Hong Leong Asia Ltd: Steady Uptrend Signals Buying Opportunity

CGS-CIMB Research | March 25, 2025

Hong Leong Asia Ltd – Technical Buy

Hong Leong Asia Ltd. has been on a steady uptrend since July 2024, and our technical analysis suggests this trend is set to continue. The stock has broken out of a bullish flag formation and is trading above all Ichimoku indicators, signaling strong momentum.
Key technical highlights:
Uptrend channel intact since July 2024, showing no signs of slowing down
Bullish flag breakout indicates further upside potential
Prices above all Ichimoku cloud components (conversion line, base line, leading span A, leading span B)
MACD histogram positive, with MACD/signal line rising steadily above the zero line
23-period Rate of Change (ROC) rising steadily and above zero, with bullish divergence on the short-term

Recommendation and Targets

We reiterate our Technical Buy recommendation on Hong Leong Asia, with the following entry prices and target levels:
Entry Prices: S$1.08, S$1.00, S$0.97 Stop Loss: S$0.89 Target Prices: S$1.25, S$1.35, S$1.42, S$2.10
The stock has already reached our initial target of S$1.12, and we believe there is still substantial upside potential given the strong technical indicators. Investors should take advantage of the current steady uptrend to establish or add to their positions in Hong Leong Asia.

DFI Retail Group: Optimizing Grocery Footprint for Improved Profitability

DFI Retail Group has announced the sale of its Singapore grocery business for S$125 million (around US$94 million). This divestment is expected to generate annual cost savings of around US$230 million, or a 0.4 percentage point improvement in EBIT margin.
We reiterate our Add rating on DFI Retail, as we believe the streamlined business portfolio and enhanced cost efficiencies will be positive for the company’s profitability. A special dividend of at least 4 US cents could be likely in FY2025 as a result of the divestment.

NIO Inc: Expecting Higher Operating Expenses in FY2025

[Analysis of NIO Inc omitted as it is not covered in the provided PDF report]

Bank Negara Malaysia: Healthy Growth Amid Uncertainties

[Analysis of Bank Negara Malaysia’s Annual Report omitted as it is not covered in the provided PDF report]

ASEAN Hospitals: Exploring Expansion Opportunities Across the Region

[Analysis of ASEAN’s medical facilities omitted as it is not covered in the provided PDF report]