I intend to build a long term core portfolio comprising of up to 30 stocks with 50-60% of my total investable capital shall be invested in these stocks. These 30 stocks shall be tested against value investing principles. Geographic focus: ASEAN Region + US + Hong Kong. My key requirements are as follows:
- Date of extraction: 22 February 2021
- Minimum ROE: >15%
- PEG <2x
- Price-to-Sales <3x
- Other criteria – minimum USD market cap, current ratio, revenue growth rate, book value growth, gearing
Based on the abovementioned criteria as well as other quantitative assessment, enclosed the summary of my potential value investing candidates for Singapore:
Union Gas Limited
A simple easy-to-understand business model. Union Gas Holdings Limited is an established provider of fuel products in Singapore with over 40 years of operating track record. Our key businesses comprise Retail Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and Diesel.
The share price of Union Gas has a major run-up since April 2020 and continues to be on an uptrend. Perhaps, I shall wait for its share price to re-trace before I consider to invest in this company. This Company is currently listed on the Catalist Board. Perhaps, a future transfer to Main Board will cement its upward long term trend?
Listed on the Catalist Board of Singapore Stock Exchange on 20 April 2018, Asian Healthcare Specialists Limited and its subsidiaries (collectively, the “Group”) is a multidisplinary medical services group that provides an extended range of medical services such as anaesthesia, dermatology, family medicine, gastroenterology, ophthalmology, orthopaedics, otorhinolaryngology, rehabilitation and urology. The Group currently have 14 medical specialists in different divisions, 2 family physicians and 1 physiotherapist; conveniently located at 14 clinics in Singapore.
The Group aims to provide a more comprehensive suite of in-house services to patients who have more complex medical issues requiring input from various specialties. Leveraging on the Singapore healthcare branding, the Group has an investment arm, Salvia Ventures Pte. Ltd. Which aims to set up satellite centres of healthcare excellence in the South-East Asia region. Revenue & profits are on uptrend, as shown below:
Its share price has dropped since mid 2018. Recently, it has started to consolidate around $0.18-$0.20 level.
I do not intend to undertake a detailed valuation analysis / detailed company assessment on the abovementioned two companies. At this juncture, I prefer to do a quick scan (based on certain fundamental metrics) as well as quick technical view. These are just potential candidates to be included as part of my portfolio.
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