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Cheap Shares from the Singapore Stock Market

In a recent article here, we saw that there were 106 net-net stocks, as of 14 June 2019. To understand what a net-net stock is, you can head here.

In this article, let’s look at 20 of those cheapest stocks 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), Hanwell Holdings Ltd (SGX: DM0), SLB Development Ltd (SGX: 1J0), Tiong Seng Holdings Limited (SGX: BFI), YHI International Ltd (SGX: BPF), ISDN Holdings Limited (SGX: I07), HupSteel Limited (SGX: BMH), and Nam Lee Pressed Metal Industries Limited (SGX: G0I).

Company Market cap (S$’ million) Ratio of market-cap-to-net-current-asset-value
UOB-Kay Hian Holdings Limited 967.4 0.682
Hong Leong Asia Ltd 392.6 0.381
Sing Holdings Limited 152.4 0.908
Hanwell Holdings Ltd 135.6 0.821
SLB Development Ltd 126.0 0.825
Tiong Seng Holdings Limited 109.0 0.947
YHI International Ltd 100.8 0.833
ISDN Holdings Limited 99.1 0.978
HupSteel Limited 91.5 0.997
Nam Lee Pressed Metal Industries Limited 89.7 0.993

Source: S&P Global Market Intelligence

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

Company Market cap (S$’ million) Ratio of market-cap-to-net-current-asset-value
Hong Leong Asia Ltd 392.6 0.381
Hanwell Holdings Ltd 135.6 0.821
ISDN Holdings Limited 99.1 0.978
HupSteel Limited 91.5 0.997
Nam Lee Pressed Metal Industries Limited 89.7 0.993
PNE Industries Ltd 68.4 0.985
Multi-Chem Ltd 64.9 0.743
Asia Enterprises Holding Limited 52.9 0.863
Sunright Limited 49.1 0.614
Sin Ghee Huat Corporation Ltd 46.6 0.614

 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.