Date: October 8, 2024
Broker: CGS-CIMB

Company Overview

Qingdao Port International Co., Ltd. (HKG: 6198) operates ports and harbors, providing a wide range of services, including loading, unloading, cargo storage, tugboat operation, and port passenger transportation. In addition, the company engages in financing, port construction, and other related businesses.

Technical Buy Recommendation

The report highlights Qingdao Port International as a “Technical Buy” due to a bullish trend that is expected to continue. The current price of the stock is HK$6.25.

Price Levels and Targets

• Entry Prices: HK$6.25, HK$5.50, HK$5.20
• Support Levels: HK$5.88, HK$5.37
• Stop Loss: HK$5.08
• Resistance Levels: HK$6.57, HK$6.94
• Target Prices:
  1. HK$6.60
  2. HK$7.10
  3. HK$8.60
  4. HK$9.40

Technical Indicators

1. Uptrend Momentum: The stock has been in an upward trend since October 2023, and despite a significant correction in June 2024, it has broken out of a descending corrective channel resembling a bullish flag.
2. Ichimoku Indicators: Prices are trending above all Ichimoku indicators, supporting the continuation of the uptrend.
3. Stochastic Oscillator: Near oversold crossover at the 20-line, signaling potential for further upside.
4. 23-period Rate of Change (ROC): The ROC has rebounded and crossed above the zero line, another bullish signal.
5. Directional Movement Index (DMI): Shows a healthy uptrend strength, with ADX and DM+ crossing above the 25-level, indicating strong buying momentum.
6. Volume Expansion: Healthy expansion in trading volume, reinforcing the bullish outlook.

Analyst Commentary

The analyst responsible for this report is Chua Wei Ren, CMT. He highlights that despite market volatility and corrections, the technical indicators show strong bullish momentum for Qingdao Port International. The stock has continued its upward trajectory, and various technical indicators point toward further growth potential.

Outlook

The report expects the bullish trend for Qingdao Port International to remain robust, with multiple price targets outlined, ranging from HK$6.60 to HK$9.40, depending on market conditions and trading dynamics.