The Business Times today published its "10 Stocks to Watch" in 2023, among which are Geo Energy and Best World. Here's what BT said:

Geo Energy Resources
Coal miner Geo Energy Resources is standing its ground, with chief executive Tung Kum Hon saying it will not follow in the footsteps of competitor Golden Energy and Resources in exiting the coal sector.

Today, more investors and banks are scrutinising environmental, social and governance factors. This means coal miners such as Geo Energy might find themselves in a difficult position to secure funding or make new investments.

Geo Energy, however, is debt free. The company had US$214.7 million in cash at end-September, which might come in handy for acquisitions at a time when the valuations of coal assets are down.

Profit past12.22

Coal prices have been hovering at elevated levels, offering attractive margins for companies that know how to keep their costs under control and capitalise on operational efficiencies. Geo Energy might surprise investors, even as its competitors exit the industry.

Best World
Best World resumed trading on Nov 14, 2022 after a 3.5-year suspension. Shares of the beauty products distributor had been suspended amid regulatory concerns about its business model in China. On resuming trading, the counter surged 33.8 per cent to close at S$1.82.

It has remained near those levels. Best World’s valuations appear undemanding, at about six times earnings – lower than the average in the past decade – and 1.7 times its book value. It has no debt, and the company has also been buying back shares.

Profit track12.22

The company has obtained legal opinions citing minimal risks that its current model will contravene Chinese regulations, but it has also noted that any changes in China’s policies or regulations may have “wide-ranging implications and cast long-lasting impact for the group’s business performance”.

How investors weigh Best World’s valuations and risks will be something to watch for in 2023.

The BT full-page article featuring the other 8 picks -- Sembmarine, UOB, SIA, Mpact, SingPost, SATS, AEM Holdings and UG Healthcare -- is here.

Share Prices

Counter NameLastChange
AEM Holdings2.860-
Avi-Tech Electronics0.275-
Best World2.4000.050
Broadway Ind0.092-
China Sunsine0.4750.010
Food Empire0.9150.015
Fortress Minerals0.395-0.015
Geo Energy Res0.3150.015
Golden Energy1.0100.040
GSS Energy0.038-0.002
ISDN Holdings0.4900.025
IX Biopharma0.0770.001
Jiutian Chemical0.0710.001
KSH Holdings0.335-
Leader Env0.0700.002
Medtecs Intl0.1390.001
Meta Health0.0240.002
Nordic Group0.460-
Oxley Holdings0.141-0.001
REX International0.126-0.001
Sinostar PEC0.162-0.013
Southern Alliance Mining0.6000.005
Straco Corp.0.450-
Sunpower Group0.370-
The Trendlines0.091-
Totm Technologies0.083-0.002
UG Healthcare0.1640.007
Uni-Asia Group1.000-0.010
Wilmar Intl4.150-
Yangzijiang Shipbldg1.2500.050

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 332 guests and no members online