Comprehensive Analysis of Hong Kong’s Retail Market Trends

Date: November 18, 2024 | Broker: CGS International

Kingsoft Cloud Holdings Ltd (3896): A Rising Star in Cloud Solutions

Kingsoft Cloud Holdings Ltd, listed on the Hong Kong stock exchange, is a prominent player in the cloud computing space, offering solutions for gaming, video streaming, and financial services. The company’s stock is experiencing a confirmed uptrend, marking a significant breakout from a downtrend line dating back to March 2023.

The technical analysis reveals several bullish indicators:

• The stock has formed a higher high and low, signaling an early uptrend.
• Prices have closed above all Ichimoku indicators with all indicators sloping upwards, indicating strong momentum.
• The MACD/signal line is elevated above the zero line with a positive histogram.
• The Stochastic Oscillator is rising, having crossed above the midpoint line.
• The 23-period ROC shows a sharp rise above the zero line with bullish divergence.
• A notable volume spike supports this bullish bias.

Analyst CHUA Wei Ren, CMT, recommends a Technical Buy with entry prices at 2.68, 2.00, and 1.64. The stock has a stop loss at 1.38 and multiple target prices ranging from 4.10 to 9.40, indicating a promising upside potential.

Mermaid Maritime: Awaiting Key Order Wins

Singapore-based Mermaid Maritime experienced a slight decline in revenue for Q3 2024 due to the completion of decommissioning contracts in the UK and Thailand. This was slightly offset by stronger cable-laying activities. The company maintains its FY24F-26F gross margin estimates but has reduced its revenue forecasts due to lower fleet utilization and decommissioning order assumptions.

Excluding a forex loss of US\$2.7 million, the company’s net profit aligns with the estimated US\$3.8 million. An improvement in the share of SG&A was a positive surprise. The recommendation remains an “Add” with a lower target price of S\$0.16, driven by reduced net profit expectations. A key catalyst for future growth is the announcement of new order wins.

Tencent: Strong Game Revenue Anticipated for Q4 2024

Tencent, a major player in the gaming industry, is expected to maintain strong game revenue in the fourth quarter of 2024. The company continues to leverage its vast user base and innovative gaming solutions to drive growth. Details on specific revenue figures or market strategies for Tencent were not disclosed in this report.

CSE Global: Focus on Clean Project Execution

CSE Global, another Singapore-listed company, emphasizes the importance of clean project execution to achieve its financial targets. The company’s focus on operational excellence is crucial for maintaining its competitive edge and ensuring a robust financial performance. However, specific financial metrics or project details were not provided in this report.

Frasers Property Limited: Improved Performance in 2H FY24

Frasers Property Limited is anticipated to show better operational performance in the second half of fiscal year 2024. The company’s strategic initiatives and efficient resource management are expected to contribute to enhanced financial results. Further insights into their operational strategies or financial forecasts were not detailed in the report.