Broker Name: CGS International
Date of Report: July 23, 2025
Hong Kong Market Insights: Bullish Reversal for Yankuang Energy and Aztech Global’s Unexpected Outperformance
Market Overview: Megacap Earnings Season and AI Leadership
Wall Street traders remain poised as the high-stakes megacap earnings season commences, keeping US stock indices at record highs. Despite minimal movement in the S&P 500, over 400 of its constituents advanced, highlighting underlying market strength. The “Magnificent Seven” tech giants paused a nine-day rally, yet Tesla and Alphabet gained ahead of their quarterly results. Homebuilders surged, led by D.R. Horton, while Kohl’s exhibited extraordinary volatility, spiking as much as 105% before closing up 38%. After-hours trading saw Texas Instruments deliver a disappointing forecast.
The tech sector continues to anchor market growth, propelled by advancements in artificial intelligence. The Magnificent Seven are projected to post a combined 14% profit increase for Q2, while the rest of the S&P 500 is expected to see flat earnings. AI adoption is gathering pace at the corporate level, but real-world applications are only beginning to materialize.
On the trade front, President Donald Trump has announced a new agreement with the Philippines imposing a 19% tariff on exports. Meanwhile, Canadian Prime Minister Mark Carney has tempered expectations for a US-Canada deal, though he aims to stabilize bilateral relations.
Aztech Global Ltd: First Half 2025 Results Beat Expectations
Aztech Global Ltd delivered unexpectedly robust results for 1H25, exceeding both internal and Bloomberg consensus estimates despite headline declines.
- Revenue: 1H25 revenue fell by 50.3% year-on-year to S\$185.4 million as customer orders dwindled.
- Net Profit: Net profit plummeted 65.5% year-on-year to S\$16.1 million.
- Quarter-on-Quarter Recovery: The quarter-on-quarter performance rebounded sharply, with revenue surging 241.4% to S\$143.4 million and net profit up 873.3% to S\$14.6 million in Q2.
- Dividend: Aztech declared an interim dividend of 1.0 Singapore cent per share, representing a 48% payout ratio, payable on August 6, 2025.
- Outlook: While macroeconomic challenges persist, management has upgraded Aztech to Hold, citing signs of a gradual recovery in customer orders.
| Financial Metric |
1H25 |
1H24 (YoY) |
QoQ (Q2) |
| Revenue (S\$ million) |
185.4 |
-50.3% |
+241.4% (Q2: 143.4) |
| Net Profit (S\$ million) |
16.1 |
-65.5% |
+873.3% (Q2: 14.6) |
| Dividend per Share (Scts) |
1.0 |
— |
— |
Yankuang Energy Group Co Ltd: Technical Buy Signal and Bullish Reversal
Yankuang Energy Group (HKG: 1171) is signaling a strong bullish reversal, confirming its upward momentum in the coal sector. The company is engaged in coal production, power generation, railway transport, machinery manufacturing, and heating services.
- Last Price: HK\$9.42
- Entry Prices: HK\$9.42, HK\$8.80, HK\$8.00
- Support Levels: HK\$8.82 (Support 1), HK\$7.10 (Support 2)
- Stop Loss: HK\$7.42
- Resistance Levels: HK\$10.00 (Resistance 1), HK\$12.19 (Resistance 2)
- Target Prices: HK\$10.70 (Target 1), HK\$12.60 (Target 2), HK\$15.20 (Target 3), HK\$17.00 (Target 4)
Technical Snapshot
- Price has broken out above a major downtrend line, indicating a bullish continuation.
- An inverted head and shoulders formation has completed, further supporting the reversal.
- Ichimoku Cloud analysis shows a strong bullish signal.
- The MACD histogram is positive, with both the MACD and signal lines rising toward the zero line after a bottom crossover.
- Stochastic Oscillator is steadily increasing, signaling growing momentum.
- 23-period Rate of Change (ROC) is positive and trending upward.
- The Directional Movement Index is showing strengthening bullish signals.
- Trading volume is expanding healthily, confirming the uptrend.
| Price Level |
Value (HK\$) |
| Current Price |
9.42 |
| Support 1 |
8.82 |
| Support 2 |
7.10 |
| Stop Loss |
7.42 |
| Resistance 1 |
10.00 |
| Resistance 2 |
12.19 |
| Target 1 |
10.70 |
| Target 2 |
12.60 |
| Target 3 |
15.20 |
| Target 4 |
17.00 |
Brokerage Ratings and Methodology
CGS International employs a clear and transparent stock ratings framework:
- Add: Expected total return exceeds 10% over 12 months.
- Hold: Expected total return between 0% and 10% over 12 months.
- Reduce: Expected total return below 0% over 12 months.
The total expected return is calculated as the sum of the percentage change from the current price to the target price plus the expected forward dividend yield.
For sectors and countries, Overweight, Neutral, and Underweight ratings guide allocation relative to market benchmarks.
| Rating |
Distribution (%) |
Investment Banking Clients (%) |
| Add |
70.6 |
1.1 |
| Hold |
20.5 |
0.5 |
| Reduce |
8.9 |
0.5 |
As of June 30, 2025, CGS International covered 561 companies.
Conclusion: Opportunities Amidst Macro Challenges
The July 2025 update reveals encouraging technical and fundamental signals for select stocks in Hong Kong and the region. Yankuang Energy Group stands out with a technical buy rating after confirming a bullish reversal, supported by a robust technical setup and strong volume. Meanwhile, Aztech Global demonstrates resilience, posting a substantial quarter-on-quarter rebound that exceeded expectations, hinting at a gradual recovery in customer demand despite challenging macro conditions.
Investors and market watchers should closely monitor these developments as the earnings season unfolds and as AI-driven innovation continues to reshape the market landscape.
