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20 Cheap Shares from Singapore’s Stock Market

Recently, we saw that there were 106 net-net stocks, as of 15 July 2019. To understand what a net-net stock is, you can head here.

Here, let’s explore 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), SLB Development Ltd (SGX: 1J0), Hanwell Holdings Ltd (SGX: DM0), Tiong Seng Holdings Limited (SGX: BFI), ISDN Holdings Limited (SGX: I07), YHI International Ltd (SGX: BPF), Dutech Holdings Ltd (SGX: CZ4), and IFS Capital Ltd (SGX: I49).

Company Market cap (S$’ million) Ratio of market-cap-to-net-current-asset-value
UOB-Kay Hian Holdings Limited 1002.4 0.707
Hong Leong Asia Ltd 437.5 0.425
Sing Holdings Limited 162.4 0.968
SLB Development Ltd 127.8 0.837
Hanwell Holdings Ltd 113.5 0.687
Tiong Seng Holdings Limited 104.5 0.908
ISDN Holdings Limited 99.1 0.978
YHI International Ltd 96.5 0.797
Dutech Holdings Ltd 80.2 0.904
IFS Capital Ltd 79.0 0.659

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, Dutech Holdings Ltd, PNE Industries Ltd (SGX: BDA), Multi-Chem Ltd (SGX: AWZ), Asia Enterprises Holding Limited (SGX: A55), Sin Ghee Huat Corporation Ltd (SGX: B7K), Pan Hong Holdings Group Ltd (SGX: P36), and Sunright Limited (SGX: S71).

Company Market cap (S$’ million) Ratio of market-cap-to-net-current-asset-value
Hong Leong Asia Ltd 437.5 0.425
Hanwell Holdings Ltd 113.5 0.687
ISDN Holdings Limited 99.1 0.978
Dutech Holdings Ltd 80.2 0.904
PNE Industries Ltd 66.3 0.955
Multi-Chem Ltd 64.9 0.743
Asia Enterprises Holding Limited 52.5 0.858
Sin Ghee Huat Corporation Ltd 48.8 0.643
Pan Hong Holdings Group Ltd 48.2 0.417
Sunright Limited 47.3 0.591

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.