].

SIN: Geo Energy Resources Ltd – Technical Buy

Last Price: 0.375

Recommendation: Uptrend continuation

Key Technical Levels:

• Entry Price(s): 0.375, 0.330, 0.300 [[2]]
• Support 1: 0.335 [[2]]
• Support 2: 0.295 [[2]]
• Stop Loss: 0.290 [[2]]
• Resistance 1: 0.410 [[2]]
• Resistance 2: 0.520 [[2]]
• Target price 1: 0.420 [[2]]
• Target price 2: 0.460 [[2]]
• Target price 3: 0.500 [[2]]
• Target price 4: 0.580 [[2]]

Company Overview (Bloomberg):

• Geo Energy Resources Limited is an integrated coal mining specialist [[2]].
• The company owns and operates coal mines [[2]].
• It offers mine contracting services to third-party mine owners [[2]].
• It sells coal to both coal traders and coal export companies [[2]].

Analyst:

• CHUA Wei Ren, CMT [[2]]
• T (65) 6210 8612 [[2]]
• E weiren.chua@cgsi.com [[2]]

Technical Analysis:

• Geo Energy has achieved the first Target Price (TP) at S\$0.380, as per the Trendspotter report dated March 18, 2025 [[2]].
• Price action indicates strong positive momentum, suggesting a continuation of the uptrend [[2]].
• The technical buy position on Geo Energy is being reinforced [[2]].

Key Pointers:

1. Geo Energy has been in a strong uptrend since September 2024 [[2]].
2. A recent breakout from a bullish flag formation indicates further bullish continuation [[2]].
3. Prices are trending above all Ichimoku indicators, signaling strong momentum [[2]].
4. The MACD histogram is positive, and the MACD/signal line continues to rise above the zero line [[2]].
5. The Stochastic Oscillator continues to rise [[2]].
6. The 23-period Rate of Change (ROC) remains elevated above the zero line, with bullish divergence present [[3]].
7. The Directional Movement Index shows a strong bullish signal [[3]].
8. Volume remains healthy and expanding [[3]].

Disclaimer

This report is prepared by CGS International and is intended for specific recipients only. Redistribution is prohibited without prior consent [[3]]. The information is believed to be reliable but is not guaranteed for accuracy or completeness. CGS International, its affiliates, and related corporations are not liable for any losses arising from the use of this report [[3]]. This report does not constitute an offer or invitation to buy or sell any investments [[3]]. CGS International and its affiliates may have positions in the securities of the covered companies and may perform services for them [[3-4]]. The analyst certifies that the views expressed are their own and were prepared independently [[4]].

Regulatory Information by Jurisdiction

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Other Significant Financial Interests

• As of May 7, 2025, CGS International has a proprietary position in the securities of companies covered in this report [[4]].
• As of May 14, 2025, the analyst(s) who prepared this report and their associates have an interest in the securities of the companies covered [[4]].

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• Other jurisdictions: For distribution to professional, institutional, or sophisticated investors [[7]].

Recommendation Framework

Stock Ratings Definition:

• Add: Expected total return to exceed 10% over the next 12 months [[7]].
• Hold: Expected total return between 0% and positive 10% over the next 12 months [[7]].
• Reduce: Expected total return to fall below 0% over the next 12 months [[7]].

Sector Ratings Definition:

• Overweight: Stocks in the sector have a positive absolute recommendation on a market cap-weighted basis [[7]].
• Neutral: Stocks in the sector have a neutral absolute recommendation on a market cap-weighted basis [[7]].
• Underweight: Stocks in the sector have a negative absolute recommendation on a market cap-weighted basis [[7]].

Country Ratings Definition:

• Overweight: Investors should be positioned with an above-market weight in this country relative to benchmark [[7]].
• Neutral: Investors should be positioned with a neutral weight in this country relative to benchmark [[7]].
• Underweight: Investors should be positioned with a below-market weight in this country relative to benchmark [[7]].

Rating Distribution (%)

Distribution of stock ratings and investment banking clients for quarter ended on 31 March 2025 (551 companies under coverage) [[7-8]]: