In-Depth Financial Analysis of SGX-Listed Companies

Broker: Lim & Tan Securities

Date: 6 December 2024

Singapore’s financial markets have been bustling with activity, and Lim & Tan Securities brings you a detailed analysis of some of the key players in the market. This comprehensive analysis covers the highest consensus forward dividend yield stocks, those with the lowest consensus forward P/E ratios, and other notable companies making waves in the market. Whether you are an investor looking for insights or just eager to understand the market dynamics, this article dives deep into each company’s performance and prospects.

High Dividend Yield Stocks

The stocks with the highest consensus forward dividend yields offer a glimpse into lucrative investment opportunities for income-focused investors. These companies are characterized by their strong dividend payouts, indicating potential stability and attractiveness in the market.

• Frasers Logistics Trust boasts a forward dividend yield of 7.51%, making it an attractive option for dividend-seeking investors.
• Mapletree Pan Asia Commercial Trust follows closely with a yield of 6.64%.
• Mapletree Logistics Trust provides a yield of 6.28%.
• Mapletree Industrial Trust and CapitaLand Ascendas REIT offer yields of 5.90% and 5.77%, respectively.

These yields suggest a stable income stream, which is particularly appealing in uncertain market conditions.

Stocks with Lowest Consensus Forward P/E Ratios

Investors often look for stocks with low P/E ratios as potential bargains or undervalued opportunities. Here are the stocks with the lowest forward P/E ratios:

• Jardine Cycle & Carriage with a P/E of 8.29.
• Jardine Matheson has a slightly lower P/E of 8.97.
• Leading the pack is Yangzijiang Shipbuilding with a P/E of 9.08.
• Singapore Airlines and OCBC Bank present P/E ratios of 9.44 and 9.61, respectively.

These companies offer a mix of stability and growth potential, making them compelling options for value investors.

Lowest Trailing P/B and EV/EBITDA Ratios

The following companies have been highlighted for their low trailing price-to-book (P/B) and enterprise value to EBITDA (EV/EBITDA) ratios, which may indicate undervaluation:

• Hongkong Land leads with an impressively low P/B ratio of 0.34.
• Following closely are UOL Group and Jardine Matheson with P/B ratios of 0.40 and 0.47, respectively.
• City Developments and Mapletree Pan Asia Commercial Trust offer P/B ratios of 0.54 and 0.71.

Investors looking for value plays might find these metrics particularly useful in identifying potential opportunities.

Special Focus: Suntec REIT

In the spotlight is Suntec REIT, which has become a point of interest following a mandatory conditional cash offer from property tycoon Gordon Tang. The offer was made through Aelios, an investment holding company, at S\$1.16 per unit. This move was triggered after Aelios acquired a 2.1% stake in the REIT, bringing its total interest to 31.5%.

Despite the offer aligning with regulatory requirements, it is priced below the current trading price and the REIT’s NAV, prompting a recommendation for shareholders to “Not Accept” the offer. Suntec REIT, with a deep portfolio of income-producing real estate assets across Singapore, Australia, and the UK, trades at a 0.6x price to book value, offering a 5.2% dividend yield.

Conclusion

The analysis of these SGX-listed companies paints a promising picture for investors seeking both income and growth opportunities. With high dividend yields, attractive P/E ratios, and strategic corporate actions in the mix, the Singapore market offers a plethora of investment avenues. As always, potential investors are encouraged to conduct their due diligence and consult with financial advisors to align their investment choices with their financial goals.

Stay tuned for more insights and updates from Lim & Tan Securities as we continue to navigate and analyze the dynamic market landscape.