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.