Exploring SGX Stocks With Estimated Intrinsic Discounts Ranging From 44.5% To 47.3%

In This Article:

The Singapore stock market continues to show resilience amidst global economic fluctuations, attracting attention from investors looking for value in a diverse market landscape. In this context, understanding what constitutes an undervalued stock is crucial, especially when considering investments that may offer significant intrinsic discounts in the current environment.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name

Current Price

Fair Value (Est)

Discount (Est)

LHN (SGX:41O)

SGD0.33

SGD0.38

12%

Singapore Technologies Engineering (SGX:S63)

SGD4.32

SGD8.20

47.3%

Hongkong Land Holdings (SGX:H78)

US$3.22

US$5.80

44.5%

Frasers Logistics & Commercial Trust (SGX:BUOU)

SGD0.925

SGD1.65

44%

Digital Core REIT (SGX:DCRU)

US$0.575

US$1.10

47.7%

Seatrium (SGX:5E2)

SGD1.41

SGD2.61

46%

Nanofilm Technologies International (SGX:MZH)

SGD0.84

SGD1.47

42.7%

Click here to see the full list of 7 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of from the screener

Seatrium

Overview: Seatrium Limited specializes in engineering solutions for the offshore, marine, and energy sectors with a market capitalization of SGD 4.80 billion.

Operations: The company generates revenue primarily through its segments in rigs and floaters, repairs and upgrades, offshore platforms, and specialized shipbuilding which collectively contribute SGD 7.26 billion, along with a smaller segment in ship chartering bringing in SGD 31.63 million.

Estimated Discount To Fair Value: 46%

Seatrium Limited is trading at S$1.41, significantly below its estimated fair value of S$2.61, marking a 46% undervaluation based on discounted cash flow analysis. Analyst consensus forecasts a substantial 92.4% potential increase in stock price, with earnings expected to grow by 72.23% annually. Despite this growth, its projected Return on Equity of 8.2% remains modest compared to benchmarks. Recent contracts with GE Vernova and BP hint at robust operational expansion but share price volatility persists, reflecting market caution amidst recent high-profile executive changes and legal settlements.

SGX:5E2 Discounted Cash Flow as at Jul 2024
SGX:5E2 Discounted Cash Flow as at Jul 2024

Hongkong Land Holdings

Overview: Hongkong Land Holdings Limited operates in the investment, development, and management of properties across Hong Kong, Macau, Mainland China, Southeast Asia and other international locations with a market cap of approximately $7.11 billion.