Excerpts from DBS Group Research
Our stock picks aim to help investors build a portfolio of Singapore stocks, based on their risk profiles. Stock picks are based on sectoral, fundamental, and technical analysis.
Add Yangzijiang 13,800 at S$0.96 to Growth and Blue Chips categories
We add the stock considering its recent strong order wins and ahead of the upcoming 3Q results season.
"We note that after a 4-week lull, the company conducted its latest share buy-back exercise yesterday with 1m shares purchased at $0.965, which should help to support the stock price."
YZJ has signed new contracts worth USD395m in 3Q2019, a trend that can continue in 4Q.
The stock’s recent oversold rebound has since retreated to an attractive level.
The stock is currently valued at just 0.6x P/B, representing 25%/65% discount to its global and Chinese peers.
It is also trading at net cash value of $0.95/share.
Full report here.