Dear readers, there are eighteen Straits Times Index (STI) stocks that are currently undervalued. Undervalued with a Price-to-Book value of below 1. In a similar post about undervalued Straits Times stock on 15 April 2020, there were nineteen undervalued STI stocks. One of the undervalued STI stock, Mapletree Commercial Trust has since gone up from 0.943 Price-to-Book in trading price to 1.04 in Price-to-Book and hence is now no longer undervalued. Let us take a look at the list of eighteen undervalued Straits Times Index (STI) stocks right now.
First on the local banking front, all the three banking stocks are undervalued.
(1) DBS stock (0.966)
(2) UOB stock(0.843)
(3) OCBC stock(0.827)
OCBC is the most undervalued with a Price-to-Book ratio of 0.827.
Second, for business trusts which are constituents of the Straits Times Index, the following undervalued two trusts from the Capitaland family have almost similar Price-to-Book ratios.
(4) CapitaMall Trust (0.879)
(5) CapitaCommercial Trust (0.832)
Third, on the properties front, Hongkong Land stock has always been the most undervalued stock be it in the property front or in the entire Straits Times Index family. Including HongKong Land stock, there are altogether four undervalued property stocks in the Straits Times Index family as follows.
(6) City Development stock (0.671)
(7) Capitaland stock (0.643)
(8) UOL stock (0.578)
(9) Hongkong Land (0.254)
Fourth, the two largest energy and offshore marine conglomerate stocks here are oversold. It is noteworthy that based on Price-to-Book metrics, Sembcorp Industries stock appears more than half “cheaper” than Keppel Corporation.
(10) Keppel Corporation stock(0.92)
(11) Sembcorp Industries stock (0.416)
Fifth, the Jardine family of stocks which is based overseas, in Hong Kong I think. I am not very familiar with this family of stocks though they have been fixtures in the Straits Times Index.
(12) Jardine C&C stock (0.854)
(13) JSH USD stock (0.734)
(14) JMH USD stock (0.654)
Sixth, the only commodity play in the Straits Times Index after the removal of Golden Agriculture stock from the list. Yes, Wilmar is oversold at 0.907 Price-to-Book ratio.
(15) Wilmar International stock(0.907)
Seven, two local familiar Singapore brands whose stock prices have headed south over the years. SIA and SPH stock. I am of the view that SIA stock will be privatised in the years to come, just as how similar transportation-related counterparts in sea transport (NOL) and land transport (SMRT) are were also privatised.
(16) SIA stock (0.608)
(17) SPH stock (0.62)
Last, but note least, the only S-chip stock in the STI. Yes Yangzijiang is undervalued now too.
(18) YangZiJiang stock(0.631)
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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