Broker Name: CGS International
Date of Report: August 7, 2025
Singapore Market Insights: Bullish Signals for Yangzijiang Shipbuilding and Venture Corporation Amid Strong Liquidity Flows
Market Overview: Robust Liquidity Overshadows Recession Fears
Despite a 30% probability of a US recession, global equities remain buoyant, propelled by strong liquidity, resilient corporate earnings, and structural growth drivers such as artificial intelligence and fiscal credit expansion. Investors, undeterred by warnings of economic slowdown and tariff-related uncertainties, continue to pile into technology heavyweights and high-growth sectors.
The S&P 500 has rebounded sharply from its April selloff, fueled by a surge of fast-money investors and trend-following CTAs who now control the bulk of “hot” equity flows. Market sentiment remains bullish as swaps traders price in over 100 basis points of Federal Reserve rate cuts by mid-2026, with ample Treasury issuance injecting significant liquidity into money markets.
Venture Corporation: Surprising Interim Dividend and Gradual Recovery Outlook
Financial Highlights (1H25):
- Earnings: S\$113 million, down 8.6% year-on-year, but above/in line with full-year consensus expectations.
- Revenue: S\$1.26 billion, down 8.8% year-on-year.
- Dividend: Declared interim DPS of S\$0.25 (unchanged from 1H24) and a special DPS of S\$0.05.
- Net Cash Position (end-Jun 25): S\$1.3 billion.
Key Observations:
- Ongoing tariff uncertainties and customer-specific headwinds persist, but Venture is actively pursuing new business opportunities.
- The company is defending its 8-10% net margin target, demonstrating operational resilience.
- CGS International has raised its FY25-27F earnings outlook for Venture, anticipating a gradual recovery in business conditions through FY27F.
Analyst Recommendation: The stock has been upgraded to Add with a target price of S\$13.45, reflecting improved revenue growth prospects as the operating environment recovers.
Yangzijiang Shipbuilding Holdings Ltd: Bullish Technical Breakout Signals Further Upside
Company Profile: Yangzijiang Shipbuilding Holdings Limited is a diversified shipbuilder, producing commercial vessels such as mini bulk carriers, multipurpose cargo vessels, containerships, chemical tankers, offshore supply vessels, rescue and salvage vessels, and lifting vessels.
| Last Price |
Entry Price(s) |
Support 1 |
Support 2 |
Stop Loss |
Resistance 1 |
Resistance 2 |
Target Price 1 |
Target Price 2 |
Target Price 3 |
Target Price 4 |
| S\$2.63 |
S\$2.63, S\$2.40 |
S\$2.37 |
S\$2.00 |
S\$1.97 |
S\$2.86 |
S\$3.20 |
S\$3.00 |
S\$3.12 |
S\$3.30 |
S\$4.20 |
Technical Analysis and Key Signals:
- The stock remains in a strong secondary uptrend channel, following confirmation of an inverted head and shoulders pattern.
- A recent close above the 9-period conversion line of the Ichimoku indicator affirms bullish continuation.
- The Ichimoku setup continues to flash robust bullish signals.
- MACD and signal lines are rising above zero, with a positive histogram indicating growing bullish momentum.
- Stochastic Oscillator maintains an upward trajectory, confirming sustained buying strength.
- 23-period Rate of Change (ROC) is positive, reinforcing the bullish thesis.
- The Directional Movement Index shows steady bullish strength.
- Volume trends are expanding healthily, supporting the price action.
Performance Update: From the last technical report on June 6, 2025, the stock has gained over 13%, and the bullish setup remains intact. The technical outlook points to further upside potential, with multiple target levels identified up to S\$4.20.
CGS International’s Coverage Universe and Recommendation Framework
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.
Definitions:
- Sector Ratings: Overweight, Neutral, Underweight—based on market cap-weighted recommendations.
- Country Ratings: Overweight, Neutral, Underweight—relative to benchmark allocations.
Rating Distribution for Quarter Ended 30 June 2025:
| Rating |
Distribution (%) |
Investment Banking Clients (%) |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
Total companies under coverage for the quarter: 561.
Important Disclosures and Distribution Restrictions
This research is intended for CGS International’s clients and institutional investors. It is not a solicitation or offer to buy or sell any securities and does not consider individual investment objectives or financial situations. Recipients are encouraged to make independent evaluations and seek professional advice before acting on any information presented.
CGS International and its affiliates may have positions in the securities mentioned, may perform or seek to perform investment banking and advisory services for them, and may act as market makers. The report includes full jurisdictional disclosures and compliance notices for regions including Australia, Canada, China, France, Germany, Hong Kong, Indonesia, Ireland, Malaysia, New Zealand, Singapore, South Korea, Spain, Sweden, Switzerland, the United Arab Emirates, the United Kingdom, and the United States.
Conclusion: Navigating Opportunities Amid Volatility
The Singapore market continues to demonstrate resilience, with liquidity-driven rallies and bullish technical signals for select stocks. Yangzijiang Shipbuilding remains a technical standout, while Venture Corporation’s defensive positioning and special dividend announcement highlight its ongoing attractiveness. Investors should remain vigilant of macroeconomic risks but can find value in companies with strong fundamentals and clear technical momentum.
