Broker: CGS International
Date of Report: June 27, 2025

Food Empire Holdings Ltd: Riding a Robust Uptrend with More Upside Ahead

Market Overview: Dovish Fed Expectations Fuel US Dollar Decline and Stock Rally

The global financial landscape has shifted as traders anticipate accelerated interest-rate cuts from the US Federal Reserve. A Bloomberg report indicating that President Donald Trump could expedite his nomination for the next Fed chair has driven the US dollar to its lowest level since April 2022, falling by 0.5%. This has triggered a rally in US stock futures, with the S&P 500 poised to break new ground. Treasury yields have dropped across the curve, with the 10-year rate slipping to 4.27%. Market participants are now pricing in 63 basis points of Fed easing by year-end, a notable increase from the previous week’s 51 basis points.
The prospect of a more dovish Fed chair, potentially more aligned with Trump’s preference for lower rates, is driving these expectations. Technology stocks, especially those linked to artificial intelligence, are benefitting, with Micron Technology and Nvidia both extending gains as robust earnings highlight resilient demand.

Food Empire Holdings Ltd (SGX: FEH): Outperformance Continues, More Re-Rating Likely

Stellar Share Price Performance and Outlook

Food Empire Holdings Ltd (FEH) has delivered exceptional returns, with its share price soaring 80% year-to-date as of June 18, 2025. Analysts at CGS International believe the re-rating story is far from over, with further upside anticipated in the second half of 2025 and beyond.
Key Re-Rating Catalysts Include:

• Potential earnings (core net profit) surprise when FEH announces its 1H25 results in August.
• Investors have yet to fully price in the earnings uplift expected from the new Vietnam freeze-dried coffee powder production, set to commence in FY28.
• Analysts project FEH could re-rate to its 2 standard deviation above average P/E multiple of 14.2x, implying a revised target price (TP) of S\$2.28 based on FY26F EPS forecasts.

Technical Analysis: Strong Uptrend Confirmed

FEH is demonstrating a strong, sturdy uptrend, supported by multiple technical indicators. The company’s share price has surpassed previous technical targets and is closing in on S\$2.00, with further milestones in sight.

• Last Price: S\$1.82
• Entry Price Levels: S\$1.82, S\$1.69, S\$1.52
• Support Levels: S\$1.70 (Support 1), S\$1.41 (Support 2)
• Stop Loss: S\$1.40
• Resistance Levels: S\$2.00 (Resistance 1), S\$3.05 (Resistance 2)
• Target Prices: S\$2.15 (TP2), S\$2.75 (TP3), S\$3.00 (TP4), S\$3.20 (TP5)

Technical Highlights

• Uptrend established since February 2025, with price action consistently breaking above short-term resistance.
• Stock remains firmly supported above S\$1.70.
• Ichimoku indicator signals healthy bullish momentum.
• MACD line and signal are rising well above zero, with a positive histogram.
• Stochastic Oscillator is in overbought territory with only mild correction, suggesting bullish sentiment remains intact.
• Trading volume is expanding healthily, corroborating the uptrend.

Corporate Profile

Food Empire Holdings Limited is a leading manufacturer and marketer of instant beverage products, frozen convenience foods, confectionery, and snacks. The company exports its products to diverse markets including Russia, Eastern Europe, Central Asia, the Middle East, and Indochina.

Summary Table: Key Technical Levels for Food Empire Holdings Ltd

Recommendation and Ratings Framework

CGS International uses a clear, actionable ratings system for stock recommendations:

• Add: Total return expected to exceed 10% over the next 12 months.
• Hold: Total return expected between 0% and +10% over the next 12 months.
• Reduce: Total return expected to fall below 0% over the next 12 months.

The total expected return combines the percentage change between the target price and current price, plus forward net dividend yields. Price targets are set with a 12-month investment horizon.

Distribution of Ratings (as of March 31, 2025)

• Add: 71.0% (1.3% are investment banking clients)
• Hold: 20.9% (0.7% are investment banking clients)
• Reduce: 8.2% (0.4% are investment banking clients)
• Total companies under coverage: 551

Disclosures and Disclaimers

CGS International emphasizes that this report is intended for general information and is not an offer or solicitation to buy or sell securities. Investors should conduct their own independent evaluations, considering their investment objectives and consult with professional advisors. CGS International, its affiliates, and related corporations may have interests or positions in the securities covered in this report and may seek to do business with these companies.

Conclusion: Food Empire Holds Firm as a Market Leader with Strong Upside Potential

Food Empire Holdings Ltd has emerged as a standout performer in 2025, propelled by strong earnings and technical momentum. With upcoming catalysts such as potential earnings surprises and new business ventures in Vietnam, the company is well-positioned for further re-rating. Investors and market watchers should keep a close eye on FEH as it targets new highs in the months ahead.