Broker: CGS International
Date of Report: September 23, 2025
Vicom Ltd and China White Goods: Bullish Momentum and Strategic Opportunities in Asia’s Consumer & Industrial Sectors
Market Overview: Tech Surge and Global Asset Dynamics
Investors are riding a wave of optimism with Wall Street defying calls for a pause after a dramatic \$15 trillion rally from April lows. The charge is led by technology, especially Nvidia Corp., which surged 4% on its \$100 billion pledge to OpenAI for next-generation AI data centers. The S&P 500 hit its 28th record high this year, underscoring the persistent strength of US mega-cap tech stocks. Goldman Sachs recommends a “responsibly bullish” stance, warning against betting against big tech’s momentum.
Meanwhile, the bond market remains relatively calm with US yields marginally higher ahead of critical inflation data and major Treasury auctions. The US dollar paused its three-day rally. In other asset classes, gold reached a record high, while cryptocurrencies faced headwinds. The Federal Reserve landscape is nuanced: some officials advocate for rate cuts, while others urge caution to avoid economic overheating.
China White Goods Sector: Resilience and Strategic Outperformance
China’s household appliances sector, particularly white goods, continues to demonstrate robust growth. August retail sales reflect resilient momentum, primarily driven by strong performance in offline channels. Companies like Midea, Haier, and Hisense are poised to capture greater revenue market share in FY25, thanks to agile brand and pricing strategies.
| Company |
Main Focus |
FY25F Revenue Outlook |
Export Trend |
Key Notes |
| Midea |
Home Appliances |
Gain market share |
Home air conditioners down; other segments up |
Dynamic pricing/branding |
| Haier |
Home Appliances |
Gain market share |
Home air conditioners down; other segments up |
Dynamic pricing/branding |
| Hisense |
Home Appliances |
Grow in line with sector |
Washing machines, refrigerators up |
Attractive valuation |
Key Takeaways:
- August retail sales show ongoing strength for white goods, led by offline channel growth.
- Midea and Haier are expected to lead in revenue gains for FY25, leveraging dynamic branding and pricing.
- Exports for home air conditioners are expected to decline, but washing machines and refrigerators should see low single-digit YoY growth.
- The sector remains attractive with a 12-month trailing P/E of 10.7x.
- Top picks: Midea, Haier, Hisense.
Singapore’s Vicom Ltd: Technical Bullish Continuation in Focus
Vicom Ltd, a mainstay in Singapore’s motor vehicle inspection and assessment services, is showing strong technical signals for continued bullish momentum. The company’s chart action suggests a steady uptrend with several technical indicators confirming the potential for further price gains.
| Key Level |
Price (SGD) |
| Last Price |
1.65 |
| Entry Prices |
1.65, 1.58, 1.49 |
| Support 1 |
1.55 |
| Support 2 |
1.40 |
| Stop Loss |
1.37 |
| Resistance 1 |
1.80 |
| Resistance 2 |
2.10 |
| Target Price 1 |
1.82 |
| Target Price 2 |
2.02 |
| Target Price 3 |
2.10 |
| Target Price 4 |
2.20 |
Technical Snapshot:
- Price action is in a steady uptrend, with a symmetrical triangle formation suggesting an imminent upside continuation.
- Ichimoku indicators show a robust bullish signal as prices trade above all five components.
- MACD line and signal are both rising well above zero; the histogram remains positive.
- Stochastic oscillators are trending back upward.
- 23-period Rate of Change (ROC) is positive and climbing.
- Volume is expanding healthily, supporting the uptrend.
Company Overview:
- Vicom Limited: Provides motor vehicle inspection, assessment services, and investment trading.
Sector and Stock Rating Framework
CGS International utilizes a clear ratings system to guide investors:
| Stock Rating |
Definition |
| Add |
Total return expected to exceed 10% in 12 months |
| Hold |
Total return between 0% and +10% in 12 months |
| Reduce |
Total return below 0% in 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 relative to benchmark
- Neutral: Neutral weight relative to benchmark
- Underweight: Below-market weight relative to benchmark
Distribution of recommendations as of June 30, 2025:
| Rating |
% of Stocks |
% Investment Banking Clients |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
561 companies were under coverage for the quarter ending June 30, 2025.
Conclusion: Strategic Outlook for Investors
The current financial landscape is characterized by robust technology leadership, resilient consumer sectors in China, and technical strength in Singapore’s industrials. Investors should monitor the persistent uptrend in Vicom Ltd and capitalize on attractive opportunities in China white goods, particularly with companies like Midea, Haier, and Hisense. With sector valuations appealing and technical indicators aligning, the near-term outlook remains positive for discerning investors seeking both growth and resilience in Asia’s evolving markets.
