Value In Singapore’s Specialty Retailers

shoppingThere are many specialist retailers listed on the Singapore stock exchange, covering a varied range of interests.

They range from Eurosports Global (SGX: 5G1), which deals with high-end sports cars, to Noel Gifts International (SGX: 543) that arranges flowers, gifts and hampers for different occasions.

Somewhere amongst this diverse mix of companies could be some value gems. But where?

Second Chance Properties (SGX: 528) began life as a tailor of men’s garments. But in response to an increasingly competitive market in the 1990s, it moved into the retailing of traditional Malay women’s fashion. It continues to do so today under the First Lady brand alongside its gold jewellery business. The company also dabbles in property investment.

Trading at less than six times earnings and paying out dividends at close to 9%, Second Chance properties appears to represent good value. Trading at just above book value, it could be one to watch. Whilst the company does have some debt, its interest payments appear adequately covered.

Whether you’re looking for gifts for new mothers or gourmet hampers, internet company Noel Gifts International could have just what you are looking for. The gifts retailer has seen steady improvement in its bottom line but is still trading at an undemanding price-to-earnings of around 7 or half the market average. It dividend yield is close to 5%.

Apparently representing spectacular value amongst the specialist retailers is Transcorp Holdings (SGX: T19). This company was involved in the retail and wholesale of golf equipment and accessories.

Transcorp trades at less than three times earnings and around 30% below its book value. Its payout ratio is also a staggering 100%. As well as sitting on cash, Transcorp has also seen growth in bottom-line profits. However these apparently flattering figures have been due to the sale of assets over the last year, which can’t continue indefinitely.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Adam Kuo doesn’t own shares in any companies mentioned.