CGS International
August 22, 2025
Singapore Retail Momentum: BRC Asia’s Uptrend, Pop Mart’s Global Surge, and Key Market Signals
Market Overview: U.S. Labor Data Signals Weakening, Domestic Demand Slows
Markets opened to a cautious tone as fresh U.S. labor market data revealed early signs of cooling. The latest report showed:
- Initial U.S. jobless claims surged by 11,000 to 235,000, the largest weekly increase in three months.
- Economists had forecast 225,000, indicating a sharper-than-expected uptick in layoffs.
- The number of people receiving unemployment benefits rose by 30,000 to 1.972 million, reaching the highest level since November 2021.
- Domestic demand in the U.S. grew at its slowest pace since Q4 2022, reflecting broader economic headwinds.
- U.S. employment gains averaged just 35,000 jobs per month over the last quarter, highlighting a tepid hiring environment.
This shifting labor market backdrop sets the stage for the latest retail and equity trends in Asia.
BRC Asia Ltd: Uptrend Resumes, Technical Buy Opportunity
BRC Asia Ltd has caught the spotlight as its share price regains upward momentum after a brief correction. Technical indicators and market structure highlight renewed bullish sentiment.
| Metric / Level |
Value |
| Last Price |
S\$3.76 |
| Entry Price(s) |
S\$3.76, S\$3.55, S\$3.29 |
| Support 1 |
S\$3.43 |
| Support 2 |
S\$3.29 |
| Stop Loss |
S\$3.09 |
| Resistance 1 |
S\$4.10 |
| Resistance 2 |
S\$5.00 |
| Target Price 1 |
S\$4.14 |
| Target Price 2 |
S\$5.20 |
| Target Price 3 |
S\$6.26 |
| Target Price 4 |
S\$6.54 |
Company Profile
BRC Asia Limited is a leading provider in steel mesh solutions, operating under the BRC brand. Its portfolio includes nonstandard and customized mesh, prefabricated products such as beam and column cages, staggered mesh, twin wire mesh, and pile cap cages.
Technical Analysis Highlights
- The stock remains robust within its major uptrend channel, with a decisive bullish breakout above a flag formation—suggesting further upside potential.
- Recent price action confirmed bullish continuation, with a strong candle closing above both the 9-period conversion line and the 26-period base line of the Ichimoku indicator.
- All five Ichimoku indicators are trending upward, reinforcing positive momentum.
- MACD’s signal line and MACD line are rising steadily above the zero line; histogram remains positive.
- The 23-period Rate of Change (ROC) is positive, supporting the uptrend.
- Trading volume is expanding healthily, adding conviction to the rally.
Pop Mart: Global IP Powerhouse Drives Explosive Growth
Pop Mart, a leader in the global intellectual property (IP) platform space, delivered a standout performance in the first half of 2025, significantly outpacing sector averages both domestically and internationally.
| Metric |
1H25 |
YoY Change |
| Total Revenue Growth |
204% |
+204% |
| Domestic Revenue Growth |
135% |
+135% |
| Overseas Revenue Growth |
440% |
+440% |
| Adjusted Net Profit Growth |
363% |
+363% |
Guidance and Outlook
- Management has raised FY25 revenue guidance to over RMB 30bn—implying 130% YoY growth, a substantial increase from the previous 50% YoY forecast.
- Adjusted Net Profit Margin (NPM) guidance was lifted to 35% (up 8.9 percentage points YoY).
- 2025 forecasts expect overseas revenue to soar by 228% YoY and domestic revenue to climb by 109% YoY, driven by strong IP momentum and new product launches.
- The company’s adjusted net profit handily beat its July 15 profit alert by 3-4%, attributed to improved gross margins and operational efficiency.
Recommendation: Pop Mart remains a top pick, with an “Add” rating and a higher target price of HK\$390 (1.2x PEG).
Broker Recommendations and Ratings Framework
CGS International applies a transparent and quantitative framework for stock and sector ratings:
| Rating |
Definition |
| Add |
Stock’s total return expected to exceed 10% over the next 12 months |
| Hold |
Stock’s total return expected between 0% and 10% |
| Reduce |
Stock’s total return expected to fall below 0% |
Distribution as of June 30, 2025 (561 companies under coverage):
| Rating |
% of Total Coverage |
% Investment Banking Clients |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
Conclusion: Key Takeaways for Investors
- BRC Asia’s technical uptrend is firmly in place, supported by multiple bullish indicators and robust volume expansion. The stock offers a favorable risk-reward structure with clearly defined entry, support, and target levels.
- Pop Mart’s explosive growth, particularly in overseas markets, and management’s upgraded guidance underscore its global IP platform strength and operational excellence. The “Add” rating and higher target price reinforce its leadership status in the sector.
- Broader market caution persists amid weakening U.S. labor figures and slowing domestic demand, but select Asian equities are showing strong, actionable momentum.
For investors and analysts seeking opportunities in the Singapore and broader Asian retail equity landscape, BRC Asia and Pop Mart represent standout stories with clear catalysts and robust upside potential, backed by detailed technical and fundamental analysis.
