Broker: CGS International
Date of Report: June 9, 2025

GKE Corp Ltd Poised for Bullish Continuation; South Korea’s Market Euphoria and NIO’s Intensifying Competition: Key Trends for Investors

Executive Summary

The latest research from CGS International spotlights major market-moving trends in Asia, highlighting bullish momentum for GKE Corp Ltd, renewed optimism in South Korea’s equity markets under new leadership, and a critical assessment of NIO Inc amid intensifying competition. This comprehensive analysis offers actionable insights, technical breakdowns, and strategic guidance for investors closely following these dynamic sectors.

South Korea: Market Euphoria Under New President Lee Jae-myung

After years of underperformance, South Korea’s stock market is experiencing a surge of optimism. The election of President Lee Jae-myung has catalyzed renewed confidence among global institutional investors, including Aberdeen Investments, Pictet Wealth Management, and Franklin Templeton. These heavyweight asset managers have recently increased their exposure to Korean equities, buoyed by Lee’s pro-shareholder policies and pledges to double market returns after a period of political turbulence.

• Foreign investors are returning to Korean equities, with the benchmark Kospi Index entering a bull market on Lee’s first day in office.
• Lee’s administration is expected to fast-track commercial law revisions to improve corporate governance and boost shareholder value, drawing parallels to Japan’s successful reforms in recent years.
• Market experts note early signs of real change, with government and corporate alignment fostering a stronger culture of shareholder value and capital markets trust.

Aberdeen Investments, for example, shifted its \$1.2 billion Asian ex-Japan fund to overweight Korean stocks in May, reflecting an industry-wide conviction that South Korea is on the cusp of a transformative shift towards shareholder-centric governance.

NIO Inc: Competition Squeezes Margins Despite Strong Pipeline

NIO Inc’s latest quarterly results reveal the challenges facing electric vehicle (EV) makers in a crowded marketplace. While the company continues to innovate and expand its model lineup, profitability pressures are mounting.

• 1Q25 non-GAAP net loss widened to Rmb6.3 billion, up from Rmb4.9 billion in 1Q24, primarily due to higher operating expenses.
• NIO’s product pipeline remains robust, with the NIO, ONVO, and Firefly brands expected to drive future sales growth.
• Despite this, rising competition in the EV sector is likely to temper shipment growth, putting further pressure on margins.
• CGS International reiterates a Hold rating on NIO, with a reduced DCF-based target price of HK\$30.62.

Investors are advised to monitor cost dynamics and competitive developments closely, as NIO navigates both a promising sales outlook and a challenging operating environment.

GKE Corp Ltd: Technical Buy Opportunity with Strong Bullish Signals

GKE Corp Ltd, a leading integrated logistics solutions provider, has emerged as a compelling technical buy. The company specializes in one-stop, door-to-door multi-modal solutions for supply chain management, positioning itself as a strategic player in Singapore’s logistics sector.

Technical Analysis Snapshot

Key Technical Indicators

• Stock has decisively broken out of a bullish corrective downtrend channel, indicating strong upside momentum.
• A robust breakout above the 0.090 level is confirmed by significant volume spikes, supporting the bullish trend.
• Ichimoku analysis reveals three golden crosses, underscoring further upward potential.
• The MACD and signal line remain above zero with a positive histogram, supporting bullish momentum.
• Stochastic Oscillator continues to climb, while the 23-period Rate of Change (ROC) has rebounded above zero.
• Directional Movement Index and expanding volume both confirm the presence of strong bullish strength.

With multiple technical indicators aligning, GKE Corp Ltd presents an attractive entry point for investors seeking exposure to Singapore’s logistics sector.

Risk Disclosures and Analyst Independence

CGS International emphasizes that the views and opinions presented in the report are those of the analyst, prepared independently and without direct influence from any investment banking transaction. The report does not constitute an offer or solicitation to buy or sell any security. Investors should conduct their own due diligence and consider their specific investment objectives and financial circumstances.

CGS International, its affiliates, and employees may own positions in securities mentioned, and may engage in investment banking or market-making activities with covered companies.

Stock Rating Framework and Sector Classifications

Sector and country ratings are based on market cap-weighted recommendations, with Overweight, Neutral, and Underweight classifications provided for both sectors and geographies.

As of March 31, 2025, CGS International held coverage on 551 companies, reflecting a robust and diverse research platform for investors.

Conclusion

Asian equities are entering a period of dynamic change, with South Korea’s market reforms, GKE Corp Ltd’s bullish technical setup, and NIO’s evolving competitive landscape offering a spectrum of opportunities and risks. CGS International remains at the forefront, delivering timely insights and actionable analysis to empower investor decision-making in these fast-moving markets.