B61 Stock Intrinsic Value – Investors Hesitate to Bite Despite Bukit Sembawang Estates’ Many Positive Attributes.
February 15, 2023
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B61 Stock Intrinsic Value – Bukit Sembawang Estates ($SGX:B61) is a mainboard-listed developer listed on the Singapore Exchange, yet despite its many positive attributes potential investors have yet to take the bait. The developer has a sizeable and diversified portfolio of residential, commercial and industrial properties, as well as an attractive track record when it comes to capital acquisitions. Furthermore, the developer has also been active in the last few years with regards to acquiring adjacent land, to increase their land bank and improve upon existing project profitability. The company has also had success in resale transactions and projects within their current portfolio have seen improvement in terms of occupancy rates.
Despite all of the positive news, the development’s share price is trading at a discounted valuation similar to its peers. This may be due to the fact that there is still a certain degree of uncertainty in the market even though there are positive signs of economic recovery and growth. Overall, Bukit Sembawang Estates ticks all the right boxes for potential investors; however, it appears that investors are hesitant to bite given the current market circumstances. It remains to be seen whether or not the developer’s share price will pick up in the near future as the economy continues to grow.
Market Price
Despite its many positive attributes, investors remain hesitant to invest in Bukit Sembawang Estates’ stocks. On Wednesday, the stock opened trading at SG$4.6 and closed at the same price, a mere 0.7% increase from the previous day’s closing. It appears that investors just could not seem to be convinced enough to take the plunge and commit their finances to the estate. It is likely that the estate’s current uncertainties are turning investors away. The weak economic conditions have made it harder for the company to reach their expected profits and expand their business.
Furthermore, these conditions have also caused them to suffer from a lack of financial liquidity, leading to an overhang of debt that could potentially raise a red flag should the market take a downturn. This hesitance to take on the estate’s stocks has led investors to miss out on potential opportunities. Though it has been a rocky road, Bukit Sembawang Estates has demonstrated a remarkable resilience against external pressures, managing to keep its operations going and still providing returns to stockholders. With significant investments in the right places, the company could see itself breaking even before long. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for B61. More…
| Total Revenues | Net Income | Net Margin |
| 210.06 | 42.14 | 20.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for B61. More…
| Operations | Investing | Financing |
| 62.42 | -0.63 | -231.26 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for B61. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.61k | 160.4 | 5.61 |
Key Ratios Snapshot
Some of the financial key ratios for B61 are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -19.2% | -30.2% | 24.3% |
| FCF Margin | ROE | ROA |
| 29.4% | 2.2% | 2.0% |
Analysis – B61 Stock Intrinsic Value
At GoodWhale, we believe in helping our customers make the most informed decision when it comes to investing in stocks. That’s why we’ve analyzed the fundamentals of BUKIT SEMBAWANG ESTATES to provide our customers with the best data possible. After a thorough analysis, we have determined that the fair value of BUKIT SEMBAWANG ESTATES share is around SG$4.3 using our proprietary Valuation Line. We hope that this information will be helpful in your decision-making process. More…
Peers
It faces stiff competition from other major players in the industry such as MK Land Holdings Bhd, Country View Bhd and Sentoria Group Bhd. All of these companies are well established and offer a variety of products and services in the real estate market. In spite of the competition, Bukit Sembawang Estates Ltd has managed to remain a key player in the industry by providing top-notch services and innovative products.
– MK Land Holdings Bhd ($KLSE:8893)
MK Land Holdings Bhd is a property development and investment company based in Malaysia. It is involved in the development and sale of residential, commercial and industrial properties, as well as in rental activities. As of 2023, the company has a market capitalization of 192.73M, which makes it one of the largest property companies in the country. Its Return on Equity (ROE) stands at 1.38%, which indicates that the company is able to generate profits from its investments. MK Land Holdings Bhd has a solid track record in delivering quality products and services, making it a trusted partner for many investors and customers.
– Country View Bhd ($KLSE:5049)
Country View Bhd is a Malaysian-based property development company operating in the residential and commercial sectors. The company is well-known for its large-scale, high-end residential projects and has become a leader in the Malaysian real estate market. As of 2023, the company has a market capitalization of 108M, indicating a strong and stable financial position in the industry. Its return on equity of 1.02% also suggests that the company is managing its resources efficiently, as it is able to generate a profit even from its equity investments. This indicates that Country View Bhd is a reliable and profitable investment for shareholders.
– Sentoria Group Bhd ($KLSE:5213)
Sentoria Group Bhd is a Malaysian-based public listed company with a focus on property development. The company has a market capitalization of 47.4M as of 2023, making it a mid-sized company in terms of market capitalization. The company’s return on equity is -28.27%, which is an indicator of the company’s financial health and efficiency. The negative ROE suggests that the company is not generating enough income relative to the amount of equity invested in the business. The company’s focus on property development means that the current market situation could cause difficulty in generating returns.
Summary
Investing in Bukit Sembawang Estates has been a largely debated topic among investors due to the wide range of positive attributes that the company has. Many of these positive aspects include financial stability, strong cash flow, consistent dividend income, and potentially advantageous assets. Despite all these benefits, many investors remain hesitant to invest in Bukit Sembawang Estates due to certain risks associated with it. These risks include potential changes in the macroeconomic environment, the property market, and the political climate.
Other risks include a relatively high debt-to-equity ratio and a lack of diversification within the company’s asset portfolio. Although investors are cautious with their money, there are still many opportunities for profit in investing in Bukit Sembawang Estates.
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