Broker: CGS International
Date of Report: July 18, 2025

Singapore Retail Stocks in Focus: Haw Par Corp and Food Empire Holdings Shine Amid Economic Resilience

Market Recap: Economic Strength Drives Investor Optimism

In a week of upbeat economic indicators, global equities surged on positive retail sales and a significant drop in US jobless claims. The US dollar extended its July rally, poised to deliver its best month of 2025. Short-dated US Treasuries underperformed, with two-year yields inching up as markets dialed back expectations on Federal Reserve rate cuts for the year. Meanwhile, the S&P 500 approached new highs, propelled by robust tech sector performance and investor enthusiasm around artificial intelligence. Companies like PepsiCo and United Airlines posted strong results, signaling ongoing consumer vigor.
Key economic data highlights:

• US retail sales advanced broadly, easing concerns over consumer spending slowdowns.
• Initial US jobless claims fell for the fifth consecutive week, reaching their lowest since mid-April.
• Market sentiment stabilized after President Donald Trump downplayed speculation about changing Federal Reserve leadership.

Food Empire Holdings Ltd: Strategic Expansion and Valuation Rerating

Food Empire Holdings (FEH) stands out with a series of growth initiatives and promising partnerships. The company has announced a strategic collaboration with Santan, enabling FEH products to be offered on AirAsia flights and at various ground touchpoints. This move is anticipated to be the first of many resulting from FEH’s partnership with private equity firm Ikhlas Capital.

• Strategic partnership: FEH’s collaboration with Santan opens up new distribution channels, enhancing brand visibility and sales opportunities.
• Growth initiatives: The alliance with Ikhlas Capital is expected to drive further business developments, strengthening FEH’s market position.
• Valuation outlook: With ongoing expansion efforts and the MAS S\$5 billion EMDP, FEH is positioned for a valuation rerating. The company could see its price-to-earnings ratio rise to 17x FY26F, which is significantly above its historical 9-year average.

Haw Par Corporation Ltd: Technical Buy on Sustained Uptrend

Last Price: S$12.62
Recommendation: Technical Buy
Haw Par Corporation, a multinational group engaged in Healthcare, Leisure, and investments, is best known for its globally recognized Tiger Balm brand. Listed on the Singapore Exchange, the company has demonstrated robust technical momentum, prompting a renewed technical buy recommendation.

Technical Analysis Overview

The stock has achieved the first target price of S$12.88, as previously forecasted, and continues to exhibit strong bullish signals. Key technical indicators underscore the strength and sustainability of the current uptrend:

Key Technical Observations

• The stock has broken above overhead resistance, confirming a bullish flag formation.
• The prevailing uptrend is described as “strong and sturdy.”
• Ichimoku indicators display a healthy bullish signal, with the stock closing above all relevant markers.
• The MACD line is trending upwards above the zero line, and the histogram remains positive.
• Stochastic Oscillator is rising; despite being in overbought territory, corrective pressure is weak.
• The 23-period Rate of Change (ROC) is positive.
• Directional Movement Index (DMI) shows steady bullish strength.
• Volume trends are expanding healthily, supporting the uptrend.

Haw Par Corporation: Company Snapshot

• Headquartered in Singapore, Haw Par operates in the Healthcare and Leisure sectors, with significant investments in property and securities.
• Tiger Balm is the flagship healthcare brand, enjoying a worldwide presence.
• The company’s strong brand portfolio and diversified business underpin its resilience and growth outlook.

Stock Ratings and Sector Outlook

CGS International’s stock ratings framework classifies recommendations as Add, Hold, or Reduce:

• 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.

As of the latest quarter:

• 70.6% of covered stocks have an Add rating.
• 20.5% Hold.
• 8.9% Reduce.
• A total of 561 companies are under coverage for the quarter ended June 30, 2025.

Conclusion: Singapore Retail Stocks Well-Positioned for 2025

The Singapore retail sector, exemplified by Food Empire Holdings and Haw Par Corporation, is benefiting from resilient economic conditions and strategic growth initiatives. FEH’s new partnerships and expansion efforts position it for a valuation rerating, while Haw Par’s enduring uptrend and strong technical signals offer a compelling opportunity for investors. As global markets remain buoyant and consumer demand holds steady, Singapore’s retail champions look set to deliver robust returns through the rest of 2025.