Broker: CGS International
Date of Report: July 18, 2025
Singapore Market Insight: Bullish Signals for CDL Hospitality Trusts and Fresh Momentum for Food Empire Holdings
Market Overview: Resilient US Data Lifts Global Sentiment
Global equities advanced as robust US retail sales and a continued decline in jobless claims reinforced confidence in economic resilience. The S&P 500 neared new highs, buoyed by strong earnings in the tech sector and optimism surrounding artificial intelligence investments. Meanwhile, the US dollar continued its upward trajectory, marking its best month in 2025.
Short-dated Treasury yields rose, while long-term yields slipped, reflecting shifting expectations for Federal Reserve policy. Markets now anticipate fewer than two rate cuts for the year—down from three at the start of July—following encouraging economic data and President Trump’s move to downplay speculation around Fed Chair Jerome Powell’s tenure.
- US retail sales posted broad-based gains, alleviating concerns over consumer spending slowdowns.
- Unemployment benefit applications declined for the fifth consecutive week, hitting their lowest since mid-April.
- Major companies like PepsiCo and United Airlines delivered robust results, with United signaling a likely outperformance of earnings targets as travel demand rebounded.
Despite upbeat data, some caution remains due to rising prices for consumer goods, suggesting that the retail strength may be partially inflation-driven.
CDL Hospitality Trusts: Bullish Technical Reversal Signals Opportunity
Ticker: CDL Hospitality Trusts (CDLHT)
Last Price: S\$0.83
| Entry Price(s) |
Support 1 |
Support 2 |
Stop Loss |
Resistance 1 |
Resistance 2 |
| 0.83, 0.78, 0.75 |
0.81 |
0.72 |
0.70 |
0.86 |
1.01 |
| Target Price 1 |
Target Price 2 |
Target Price 3 |
Target Price 4 |
| 0.97 |
1.05 |
1.10 |
1.15 |
CDL Hospitality Trusts—a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT) and CDL Hospitality Business Trust (HBT)—invests primarily in income-producing hospitality assets across Asia Pacific. The trust’s price action has confirmed a bullish reversal, presenting a compelling technical buy opportunity for investors.
Technical Analysis at a Glance
- The share price has decisively broken out of its intermediate downtrend line, with a robust breakout from the pennant pattern confirming the reversal.
- Ichimoku indicators are bullish, with the price closing above all key Ichimoku levels.
- The MACD line is rising strongly toward the zero line post-crossover, with a positive histogram, indicating growing upward momentum.
- The Stochastic Oscillator continues to climb steadily.
- The 23-period Rate of Change (ROC) remains positive.
- Directional Movement Index (DMI) signals sustained bullish strength.
- Significant volume spikes accompanied the bullish breakout, further supporting the reversal trend.
Company Profile
CDL Hospitality Trusts focuses on hospitality and hospitality-related real estate, with a strategic emphasis on the Asia Pacific region. The trust benefits from diversified assets aimed at delivering stable, income-generating returns.
Food Empire Holdings Ltd: Growth Prospects Justify Continued Re-Rating
Ticker: Food Empire Holdings Ltd (FEH)
Food Empire Holdings has announced a strategic collaboration with Santan, enabling its products to be featured on AirAsia flights and at related on-ground touchpoints. This move forms the initial phase of a broader business initiative linked to the partnership with Ikhlas Capital, a private equity firm.
- The partnership with Santan and AirAsia is expected to be the first of several new business ventures for FEH.
- FEH is actively expanding its business footprint, leveraging collaborations to drive growth.
- The company’s participation in the MAS S\$5 billion Enterprise Financing Scheme (EMDP) could serve as a catalyst for a valuation re-rating to 17x FY26F P/E—an exceptional 3 standard deviations above its 9-year average.
Valuation Outlook
With these strategic initiatives and partnerships underway, Food Empire Holdings is positioned for robust earnings growth and a premium re-rating. The company’s focus on innovation, distribution partnerships, and international expansion supports the case for higher forward multiples.
Recommendation Framework and Analyst Coverage
| Stock Rating |
Definition |
| Add |
Total return expected to exceed 10% over the next 12 months. |
| Hold |
Total return expected to be between 0% and 10% over 12 months. |
| Reduce |
Total return expected to be negative over 12 months. |
| Rating |
Distribution (%) |
Investment Banking Clients (%) |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
The analyst responsible for this research—Chua Wei Ren, CMT—emphasizes that the recommendations are based on rigorous technical and fundamental analysis, with no direct compensation tied to specific investment banking transactions.
Disclaimer and Regulatory Considerations
This report is intended for professional, institutional, and sophisticated investors. It does not constitute an offer or solicitation to buy or sell any security and is for informational purposes only. The broker and its affiliates may have positions or interests in the securities covered.
Investors are encouraged to perform their own due diligence and consult with professional advisers before making investment decisions. The securities discussed herein may not be eligible for sale in all jurisdictions.
Conclusion: Strategic Opportunities in Singapore Equities
The Singapore market continues to present attractive opportunities for discerning investors. CDL Hospitality Trusts shows strong technical reversal signals, supported by solid volume and bullish momentum indicators. Food Empire Holdings, meanwhile, is justifying its valuation re-rating through strategic partnerships and expansion plans.
As global economic data remains resilient and corporate earnings surprise on the upside, investors should keep a close eye on these two names for continued outperformance in the months ahead.
