CGS International Retail Research

May 26, 2025

Trendspotter: Crypto Resilience Amidst Market Turmoil & Hong Leong Asia’s Steady Uptrend

Idea of the Day: Hong Leong Asia Ltd – Uptrend Intact and Steady

Hong Leong Asia Ltd. is highlighted as the “Idea of the Day,” noting its uptrend remains intact and steady. [[1]]

Overnight Recap: Crypto Market Resilience

• Bitcoin’s Rally: Bitcoin rallied almost 5% amidst market patterns with no real precedent, briefly surpassing \$112,000 for the first time and poised for its sixth weekly gain in seven. [[1]]-[[2]]
• Institutional Acceptance: Crypto deepened its institutional street cred as DC policymakers normalized dollar-linked tokens for mainstream use. [[1]]
• Treasury Market Woes: While stocks, government bonds, and corporate credit sold off on fiscal fears, Bitcoin looked like the adult in the room, proving to be a big loser in a week marked by rising fears of fiscal profligacy. [[1]]
• ETF Tracking: The largest ETF tracking the world’s original digital currency nabbed \$10 billion this year. [[2]]
• Analyst Perspective: Rich Weiss, the chief investment officer for multi-asset strategies at American Century Investment Management, acknowledged the viability of Bitcoin as an asset class, stating, “It’s hard to keep fighting it, or at least not acknowledging it as a viable asset class… Maybe that’s enough to get haters like me to jump on the train because in our business, you cannot fight the tape forever.” [[2]]
• Broader Market Selloff: Stocks, bonds, and credit posted the worst synchronized selloff since March, with the dollar slipping on course for a fifth straight monthly decline. [[2]]

Yangzijiang Shipbuilding: Full Yard Until 2028 to Withstand Weakness

• Cautious Outlook: YZJSB was more cautious of 2025F new win outlook due to tariff tensions and uncertainty of USTR implementation during its 1Q25 analyst call. [[2]]-[[3]]
• Order Placement Shift: Although its US\$6bn order guidance remains, management said that ship owners are likely to place new orders at Korean yards. [[3]]
• Order Book and Yard Capacity: YTD, YZJSB has an order book of US\$23.2bn and a full yard, with limited slots for 2028F/2029F. [[3]]
• FY25F Order Wins Cut: FY25F order wins are cut to US\$2.5bn (from US\$6bn). [[3]]
• EPS Trim: FY25F EPS is trimmed by 2%, adjusting for forex assumptions and weaker shipping revenue. [[3]]
• Target Price Lowered: TP is lowered to S\$2.72, on 7x FY26F P/E. [[3]]

Hong Leong Asia Ltd – Technical Buy

Last Price: 1.20 [[4]]

Uptrend Intact and Steady

Company Description (Bloomberg):

Hong Leong Asia Ltd. is the trade and industry arm of Singapore conglomerate Hong Leong Group. The Company’s management portfolio includes diesel engines, building materials supply chain, rigid plastic packaging, and air-conditioning systems, as well as hospitality and property development. [[4]]

Analyst(s):

CHUA Wei Ren, CMT [[4]]

T (65) 6210 8612

E weiren.chua@cgsi.com

Technical Snapshot:

Hong Leong has reached the 1st TP price of S\$1.25 based on the previous report dated 25 Mar 2025, and price action suggests that the stock is looking at a potential bullish continuation, hence adding on to a technical buy on Hong Leong. [[4]]

Key Pointers:

• Hong Leong has been trending well within the uptrend line since July 2024. [[4]]-[[5]]
• Bullish break above the flag signal more continuation to the upside. [[5]]
• Prices are trending above all ichimoku indicator. [[5]]
• MACD/signal line stays elevated above the zero line. Histogram is positive. [[5]]
• Stochastic Oscillator is seen rising above the 50-midpoint level. [[5]]
• 23-period ROC rose above the zero line. [[5]]
• Directional movement index is looking at a strong uptrend signal. [[5]]
• Volume rose above the 20-period average, indicating sustained bullish strength. [[5]]

Disclaimer

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Other Significant Financial Interests:

As of May 21, 2025 CGS International has a proprietary position in the securities in the following company or companies covered or recommended in this report: (a) – [[6]]

Analyst Disclosure: As of May 26, 2025, the analyst(s) who prepared this report, and the associate(s), has / have an interest in the securities in the following company or companies covered or recommended in this report: (a) – [[6]]-[[7]]

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Recommendation Framework:

Stock Ratings Definition:

• Add: The stock’s total return is expected to exceed 10% over the next 12 months. [[12]]-[[13]]
• Hold: The stock’s total return is expected to be between 0% and positive 10% over the next 12 months. [[13]]
• Reduce: The stock’s total return is expected to fall below 0% or more over the next 12 months. [[13]]

Sector Ratings Definition:

• Overweight: An Overweight rating means stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation. [[13]]-[[14]]
• Neutral: A Neutral rating means stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation. [[14]]
• Underweight: An Underweight rating means stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation. [[14]]

Country Ratings Definition:

• Overweight: An Overweight rating means investors should be positioned with an above-market weight in this country relative to benchmark. [[14]]
• Neutral: A Neutral rating means investors should be positioned with a neutral weight in this country relative to benchmark. [[14]]
• Underweight: An Underweight rating means investors should be positioned with a below-market weight in this country relative to benchmark. [[14]]

Distribution of stock ratings and investment banking clients for quarter ended on 31 March 2025 [[14]]

551 companies under coverage for quarter ended on 31 March 2025 [[14]]