SINGAPORE: Blue-chip stocks, recognised for their resilience across economic cycles, offer investors a blend of stability and income. Yet, occasionally, market sentiment clouds their true value, rendering some of them undervalued.

Here’s a peek at three cheap blue-chip stocks worth investing in, according to The Smart Investor.

1. Hongkong Land Holdings

Hongkong Land Holdings is a prominent player in property development, management, and investment, boasting prime retail and commercial properties across key Asian cities.

Despite a slight dip in 2023’s profits, the company maintained its dividend at US$0.22 per share.

With a net asset value of US$14.49 per share and a share price of US$3.42, Hongkong Land Holdings appears undervalued, trading at just 0.24 times its book value.

Though challenges persist in China’s residential sector, Singapore’s robust leasing demand offers a glimmer of hope amidst the uncertainty.

2. Genting Singapore

Genting Singapore operates Resorts World Sentosa, a multifaceted entertainment destination.  In 2023, they made S$2.4 billion, 40% more than the year before, driven by a revitalised tourism sector.

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In 2024, the upward trajectory continued, with a remarkable 62% year-on-year revenue leap in the first quarter at S$784.4 million.

Despite this, share prices have declined by approximately 12% year-to-date, offering investors an attractive entry point.

Trading at a modest price-to-earnings ratio of 14.7, Genting Singapore’s future prospects, including strategic collaborations and upcoming attractions, signal long-term value.

3. City Developments Limited

City Developments Limited (CDL), a global real estate player with a diverse portfolio, reported a record-breaking revenue of S$4.9 billion in 2023, propelled by a robust property development division.

The property giant’s core net profit also skyrocketed four times from the previous year to S$188.6 million.

As of Dec 31, 2023, CDL’s net asset value was S$10.12 per share, which means shares are trading at just 0.54 times its net asset value, presenting an opportunity for investors.

With strategic acquisitions and plans for further growth, City Developments Limited remains poised for sustained success.


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Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their due diligence before making major financial decisions