Exploring Value On SGX Three Stocks Estimated To Be Up To 41.5% Below Intrinsic Value
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Amidst a bustling period for the Singapore market, with significant corporate actions like mergers and earnings announcements capturing investor attention, it's an opportune time to scrutinize potential investment opportunities. Understanding what constitutes an undervalued stock is crucial, especially in a market environment rich with strategic activities and financial updates.
Top 5 Undervalued Stocks Based On Cash Flows In Singapore
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Singapore Technologies Engineering (SGX:S63) | SGD4.39 | SGD7.43 | 40.9% |
| 17LIVE Group (SGX:LVR) | SGD0.90 | SGD1.53 | 41.2% |
| Hongkong Land Holdings (SGX:H78) | US$3.34 | US$5.71 | 41.5% |
| Frasers Logistics & Commercial Trust (SGX:BUOU) | SGD0.99 | SGD1.67 | 40.6% |
| Winking Studios (Catalist:WKS) | SGD0.31 | SGD0.51 | 39.3% |
| Digital Core REIT (SGX:DCRU) | US$0.575 | US$0.75 | 23.2% |
| Seatrium (SGX:5E2) | SGD1.62 | SGD2.69 | 39.7% |
| Nanofilm Technologies International (SGX:MZH) | SGD0.87 | SGD1.46 | 40.6% |
Here's a peek at a few of the choices from the screener.
Seatrium
Overview: Seatrium Limited specializes in engineering solutions for the offshore, marine, and energy sectors with a market capitalization of SGD 5.52 billion.
Operations: The company's revenue is primarily generated from rigs and floaters, repairs and upgrades, offshore platforms, and specialized shipbuilding which collectively contribute SGD 7.26 billion, alongside a smaller segment in ship chartering that adds SGD 31.63 million.
Estimated Discount To Fair Value: 39.7%
Seatrium Limited, trading at SGD1.62, appears undervalued based on a DCF valuation of SGD2.69, suggesting a potential upside despite its challenges. The company's revenue growth is projected to outpace the Singapore market average at 8.7% annually compared to 3.6%. Although Seatrium faces regulatory scrutiny and recent executive changes, it continues securing significant contracts, like the recent SGD11 billion deal with Petrobras for FPSO platforms P-84 and P-85, indicating robust operational capabilities and future revenue streams amidst a volatile share price environment.
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According our earnings growth report, there's an indication that Seatrium might be ready to expand.
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Take a closer look at Seatrium's balance sheet health here in our report.
Hongkong Land Holdings
Overview: Hongkong Land Holdings Limited operates in property investment, development, and management across Hong Kong, Macau, Mainland China, Southeast Asia, and globally, with a market cap of approximately $7.37 billion.
Operations: The company's revenue is derived from two primary segments: investment properties, generating $1.08 billion, and development properties, contributing $761.80 million.