Broker: CGS International
Date of Report: June 6, 2025

Singapore Paincare Holdings and NIO Inc: Technical Breakouts and Sector Insights – June 2025 Investment Analysis

Market Recap: Global Sentiment and Key Economic Updates

Global financial markets saw a notable bounce as optimism returned over US-China trade relations. Wall Street traders reacted positively to news of Donald Trump and Xi Jinping agreeing to further trade talks, with the S&P 500 approaching 6,000 following Trump’s announcement of a “very good phone call” with the Chinese president. Disputes surrounding rare earth exports have been temporarily cleared, bolstering equities. Bond yields remained stable after a Treasury rally, while the US dollar declined to its lowest level since July 2023.

• US jobless claims rose, reinforcing expectations of two Federal Reserve rate cuts in 2025, with the first anticipated in September.
• Economists forecast a slowdown in US payroll growth for May, with the unemployment rate expected to hold steady at 4.2%.

NIO Inc (HKG: NIO): Facing Intense Competition Amid Growth Ambitions

NIO Inc, a prominent electric vehicle manufacturer, is navigating a challenging landscape characterized by intensifying competition that is impacting its profitability. The company’s recent financial performance reveals mounting operational pressures but also highlights promising growth drivers.

Financial Performance Highlights

• 1Q25 non-GAAP net loss widened to Rmb6.3 billion, up from Rmb4.9 billion in 1Q24, primarily due to increased operating expenses.

Strategic Positioning and Pipeline

• NIO boasts a robust pipeline with its flagship NIO brand as well as the ONVO and Firefly lines, all poised to stimulate future sales.
• Despite the strong product pipeline, fierce competition is expected to moderate shipment growth in the near term.

Investment Recommendation

• The stock is rated “Hold” with a revised, lower discounted cash flow (DCF)-based target price of HK\$30.62.

Singapore Paincare Holdings Ltd (SGX: FRQ): Technical Buy Signal Points to Bullish Reversal

Singapore Paincare Holdings Ltd, a leading healthcare provider specializing in pain management solutions, is exhibiting strong technical signals suggesting a potential bottoming out and bullish reversal in its stock price. Investors seeking exposure in the healthcare sector may find this development particularly compelling.

Company Overview

• Singapore Paincare Holdings Pte. Ltd. delivers a range of healthcare services, including pain management for post-surgical, neck, chronic back, cancer, and arthritis conditions.
• Specialized procedures offered include neuroplasty, intrathecal pump implants, and endoscopic laser decompression.
• The company primarily serves patients in Singapore.

Technical Analysis Snapshot

The stock is demonstrating a technical breakout, supported by a range of bullish indicators and a solid rebound from the bottom of a consolidative range.

Key Technical Indicators

• The stock price has broken above the downtrend line dating back to March 2023, with a subsequent series of higher highs and higher lows.
• Ichimoku analysis reveals three strong bullish golden crosses.
• MACD/signal line crossover at the bottom, with the histogram turning positive and MACD moving towards the zero line.
• Stochastic Oscillator continues to rise, supporting bullish momentum.
• The 23-period Rate of Change (ROC) has rebounded forcefully above the zero line.
• Directional Movement Index is nearing a crossover between DM+ and DM-.
• Trading volume has surged above the 20-period average, indicating sustained bullish sentiment.

Stock Ratings and Sector Recommendations

CGS International employs a transparent and structured ratings framework for stocks, sectors, and countries, providing clarity for investors seeking actionable insights.

Conclusion: Key Takeaways for Investors

• NIO Inc remains a contender in the EV space but faces significant headwinds from rising competition, with profitability under pressure. The stock holds a “Hold” rating with a revised target price of HK\$30.62.
• Singapore Paincare Holdings Ltd stands out for its robust technical signals, suggesting a potential bullish reversal with multiple technical entry and target points, making it a noteworthy watch for momentum and value investors.

Investors are advised to evaluate these opportunities in the context of their own investment objectives and risk profiles, consulting professional advisers before making any portfolio decisions.