Broker: CGS International
Date of Report: June 18, 2025

Banyan Tree Holdings and SingTel: In-Depth Technical and Fundamental Analysis for Singapore Investors

Market Overview: US Economic Data Influences Global Sentiment

Recent economic indicators from the US signal a cooling in consumer demand. US retail sales dropped for a second consecutive month in May, declining by 0.9%—the largest drop since the start of the year. This followed a revised 0.1% decrease in April, marking the first back-to-back monthly decline since late 2023. The decrease was primarily restrained by autos and further impacted by falling demand for building materials, gasoline, and motor vehicles. The decline in spending at restaurants and bars was the steepest since early 2023. The data points to consumer caution, likely stemming from tariff anxieties and persistent cost-of-living pressures. Despite tariffs not yet resulting in higher inflation, consumer sentiment remains fragile amid high interest rates and deteriorating household finances. Industrial production also contracted for the second time in three months, and homebuilder confidence slumped to a post-2022 low.

Banyan Tree Holdings Ltd: Strong Bullish Momentum Signals Further Upside

Company Overview
Banyan Tree Holdings Limited is a diversified hospitality group engaged in the ownership and management of hotels, resorts, spas, galleries, golf courses, and residences. The company also provides investments, design, construction, and project management services and operates globally.

Technical Analysis Snapshot

• Last Price: S\$0.44
• Entry Prices: S\$0.44, S\$0.40, S\$0.38
• Support Levels: S\$0.38 (Support 1), S\$0.32 (Support 2)
• Stop Loss: S\$0.33
• Resistance Levels: S\$0.47 (Resistance 1), S\$0.84 (Resistance 2)
• Target Prices: S\$0.56 (Target 1), S\$0.67 (Target 2), S\$0.80 (Target 3), S\$0.90 (Target 4)

Key Technical Indicators and Analysis

• The price has decisively broken above a major falling wedge, indicating an end to the corrective phase and suggesting a bullish continuation.
• Ichimoku analysis reveals three strong golden crosses, supporting a bullish outlook.
• The MACD histogram has crossed over from the bottom and is ascending toward the zero line, with a positive reading.
• The Stochastic Oscillator has surged, confirming strong bullish momentum.
• The 23-period Rate of Change (ROC) has rebounded and remains positive, adding to the bullish case.
• The Directional Movement Index confirms the presence of robust bullish strength.
• Trading volume is expanding healthily, further supporting the upward trend.

Technical Table: Banyan Tree Holdings Ltd

Technical View: The accumulation of strong bullish technical signals—including a breakout above a falling wedge, positive MACD and ROC, rising stochastic, and expanding volume—suggests high probabilities of further upside for Banyan Tree Holdings shares.

SingTel: Attractive Dividend Yields, But Upside Capped by Valuation

Company Overview
SingTel remains a key player in the region’s telecommunications sector, and its shares are widely held for their yield and stability.

Valuation and Investment Thesis

• Recommendation: Hold
• Revised RNAV-Derived Target Price: S\$4.10 (post-4QFY25 results update)
• Asset Recycling Target: SingTel aims to recycle S\$9 billion in assets over the next 3-4 years, providing scope for potentially higher dividends.
• Estimated Dividend Yields (FY26-28F): Above 5%, reinforcing SingTel’s appeal for income-focused investors.
• Valuation: SingTel’s CY26F P/E stands at 21.6x—over one standard deviation above its post-2009 mean trading range—indicating limited capital appreciation potential unless significant asset value unlocking occurs.

Key Takeaways for SingTel Investors

• Dividend prospects remain highly attractive, with yields expected to exceed 5% through FY26-28F.
• The current valuation premium limits further upside unless the company can deliver substantial asset monetization.
• Maintain Hold: While the yield is compelling, investors should temper expectations for share price growth in the absence of major catalysts.

Stock Ratings and Recommendations Framework

Sector Ratings:

• Overweight: Positive absolute recommendation on a market cap-weighted basis.
• Neutral: Neutral absolute recommendation on a market cap-weighted basis.
• Underweight: Negative absolute recommendation on a market cap-weighted basis.

Country Ratings:

• Overweight: Above-market weight relative to benchmark.
• Neutral: Neutral weight relative to benchmark.
• Underweight: Below-market weight relative to benchmark.

Ratings Distribution (as of March 31, 2025)

Coverage includes 551 companies as of quarter ended March 31, 2025.

Conclusion: Strategic Opportunities Amid Market Uncertainty

Banyan Tree Holdings stands out with strong bullish technical signals and potential for significant price appreciation, supported by expanding volume and positive momentum indicators. Investors seeking capital growth in the Singapore market may find Banyan Tree an attractive play, especially at the suggested entry levels and with clearly defined support and stop-loss strategies.

In contrast, SingTel offers reliable dividend yields exceeding 5% in the medium term, but its valuation premium curbs near-term upside. Investors prioritizing income should maintain positions but look for additional catalysts before expecting share price appreciation.

With global economic headwinds and shifting risk appetite, these two stocks offer distinct value propositions—Banyan Tree for growth and SingTel for yield—enabling investors to diversify amid market volatility.