Broker: CGS International
Date of Report: July 22, 2025

Singapore Market Insights: Early-Stage Uptrend for Micro-Mechanics, Centurion Expands Premium Student Housing

Market Overview: Anticipation Builds Amid Earnings Season and Tariff Uncertainty

The start of a busy corporate week in America saw major indices temper gains as investors weighed potential tariff actions and awaited fresh earnings reports. The S&P 500 managed to close above 6,300 for the first time, inching just 0.1% higher. Energy shares fell with oil prices, and chipmaker momentum faded as Nvidia slipped. Meanwhile, Tesla and Alphabet are set to ignite the tech earnings season, with investor focus sharply attuned to any updates on artificial intelligence spending.

U.S. Treasuries saw yields decline, particularly in longer maturities, with the 30-year yield falling to 4.95%. The dollar weakened across the board against developed market peers, while the yen surged after Japan’s Prime Minister Shigeru Ishiba pledged to stay on despite election setbacks for his coalition. Trade tensions remain in focus, with the U.S. administration signaling potential new unilateral tariff announcements before August 1 and the possibility of additional trade deals in the near future.

• U.S. 30-year Treasury yield: Down four basis points to 4.95%
• S&P 500 closes above 6,300 (+0.1%)
• Energy sector and oil prices under pressure
• Yen climbs on Japanese political headlines

Micro-Mechanics Holdings Ltd: Technical Buy as Uptrend Gains Momentum

Micro-Mechanics Holdings Ltd, a precision tools manufacturer and solutions provider, is showing promising technical indicators that suggest its uptrend is still in its early stage. The stock has recently achieved the third target price set in the previous analysis, netting an 18% gain since May 2024. CGS International now reiterates a technical buy, highlighting several bullish signals in the chart and technical indicators.

Key Technical Highlights

• Entry Prices: S\$1.85, S\$1.74, S\$1.60
• Support Levels: S\$1.76, S\$1.60
• Stop Loss: S\$1.49
• Resistance Levels: S\$1.92, S\$2.17
• Target Prices: S\$2.03, S\$2.20, S\$2.70, S\$3.00
• Last Price: S\$1.85

Technical Analysis

• Consistent formation of higher lows, confirming an accumulative uptrend.
• Bullish cup and handle pattern has been validated.
• Ichimoku indicator shows a robust bullish signal, with price closing above all Ichimoku components.
• MACD remains above the zero line, indicating sustained bullish momentum.
• Stochastic Oscillator is rising, with a confirmed oversold crossover—suggesting renewed buying interest.
• 23-period Rate of Change (ROC) remains positive.
• Directional Movement Index signals steady bullish strength.
• Volume has shown healthy expansion over the last 10 periods.

Micro-Mechanics’ strong technical profile, coupled with expanding volume and consistent bullish signals, points to further upside potential. The company’s core business—designing and manufacturing precision tools—continues to support its positive outlook.

Centurion Corporation Ltd: Launching Epiisod To Tap Premium Student Housing Demand

Centurion Corporation Ltd has announced the launch of “Epiisod,” a new brand targeting the growing demand for upscale, experience-driven student accommodation. The flagship Epiisod Macquarie Park marks a significant step as Centurion pivots toward higher-value, service-oriented offerings in the student housing space.

Strategic Initiatives and Financial Impact

• Epiisod is positioned to capture the premium segment of student accommodation, providing more than just lodging—an experience-driven lifestyle.
• Spin-off value for Centurion Student Accommodation REIT (CAREIT) is estimated at S\$1.4 billion.
• Centurion plans to retain a 35-40% stake in CAREIT, underscoring its commitment to recurring earnings from this asset class.
• CGS International reiterates an “Add” rating with an increased target price of S\$2.05, transitioning from a blended valuation approach to a pure RNAV (Real Net Asset Value) model for a more accurate reflection of Centurion’s recurring earnings profile.

Key Points

• Launch of Epiisod brand with Macquarie Park as its first site.
• Estimated S\$1.4bn spin-off value for CAREIT.
• Targeted 35-40% holding in CAREIT.
• Upgrade to “Add” with TP S\$2.05, moving to a pure RNAV methodology.

Stock Ratings and Recommendation Framework

CGS International applies a clear and structured stock rating framework:

• Add: Expected total return exceeds 10% over the next 12 months.
• Hold: Expected return between 0% and +10% over the next 12 months.
• Reduce: Expected return below 0% over the next 12 months.

The total expected return combines the percentage difference between target and current price plus forward net dividend yields, all within a 12-month horizon.

(Data for the quarter ended June 30, 2025; coverage universe: 561 companies)

Conclusion: Navigating Opportunity Amid Uncertainty

The Singapore market continues to present compelling opportunities as companies like Micro-Mechanics Holdings and Centurion Corporation innovate and position for growth. Micro-Mechanics’ early-stage uptrend, underpinned by robust technicals, and Centurion’s bold move into premium student accommodation both exemplify responsive strategies to evolving market dynamics. With global macro risks in play, especially around tariffs and earnings guidance, investors should stay nimble and informed as the new earnings season unfolds.