CGS International
Report Date: September 9, 2025
Bullish Reversals and AI Optimism: Key Stock Picks and Technical Insights for Asia-Pacific Investors
Market Overview: AI Optimism and Bottoming Reversals Fuel Regional Opportunities
The Asia-Pacific equity markets are abuzz with renewed optimism, driven by robust developments in artificial intelligence and bullish technical signals across select stocks. Investors are closely monitoring names that are exhibiting strong turnarounds and capitalizing on emerging trends in high-growth segments. This report highlights actionable ideas, technical setups, and fundamental drivers for key stocks, with a special focus on Sarine Technologies Ltd (Singapore), Alibaba Group Holding Ltd (China), and ISU Petasys Co Ltd (South Korea).
Alibaba Group Holding Ltd: Leading the Charge in AI-Driven Growth
Alibaba has surged to the forefront of investor attention, emerging as the favored pick among Chinese investors. The company witnessed net purchases of HK$13.5 billion (US$1.7 billion) in shares over a single week—a figure that surpasses any other stock on the Hong Kong exchange for the period and marks the highest monthly net buy since April. Alibaba’s resurgence is anchored largely in its AI initiatives, which have delivered a substantial uplift in quarterly AI-related revenue, helping to offset concerns stemming from its major investments in food delivery.
- Stock soared 18% in the month, becoming the best performer on the Hang Seng Tech Index.
- Jumped as much as 4.7% in a single trading day following an open-source AI model upgrade and participation in a robotics startup funding round.
- Wall Street sentiment has turned notably bullish, with at least 20 analysts raising their price targets since the latest earnings report.
- Consensus projects a 17% upside over the next year, targeting HK\$160.18 from the recent close.
ISU Petasys Co Ltd: AI Accelerator Demand and Network Upgrades Drive Valuation
ISU Petasys of South Korea stands out as a compelling beneficiary of the AI revolution and network infrastructure upgrades:
- Orders for mass-produced AI accelerators are expected to escalate in the second half of 2025, supported by expanded production capacity from Q4 2025 onwards.
- Looking into 2026 and beyond, demand is projected to shift toward 800G switches, which is anticipated to drive margin expansion for the company.
- Rating: “Add” maintained with a higher target price of W85,000, based on a forward P/E of 29x for FY26-27.
Sarine Technologies Ltd: Technical Buy on Bullish Bottoming Reversal
Sarine Technologies Ltd, a Singapore-based leader in diamond grading and gemstone production technology, is exhibiting a strong technical turnaround. The following table summarizes the key technical levels and trading strategy recommended:
| Entry Price(s) |
Support 1 |
Support 2 |
Stop Loss |
Resistance 1 |
Resistance 2 |
Target Price 1 |
Target Price 2 |
Target Price 3 |
Target Price 4 |
| 0.26, 0.24, 0.20 |
0.23 |
0.20 |
0.18 |
0.28 |
0.36 |
0.36 |
0.58 |
0.80 |
1.00 |
Technical Analysis Snapshot:
- Price has broken out of a major downtrend line and completed a bullish double bottom formation.
- Ichimoku indicators confirm a robust uptrend, with all components trending higher.
- MACD signal and line are rising above the zero line, with a positive histogram.
- Stochastic Oscillator shows sustained upward momentum.
- 23-period Rate of Change (ROC) remains positive.
- Directional Movement Index signals strong bullish strength.
- Trading volume is expanding healthily, supporting the bullish reversal thesis.
Company Profile:
Sarine Technologies develops, manufactures, and sells advanced systems for diamond grading and gemstone production. Its offerings include diamond cut grading tools, rough diamond optimization systems, gemology tools, color grading systems, and laser marking machines.
Regulatory Disclosures, Analyst Independence, and Ratings Framework
CGS International reiterates that all analyses and opinions are independently prepared, with no part of analyst compensation linked to investment banking transactions or specific recommendations. The company, its affiliates, and employees may have positions in the securities mentioned and may seek to do business with the named entities, which could present potential conflicts of interest.
| Stock Rating |
Definition |
| Add |
Expected total return > 10% over next 12 months |
| Hold |
Expected total return 0% – 10% over next 12 months |
| Reduce |
Expected total return < 0% over next 12 months |
| Rating |
Distribution (%) |
Investment Banking Clients (%) |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
Conclusion: Tactical Opportunities in Asia’s AI and Tech-Driven Market
The current market climate favors tactical positioning in stocks with strong AI pipelines, robust technical reversals, and expanding order books in next-gen technologies. Alibaba’s AI-fueled momentum, ISU Petasys’s network upgrade opportunity, and Sarine Technologies’ bullish technical setup collectively highlight the diverse opportunities in the region. Investors are encouraged to monitor these developments closely, align entries with technical support levels, and maintain vigilance on evolving sector trends for optimal portfolio growth.
