The Value-Unlocking Thesis
Singapore’s listed conglomerates and property companies have historically traded at persistent discounts to intrinsic value, reflecting conservative valuations of their asset bases. According to DBS Group Research, this is gradually changing as companies execute asset sales at or above book value, validating those conservative valuations and catalysing re-rating.
Three Phases of Value Realisation
DBS has articulated a framework for understanding how value-unlocking unfolds. It typically progresses through three distinct phases: an “expectations” phase where strategic reviews have been signalled, a “delivery” phase where tangible asset sales and restructuring have been executed, and a “reward” phase where the value realised is translated into shareholder benefits.
Expectations Phase: Early-Stage Opportunities
Four companies currently sit in the initial expectations stage. UOL Group (target price: S$13) hinges on an upcoming update regarding the Marina Square redevelopment in the third quarter and potential hotel or office portfolio securitisation. **City Developments Ltd** (target price: S$12) has key triggers including the unveiling of its strategic review in Q3, accelerated asset recycling, and a pivot toward a more capital-light earnings profile.
Jardine Matheson (target price: US$90) offers drivers comprising a parent-level asset divestment pipeline valued at approximately US$5 billion, a US$500 million share buyback programme, and improving sentiment around Astra. **CapitaLand Investment** (target price: S$3.40) is in a “good place to relook internally” to optimise its portfolio and could boost capital efficiency by paring REIT stakes and pursuing a potential spin-off of Ascott.
Delivery Phase: Proven Execution
Three companies have entered the delivery phase through tangible execution. Keppel (target price: S$13.30) leads the list, demonstrating that value creation is real rather than aspirational. DBS maintains a BUY rating on Sembcorp Industries and Singtel with target prices of S$7.30 and S$5.46 respectively.
The Analytical Framework
For value investors, the deep-value approach requires more than simple screening for low price-to-book ratios. UOB Kay Hian’s September 2026 strategy note screened the 30 STI component stocks for companies with sound fundamentals trading at significant discounts. Yangzijiang Shipbuilding emerged with the lowest 2026F PE at 9.5x, backed by a US$22.4 billion orderbook providing visibility through 2029 and a strong net-cash balance sheet.
City Developments trades at a P/B of 0.77x, the fifth lowest among STI components, with a strategic review expected by September 2026 as a potential catalyst. Mapletree Pan Asia Commercial Trust at 0.73x P/B offers a recovery play for Festival Walk in Hong Kong and three office buildings in Chiba City.
The deep-value approach in Singapore is not about finding distressed assets, but about identifying companies with credible, catalyst-driven paths to narrowing the gap between price and intrinsic worth.
