Top 5 Favourite Undervalued Companies SGX/SEHK

(19-02-2014, 07:27 PM)Investmentrealm Wrote:

(18-02-2014, 11:30 PM)ngcheeki Wrote: Join in the fun, the following are 5 of my top picks.

1. Sunningdale Tech
2. GP Batteries
3. Cityneon
4. Tan Chong International
5. Engro

Vested in most of them except cityneon!!

What do you think about GP Batt recent rights issues? It looks like they need capital injection.
I was once a shareholder of GP batt but after a few years, I was pretty disappointed in it as its earnings never seem to recover. I sold it 1.5 years ago at $1.

As stated in the GP Batteries thread by some of the experienced buddies in this forum, GP Batteries current net gearing of (27%) is one of the lowest in the last few years i.e. Cash of $132mil with total debt of 200 mil. Furthermore, with the termination of Vectrix (Electric scooter) JV, the need for additional CAPEX or $$$ should be much less. Hence, there is no reason why GP Batteries should raise additional capital.

http://www.valuebuddies.com/thread-2890-page-2.html

The reasons why GP batteries is picked mainly because of the following reasons:

1. Low price to book: last transacted price of 59.5 cents versus post right issued NAV of 169 cents (i.e. from GP Battery OIS)

2. High possibility of recovery: With the termination of loss making Vectrix JV, further 'bleeding' should stop since no additional cash is required to inject to the R&D of electric scooter. If fact, if not for the impairment made for Vectrix (i.e. 26.3 mil), GP Bat's 9MFY2014 should be a small profit instead of a loss. Furthermore, based on the forward guidance in 3QFY2013, the prospect for GP Bat should be reasonable good

"Whilst there are signs of an economic upturn, the recovery remains fragile. The Group will continue reshuffling its sales resources to focus on key strategic market segments and customers, and we are
complemented by other channel partners to improve our market coverage. As we see relatively stronger backlog on the book, we are cautiously optimistic on the sales in the coming quarter."

In addition, with the impending sale of their pioneer road property GP Bat is expected to realise a gain of around 9 mil. in 1st half of next financial year. FYI, the pioneer road property is recorded only at 1.86 mil in the book versus the selling price of 11.2 mil. Are the rest of their properties the same??

When recover will GP Bat still trade at this distressed price to book? i think probably not.

3. Undervalued subsidiary and assets

Besides, the understated the value of property (see above) in the book. GP Battery also understate the value of the subsidiary. 5% of Zhong Yin (Ning Bo) battery ('000) is worth $10.4 mi and the company will make a further gain of $1.2 mil gain if the sale if completed. See the following for more detailed. By the way, anyone know what happen to the deal, does it fall through??


http://infopub.sgx.com/FileOpen/Dispose_...eID=253940


Please do your due diligence.

(18-02-2014, 09:41 PM)investingsgx Wrote: Top 5 undervalued stocks

-Penguin International
-XMH
-Falcon Energy
-Heeton
-Hiap Hoe

We have 3 in common !

Penguin
Heeton
Hiap hoe
Chip Eng Seng

Still looking for number 5 after selling Superbowl to HH.

FCL - wrote 8 reasons why u buy in on my blog, basically its selling cheap to the assets it holds

OCBC - also wrote about it in my blog, was over sold from 11.20 to 9.20, at pe 11.5 and yield 3.5 was an easy buy for a solid blue chip. I also mention that looking forward long term rates will eventually go up, in such an enviroment its a lot wiser to be a lender than a borrow, which is also why smart investors like Warren Buffett has 40% of his portfolio in financial stocks

Not really looking at anything else at the moment as all the other stocks that i am really interested in are above their fair value, so i shall wait for a better opportunity

(19-02-2014, 04:46 PM)Temperament Wrote: So far with all the favorite stocks mentioned, it looks like i am a KIASU & KIASI (aka index investor) investor. i am more like a passive then active investor. i think i am a Rojak Investor is correct.

Seeing this thread, I think I'm a kiasu investor too.

I start to not consider businesses without a strong barrier to entry. The barrier could be due to either regulations or branding or any reasons that make it hard for newcomers to come in.

1. Innovalues undervalue turnaround stock, high dividend, managers trying to reduce gearing, last two quarters results good. A similar counter Spindex just released a pretty good half year result. I expect innovalues will also bring another quarter good result.

2. Sing holdings definitely undervalue, but currently in net loss position. no uptrend in near term. hold for long term.

3. Vard holdings, Slightly vested and keep watching this counter. premium OSV supplier. currently having very good order book, industry is recovering. suffering from its own brazil shipyard overload issue for more than 1 year. Expecting to see its turnaround
4. YZJ, covered a lot by forum seniors.
5. KSH holdings, locked sales for most Sg property development, healthy construction orders, decent dividend record

1. tai sin
2. osim
3. ap oil
4. zagro
5. first resources

maybe title should change to top 5 hated undervalued stocks.......undervalued stocks might become MORE undervalued and your love might 'suddenly' turns to 'hate' ^^

just joking cheers ^^

(18-02-2014, 10:20 PM)mee2 Wrote:

(18-02-2014, 10:03 PM)Nick Wrote: To make things interesting, I won't mention anything that I already have a stake in. But these are a few companies I think are worth looking at if one has time and energy to do so -

Hotel Royal - asset play
Amtek - cyclical cash-flow play
Kingsmen - steady grower
United Engineers - break up play
CDLHT - hotel recovery play

Just to create interest and discussion:
I had difficulty in choosing which company is best, so I decided to divide among a few. Thus my no 1 top 5 is divided among Roxy, Chip Eng Seng, Hiap Hoe, and Heeton.To me they are in same business, undervalued against rnav, and secured earnings as they have sold majority of their singapore developments.
My other 4 then are New Toyo, Tai Sin, 2nd Chance and St******. I am thinking of reducing 2nd C now as unsure of its growth and add to St******.

Roxy seems kinda priced towards the high side now.

Personally my concern is that the trading volume in sg is pretty small so it might take a really long time for an undervalued company to achieve its true value.


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(19-02-2014, 11:10 PM)kayaroti Wrote:

(18-02-2014, 09:41 PM)investingsgx Wrote: Top 5 undervalued stocks

-Penguin International
-XMH
-Falcon Energy
-Heeton
-Hiap Hoe

We have 3 in common !

Penguin
Heeton
Hiap hoe
Chip Eng Seng

Still looking for number 5 after selling Superbowl to HH.

that's cool. But penguin International is getting more recognition from the market. Heeton, on the other hand also does not seem to be doing well based on its current FY2014

(22-02-2014, 08:34 AM)investingsgx Wrote:

(19-02-2014, 11:10 PM)kayaroti Wrote:

(18-02-2014, 09:41 PM)investingsgx Wrote: Top 5 undervalued stocks

-Penguin International
-XMH
-Falcon Energy
-Heeton
-Hiap Hoe

We have 3 in common !

Penguin
Heeton
Hiap hoe
Chip Eng Seng

Still looking for number 5 after selling Superbowl to HH.

that's cool. But penguin International is getting more recognition from the market. Heeton, on the other hand also does not seem to be doing well based on its current FY2014

That's the bane of value investing, it takes time to realize the value, and it always seems to take forever. :-)

Read somewhere that Hiap Hoe should worth $1.50 after buying SuperBowl, I am hoping it can at least move to $1 within this year... Hope i will not have to wait until the cow comes home.