CGS International
July 22, 2025

Hong Kong Market Insights: Bullish Trends for Microport Cardioflow and Trip.com Amid Tariff Uncertainty

Market Recap: A Cautious Start to a High-Stakes Earnings Week

The start of a busy week for Corporate America was marked by cautious optimism, as stocks pared most gains amid ongoing concerns over tariffs and the resilience of corporate earnings. The S&P 500 managed to close above 6,300 for the first time, albeit with a marginal 0.1% increase. Energy shares and oil prices declined, while chipmakers lost ground as Nvidia slipped. Major tech players Tesla and Alphabet are set to kick off the sector’s earnings season, with investor attention sharply focused on updates surrounding artificial intelligence spending.

Treasury yields fell, with the 30-year yield dropping four basis points to 4.95%. The dollar weakened against all developed-market peers, whereas the Japanese yen climbed following political developments in Japan. Investors are monitoring tariff headlines closely, as President Donald Trump may issue further unilateral tariff actions before August 1, and additional trade deals could be reached ahead of this deadline. The Trump Administration’s tougher stance on tariffs is increasingly influencing market sentiment, and this earnings season’s corporate guidance is anticipated to play a pivotal role in shaping market expectations.

Trip.com (HKG: 9961): Strong Summer Travel Outlook Despite Competitive Pressures

Summer Travel Market Projections

• Domestic travel market and outbound travel revenues are expected to rise by mid-to-high single digits and mid-to-high teens year-over-year, respectively, during the summer holiday period (July 1 – August 31, 2025).
• Recent increases in OTA subsidies by competitors JD and Douyin are not expected to significantly impact Trip.com’s market share, given the company’s competitive edge in high-end hotel bookings.
• For 2Q25F, Trip.com’s revenue is projected to grow by 14.5% year-over-year, though its non-GAAP net profit is anticipated to decline by 10.3% due to aggressive overseas expansion strategies.
• The recommendation remains Add, with an unchanged discounted cash flow-based target price of HK\$588.0 (WACC: 10.1%, Terminal Growth: 3%).

Microport Cardioflow Medtech Corp (HKG: 2160): Technical Buy on Bullish Reversal Signals

Company Overview

• Microport Cardioflow Medtech Corp develops and sells advanced medical devices, including the Vitaflow aortic valve system and Alwide balloon catheter, with a strong market presence across China.

Technical Analysis Snapshot

• Current Price: HK\$1.30
• Entry Prices: HK\$1.30, HK\$1.09, HK\$0.80
• Supports: HK\$1.09 (Support 1), HK\$0.70 (Support 2)
• Stop Loss: HK\$0.67
• Resistance Levels: HK\$1.38 (Resistance 1), HK\$2.41 (Resistance 2)
• Target Prices: HK\$2.40 (Target 1), HK\$2.90 (Target 2), HK\$3.30 (Target 3), HK\$5.00 (Target 4)

Key Technical Indicators and Observations

• The stock has decisively broken out from a major downtrend line, confirming a bullish reversal pattern.
• Price has gapped up and maintained levels above the gap for three consecutive sessions, supporting bullish momentum.
• An ascending triangle formation at the base signals further potential for an upward breakout.
• The Ichimoku indicator shows a strong bullish signal, reinforcing the positive outlook.
• The MACD histogram is in positive territory, with both the MACD and signal lines consistently above zero.
• The Stochastic Oscillator continues to rise, reflecting growing buying momentum.
• The 23-period Rate of Change (ROC) is positive and increasing.
• The Directional Movement Index (DMI) points to strengthening bullish trends.
• Trading volume has expanded robustly, indicating healthy investor participation.

Summary Table: Microport Cardioflow Medtech Corp (2160) – Technical Overview

Investment Ratings and Methodology

Stock Ratings:

• Add: Total return expected to exceed 10% in the next 12 months.
• Hold: Total return expected between 0% and 10% in the next 12 months.
• Reduce: Total return expected to fall below 0% in the next 12 months.

Sector Ratings:

• Overweight: Positive absolute recommendation on a market cap-weighted basis.
• Neutral: Neutral absolute recommendation on a market cap-weighted basis.
• Underweight: Negative absolute recommendation on a market cap-weighted basis.

Country Ratings:

• Overweight: Investors should be positioned above benchmark weight.
• Neutral: Investors should be positioned at benchmark weight.
• Underweight: Investors should be positioned below benchmark weight.

As of June 30, 2025, 561 companies are under coverage, with the majority rated as Add.

Conclusion: Navigating Uncertainty with Technical Strength and Sector Resilience

Despite macroeconomic headwinds and tariff uncertainties, select Hong Kong-listed companies demonstrate strong technical and sectoral resilience. Trip.com is set to capitalize on robust travel demand, while Microport Cardioflow Medtech exhibits clear technical buy signals, supported by positive momentum and healthy trading activity. Investors are advised to closely monitor earnings guidance and tariff developments as the market adapts to a rapidly evolving landscape.