Broker: CGS International
Date of Report: June 4, 2025
Singapore Retail Market Insights: DFI Retail Group’s Strategic Moves and Valuemax Group’s Bullish Momentum
Market Overview: Wall Street’s Resilience Amid Tariff Tensions
Equity markets continued their upward trajectory as Wall Street traders pushed stocks higher following data that revealed a robust labor market. An unexpected increase in US job openings provided a counterbalance to growing concerns about the rapid pace of equities and economic risks linked to ongoing tariff disputes. The S&P 500 edged up by 0.3% after an initial period of volatility, with technology shares leading the recovery—Nvidia Corp. notably climbed 3%. Despite this positive momentum, uncertainties remain, as evidenced by a recent cut in OECD growth forecasts and the ongoing challenges faced by job seekers. Economists are bracing for a potential softening in the labor market as tariff pressures persist, adding to the complexity of the current macro environment.
DFI Retail Group: Transformative Asset Monetization and Outlook
DFI Retail Group has made significant strides in asset monetization since 2024, executing a series of high-profile divestments:
- Sold its 22.2% stake in Robinsons Retail Holdings for approximately US\$283 million, representing an implied valuation of 11.2x FY24 P/E.
- Executed disposals totaling about US\$1.2 billion, including major assets such as PT Hero Indonesia, Yonghui Superstores, and most recently, Cold Storage Singapore.
Valuation and Recommendation:
- Target Price: S\$3.00
- Valuation Basis: 14.6x FY26 P/E, 0.5 standard deviations below the 5-year average
- Call: Add
Key Catalysts:
- Potential improvement in earnings
- Possibility of a special dividend
Valuemax Group Ltd: Technical Buy Triggered by Bullish Breakout
Valuemax Group Ltd operates a network of pawnshops, offering product valuation, pawn services, and the buying and selling of goods through its outlets. The company is currently on the radar for technical investors, as it sets a new high amid a strong uptrend.
| Key Technical Levels |
Price (S\$) |
| Last Price |
0.565 |
| Entry Prices |
0.565, 0.530, 0.490 |
| Support 1 |
0.536 |
| Support 2 |
0.479 |
| Stop Loss |
0.460 |
| Resistance 1 |
0.600 |
| Resistance 2 |
0.720 |
| Target Price 1 |
0.670 |
| Target Price 2 |
0.720 |
| Target Price 3 |
0.750 |
| Target Price 4 |
0.800 |
Technical Analysis Highlights:
- Valuemax has maintained an uptrend since 2016, bolstered by steadily increasing trading volume.
- The recent bullish breakout above the S\$0.536 resistance (now support) confirms an ascending triangle pattern.
- Price action remains above all Ichimoku indicators, signaling a strong bullish trend.
- MACD and signal line have crossed above zero, with a positive histogram.
- Stochastic Oscillator continues to rise, indicating momentum is intact.
- 23-period Rate of Change (ROC) has rebounded strongly above zero.
- Directional Movement Index affirms strong bullish strength.
- Trading volume is well above the 20-period average, further confirming bullish sentiment.
Compliance, Disclosures, and Analyst Certification
This research is produced by CGS International, with clear compliance standards and disclosures about potential conflicts of interest. The analyst certifies the independence of their views and confirms that their compensation is not tied to specific investment banking transactions or recommendations. CGS International and its affiliates may hold positions or conduct transactions in the securities discussed, and may have business relationships with the companies covered.
Global Distribution and Regulatory Disclaimers
The report is distributed under strict compliance with financial regulations across multiple jurisdictions, including Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Thailand, Australia, Canada, China, France, Germany, Ireland, New Zealand, Spain, Sweden, Switzerland, the UAE, the UK, the EEA, and the United States. Restrictions may apply depending on the investor status and local regulatory frameworks.
CGS International’s Stock Rating System
| Stock Rating |
Definition |
| Add |
Expected total return > 10% over the next 12 months |
| Hold |
Expected total return between 0% and +10% over the next 12 months |
| Reduce |
Expected total return < 0% over the next 12 months |
The total expected return of a stock is the sum of the percentage difference between the target price and the current price, plus the forward net dividend yield. Price targets are set with a 12-month investment horizon.
| Sector Rating |
Definition |
| Overweight |
Sector has a positive absolute recommendation on a market cap-weighted basis |
| Neutral |
Sector has a neutral absolute recommendation on a market cap-weighted basis |
| Underweight |
Sector has a negative absolute recommendation on a market cap-weighted basis |
| Country Rating |
Definition |
| Overweight |
Position above market weight in this country relative to benchmark |
| Neutral |
Position at market weight in this country relative to benchmark |
| Underweight |
Position below market weight in this country relative to benchmark |
Rating Distribution (as of March 31, 2025):
- Add: 71.0% (1.3% investment banking clients)
- Hold: 20.9% (0.7% investment banking clients)
- Reduce: 8.2% (0.4% investment banking clients)
Total companies under coverage: 551 (for the quarter ended March 31, 2025)
Conclusion: Navigating the Singapore Retail Landscape
The Singapore retail sector continues to demonstrate resilience and adaptability amid global economic uncertainties. DFI Retail Group’s strategic divestments and Valuemax Group’s technical strength present compelling opportunities for investors seeking growth and defensive plays. Market participants are advised to remain vigilant, monitor key technical and fundamental indicators, and consider the evolving macroeconomic backdrop when making investment decisions.
