CGS International
July 23, 2025

NIO Inc. and Aztech Global: Technical Analysis and Market Outlook for Investors

Market Overview: Megacap Earnings, AI Momentum, and Tariff Developments

The global equities landscape is showing resilience as Wall Street gears up for a high-stakes megacap earnings season. Major indices, led by the S&P 500, remain near all-time highs, supported by broad-based stock gains. The “Magnificent Seven” tech giants continue to anchor market optimism, with expectations of a combined 14% rise in second-quarter profits. In contrast, the rest of the S&P 500 is projected to see flat earnings growth, highlighting the critical role of artificial intelligence advancements in driving sector performance.

Other notable market movers include Tesla and Alphabet, which both posted gains ahead of their earnings releases, and a dramatic surge in Kohl’s Corp. reminiscent of the “meme stock” era. Meanwhile, macroeconomic developments such as new U.S. tariffs on the Philippines and ongoing trade negotiations with Canada are shaping investor sentiment.

Aztech Global Ltd: Signs of Recovery Amid Challenging Conditions

Aztech Global Ltd reported its 1H25 financial results, revealing a challenging year-over-year landscape but notable quarter-on-quarter recovery.

• Revenue for 1H25 fell by 50.3% year-on-year, primarily due to dwindling customer orders in the first half of the year.
• Net profit dropped 65.5% year-on-year to S\$16.1 million, reflecting the tough market environment.
• Quarter-on-quarter, Aztech saw encouraging results, with revenue jumping 241.4% to S\$143.4 million and net profit surging 873.3% to S\$14.6 million.
• Both revenue and net profit for 1H25 exceeded internal and Bloomberg consensus expectations.
• An interim dividend of 1.0 Singapore cent per share was declared (approximately 48% payout ratio), payable on August 6, 2025.
• Despite ongoing macro challenges, the company’s improved performance suggests a gradual recovery in customer orders, prompting an upgrade to a Hold recommendation.

NIO Inc.: Technical Buy Call as Early Uptrend Emerges

NIO Inc., a global electric vehicle manufacturer, is showing technical signs of bottoming out and entering an early uptrend. Despite a heavy correction earlier in the year, price action analysis indicates a strong return to the upside.

Technical Analysis Highlights

• Breakout Signal: NIO has broken out of its intermediate downtrend, forming an ascending channel—an early indicator of a bullish move.
• Ichimoku Cloud: The stock closed above all major Ichimoku indicators, confirming a healthy bullish signal.
• MACD Momentum: Both the MACD signal and line are trending upward toward the zero line following a bottom crossover; the histogram remains positive.
• Stochastic Oscillator: Rising and confirming mid-term bullish momentum.
• Rate of Change: The 23-period Rate of Change (ROC) is in positive territory.
• Directional Movement: The index signals steady bullish strength.
• Volume: Trading volume has shown healthy expansion over the past 10 periods.

With a stop loss set at 2.98 and multiple technical target prices up to 10.00, the recommendation is to maintain a Buy stance, with entry points at 4.63, 4.40, and 3.92.

Global and Sector Rating Methodologies

Stock ratings are defined as follows:

• Add: Total return expected to exceed 10% over the next 12 months.
• Hold: Total return expected between 0% and +10% over the next 12 months.
• Reduce: Total return expected to fall below 0% over the next 12 months.

Sector and country ratings align with market cap-weighted recommendations and benchmark relative positions, respectively.

The above distribution reflects the ratings and investment banking exposure for the quarter ended June 30, 2025, across 561 covered companies.

Key Takeaways for Investors

• Megacap tech and AI-driven companies remain pivotal for equity market performance, with strong earnings growth forecasted for the Magnificent Seven.
• Aztech Global’s quarter-on-quarter rebound points to a potential inflection in demand, supporting a Hold recommendation as order recovery emerges.
• NIO Inc. is displaying robust technical signals for an early uptrend, making it a compelling Buy for traders and investors seeking exposure to the EV sector’s recovery.

This comprehensive analysis provides critical insights for investors monitoring global equities, sector rotations, and individual company turnarounds in a dynamic market environment.