Exploring Value On SGX Three Stocks Estimated To Be Up To 43% Below Intrinsic Value

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Amidst a global landscape where cyber resilience is becoming increasingly critical, the Singapore market presents unique opportunities for investors seeking value. As we explore undervalued stocks on the SGX, it's essential to consider companies with robust operational frameworks that can withstand not just market fluctuations but also external threats like cyber disruptions, enhancing their long-term investment appeal.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name

Current Price

Fair Value (Est)

Discount (Est)

LHN (SGX:41O)

SGD0.33

SGD0.37

10.9%

Singapore Technologies Engineering (SGX:S63)

SGD4.40

SGD7.43

40.8%

17LIVE Group (SGX:LVR)

SGD0.895

SGD1.53

41.5%

Hongkong Land Holdings (SGX:H78)

US$3.36

US$5.72

41.3%

Frasers Logistics & Commercial Trust (SGX:BUOU)

SGD0.985

SGD1.66

40.8%

Winking Studios (Catalist:WKS)

SGD0.305

SGD0.51

40.2%

Digital Core REIT (SGX:DCRU)

US$0.565

US$0.75

24.2%

Seatrium (SGX:5E2)

SGD1.50

SGD2.63

43%

Nanofilm Technologies International (SGX:MZH)

SGD0.875

SGD1.47

40.3%

Click here to see the full list of 9 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Seatrium

Overview: Seatrium Limited specializes in engineering solutions for the offshore, marine, and energy sectors with a market capitalization of SGD 5.11 billion.

Operations: The company generates revenue primarily through its segments in Rigs & Floaters, Repairs & Upgrades, Offshore Platforms, and Specialised Shipbuilding which collectively brought in SGD 7.26 billion, along with a smaller contribution from Ship Chartering at SGD 31.63 million.

Estimated Discount To Fair Value: 43%

Seatrium Limited, currently under investigation by Singapore authorities, nevertheless shows promise based on its financial metrics and recent contract wins. Despite a low forecasted return on equity of 8.2% in three years, the company is expected to become profitable with earnings growing at 72.23% annually. Trading at SGD1.5, significantly below the estimated fair value of SGD2.63, Seatrium offers potential as an undervalued stock based on cash flows, particularly considering its strategic contracts in energy sectors and a robust revenue growth forecast of 8.7% per year.

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

Frasers Logistics & Commercial Trust

Overview: Frasers Logistics & Commercial Trust (SGX:BUOU) is a Singapore-listed real estate investment trust specializing in industrial and commercial properties, with a diverse portfolio valued at approximately S$6.4 billion across Australia, Germany, Singapore, the United Kingdom, and the Netherlands, and a market capitalization of about S$3.70 billion.