March Undervalued Stock Picks

Companies that are recently trading at a market price lower than their real values include COSCO Shipping International (Singapore) and Sunningdale Tech. 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.

COSCO Shipping International (Singapore) Co., Ltd. (SGX:F83)

COSCO Shipping International (Singapore) Co., Ltd., an investment holding company, provides ship repairing, ship building, and marine engineering services primarily in the People’s Republic of China and Singapore. COSCO Shipping International (Singapore) was founded in 1961 and with the company’s market capitalisation at SGD SGD985.27M, we can put it in the small-cap category.

F83’s shares are now hovering at around -95% lower than its intrinsic level of $8.17, at the market price of S$0.44, based on its expected future cash flows. This discrepancy gives us a chance to invest in F83 at a discount. In terms of relative valuation, F83’s PE ratio stands at 10.16x against its its index peer level of, 14.09x meaning that relative to its comparable company group, F83 can be bought at a cheaper price right now. F83 is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities. F83 also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Continue research on COSCO Shipping International (Singapore) here.

SGX:F83 PE PEG Gauge Mar 10th 18
SGX:F83 PE PEG Gauge Mar 10th 18

Sunningdale Tech Ltd (SGX:BHQ)

Sunningdale Tech Ltd manufactures and sells dies, tools, jigs, fixtures, high precision steel moulds, and plastic products. Sunningdale Tech was started in 1995 and with the market cap of SGD SGD374.63M, it falls under the small-cap stocks category.

BHQ’s shares are now hovering at around -40% below its intrinsic value of $3.3, at a price tag of S$1.98, according to my discounted cash flow model. This mismatch signals an opportunity to buy BHQ shares at a discount. In addition to this, BHQ’s PE ratio is around 11.88x relative to its index peer level of, 14.09x suggesting that relative to its comparable set of companies, you can buy BHQ for a cheaper price. BHQ is also a financially robust company, with short-term assets covering liabilities in the near future as well as in the long run.

More on Sunningdale Tech here.

SGX:BHQ PE PEG Gauge Mar 10th 18
SGX:BHQ PE PEG Gauge Mar 10th 18

Raffles United Holdings Ltd (SGX:K22)

Raffles United Holdings Ltd, an investment holding company, operates as a stockist, distributor, and retailer of bearings and seals for the automotive part dealers, industrial suppliers, hardware dealers, ship chandlers, general trading companies, and original equipment manufacturers in the Southeast Asia and the Far East. Raffles United Holdings was established in 1956 and with the stock’s market cap sitting at SGD SGD45.64M, it comes under the small-cap category.