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

Singapore Market Insights: Pan-United Signals Strong Bullish Momentum, CapitaLand Investment Fee Income Rises Amid Inflation Concerns

Executive Summary: Market Context and Inflation Trends

The latest retail research from CGS International provides a comprehensive overview of Singapore’s equities landscape as of August 2025, with a spotlight on Pan-United Corp Ltd’s bullish technical profile and a review of CapitaLand Investment’s (CLI) performance and strategic goals. The report delves into the impact of accelerating US wholesale inflation, the evolving pass-through of tariffs into consumer prices, and the resulting implications for monetary policy and corporate earnings.

US Wholesale Inflation: Signals for Global Markets

July saw US wholesale inflation accelerate at the fastest pace in three years, with the Producer Price Index (PPI) rising 0.9% month-on-month and 3.3% year-on-year. Services costs surged by 1.1%, led by strong margins in machinery and equipment wholesaling. Goods prices (excluding food and energy) climbed 0.4%. Companies are increasingly passing higher import costs from tariffs onto consumers, and while businesses absorbed much of these costs previously, margin pressures are now prompting more aggressive price adjustments.

This inflationary trend is expected to continue, with analysts anticipating a modest rise in consumer prices through the second half of 2025. The data triggered a decline in stock-index futures and a rise in Treasury yields. Federal Reserve officials remain divided on whether the inflationary impact of tariffs is transitory or more persistent, but the consensus leans towards lowering borrowing costs at the upcoming meeting, barring any further surprises in inflation data.

CapitaLand Investment: Fee Income Growth and Strategic Focus

Company Overview: CapitaLand Investment, a leading Singapore-based real estate investment manager, reported key financial and strategic updates for the first half of 2025.

• 1H25 Earnings per Share (EPS): 5.8 Singapore cents, equating to 35.3% of the full-year 2025 forecast. This result came in below expectations, highlighting challenges but also offering a foundation for future growth.
• FUM Target: CLI is steadfast in its ambition to reach S\$200 billion in funds under management by 2028. The company aims to achieve this through thematic product launches, strategic partnerships, and continual portfolio enhancement.
• Rating and Target Price: The report reiterates an “Add” rating with an unchanged target price of S\$4.30.

CLI’s forward strategy focuses on investing in new thematic products and leveraging strategic collaborations to drive fund growth. The management’s commitment to operational efficiency and capital deployment underpins its long-term value proposition.

Pan-United Corp Ltd: Technical Analysis Reveals Robust Uptrend

Company Profile: Pan-United Corporation is a leading Asian multinational specializing in high-performance, sustainable concrete solutions and related building materials, with a dominant presence in Singapore’s ready-mixed concrete and cement sectors.

Technical Buy Recommendation and Price Action

• Current Price: S\$1.13
• Entry Levels: S\$1.13, S\$0.98, S\$0.89
• Supports: S\$1.00 (Support 1), S\$0.88 (Support 2)
• Stop Loss: S\$0.77
• Resistance Levels: S\$1.40 (Resistance 1), S\$2.00 (Resistance 2)
• Target Prices: S\$1.40, S\$1.90, S\$2.10, S\$2.50

Technical Indicators and Momentum

• The stock has surpassed the earlier target price of S\$1.10, maintaining a strong uptrend.
• There was a bullish rebound above the psychological S\$1.00 level, confirmed by a strong bullish candle.
• The bullish continuation is likely, with price closing above the 9-period Ichimoku conversion line.
• All five Ichimoku indicators are sloping upwards, reinforcing bullish sentiment.
• MACD and its signal line are rising above zero, with a positive histogram.
• Stochastic Oscillator is steadily climbing, indicating sustained momentum.
• 23-period Rate of Change (ROC) remains positive.
• Directional Movement Index (DMI) shows consistent bullish strength.
• Volume is expanding healthily, supporting the price action.

Important Disclosures and Risk Considerations

CGS International provides clear disclosures regarding potential conflicts of interest. As of the latest report, neither the firm nor its analysts hold positions in the securities covered. Investors are urged to independently assess all investment opportunities, considering their own financial circumstances and risk profile. The research is intended for informational purposes and may not be suitable for all investors or available in all jurisdictions.

The rating framework used by CGS International is as follows:

• Add: Expected total return exceeds 10% over 12 months.
• Hold: Expected total return between 0% and +10%.
• Reduce: Expected total return is negative.

For the quarter ending June 30, 2025, 70.6% of covered companies received an “Add” rating, 20.5% “Hold,” and 8.9% “Reduce.”

Conclusion: Key Takeaways for Investors

The August 2025 market research highlights Pan-United Corp Ltd as a technical standout, with a strong bullish trajectory supported by robust volume and technical indicators. CapitaLand Investment, while facing earnings challenges, maintains ambitious growth targets through strategic fund management and partnerships. Meanwhile, the macroeconomic backdrop—particularly US inflation and tariff pass-through—remains a critical watchpoint for equity markets and monetary policy.

Investors should remain vigilant, balancing the opportunities presented by technical leaders like Pan-United with the broader macroeconomic headwinds and sector-specific dynamics shaping Singapore’s investment landscape.