Dr Lee buys more Singapore O&G shares

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.

 

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