Seatrium And 2 Other Stocks On SGX That Might Be Trading Below Intrinsic Value

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The Singapore stock market has been navigating a landscape shaped by new legislative measures aimed at curbing financial scams, reflecting the government's proactive stance on safeguarding investor interests. Amid these developments, identifying undervalued stocks becomes crucial for investors seeking opportunities that may offer significant long-term value.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name

Current Price

Fair Value (Est)

Discount (Est)

Singapore Technologies Engineering (SGX:S63)

SGD4.47

SGD7.33

39%

LHN (SGX:41O)

SGD0.335

SGD0.41

18.7%

Digital Core REIT (SGX:DCRU)

US$0.60

US$0.83

27.3%

Frasers Logistics & Commercial Trust (SGX:BUOU)

SGD1.11

SGD2.16

48.6%

Nanofilm Technologies International (SGX:MZH)

SGD0.77

SGD1.42

45.6%

Seatrium (SGX:5E2)

SGD1.55

SGD2.88

46.1%

Click here to see the full list of 6 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Seatrium

Overview: Seatrium Limited offers engineering solutions for the offshore, marine, and energy industries with a market cap of SGD5.27 billion.

Operations: Revenue segments include Ship Chartering at SGD24.71 million and Rigs & Floaters, Repairs & Upgrades, Offshore Platforms and Specialised Shipbuilding at SGD8.39 billion.

Estimated Discount To Fair Value: 46.1%

Seatrium Limited's recent earnings report shows a significant turnaround with net income of S$35.97 million for H1 2024, compared to a net loss last year. The company successfully delivered its fourth jackup rig ahead of schedule and completed a share buyback program worth S$9.6 million. Despite ongoing regulatory investigations, Seatrium remains highly undervalued based on discounted cash flows, trading at 46% below estimated fair value and with expected revenue growth outpacing the market.

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, diversified across Australia, Germany, Singapore, the United Kingdom and the Netherlands, with a market cap of S$4.17 billion.

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