Singapore Stock Exchange has many undervalued stocks listed in the index. In December 2018 KGI securities have highlighted the list of nine stocks that are undervalued in MSCI Singapore Index (Morgan Stanley Capital International).
1. GENTING SINGAPORE (SGX: G13)
In its 3Q2018 report, Genting Singapore has outperformed its last performance by 46% growth in earning. It has reported revenue growth of 3.56% at SGD 2445.53M when compared to last year performance.
As on Thursday, the stock was trading at S$1.1 with a 52-week range of (S$1.32-S$0.86). In its report, it has mentioned market capitalization of SGD13.30b.
Net income is SGD739.2 and ROE is 9.57%. Its P/E ratio is high at 18.274 and P/B value is 1.737. Dividend per share is 0.035 and dividend yield is 3.18%.
With its flawless balance sheet with a robust track record, it shows that it manages its cost and cash efficiently.
2. COMFORTDLEGRO (SGX: C52)
As on Thursday the share price of ComfortDelgro was at S$2.36 with 52-week high and low in between S$2.51-S$1.98. In its 3Q18 report, it has reported total revenue SGD 4104mn with revenue growth of 11.5% from the previous year.
Its P/E ration and P/B value is at 17.984 and 1.955 respectively. Higher P/E ratio means investors are paying a higher price for 1SGD of the company earning.
ComfortDelgro has a higher P/E ratio than the average value of 14.6 as compared to other companies.
With the entry of a new competitor, Go-Jek investors are looking for a wage-price war and how ComfortDelgro will perform against this competition.
3. KEPPEL CORPORATION (SGX: BN4)
Keppel Corp to sell 70% stake in Vietnam township project for about S$136M to Nam Long Investment Corp for 2.3 trillion Vietnamese Dong. Kepple Land’s said that it will be used as a strategy to recycle assets to seek a higher return.
Last year from January to December 2018, its share price dropped by about 16% compared to a fall of 6.5% for the STI index.
Share price as on Tuesday, 8th February was S$6.05 which is a down by 1.80% from last 3-month performance. The 52-week price range S$8.29-S$5.71. In its 3Q2018 report, it has reported total revenue 5964.781 with the growth of 0.017%.
Key fundamental data for its current status are P/E ratio is at 11.434. P/B value is 0.966. The market capitalization of Keppel Corp is SGD 10.89314M.
4. UNITED OVERSEAS BANK (SGX: U11)
Over the last three year, its EPS increase by 5.1% per year. Boasting a total shareholder return of 64% over the 3 years the UOB is performing well in shareholder.
UOB outperformed the bank industry which has given a return of -10.4% over the past year. It is expected to 6.5% annual growth in earning.
As on Tuesday, it was trading at S$25.16 with 52-week price range S$30.14- S$23.85. Price to book value is at 1.146 and P/E ratio is 10.779. Dividend yield reported is 3.76%.
In its 3Q2018 it hs reported total revenue of SGD 9014.8 with about 18% growth from the past year. Earning per share is 1.793 with 20.312% growth. The net interest income growth rose to about 14% to S$ 1.60 billion from healthy loan growth.
5. SINGAPORE TECHNOLOGY ENGINEERING (SGX: S63)
Aerospace and defense company listed in Singapore Stock Exchange has been performing well very well. Double-digit return on equity, 23.496 shows the strong performance of the company.
In its 3Q2018 report, the company shows the total revenue of SGD 6716.5 mn with the growth of 1.042% from the previous year. Gross profit of the company is SGD1373.16mn.
P/E ratio of the company is high at 21.569 and P/B value at 5.49. Share price on Tuesday S$3.75 and 52-week high and low is S$3.75-S$3.22. Dividend per share is 0.15 with dividend yield is 4%, whereas earning per share (EPS) is 0.12 which has a growth of 7.223% from last year.
With a strong balance sheet and robust growth performance, it has developed a strong market sentiment in the Singapore Market.
MMF Solutions Takeaway
Investment in Singapore Undervalued Stocks is an art of value investing. The key to choose a Singapore undervalues stocks is thorough research of the company, do not just buy a stock because few of its ratio looks good and the price is low. Remember there is no direct or hard and fast rule to define undervalued stock that will give you high return but you can use the information as provided above for your research and investment decisions.
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