Broker: CGS International
Date of Report: July 23, 2025
Bullish Momentum in CALB Group and Aztech Global: Market Insights & Technical Analysis
Market Overview: Tech Giants Drive Gains as AI Remains Key Growth Catalyst
Wall Street remains at all-time highs as investors anticipate the upcoming megacap earnings season. Despite the S&P 500 showing minimal movement, over 400 constituent stocks experienced gains. Notably, the “Magnificent Seven” tech giants have been pivotal, with Tesla and Alphabet climbing ahead of their results, even as the group’s nine-day rally paused. Homebuilders such as D.R. Horton surged, while Kohl’s experienced a dramatic but short-lived spike reminiscent of meme stock fever.
Artificial intelligence continues to be the primary engine for S&P 500 earnings growth. The Magnificent Seven are forecasted to post a combined 14% increase in second-quarter profits, while the broader index is predicted to remain flat. AI adoption is accelerating at the corporate level, though its full potential is only beginning to be realized.
On the trade front, President Donald Trump announced a 19% tariff on Philippine exports. Canada’s Prime Minister Mark Carney, meanwhile, tempered expectations for a near-term US-Canada agreement, focusing instead on stabilizing bilateral relations.
Aztech Global Ltd (SIN): Signs of Gradual Recovery Amid Macro Headwinds
Financial Performance Highlights:
- 1H25 revenue dropped 50.3% year-on-year to S\$185.4 million, reflecting a challenging demand environment.
- Net profit fell 65.5% year-on-year to S\$16.1 million due to dwindling customer orders in the first half.
- Quarter-on-quarter, revenue rebounded 241.4% to S\$143.4 million, while net profit surged 873.3% to S\$14.6 million.
- Both revenue and net profit for 1H25 exceeded internal and Bloomberg consensus expectations.
- An interim dividend of 1.0 Singapore cent per share (approximate 48% payout ratio) is declared, payable on August 6, 2025.
Despite significant year-on-year declines, Aztech’s quarter-on-quarter performance suggests a potential recovery in customer orders. The company’s results have prompted an upgrade to “Hold,” reflecting cautious optimism as macroeconomic challenges persist but operational improvements begin to materialize.
CALB Group Co Ltd (HKG:3931): Technical Buy on a Robust Bullish Trend
Company Background:
CALB Group Co., Ltd. specializes in the manufacture and distribution of advanced battery products, including lithium-ion power batteries, battery management systems, and energy storage solutions. Its products serve the automotive, energy storage, and related sectors.
Technical Analysis and Trade Strategy
| Entry Price(s) |
21.10, 19.10, 16.70 |
| Support 1 |
28.20 |
| Support 2 |
15.32 |
| Stop Loss |
15.20 |
| Resistance 1 |
25.00 |
| Resistance 2 |
34.00 |
| Target Price 1 |
24.80 |
| Target Price 2 |
28.00 |
| Target Price 3 |
33.00 |
| Target Price 4 |
49.00 |
Technical Snapshot:
- CALB shares continue to rise steadily within a defined channel and recently broke out from a symmetrical triangle, signaling further bullish momentum.
- Ichimoku analysis shows a robust bullish signal.
- The MACD histogram is positive with both the MACD and signal lines trending upward above zero.
- Stochastic Oscillator reflects ongoing upward momentum.
- 23-period Rate of Change (ROC) remains positive and increasing.
- Directional Movement Index (DMI) indicates strengthening bullish sentiment.
- Trading volume is exhibiting healthy expansion, supporting the upward trend.
Recommendation Framework & Stock Ratings Explained
CGS International uses the following rating definitions:
- Add: Expected total return exceeds 10% over the next 12 months.
- Hold: Expected total return between 0% and 10% over the next 12 months.
- Reduce: Expected total return is negative over the next 12 months.
Total return includes the percentage difference between target price and current price, plus forward net dividend yields. Price targets have a 12-month investment horizon.
| Rating |
Distribution (%) |
Investment Banking Clients (%) |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
Sector and country ratings are also provided, reflecting market cap-weighted recommendations and relative positioning to benchmarks.
Important Disclaimers and Distribution Notes
This report is strictly confidential, intended for professional, institutional, and sophisticated investors. Distribution is subject to jurisdictional regulations, with specific restrictions in Australia, Canada, China, France, Germany, Hong Kong, Indonesia, Ireland, Malaysia, New Zealand, Singapore, South Korea, Spain, Sweden, Switzerland, United Arab Emirates, United Kingdom, and the United States. Please refer to your local financial regulations before acting on the contents.
Summary
The current market climate underscores the dominance of technology and AI-driven companies in driving equity gains, with CALB Group and Aztech Global offering distinct opportunities. CALB’s technical indicators point to sustained bullish momentum, while Aztech’s rebound signals potential stabilization amid broader challenges. Both should be monitored closely by investors seeking exposure to high-growth, tech-centric sectors.
