Broker Name: CGS International
Date of Report: July 23, 2025

Hong Kong Market Insights: Link REIT Maintains Momentum, Aztech Global Shows Signs of Recovery

Market Overview: Tech Giants Anchor Global Market Sentiment

Wall Street traders are preparing for a pivotal megacap earnings season, with stock indices remaining at record highs. Over 400 S&P 500 constituents saw gains, although the index itself was nearly flat. Notably, the ‘Magnificent Seven’ tech giants are expected to deliver a combined 14% rise in second-quarter profits, while the remainder of the index is likely to see flat earnings growth. Tesla and Alphabet posted notable gains ahead of their results, while D.R. Horton led a surge in homebuilders. Kohl’s experienced a dramatic surge, reminiscent of meme stock rallies, jumping as much as 105% before settling at a 38% gain. In after-hours trading, Texas Instruments delivered a disappointing outlook.

The driving force behind the S&P 500’s resilience continues to be advancements in artificial intelligence. AI-driven companies are increasingly crucial to overall tech sector performance. Corporate adoption of AI is improving, but much of the technology’s application layer is still in its early stages. On the international front, President Donald Trump announced a 19% tariff agreement with the Philippines, while Canada’s Prime Minister Mark Carney indicated that a US-Canada deal may take longer than anticipated but is optimistic about stabilizing relations.

Aztech Global Ltd (SIN: Aztech) – Q2 2025 Performance and Outlook

Aztech Global Ltd reported a mixed set of results for the first half of 2025:

• 1H25 revenue declined by 50.3% year-over-year to S\$185.4 million, reflecting a significant reduction in customer orders.
• Net profit fell 65.5% year-over-year to S\$16.1 million in 1H25.
• On a quarter-on-quarter basis, the company saw a marked improvement: revenue grew 241.4% qoq to S\$143.4 million, and net profit surged 873.3% qoq to S\$14.6 million.
• Both revenue and net profit figures were above CGS International and Bloomberg consensus expectations.
• Aztech declared an interim dividend of 1.0 Singapore cent per share, representing approximately a 48% dividend payout ratio, payable on August 6, 2025.

Despite ongoing macroeconomic challenges, CGS International has upgraded Aztech Global to Hold, citing signs of a gradual recovery in customer orders.

Link REIT (HKG: 823) – Technical Analysis and Growth Prospects

Last Price: HK\$43.35 Recommendation: Technical Buy

Link Real Estate Investment Trust, a diversified REIT managing shopping centers, parking facilities, and retail spaces globally, continues its uptrend and steady growth trajectory.

Technical Analysis Snapshot

Technical Indicators and Observations

• The stock has maintained its uptrend channel since July 2024.
• It has broken out of a falling wedge pattern, signaling a bullish continuation.
• Ichimoku indicators confirm a strong bullish signal.
• The MACD histogram remains positive; both MACD and the signal line are rising above zero.
• The Stochastic Oscillator continues to rise, and while technically overbought, corrective pressures are minimal—indicating a strong bullish trend.
• The 23-period Rate of Change (ROC) is positive and rising.
• The Directional Movement Index points to strengthening bullish momentum.
• Volume is expanding strongly, supporting the uptrend.

Link REIT reached the second target price at HK\$44.80 (pre-dividend adjustment) as of this report, with technical indicators suggesting further upside potential.

About Link REIT

Link REIT operates as a real estate investment trust, managing a diversified portfolio including shopping centers, parking space facilities, and retail real estate globally.

Brokerage Recommendations and Ratings Framework

CGS International’s stock 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 below 0% over the next 12 months.

Sector ratings are assigned as Overweight, Neutral, or Underweight based on a market cap-weighted recommendation for stocks in the sector. Country ratings follow a similar structure.

As of June 30, 2025, CGS International had 561 companies under coverage.

Conclusion

The Hong Kong and broader Asia-Pacific equity markets remain firmly influenced by the performance of technology giants and the adoption of AI, as well as shifting global trade dynamics. Link REIT stands out with a robust uptrend, supported by positive technical signals and volume expansion. Aztech Global, despite significant year-on-year declines, is showing early signs of recovery and resilience, warranting a Hold rating as it navigates ongoing macroeconomic headwinds. Investors should continue to monitor these trends, especially as earnings season gathers momentum and the broader market digests the impact of new tariffs and global policy shifts.