Exploring Undervalued Gems On SGX Frasers Logistics & Commercial Trust And Two Other Stocks

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As global financial systems experiment with the potential integration of digital currencies, the Singapore market remains a focal point for investors looking to capitalize on emerging trends and technological advancements. In this context, identifying undervalued stocks becomes crucial as it offers an opportunity to invest in assets that may benefit from evolving economic conditions and regulatory frameworks.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name

Current Price

Fair Value (Est)

Discount (Est)

Singapore Technologies Engineering (SGX:S63)

SGD4.03

SGD7.81

48.4%

17LIVE Group (SGX:LVR)

SGD0.765

SGD1.52

49.7%

Hongkong Land Holdings (SGX:H78)

US$3.25

US$5.64

42.4%

Frasers Logistics & Commercial Trust (SGX:BUOU)

SGD0.965

SGD1.63

40.7%

Seatrium (SGX:5E2)

SGD1.51

SGD2.44

38.2%

Nanofilm Technologies International (SGX:MZH)

SGD0.735

SGD1.35

45.4%

Click here to see the full list of 6 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener

Frasers Logistics & Commercial Trust

Overview: Frasers Logistics & Commercial Trust (SGX:BUOU) is a Singapore-listed real estate investment trust, managing 107 industrial and commercial properties valued at approximately S$6.4 billion across Australia, Germany, Singapore, the United Kingdom, and the Netherlands, with a market capitalization of about S$3.63 billion.

Operations: The trust generates revenue from a portfolio of industrial and commercial properties located in Australia, Germany, Singapore, the United Kingdom, and the Netherlands.

Estimated Discount To Fair Value: 40.7%

Frasers Logistics & Commercial Trust, trading at S$0.97, is noted to be significantly undervalued based on discounted cash flow analysis, with an estimated fair value of S$1.62. Despite a recent dip in net income from S$118.07 million to S$93.59 million and a decrease in dividends, the trust's revenue growth is expected to outpace the Singapore market average at 6% annually compared to 3.7%. However, concerns include a low forecasted return on equity of 5.9% and dividends that show signs of instability.

SGX:BUOU Discounted Cash Flow as at Jun 2024
SGX:BUOU Discounted Cash Flow as at Jun 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 capitalization of approximately $7.11 billion.