Keppel Corp Ltd – Riding the Bullish Wave
Keppel Corporation Limited, a diversified conglomerate engaged in offshore and marine, infrastructure, property investment and development, telecommunications, transportation, energy, and engineering, is poised for continued bullish momentum. The stock has been on an upward trajectory since March 2022, with recent price action signaling a strong continuation of this trend.
The technical indicators are favorable, with prices trending above all Ichimoku indicators, a bullish breakout from a falling wedge/flag pattern, and a sharp rise in the 23-period ROC above the zero line. The MACD/signal line remains elevated, reinforcing the bullish sentiment. Notably, the 14-period DM+ and ADX have increased, indicating strengthened bullish strength. Additionally, volume has risen above the 20-period average, underscoring sustained bullish momentum.
Keppel Corp is currently trading at S\$6.56, with entry prices identified at S\$6.56, S\$6.33, and S\$6.03. Support levels are set at S\$6.25 and S\$6.03, while resistance levels are at S\$7.07 and S\$7.44. Target prices are forecasted at S\$6.82, S\$7.04, S\$7.15, and S\$7.60. The recommendation remains a “Technical Buy” with expectations for the bullish trend to persist.
Kingsoft Cloud Holdings Ltd – A Technical Buy Opportunity
Kingsoft Cloud Holdings Ltd, listed under the ticker (3896), presents a compelling technical buy opportunity. The entry prices are strategically positioned at HK\$2.68, HK\$2.00, and HK\$1.64, with a stop loss set at HK\$1.38. The target prices are ambitious, set at HK\$4.10, HK\$5.20, HK\$7.30, and HK\$9.40.
This recommendation stems from a robust technical outlook, as the company has shown resilience and potential for growth in its cloud services segment. The strategic entry points and stop loss provide a calculated approach to capitalizing on Kingsoft Cloud’s growth trajectory.
Mermaid Maritime – Awaiting Key Catalysts
Mermaid Maritime, operating in the maritime and offshore engineering services sector, is currently in a phase of anticipation for key order wins. The company’s third-quarter 2024 revenue experienced a slight decline quarter-on-quarter due to the completion of decommissioning contracts in the UK and Thailand. However, this was partially offset by stronger cable-laying operations.
Despite the revenue dip, Mermaid Maritime’s gross margin estimates for FY24F-26F remain broadly maintained, although revenue forecasts have been adjusted downward due to lower fleet utilization and decommissioning order assumptions. Excluding a foreign exchange loss of US\$2.7 million, the third-quarter net profit aligned with expectations at US\$3.8 million, with improvements in SG&A shares providing a positive surprise.
The recommendation for Mermaid Maritime is an “Add,” with a lower target price of S\$0.16, reflecting reduced net profit expectations. The announcement of new order wins is identified as a key catalyst for future growth.
