CGS International Securities Singapore Pte. Ltd.
Date of Report: September 18, 2025
Bullish Signals for XMH Holdings as Singapore’s Export Outlook Softens: In-Depth Technical and Economic Analysis
Singapore Market Overview: Economic and Export Trends
Recent developments in the Chinese and Singaporean economies have cast a shadow over regional growth prospects. China’s government spending increased at its slowest rate since May, with total expenditure climbing only 6% year-on-year to 2.7 trillion yuan in August. Revenue growth was even more subdued, rising less than 0.3% to 1.6 trillion yuan. The broad budget deficit for January-August widened to 6.7 trillion yuan, reflecting reduced fiscal support after earlier stimulus measures. Notably, China’s net government bond issuance decelerated for the first time this year, reducing Beijing’s spending power and contributing to the weakest economic months of 2025 in July and August.
For Singapore, the economic outlook remains cautious. Non-oil domestic exports (NODX) fell by 11.3% year-over-year in August 2025, as shipments in both electronics and non-electronics weakened. The US demand dropped sharply due to tariff risks, while exports to Taiwan, Korea, and the EU also softened. The forecast for NODX growth is maintained at a modest 3.3% for 2025, given persistent soft demand and ongoing tariff risks.
| Metric |
August 2025 |
YoY Change |
2025 Forecast |
| China Government Spending |
2.7 trillion yuan |
+6% |
N/A |
| China Government Revenue |
1.6 trillion yuan |
+0.3% |
N/A |
| China Budget Deficit (Jan-Aug) |
6.7 trillion yuan |
Widened |
N/A |
| Singapore NODX |
N/A |
-11.3% |
+3.3% |
XMH Holdings Ltd: Technical Buy Recommendation
XMH Holdings Ltd. stands out in the current market landscape, with a robust bullish uptrend confirmed by multiple technical indicators. XMH specializes in distributing marine and industrial diesel engines, generators, and related components, serving a wide customer base including ship owners, shipyards, dealers, hotel proprietors, and mine owners.
Key Technical Analysis Highlights
- Major Uptrend Intact: XMH’s price action has broken out of a flag formation, signaling a bullish continuation.
- Ichimoku Cloud: All components are rising, with the stock trading above all five indicators, reinforcing bullish momentum.
- MACD Indicator: Both the signal and MACD line are strongly above the zero line, with a positive histogram.
- Stochastic Oscillator: Rising steadily, indicating continued upward momentum.
- Rate of Change (ROC): 23-period ROC is positive.
- Directional Movement Index: Bullish strength is returning.
- Volume: Healthy expansion suggests strong investor interest.
| Metric |
Level / Signal |
| Last Price |
\$1.77 |
| Entry Prices |
\$1.77, \$1.44, \$1.25 |
| Support Levels |
\$1.43 (Support 1), \$1.10 (Support 2) |
| Stop Loss |
\$1.03 |
| Resistance Levels |
\$3.00 (Resistance 1), \$4.54 (Resistance 2) |
| Target Prices |
\$2.50, \$3.70, \$4.46, \$6.00 |
| Technical Indicators |
Ichimoku, MACD, Stochastic, ROC, DMI, Volume (all bullish) |
Company Description
XMH Holdings Ltd is a distributor of marine and industrial diesel engines, generators, and components, catering to ship owners, shipyards, dealers, hotel proprietors, and mine owners.
Analyst Coverage
Stock Ratings and Recommendation Framework
CGS International uses a defined framework for stock and sector 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: Position above-market weight in this country relative to benchmark.
- Neutral: Position neutral weight in this country relative to benchmark.
- Underweight: Position below-market weight in this country relative to benchmark.
| 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 ending June 30, 2025: 561.
Jurisdictional Coverage and Disclosures
CGS International operates across multiple jurisdictions, with entities regulated by local financial authorities in Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Thailand, UK, and the US. The report highlights strict confidentiality, distribution limitations, and various legal exemptions depending on investor status and location.
Disclaimer and Compliance
The views expressed in this report reflect the independent analysis of the responsible analyst and are not influenced by investment banking relationships or compensation tied to specific recommendations. The report is intended for professional and institutional investors and does not constitute an offer or solicitation to buy or sell any security. Investors are advised to conduct independent evaluations and consult their financial advisors before making investment decisions. CGS International and its affiliates may hold positions in the securities discussed and seek to do business with the companies covered.
Conclusion: Navigating Uncertain Waters with Technical Strength
While broader economic signals in the region remain soft—especially in exports—XMH Holdings Ltd. emerges as a technical standout with solid bullish signals across multiple indicators. The company’s positioning in the marine and industrial engine sector and its robust price action make it a key stock to watch for investors seeking resilience amid regional volatility.
