Panellists at The Edge Singapore's investment forum on July 22 recommended a number of stocks "to buy for the market's next phase".
We produce excerpts from a 2-page report in the July 31-Aug 6 edition of the weekly, which you can buy for $5 from newsstands.
Amara Holdings: This is a pick of Azure Capital's CEO, Terence Wong, who said that it trades at a sharp discount to its revalued net asset value of $1.40 a share. |
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21 July |
2 Aug |
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Tuan Sing |
33 c |
34 c |
Tuan Sing Holdings: This is a pick of Havard Chi, director and head of research at Quarz Capital Asia.
Tuan Sing, which counts billionaire Koh Wee Meng of Fragrance Group among its biggest shareholders, currently trades at a rock-bottom price-to-book ratio of 0.4 times, Chi notes.
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To be completed soon |
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"We think the catalyst is that its projects will soon be completed and go into the market at a time when supply is coming down. We think commitments will come in very quickly." |
Tuan Sing has an enviable portfolio of 999-year and freehold properties -- a rarity among local developers. And the completion of Robinson Tower in 2Η2018 should prονide a boost to Tսan Sing's rental income.
Havard Chi estimates the соmрlеtіоn of Robinson Tower will bring in $17 million in recurring income еvеry year, which should ргоvidе room for Tuan Sing to pay increased dividends.
Moreover, he adds, Tuan Sing's management is open to the idea of divesting its assets into a REIT. He estimates that between $500 million and $1 billion of capital could be released through such a deal.
The capital released could be used to pay a special dividend and to further grow Tuan Sing's real estate portfolio.
"We see potential upside of 40% by 2019. We are long term investors; we think things take time to work out."
"But it's something to look at. It's promising because it is a burn-in solutions provider that serves the fast-growing automotive sector," says Azure's Terence Wong. "Because a lot of the machines have been fully depreciated, every item they churn out is like churning out cash." (For more, see: AVI-TECH ELECTRONICS: Insights into its operations) |