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20 Cheap Shares from Singapore’s Stock Market

In a recent article here, we saw that there were 111 net-net stocks, as of 15 May 2019. To understand what a net-net stock is, you can check out the link here.

In this article, let’s look at 20 of those cheapest shares sorted out according to the following two lists:

1) The 10 net-net stocks with the largest market capitalisations; and

2) The 10 largest net-net stocks that have positive net income over the last 12 months, as well as more cash than debt on their balance sheets.

Here are the 10 stocks on the first list: UOB-Kay Hian Holdings Limited (SGX: U10), Hong Leong Asia Ltd (SGX: H22), Sing Holdings Limited (SGX: 5IC), SLB Development Ltd (SGX: 1J0), Hanwell Holdings Ltd (SGX: DM0), YHI International Ltd (SGX: BPF), Tiong Seng Holdings Limited (SGX: BFI), ISDN Holdings Limited (SGX: I07), Nam Lee Pressed Metal Industries Limited (SGX: G0I), and Serial System Ltd (SGX: S69).

Company Market cap (S$’ million) Ratio of market-cap-to-net-current-asset-value
UOB-Kay Hian Holdings Limited 967.4 0.685
Hong Leong Asia Ltd 400.1 0.398
Sing Holdings Limited 156.4 0.932
SLB Development Ltd 136.0 0.890
Hanwell Holdings Ltd 124.5 0.754
YHI International Ltd 112.5 0.930
Tiong Seng Holdings Limited 97.9 0.850
ISDN Holdings Limited 90.7 0.894
Nam Lee Pressed Metal Industries Limited 88.5 0.980
Serial System Ltd 81.5 0.733

 Source: S&P Global Market Intelligence

The following are the stocks on the second list: Hanwell Holdings Ltd, ISDN Holdings Limited, Nam Lee Pressed Metal Industries Limited, PNE Industries Ltd (SGX: BDA), Multi-Chem Ltd (SGX: AWZ), Sunright Limited (SGX: S71), Asia Enterprises Holding Limited (SGX: A55), Sin Ghee Huat Corporation Ltd (SGX:B7K), Winas Limited (SGX: 5CN), and CDW Holding Limited (SGX:BXE).

Company Market cap (S$’ million) Ratio of market-cap-to-net-current-asset-value
Hanwell Holdings Ltd 124.5 0.754
ISDN Holdings Limited 90.7 0.894
Nam Lee Pressed Metal Industries Limited 88.5 0.980
PNE Industries Ltd 64.6 0.930
Multi-Chem Ltd 64.4 0.738
Sunright Limited 51.6 0.701
Asia Enterprises Holding Limited 51.2 0.835
Sin Ghee Huat Corporation Ltd 50.0 0.654
Winas Limited 42.6 0.402
CDW Holding Limited 39.5 0.642

 Source: S&P Global Market Intelligence

The Foolish bottom line

Net-net stocks are usually companies that are in serious trouble and/or have poor business fundamentals. That is why diversification is important when investing in such stocks.

The two lists of cheap stocks seen earlier are not a recommendation to buy or sell any of those stocks. The aim here is to simply share some of the undervalued stocks in Singapore’s stock market right now for your further research.

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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 Sudhan P doesn’t own shares in any companies mentioned.