CGS International
Date of Report: September 10, 2025
Bullish Breakouts and AI Momentum: Trendspotting Investment Opportunities in Asia’s Dynamic Markets
Market Recap: Surging Optimism in AI and Tech Stocks Drives Investor Focus
Investors across Asia are displaying renewed enthusiasm for technology and industrial stocks, energizing market momentum and creating new opportunities for growth-focused portfolios. Key highlights include a major resurgence in Alibaba Group Holding Ltd, which has become the top pick for Chinese investors following a surge in AI-driven revenues, and a bullish technical setup for Singapore’s Nam Lee Pressed Metal Industries Ltd. Meanwhile, Korea’s ISU Petasys Co Ltd is poised for valuation growth on the back of robust AI and networking equipment orders.
Alibaba Group Holding Ltd: AI Revenue Surge Sparks Buying Frenzy
Alibaba Group Holding Ltd has emerged as the Chinese market’s favored investment, with investors channeling HK$13.5 billion (US$1.7 billion) into the stock via the Hong Kong-mainland trading links last week. This marks the highest weekly net purchase in recent months and may set a new monthly record since April. Key drivers of this optimism include:
- An 18% share price surge in September, making Alibaba the best performer in the Hang Seng Tech Index.
- Release of an upgraded open-source AI model and leadership in a funding round for a robotics startup.
- Wall Street analysts’ bullish stance, with at least 20 upgrades to price targets following strong AI-related earnings.
- Consensus forecast: Stock is expected to rise an additional 17% over the coming year, targeting HK\$160.18.
ISU Petasys Co Ltd: AI Accelerator and Network Demand Fuel Valuation Re-Rate
Korea’s ISU Petasys Co Ltd stands out as a leading beneficiary of growth in AI hardware and next-generation networking. The company’s outlook is underpinned by a robust order pipeline and strategic capacity expansion.
| Key Points |
Details |
| Order Growth |
Anticipating increased orders for mass-produced AI accelerators in 2H25F |
| Capacity Expansion |
Capacity ramp-up from 4Q25F to support higher earnings |
| Network Upgrades |
Customer migration to 800G switches expected to drive margin expansion in 2026F and beyond |
| Valuation |
Target Price: W85,000 (29x FY26-27F P/E); Rating: Add |
Nam Lee Pressed Metal Industries Ltd: Technical Analysis Signals Strong Bullish Continuation
Nam Lee Pressed Metal Industries Ltd, a leading designer, manufacturer, and installer of steel and aluminum products for residential and commercial applications in Singapore, is exhibiting robust bullish momentum following a 96% rally since October 2024. The latest technical analysis points to a sturdy uptrend with multiple bullish confirmations.
| Technical Metric |
Details / Signal |
| Last Price |
S\$0.52 |
| Entry Prices |
S\$0.52, S\$0.48, S\$0.44 |
| Support Levels |
S\$0.49, S\$0.40 |
| Stop Loss |
S\$0.36 |
| Resistance Levels |
S\$0.54, S\$0.86 |
| Target Prices |
S\$0.72, S\$0.88, S\$0.96, S\$1.07 |
Technical Snapshot: Key Bullish Indicators
- The uptrend since October 2024 has been confirmed by a flag breakout; price has gained 96% in this period.
- Ichimoku Cloud analysis signals continued bullish momentum, with all components trending higher.
- MACD line remains above the zero threshold, with a positive histogram.
- Stochastic Oscillator is rising, suggesting persistent buying pressure.
- 23-period Rate of Change (ROC) is positive.
- Directional Movement Index indicates strong bullish strength.
- Volume expansion remains healthy, supporting the sustainability of the uptrend.
Company Overview: Nam Lee Pressed Metal Industries Ltd
Nam Lee Pressed Metal Industries Limited operates across the steel and aluminum product value chain, supplying gates, door frames, staircase nosing, hand railings, laundry racks, letter boxes, mainframes, sliding windows, grilles, and related metal products for flats and houses. The company’s diversified offerings and robust technical signals make it an attractive candidate for momentum-focused investors.
CGS International Stock Ratings and Methodology Overview
CGS International employs a clear rating system for stocks and sectors, offering guidance for investors seeking actionable insights.
| Stock Rating |
Definition |
| Add |
Total return expected to exceed 10% over the next 12 months |
| Hold |
Total return expected to be between 0% and +10% over the next 12 months |
| Reduce |
Total return expected to be below 0% over the next 12 months |
Coverage and Distribution (as of June 30, 2025)
| Rating |
% of Stocks Covered |
% Investment Banking Clients |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
Conclusion: Actionable Insights for Asia-Focused Investors
The current landscape in Asian equities is defined by a surge in AI and technology leadership, as well as technical breakouts in industrial names. Alibaba’s AI-fueled rally, ISU Petasys’ positioning for next-gen networking, and Nam Lee Pressed Metal’s confirmed bullish trend offer compelling opportunities for investors seeking exposure to growth and momentum. As always, investors should consider their risk profile and consult with financial advisors before acting on these insights.
