These 12 Singapore Companies Are Value Stocks, According to the FTSE Value-Stocks ASEAN Index

There are 12 Singapore-listed stocks which are in the FTSE Value-Stocks ASEAN Index.

The objective of the index is to identify quality and overlooked value stocks that are listed in ASEAN stock exchanges. The index vets stocks using a proprietary value screening process which includes valuation, quality, and contrarian factors.

In the valuation group are things such as a stock’s price-to-earnings (PE) ratio and dividend yield. The quality factors include a stock’s return on equity, operating profit margin, and net gearing.

In a previous article, I had looked at six stocks from the list of 12 with the help of a handy report. In here, let’s cover the other six Singapore-listed stocks that made it into the FTSE Value-Stocks ASEAN Index (figures as of 14 June, unless otherwise stated):

  1. The troubled conglomerate Keppel Corporation Limited (SGX: BN4) is a part of the index. The company sports a dividend yield of 6.4%. It is also trading at a price-to-earnings (PE) ratio of 7.0, which is below its five-year average PE ratio of 7.7. The conglomerate has been a disappointing investment over the past five years though, as it has negative total returns of 37% in that period.
  2. There are many real estate-related companies in the list of 12 and property developer and investor UOL Group Limited  (SGX: U14) is one of them. The company, with a $4.3 billion market cap, offers a distribution yield of just 2.7%. Its shares have also logged in positive total returns of 27% over the past five years. UOL Group trades at a price-to-book (PB) ratio of 0.5, lower than its five-year average PB ratio of 0.7.
  3. UOL Group’s corporate cousin, United Overseas Bank Ltd (SGX: U11), weighs in with a 3.9% dividend yield. At a PB ratio of one, the bank is currently trading below its five-year average PB ratio of 1.2. Over the past five years, UOB has generated 12% in total returns.
  4. The aptly-named shipbuilder Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) also made the cut. The company offers a 5% dividend yield and is currently trading at a PE ratio of 7.3. This is just below its five-year average PE ratio of 7.6. Yangzijiang’s shares have also underwhelmed over the last five years, clocking in total losses of 26%.
  5. Ascendas Real Estate Investment Trust (SGX: A17U) is an industrial real estate investment trust that has made the cut for the FTSE Value-Stocks ASEAN Index. According to the report, Ascendas REIT offers a distribution yield of 3.7%. The REIT has posted a total return of 58% over the last five years and is trading at a PB ratio of 1.1, which is below its five-year average PB ratio of 1.2.
  6. Another real estate investment trust (REIT) on the list would be Mapletree Industrial Trust (SGX: ME8U). The REIT offers a distribution yield of 7.0%. Over the past five years, Mapletree Industrial Trust has been a stunning investment with its total return of 98%. It trades at a PB ratio of 1.2, which is on par with its five-year average PB ratio.

Looking at financial metrics is one part of the equation when it comes to investing as it can help us separate the wheat from the chaff. But it’s not the only thing to do – digging further into the qualitative aspects of a company’s business could be the next step for the Foolish investor..

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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 Chin Hui Leong doesn't own shares in any company mentioned.