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Here Are Some Cheap Shares from the Singapore Stock Market

Recently, we noted that there were 93 net-net stocks, as of 16 September 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), Hanwell Holdings Ltd (SGX: DM0), SLB Development Ltd (SGX: 1J0), YHI International Ltd (SGX: BPF), ISDN Holdings Limited (SGX: I07), Tiong Seng Holdings Limited (SGX: BFI), 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 986.0 0.695
Hong Leong Asia Ltd 430.0 0.467
Sing Holdings Limited 158.4 0.899
Hanwell Holdings Ltd 106.8 0.658
SLB Development Ltd 105.0 0.697
YHI International Ltd 97.9 0.835
ISDN Holdings Limited 94.5 0.928
Tiong Seng Holdings Limited 93.4 0.770
IFS Capital Ltd 82.7 0.653
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), Asia Enterprises Holding Limited (SGX: A55), Sin Ghee Huat Corporation Ltd (SGX: B7K), Sunright Limited (SGX: S71), and Sysma Holdings Limited (SGX:5UO).

Company Market cap (S$’ million) Ratio of market-cap-to-net-current-asset-value
Hong Leong Asia Ltd 430.0 0.467
Hanwell Holdings Ltd 106.8 0.658
ISDN Holdings Limited 94.5 0.928
Dutech Holdings Ltd 78.4 0.927
Multi-Chem Ltd 65.3 0.761
PNE Industries Ltd 64.6 0.924
Asia Enterprises Holding Limited 49.5 0.823
Sin Ghee Huat Corporation Ltd 48.8 0.648
Sunright Limited 47.9 0.599
Sysma Holdings Limited 44.2 0.781

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.