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Here Are Some Cheap Shares from Singapore’s Stock Market

In a recent article, we saw that there were 100 net-net stocks, as of 16 August 2019. To understand what a net-net stock is, you can click 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), YHI International Ltd (SGX: BPF), ISDN Holdings Limited (SGX: I07), IFS Capital Ltd (SGX: I49), and Dutech Holdings Ltd (SGX: CZ4).

Company Market cap (S$’ million) Ratio of market-cap-to-net-current-asset-value
UOB-Kay Hian Holdings Limited 977.8 0.689
Hong Leong Asia Ltd 422.5 0.459
Sing Holdings Limited 158.4 0.899
SLB Development Ltd 105.0 0.697
Hanwell Holdings Ltd 99.6 0.614
Tiong Seng Holdings Limited 97.9 0.806
YHI International Ltd 93.5 0.798
ISDN Holdings Limited 81.0 0.795
IFS Capital Ltd 79.0 0.623
Dutech Holdings Ltd 78.4 0.927

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

Company Market cap (S$’ million) Ratio of market-cap-to-net-current-asset-value
Hong Leong Asia Ltd 422.5 0.459
Hanwell Holdings Ltd 99.6 0.614
ISDN Holdings Limited 81.0 0.795
Dutech Holdings Ltd 78.4 0.927
Multi-Chem Ltd 66.2 0.771
PNE Industries Ltd 65.0 0.930
Sin Ghee Huat Corporation Ltd 50.0 0.657
Sunright Limited 49.7 0.622
Asia Enterprises Holding Limited 47.8 0.795
Pan Hong Holdings Group Ltd 43.5 0.326

 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.

Want to keep reading and learn more from The Motley Fool? There are many important things we think every Singaporean investor should know before jumping into stock picking—and we’ve laid them all out in our eBook, which we think will help you become a Smarter, Happier and Richer investor. You can download the full e-book FREE of charge here

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.