Broker: CGS International
Date of Report: September 18, 2025
XMH Holdings Ltd Shines in Singapore Markets: Bullish Technicals, Economic Crosswinds, and Upbeat Targets
Market Overview: Fiscal Headwinds and Trade Slowdown in Asia
Singapore’s financial markets are navigating a complex regional landscape marked by both opportunities and headwinds. Recent data from China reveals that government spending is increasing at a slower pace, with expenditure in August rising just 6% year-on-year to 2.7 trillion yuan. This deceleration has widened China’s budget deficit to 6.7 trillion yuan for the first eight months of the year, raising concerns about waning fiscal support and its implications on economic momentum. Investment—a traditional growth lever—has also weakened, reflecting the broader challenges facing Asia’s largest economies.
In Singapore, Non-Oil Domestic Exports (NODX) declined 11.3% year-on-year in August 2025. The weakness spanned both electronics and non-electronics sectors, with notable declines in US-bound shipments due to rising tariff risks. Exports to Taiwan, Korea, and the EU also softened, and the outlook remains cautious. The full-year NODX growth forecast is maintained at a modest 3.3% year-on-year, highlighting the persistent softness in external demand.
| Key Economic Metric |
August 2025 |
YTD (Jan-Aug 2025) |
YoY Change |
| China Total Govt Expenditure |
2.7 trillion yuan |
N/A |
+6.0% |
| China Broad Budget Deficit |
N/A |
6.7 trillion yuan |
Widened |
| Singapore NODX (Aug 2025) |
-11.3% YoY |
N/A |
Negative |
| 2025 NODX Forecast |
3.3% YoY |
N/A |
Maintained |
XMH Holdings Ltd: Technical Buy Amid Strong Bullish Momentum
Company Snapshot
XMH Holdings Ltd specializes in the distribution of marine and industrial diesel engines, generators, and related components. Its clientele spans ship owners, shipyards, dealers, hotel proprietors, and mine owners. The company’s robust presence in the marine and industrial sectors positions it as a key beneficiary of regional infrastructure and shipping trends.
Technical Analysis Overview
The recent price action in XMH Holdings Ltd signals a confirmed bullish continuation, underpinned by strong technical indicators across multiple timeframes.
| Price Point |
Level (SGD) |
| Last Price |
1.77 |
| Entry Prices |
1.77, 1.44, 1.25 |
| Support 1 |
1.43 |
| Support 2 |
1.10 |
| Stop Loss |
1.03 |
| Resistance 1 |
3.00 |
| Resistance 2 |
4.54 |
| Target Price 1 |
2.50 |
| Target Price 2 |
3.70 |
| Target Price 3 |
4.46 |
| Target Price 4 |
6.00 |
Key Technical Highlights
- The long-term uptrend remains robust, with prices recently breaking out of a bullish flag formation.
- Ichimoku Cloud analysis reveals a strong bullish signal across all five indicators, with the stock price trading above each of them.
- The MACD (Moving Average Convergence Divergence) line is advancing strongly above the zero line, with a positive histogram reinforcing momentum.
- The Stochastic Oscillator has been in a steady uptrend, confirming bullish sentiment.
- The 23-period Rate of Change (ROC) is positive, indicating sustained upward price movement.
- The Directional Movement Index shows renewed bullish strength.
- Trading volume is expanding healthily, supporting the upward move and suggesting increased market participation.
Strategic Takeaways: Opportunities and Risks
Investors looking at XMH Holdings Ltd should take note of the following:
- Entry levels are attractive in the 1.25 – 1.77 SGD range, with strong technical support at 1.43 and 1.10.
- Targets are ambitious, extending up to 6.00 SGD if bullish momentum persists.
- Risk management is advised, with a recommended stop loss at 1.03 SGD.
- The current technical setup is supported by bullish indicators across multiple systems, underlining high conviction on continued upside.
Understanding the Ratings: What Does “Technical Buy” Mean?
Stock ratings definitions from the broker are as follows:
| Rating |
Definition |
| 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. |
For the sector and country ratings:
- Overweight: Above-market positioning relative to benchmark
- Neutral: Market-weight positioning
- Underweight: Below-market positioning
Important Disclosures and Distribution Notes
CGS International provides extensive regulatory and jurisdictional disclosures, ensuring compliance across Asia-Pacific, Europe, and the US. The report is intended for professional, institutional, or sophisticated investors, and is distributed in accordance with local legal and regulatory requirements. Readers are reminded to evaluate their investment objectives independently and consult professional advisors before making financial decisions.
Conclusion: XMH Holdings Ltd Stands Out in a Cautious Market
Despite challenging macroeconomic conditions and subdued trade data, XMH Holdings Ltd emerges as a technical standout in the Singapore market. With a confirmed bullish trend and a suite of positive technical indicators, the company presents an attractive opportunity for investors seeking growth exposure in the marine and industrial sectors. As always, prudent risk management and close monitoring of economic developments are essential for navigating today’s markets.
