Best Rated SGX Stocks For Cheap

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Undervalued companies are those that trade at a price lower than their actual values, such as SingHaiyi Group and VibroPower. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.

SingHaiyi Group Ltd. (SGX:5H0)

SingHaiyi Group Ltd., an investment holding company, develops, owns, and manages real estate properties in Singapore, Malaysia, and the United States. SingHaiyi Group was founded in 1988 and with the market cap of SGD SGD289.90M, it falls under the small-cap stocks category.

5H0’s shares are currently trading at -94% beneath its true value of $1.74, at the market price of S$0.10, based on its expected future cash flows. This mismatch signals an opportunity to buy 5H0 shares at a discount. In addition to this, 5H0’s PE ratio is around 6.05x against its its Real Estate peer level of, 13.31x indicating that relative to its peers, you can purchase 5H0’s stock for a lower price right now. 5H0 is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 28.84% has been dropping over time, revealing 5H0’s capacity to reduce its debt obligations year on year. More on SingHaiyi Group here.

SGX:5H0 PE PEG Gauge Mar 1st 18
SGX:5H0 PE PEG Gauge Mar 1st 18

VibroPower Corporation Limited (SGX:BJD)

VibroPower Corporation Limited, an investment holding company, designs, manufactures, supplies, installs, commissions, and services stationary generators primarily for commercial and industrial properties, and housing projects. The company was established in 1995 and has a market cap of SGD SGD5.14M, putting it in the small-cap group.

BJD’s stock is currently floating at around -54% beneath its intrinsic value of $0.31, at a price tag of S$0.14, based on its expected future cash flows. The discrepancy signals an opportunity to buy low. Additionally, BJD’s PE ratio is currently around 9.79x while its Electrical peer level trades at, 19.54x indicating that relative to its comparable set of companies, BJD’s stock can be bought at a cheaper price. BJD is also robust in terms of financial health, with current assets covering liabilities in the near term and over the long run. Finally, its debt relative to equity is 44.03%, which has been declining over time, indicating its capacity to reduce its debt obligations year on year. More detail on VibroPower here.

SGX:BJD PE PEG Gauge Mar 1st 18
SGX:BJD PE PEG Gauge Mar 1st 18

LHT Holdings Limited (SGX:BEI)

LHT Holdings Limited manufactures and trades wooden pallets and timber related products in Singapore, Malaysia, and China. Established in 1977, and currently lead by Mui Kee Yap, the company provides employment to 326 people and has a market cap of SGD SGD35.67M, putting it in the small-cap stocks category.