Dr Lee, one of the Singapore O&G founders bought SGD65k of shares last week. This is part of a string of insider purchases over the last 12 months which suggests that the company is undervalued.
As I previously mentioned, Singapore O&G net profit is likely to see at least 10-12% earnings growth over the next five years because of its strategy to expand its women’s healthcare and paediatrics practice.
| Buyer | Shares bought | Value (SGD) | Implied share price (SGD) | |
| Jul-2018 | Dr Lee Keen Whye | 193,500 | 65,480 | 0.34 |
| Feb-2018 | Dr Joyce Lim | 100,000 | 38,750 | 0.39 |
| Aug-2017 | Dr Beh Suan Tiong | 100,000 | 47,700 | 0.48 |
| Aug-2017 | Dr Heng Tung Lan | 100,000 | 47,500 | 0.48 |
Singapore O&G is currently trading at a 18x trailing P/E which seems like a fair price for a healthcare company which is less exposed to economic cycles.
In other news, Stanley from Value Invest Asia has uploaded a great interview with Dr Beh, the current chairman of Singapore O&G. During the interview, Dr Beh shared the company’s plans to develop a more resilient growth strategy which includes shared clinics, stretch mark creams and doctor recruitment.
Evergreen Investing 