CGS International
June 5, 2025

Hangzhou Tigermed and NIO: Technical Bullish Reversal, Sector Trends, and Key Insights for 2025

Market Recap: US Macro Trends Set the Stage for Global Investors

Global markets entered June with heightened anticipation as US Treasuries extended this year’s surge. Weaker-than-expected US economic data, particularly a contraction in service providers and slowing hiring, reinforced expectations that the Federal Reserve will cut interest rates at least twice in 2025, with the first reduction anticipated in October. Bond yields declined across the curve, the dollar slipped, and the S&P 500 edged higher, primarily led by health-care and communication companies. Major technology stocks were mixed, with Meta Platforms advancing and Tesla retreating.

The Institute for Supply Management’s index of US services dropped 1.7 points in May to 49.9—signaling contraction. Hiring slowed to a two-year low, and upcoming job reports are expected to show decelerating nonfarm payroll growth and a steady unemployment rate. Trade uncertainty continues to weigh on sectors like health care, technology, and construction. However, retailers and financial services firms have reported pockets of growth, despite ongoing tariff variability. This uneven sector outlook underscores the importance of careful portfolio allocation in the current environment.

Hangzhou Tigermed Consulting Co Ltd (3347 HK): Technical Buy Amid Bullish Reversal

Company Overview: Hangzhou Tigermed Consulting Co., Ltd. is a leading provider of professional clinical research services for both domestic and international pharmaceutical and health-related R&D. The company offers clinical trial technology services, data management, and statistical analysis to clients worldwide.

Technical Snapshot:

• After an initial 22% gain from the previous trendspotter (Feb 17), Hangzhou Tigermed faced a sharp sell-off, hitting the stop loss at HK\$22.90. However, price action in April 2025 confirmed this as a bear-trap, with current sentiment now indicating a strong bullish reversal.
• The stock has convincingly broken out of its downtrend channel, signaling robust bullish momentum.
• Ichimoku analysis shows a clear bullish signal, with prices trending above all key indicators.
• MACD histogram remains positive, with both MACD and signal lines elevated above zero.
• The Stochastic Oscillator has confirmed an oversold crossover.
• The 23-period Rate of Change (ROC) has surged above the zero line.
• Directional Movement Index (DMI) displays strong bullish strength.
• Trading volume is expanding in a healthy manner, reinforcing the upward move.

These technical indicators collectively suggest the bear phase is over, and Hangzhou Tigermed is well-positioned for a significant rally, with multiple target prices outlined above.

NIO Inc (HKG: NIO): Profitability Challenged by Fierce Competition

Key Financial Highlights:

• NIO’s first-quarter 2025 non-GAAP net loss widened to RMB 6.3 billion, up from RMB 4.9 billion in Q1 2024. The primary driver was increased operating expenses.
• The company maintains a strong product pipeline across its NIO, ONVO, and Firefly brands, offering potential for future sales growth.
• Despite product strength, intensifying competition in the EV sector is expected to limit shipment growth in the near term.
• The recommendation is reiterated as Hold, with a lowered discounted cash flow (DCF)-based target price of HK\$30.62.

Investment Ratings, Methodology, and Disclaimers

Stock Ratings Framework:

• Add: Expected total return above 10% over 12 months.
• Hold: Expected total return between 0% and 10% over 12 months.
• Reduce: Expected total return below 0% over 12 months.

Total expected return includes both price appreciation and forward net dividend yield. Stock price targets are based on a 12-month investment horizon.

Sector and Country Ratings:

• Overweight: Market cap-weighted sector/country recommendation is positive.
• Neutral: Market cap-weighted sector/country recommendation is neutral.
• Underweight: Market cap-weighted sector/country recommendation is negative.

Distribution of stock ratings and investment banking clients as of March 31, 2025, across 551 companies under coverage.

Key Takeaways for Investors

• Macro: Expect continued volatility as US macro trends drive global asset prices and sector rotation. Investors should remain nimble, given wide dispersion in sector performance.
• Hangzhou Tigermed: Presents a compelling technical buy opportunity following a confirmed bullish reversal, supported by strong technical indicators and healthy volume expansion. Multiple upside targets are in play.
• NIO Inc: The company’s robust product pipeline is a positive, but heightened competition is weighing on profitability and shipment growth. Caution is warranted, with a Hold rating and lower target price.
• Sector Allocation: Given the uneven outlook across sectors, careful allocation and active management are essential for outperformance in 2025.

For more information on the methodology, regulatory disclosures, and detailed regional disclaimers, please refer to the full research report. Investors are advised to consult their financial advisors and perform independent due diligence before making investment decisions.