Low Keng Huat Singapore Ltd Is Near A 52-Week Low: Here Are 3 Interesting Things Investors Should Know

Low Keng Huat Singapore Ltd (SGX: F1E) is a company with three core businesses: Construction and civil engineering, property development, and property investment.

In my latest screen for stocks near their 52-week lows, Low Keng Huat appeared. At its current stock price of S$0.55, it is a whisker away from its 52-week low of $0.53.

Sometimes, there are companies that deserve to have falling share prices – their businesses may be in deep trouble. But, there are also times when a company’s share price falls for nothing related to its business fundamentals.

Here are some things I found out about Low Keng Huat:

1. Big decline in revenue and profit in 2015

In 2015, Low Keng Huat reported a 93% decline in revenue. Its profit also slumped by 65%. A big culprit for the sharp fall is a decrease in construction activity for the company.

2. Long-term growth in net asset value per share:

The net asset value – also known as equity – is the theoretical value of a company that belongs to shareholders after it sells all its assets and pays off all liabilities. It is an accounting metric that serves as a good proxy for investors to monitor the growth in shareholders’ wealth in a company.

From fiscal 2008 (year ended 31 January 2008) to fiscal 2016, Low Keng Huat’s net asset value per share has grown from S$0.27 to S$0.85. This translates into a compound annual growth rate of 15.4%.

3. A long history of paying dividends

A look at Low Keng Huat’s track record with its dividend also reveals that it has consistently paid an annual dividend from at least fiscal 2008 to fiscal 2016. Those dividends have also grown from S$0.0125 per share to S$0.04 per share. Between fiscal 2010 and fiscal 2016, the company has managed to keep its dividend within a range of S$0.03 per share and S$0.05 per share.

Low Keng Huat is a company that is trading near a 52-week low and I’ve managed to find some interesting facts about the company. While these facts alone certainly do not justify an investment to be made in Low Keng Huat, it may prompt some investors to look further into the company.

Who knows what they may find!

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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 Lawrence Nga doesn’t own shares in any companies mentioned.