Broker: CGS International
Date of Report: August 7, 2025
Bullish Momentum Drives Koh Brothers Group and Venture Corporation Amid Global Market Optimism
Market Overview: Resilience Amid Recession Fears and AI Boom
Despite a noted 30% probability of a US recession, global equities continue to surge, defying bearish predictions. Market momentum remains strong, with investors focusing on robust liquidity and structural growth themes such as artificial intelligence and fiscal credit expansion. US equities are hovering near record highs, buoyed by solid corporate earnings and expectations of more than 100 basis points in Federal Reserve rate cuts by mid-2026. Fast-money investors, particularly CTAs (Commodity Trading Advisors), are driving the bulk of equity flows, reinforcing a trend-following environment where “let winners run” dominates over fundamental concerns.
Venture Corporation: Earnings Beat and Dividend Surprise
- 1H25 Earnings: S\$113 million, down 8.6% year-on-year. This result was above/in line with both internal and Bloomberg consensus full-year expectations.
- Revenue: 1H25 revenue fell 8.8% YoY to S\$1.26 billion.
- Dividend: Venture declared an interim dividend per share (DPS) of S\$0.25 (unchanged YoY) and a special DPS of S\$0.05.
- Balance Sheet: Net cash at end-June 2025 stood at a robust S\$1.3 billion.
- Outlook: While uncertainties persist due to the tariff environment and weakness in a major customer segment, Venture continues to pursue new business opportunities.
- Guidance: Full-year FY25-27F earnings outlook raised, maintaining an 8-10% net margin target.
- Recommendation: Upgraded to “Add” with a new target price of S\$13.45, rolling over analysis to FY27F. The company is expected to benefit from gradually improving business conditions and better revenue growth into FY27F.
| Financial Metric |
1H25 |
YoY Change |
| Net Profit (S\$ million) |
113 |
-8.6% |
| Revenue (S\$ billion) |
1.26 |
-8.8% |
| Net Cash (S\$ billion) |
1.3 |
N/A |
| Interim DPS (S\$) |
0.25 |
No change |
| Special DPS (S\$) |
0.05 |
New |
Koh Brothers Group Ltd: Technical Buy as Bullish Continuation Strengthens
Koh Brothers Group Ltd, a diversified investment holding company with interests in construction, real estate, building materials, hotel management, and equipment for the oil and gas industry, is showing strong bullish momentum.
Technical Analysis Snapshot
- Current Price: S\$0.315
- Entry Price Range: S\$0.315, S\$0.260
- Key Support Levels: S\$0.260, S\$0.230
- Stop Loss: S\$0.220
- Resistance Levels: S\$0.380, S\$0.420
- Target Prices: S\$0.380, S\$0.415, S\$0.430, S\$0.500
| Technical Indicator |
Observation |
| Trend |
Strongly intact uptrend channel |
| Bullish Confirmation |
Close above flag formation and 9-period Ichimoku conversion line |
| Ichimoku |
Strong bullish signal |
| MACD |
Signal/MACD line rising above zero line; positive histogram |
| Stochastic Oscillator |
Rising steadily, indicating sustained bullish momentum |
| Rate of Change (23-period) |
Positive |
| Directional Movement Index |
Steady bullish strength |
| Volume |
Healthy expansion |
The technical setup highlights sustained bullish momentum, with multiple indicators confirming the uptrend. Closing above the flag formation and Ichimoku conversion line further solidifies the bullish case, while expanding volume supports the continuation of the rally. Investors are advised to target a series of ascending price objectives up to S\$0.500, with well-defined support and stop-loss levels to manage downside risk.
Recommendation Framework and Ratings
- Stock Ratings:
- 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.
- 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 recommendation for the country.
- Neutral: Neutral weight recommendation for the country.
- Underweight: Below-market weight recommendation for the country.
| Rating |
Distribution (%) |
Investment Banking Clients (%) |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
As of June 30, 2025, 561 companies were under coverage, with the majority rated as “Add.”
Conclusion
Both Koh Brothers Group Ltd and Venture Corporation stand out in an environment where market optimism is overshadowing macroeconomic caution. Koh Brothers exhibits robust technical momentum, while Venture Corporation delivers resilient performance and shareholder returns despite sector-specific headwinds. With clear technical signals and upgraded earnings outlooks, these companies are positioned to benefit from the ongoing market rally and structural growth themes.
