Singapore ANG BAO Series – 4 Stocks To Grow Your Money

Chinese New Year is the time of the year where most of us will receive ANG BAO from our loved ones. This is a yearly affair that gives our bank account a little extra boost. But what if you can grow that amount by investing it in the right stocks?

Thus, we highlight four Singapore-listed stocks that you can grow your Ang Bao money with.

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Investors Takeaway: 4 SG Stocks To Grow Your Ang Bao Money

1. Singapore Medical Group

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Singapore Medical Group is the largest healthcare platform in Singapore catering to the premium market segment. According to UOBKH, Singapore Medical Group has the ability to retain an elite audience capable of paying higher prices for premium healthcare services.

Over the years, Singapore Medical Group has transformed into a premier healthcare platform that serves patients from cradle to grave. Singapore Medical Group has been shrewd in making acquisitions. They acquired a number of forefront medical technology through M&As at undemanding valuations.

The company is currently trading at undemanding valuations of 20.7 times forecast-FY18 earnings. Earnings-per-share is forecasted to grow at 3-year compound annual growth rate of 68 percent from 2016-19. This implies a compelling 0.3 times price-to-earnings growth.

BUY, TP $0.83 (Current share price: $0.56)

1. Tuan Sing Holdings (Tuan Sing)

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Market bullishness surrounding residential and office recovery will drive Tuan Sing’s share price, according to UOBKH. UOBKH notes that the recent positive revaluation of Tuan Sing’s property portfolio highlights its attractiveness. Tuan Sing’s property portfolio is made up of mostly freehold/ 999-year leasehold tenure, which provides stability to its net asset value over the medium term.

Based on UOBKH’s analysis, Tuan Sing is trading at fire-sale levels of 57.8 percent of book value. UOBKH believes that revised net asset value expansion and yield pick-up upon completion of 18 Robinson’s redevelopment will help Tuan Sing unlock value in its assets.

BUY, TP $0.71 (Current share price: $0.43)

1. Citic Envirotech

As China continues to grow, China’s demand for quality water supply grows in tandem. Right now, conventional technology cannot fulfill China’s long-term needs. Based on UOBKH’s analysis, the only viable technology available is membrane technology, which puts Citic Envirotech in a good position to win new orders.

Citic Envirotech’s management has shared that it is bidding for multiple mega projects. The management has shown great confidence in winning some projects. UOBKH expects the management to deliver at least another $1 billion in project wins in 2018 to sustain its project win momentum.

Citic Envirotech’s share price took a correctional dip recently despite no fundamental reasons supporting such a price correction. UOBKH believes that Citic Envirotech’s recent price correction offers investors a buying opportunity. With China Reform Fund and Citic investing in Citic Envirotech at $0.725 and $0.825 respectively, investors can invest at prices lower than Citic Envirotech’s strategic investors.

BUY, TP $1.10 (current share price: $0.715)

1. Perennial Real Estate Holdings (Perennial)

Perennial Real Estate Holdings announced the setup of a ‘healthcare fund’ in the beginning of 2018. DBS views this as a positive development that can increase its “fire-power” to US$2 billion to scale up its integrated real estate and healthcare business. The new healthcare fund will also provide the company with an asset-light platform for its two existing high-speed railway healthcare integrated projects in Chengdu and Xi’an. Thirdly, it helps Perennial build a recurring income platform from asset management fees.

DBS remains positive on the medium- to long-term development plans of Perennial. In particular, DBS views Perennial’s investments in China (and its healthcare hub) as slowly coming to fruition.

BUY, TP $1.05 (Current share price: $0.84)