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

Singapore Market Watch: Nanofilm Technologies and Food Empire Holdings Poised for Growth as US Rate Cut Bets Rise

Market Overview: Dovish Fed Expectations Drive Global Sentiment

Global markets are showing renewed optimism as traders increasingly anticipate faster U.S. interest rate cuts. The U.S. dollar has weakened, hitting its lowest level since April 2022. This comes amid speculation that President Donald Trump may expedite the nomination of a new, potentially more dovish Federal Reserve chair as early as September. The prospect of a Fed chief more open to rate cuts has led to a drop in U.S. Treasury yields and a notable repricing of rate cut expectations—markets are now pricing in 63 basis points of easing by year-end, up from 51 basis points just a week earlier.

U.S. equity futures are trending higher, with the S&P 500 poised to challenge all-time highs. The technology sector remains a primary driver, buoyed by robust earnings from Micron Technology, which reported strong demand for chips supporting artificial intelligence workloads. Micron shares jumped over 2%, while Nvidia continues its record-setting climb, up 1.1% in premarket trading.

Nanofilm Technologies International Ltd: Early Uptrend Signals Technical Buy Opportunity

Company Overview: Nanofilm Technologies International Ltd. delivers advanced nanotechnology solutions, specializing in advanced materials and nanoproducts for customers across Asia.

Latest Price: S\$0.65

Technical Analysis Highlights:

• The stock has broken out of its long-term downtrend line for five consecutive daily periods, signaling a potential reversal.
• Ichimoku indicator flashes a strong bullish signal.
• MACD signal and line have crossed, with a positive histogram.
• Stochastic Oscillator shows steady upward momentum, reinforcing bullish sentiment.
• 23-period Rate of Change (ROC) remains positive and rising.
• Directional Movement Index (DMI) confirms strengthening bullish momentum.
• Volume expansion aligns with the uptrend, suggesting growing investor interest.

Analyst View: The price action suggests Nanofilm is embarking on a significant upside reversal, with the uptrend likely to persist in the mid-term. Investors may consider multiple entry points, with prudent stop loss management at S\$0.43 to mitigate downside risk.

Food Empire Holdings Ltd: Share Price Re-rating Not Over Yet

Company Overview: Food Empire Holdings Ltd. (FEH) is a well-established player in the food and beverage sector.

Share Price Performance:

• FEH’s share price has surged by 80% year-to-date through June 18, 2025.

Re-rating Catalysts:

• Potential for further share price appreciation in the second half of 2025.
• Possible earnings surprise when FEH reports its 1H25 results in August, driven by core net profit growth.
• Investors have yet to fully price in the potential earnings boost from FEH’s new Vietnam freeze-dried coffee powder production, expected to commence in FY28.
• FEH could see its valuation re-rate higher to its 2-standard-deviation-above-average P/E multiple of 14.2x, underpinning a revised target price of S\$2.28 based on FY26 EPS forecasts.

Broker’s Ratings and Methodology

Stock Ratings:

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

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: Investors should allocate above-market weight to this country relative to benchmark.
• Neutral: Investors should maintain a neutral weight.
• Underweight: Investors should allocate below-market weight.

Coverage Distribution (as of March 31, 2025):

• Add: 71.0%
• Hold: 20.9%
• Reduce: 8.2%

Disclaimer and Regulatory Information

This report is intended for information purposes only and does not constitute an offer or recommendation to buy or sell any securities. The report is prepared for general circulation and does not take into account individual investment objectives or financial situations. Investors are advised to conduct their own due diligence and consult with professional advisers before making investment decisions.

CGS International and its affiliates may have positions in the companies covered and may provide or seek to provide investment banking, advisory, or other services to these companies.

Conclusion: Singapore Equities Offer Attractive Opportunities Amid Global Rate Uncertainty

As global monetary policy expectations shift, Singapore-listed equities such as Nanofilm Technologies International Ltd. and Food Empire Holdings Ltd. stand out for investors seeking growth and resilience. Nanofilm’s technical reversal and Food Empire’s robust fundamentals create compelling cases for inclusion in growth-oriented portfolios. Ongoing market developments, especially in U.S. rate policy and technology earnings, will continue to shape the investment landscape in the months ahead.