July 2024 Insights Into Three SGX Stocks Estimated To Be Undervalued

In This Article:

As of July 2024, the Singapore stock market continues to navigate through a complex economic landscape, marked by cautious optimism among investors. This environment sets the stage for identifying potentially undervalued stocks that may offer attractive opportunities for those looking to diversify their portfolios in line with current market conditions.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name

Current Price

Fair Value (Est)

Discount (Est)

Singapore Technologies Engineering (SGX:S63)

SGD4.41

SGD7.44

40.8%

17LIVE Group (SGX:LVR)

SGD0.82

SGD1.53

46.4%

Hongkong Land Holdings (SGX:H78)

US$3.34

US$5.72

41.6%

Winking Studios (Catalist:WKS)

SGD0.30

SGD0.51

41.2%

Frasers Logistics & Commercial Trust (SGX:BUOU)

SGD0.985

SGD1.67

40.9%

Digital Core REIT (SGX:DCRU)

US$0.595

US$0.76

22.2%

Seatrium (SGX:5E2)

SGD1.48

SGD2.65

44.2%

Nanofilm Technologies International (SGX:MZH)

SGD0.86

SGD1.47

41.5%

Click here to see the full list of 8 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Seatrium

Overview: Seatrium Limited is a company that offers engineering solutions to the offshore, marine, and energy sectors, with a market capitalization of approximately SGD 5.18 billion.

Operations: The company's revenue is primarily derived from 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 generating SGD 31.63 million.

Estimated Discount To Fair Value: 44.2%

Seatrium Limited, despite recent regulatory scrutiny and executive changes, shows potential in cash flow analysis as undervalued based on DCF, trading at S$1.48 against a fair value estimate of S$2.65. The company's revenue growth forecast at 8.7% annually outpaces the Singapore market average of 3.6%. However, its expected low return on equity (8.2%) in three years tempers its attractiveness slightly amidst strong contract wins like the SGD 11 billion FPSO projects with Petrobras and a significant HVDC system project with GE Vernova Inc., enhancing future revenue streams.

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

Nanofilm Technologies International

Overview: Nanofilm Technologies International Limited offers nanotechnology solutions across Singapore, China, Japan, and Vietnam with a market capitalization of approximately SGD 572.89 million.

Operations: Nanofilm Technologies International's revenue is primarily generated from four segments: Advanced Materials at SGD 141.54 million, Nanofabrication at SGD 16.05 million, Industrial Equipment at SGD 37.17 million, and Sydrogen at SGD 1.05 million.