New Government Initiative to Boost Singapore’s Market
According to a recent report by CGS International, Singapore’s equity market is poised for a significant boost in trading liquidity and a narrowing of its valuation gaps with other regional markets. This positive outlook is primarily driven by the government’s newly launched $5 billion Equity Market Development Programme (EMDP). In its “Make Singapore Great Again” report, the brokerage firm screened a total of 23 Singapore-listed stocks that are currently trading at attractive valuations, specifically below 10 times price-to-earnings (P/E) or one time price-to-book (P/BV). The analysis suggests that a substantial number of these companies are not only undervalued but are also in the early to mid-stages of an uptrend, underpinned by a range of improving business fundamentals.
A Glimpse into Promising Value Stocks
The report highlights several key stocks with compelling investment profiles. Aztech Global is noted to be in an early uptrend, bolstered by a strong balance sheet where its net cash position covers nearly 60% of its total market capitalization, giving it a target price of $1.02. Another prominent pick is Asian Pay Television Trust, which is attractive for its stable and high dividend yield of approximately 10% while trading at a significant discount to its net asset value. Its long-term target price is set at $0.140. Furthermore, the report features Banyan Tree Holdings, which is in the midst of a strategic shift towards an asset-light business model, aiming for 90% of its hotels to be fee-based by 2027, with a corresponding target price of $0.95.
Key Drivers and Other Notable Picks
CGS International identified several common threads that make its selections particularly appealing. These include a combination of strong technical momentum, attractive valuations, consistent dividend payouts, and impactful corporate actions such as strategic spin-offs, key acquisitions, and asset sales. The report also features a number of other notable companies, including Hock Lian Seng, which is backed by a large and healthy order book, and Valuemax, which has posted record-breaking revenue and earnings per share growth. Other highlights include Centurion Corp for its potential REIT spin-off and Beng Kuang Marine for its turnaround potential in the FPSO/FSO business, all of which are expected to benefit from the new government initiative.
