SGX's Hidden Value Gems For September 2024

In This Article:

The market is up 2.1% in the last 7 days, with all sectors gaining ground. The market is up 6.4% over the last 12 months, and earnings are expected to grow by 10.0% per annum over the next few years. In such an environment, identifying undervalued stocks can offer significant opportunities for investors looking to capitalize on future growth potential.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name

Current Price

Fair Value (Est)

Discount (Est)

Singapore Technologies Engineering (SGX:S63)

SGD4.64

SGD7.34

36.8%

Digital Core REIT (SGX:DCRU)

US$0.595

US$0.82

27.4%

Nanofilm Technologies International (SGX:MZH)

SGD0.825

SGD1.43

42.3%

Seatrium (SGX:5E2)

SGD1.70

SGD2.95

42.4%

Frasers Logistics & Commercial Trust (SGX:BUOU)

SGD1.18

SGD1.59

25.9%

Click here to see the full list of 5 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Seatrium

Overview: Seatrium Limited offers engineering solutions to the offshore, marine, and energy industries and has a market cap of SGD5.78 billion.

Operations: The company's revenue segments include Ship Chartering (SGD24.71 million) and Rigs & Floaters, Repairs & Upgrades, Offshore Platforms, and Specialised Shipbuilding (SGD8.39 billion).

Estimated Discount To Fair Value: 42.4%

Seatrium is trading at 42.4% below its estimated fair value of S$2.95, with earnings forecast to grow 75.55% per year and profitability expected within three years. Recent events include the successful early delivery of a jackup rig to Borr Drilling and a share buyback worth S$9.6 million, indicating strong operational execution and confidence in future performance. Analysts predict a potential stock price rise of 54%.

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

Frasers Logistics & Commercial Trust

Overview: Frasers Logistics & Commercial Trust (SGX:BUOU) is a Singapore-listed real estate investment trust with a portfolio of 107 industrial and commercial properties valued at approximately S$6.4 billion, operating across Australia, Germany, Singapore, the United Kingdom and the Netherlands, and has a market cap of S$4.43 billion.

Operations: FLCT generates revenue from its portfolio of 107 industrial and commercial properties valued at approximately S$6.4 billion, strategically located in Australia, Germany, Singapore, the United Kingdom, and the Netherlands.

Estimated Discount To Fair Value: 25.9%