Technical Analysis – 27 August 2024

United States | Singapore | Hong Kong | Earnings

DocuSign, Inc. (DOCU US)

• Shares closed at a high since May 2024. 50dEMA recently crossed the 200dEMA.
• MACD is positive, RSI is constructive.
• Long – Entry 58.0 Target 63.0, Stop 55.5

Salesforce, Inc. (CRM US)

• Shares closed higher above the 5dEMA. 50dEMA recently crossed the 200dEMA.
• MACD is positive, RSI is constructive.
• Long – Entry 263, Target 283, Stop 253

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Hongkong Land Holdings Ltd. (HKL SP)

• Shares closed at a 52-week high with a surge in volume. 50dEMA just crossed the 200dEMA.
• MACD is positive, RSI is at an overbought level.
• Long – Entry 3.67, Target 3.95, Stop 3.53

SATS Ltd. (SATS SP)

• Shares closed at a 52-week high with more volume.
• MACD is positive, RSI is at an overbought level.
• Long – Entry 3.65 Target 3.91, Stop 3.52

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Zijin Mining Group Co Ltd (2899 HK)

• Shares closed at a one-month high above the 50dEMA with rising volume. The 5dEMA is about to cross the 50dEMA.
• Both RSI and MACD are constructive.
• Long – Entry 16.30, Target 18.00, Stop 15.45

Zhaojin Mining Industry Co Ltd (1818 HK)

• Shares closed above the 5dEMA with rising volume. The 20dEMA crossed the 50dEMA.
• RSI is constructive and MACD is positive.
• Long – Entry 14.0, Target 15.2, Stop 13.4

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PDD Holdings Inc (PDD)

• 2Q24 Revenue: $13.36B, +86% YoY, miss estimates by $610M
• 2Q24 Non-GAAP EPADS: $3.20, beat estimates by $0.41
• FY24 Guidance: No guidance provided. Warned of uncertainty ahead and downward pressure on profits amid increasing competition. Additionally, the company announced that it will not engage in share buybacks or dividend distribution in the next few years.
• Comment: PDD Holdings reported lower-than-expected second quarter revenue of RMB97.06bn (US$13.36bn) compared to estimates of RMB100bn, while its net profit soared 144% to RMB32.0bn beating estimates of RMB27.5bn. Despite the strong profit growth, operating expenses rose significantly by 48% due to increased marketing and staffing costs. This surge in expenses was partly driven by the company’s efforts to attract budget-conscious shoppers in a challenging economic environment. China’s weak economy, property sector struggles, and high unemployment have contributed to reduced consumer spending, impacting PDD’s revenue. Although the company has successfully attracted cost-conscious consumers with its low-price offerings, it faces intense competition from rivals offering similar discounts. In terms of revenue breakdown, online marketing services and others rose 29% YoY to RMB49.1bn (US$6.8bn), while revenue from transaction services surged 234% YoY to RMB47.9bn (US$6.6bn). PDD Holdings plans to continue investing heavily in platform trust, safety, and support for high-quality merchants, even as it anticipates short-term profitability declines. Despite its budget-friendly platform and increased domestic spending, the company faces tough competition and external challenges impacting its future profitability. 3Q24 recommended trading range: $85 to $115. Negative Outlook.

拼多多 (PDD)

• 24财年第二季营收：133.6亿美元，同比增长86%，逊预期6.1亿美元
• 24财年第二季Non-GAAP每股盈利：3.2美元，超预期0.41美元
• 24财年指引：不提供指引。公司对未来的不确定性和日益激烈的竞争对利润的下行压力提出警告。该公司还宣布，未来几年将不会进行股票回购或股息分配。
• 短评：拼多多第二季度收入为人民币970.6亿元(合133.6亿美元)，低于预期，而其净利润增长144%至人民币320亿元，高于预期的275亿元。尽管利润增长强劲，但由于营销和人员成本的增加，运营费用大幅上升了48%。支出激增的部分原因是，在充满挑战的经济环境下，该公司努力吸引注重预算的购物者。中国疲软的经济、房地产行业的挣扎和高失业率导致消费者支出减少，影响了公司的收入。尽管该公司凭借低价产品成功吸引了注重成本的消费者，但它面临着来自提供类似折扣的竞争对手的激烈竞争。在收入细分方面，在线营销服务和其他服务的收入同比增长29%，达到491亿元人民币(68亿美元)，而交易服务的收入同比增长234%，达到479亿元人民币(66亿美元)。公司计划继续在平台信任、安全性和对高质量商家的支持方面进行大量投资，尽管它预计短期盈利能力会下降。尽管拥有预算友好型平台和增加的国内支出，但该公司面临着激烈的竞争和影响其未来盈利能力的外部挑战。24年第三季度建议交易区间：85至115美元。负面前景。

Trip.com Group Ltd (TCOM)

• 2Q24 Revenue: US$1.76B, +13.5% YoY, miss estimates by $30M
• 2Q24 Non-GAAP EPADS: $0.80, beat estimates by $0.07
• FY24 Guidance: No guidance provided.
• Comment: Trip.com reported mixed results, with highlights indicating continued growth in 2Q24, fueled by strong travel demand, particularly for cross-border travel. Revenue increased by 13.5% YoY, driven mainly by heightened demand during holiday periods. However, this growth fell short of market expectations. The company also observed robust growth in China’s travel consumption, with accommodation bookings on its Chinese platforms rising by approximately 20% YoY. Outbound hotel and air reservations recovered to 100% of pre-COVID levels from the same period in 2019, exceeding the industry-wide recovery rate of over 70% for international flight capacity. Looking ahead, Trip.com aims to harness AI’s potential to revolutionize the travel industry and deliver exceptional value to its customers. Additionally, the Civil Aviation Administration of China (CAAC) reported that the country’s civil aviation sector handled over 117mn passenger trips during the summer travel rush. From 1^st July 2024 to 20^th August 2024, daily air passenger trips averaged 2.286mn, reflecting an 11% YoY increase. Trip.com’s 3Q24 results are likely to benefit from this sustained strength in travel demand within China. 3Q24 recommended trading range: $39 to $51. Positive Outlook.

携程 (TCOM)

• 24财年第二季营收：17.6亿美元，同比增幅13.5%，逊预期3,000万美元
• 24财年第二季Non-GAAP每股盈利：0.8美元，超预期0.07美元
• 24财年指引：不提供指引。
• 24财年第二季股息：董事会已批准截至2024年9月6日营业结束时，向股东派发第二季度每股美国存托凭证0.4350美元的股息。
• 短评：携程公布的业绩好坏参半，其中亮点显示，在强劲的旅游需求（尤其是跨境旅游需求）推动下，该公司在24年第二季度继续增长。营收同比增长13.5%，主要受假日期间需求增加的推动。然而，这一增长不及市场预期。该公司还观察到中国旅游消费的强劲增长，其中国平台的住宿预订量同比增长约20%。出境酒店和机票预订恢复到2019年同期疫情前的100%，超过了全行业70%以上的国际航班运力恢复率。展望未来，携程的目标是利用人工智能的潜力来彻底改变旅游业，并为其客户提供卓越的价值。此外，中国民用航空局报告称，在夏季旅游高峰期间，中国民航部门处理了超过1.17亿人次的旅客。从2024年7月1日到2024年8月20日，每日航空旅客平均为228.6万人次，同比增长11%。公司第三季度的业绩可能会受益于中国国内持续强劲的旅游需求。24年第三季度建议交易区间：39至51美元。积极前景。