In a note last Friday, Lim & Tan Securities advised those who still held CosmoSteel shares to accept the takeover offer -- and swap over the proceeds to other steel stockists trading at cheaper valuations than CosmoSteel:  Lim & Tan Securities did not name "other steel stockists" -- but here is a list:
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On the face of it, AnnAik Limited and Asia Enterprises are the most interesting cases with the biggest discounts to book values.
AnnAik's price-to-book (P/B) ratio is a low 0.28.
Ow Chin Seng, Executive Chairman and CEO of AnnAik. He has an interest in 43.69% of the company. Photo: annual reportAnnAik Limited manufactures and distributes stainless steel piping products, primarily serving sectors like water management, construction, and infrastructure in Singapore and regionally.
The company has maintained a niche in sustainable and high-quality steel solutions.
AnnAik's financials show resilience in a challenging steel market, with revenue stabilizing after a sharp decline in prior years.
Here's a summary of its key metrics over the last three fiscal years (ending December):
|
Fiscal Year |
Revenue (SGD Million) |
Net Income (SGD Million) |
Key Notes |
|
FY24 |
47.64 |
2.05 |
Revenue flat y-o-y; net profit down ~37% due to higher costs and global steel price volatility. Gross profit at SGD 14.99 million. |
|
FY23 |
47.66 |
3.25 |
Revenue down 42% from FY22 amid reduced demand; net profit declined 41%. |
|
FY22 |
82.73 |
5.53 |
Strong year with higher sales driven by post-pandemic recovery in infrastructure projects. |
Insider activity bolsters investor confidence with recent acquisitions by the spouse of the executive chairman-cum-CEO Mr Ow Chin Seng.
These were large married deals of an illiquid stock.
|
Date |
Person Involved |
Nature of Change |
Details |
|
July 7, 2025 |
NG KIM KEANG |
Open market sale |
Sold 225,600 shares for $13,761.60 |
|
June 9, 2025 |
LOW KHENG |
Married deal |
Bought 2,850,000 shares for $171,000 |
|
Dec 6, 2024 |
LOW KHENG |
Married deal |
Bought 2,850,000 shares for $179,500 |
Asia Enterprises is a distributor of steel products to industrial end-users, including shipbuilding, oil & gas, and manufacturing sectors.
The company has recently pursued diversification, acquiring a 28.64% stake in GKE Metal Logistics for SGD 3.7 million, aiming to expand into logistics and enhance supply chain resilience.
Asia Enterprises, with a P/B of 0.51, has suffered a steeper FY2024 downturn:
|
Fiscal Year |
Revenue (SGD Million) |
Net Income (SGD Million) |
Key Notes |
|
FY24 |
40.74 |
0.37 |
Revenue down 57% y-o-y; net profit dropped 94% due to weak demand and higher operating costs. |
|
FY23 |
95.45 |
6.06 |
Strong revenue growth from industrial recovery; net profit up significantly. Dividends paid. |
|
FY22 |
73.52 |
3.75 |
Steady improvement post-COVID, driven by higher steel prices and volumes. |
Insider transactions here are neutral, mostly adjustments without clear buys.
AnnAik edges out as the preferred stock for upside potential.
Its undervaluation, consistent profitability, and strategic focus on eco-friendly products position it well for recovery. The book value breakdown—SGD 38.86 million in share capital, SGD 26.46 million in retained earnings, offset by reserves like foreign currency translation (SGD -2.49 million)—highlights solid fundamentals. Recent insider purchases by the spouse of the executive chairman spell optimism for the long haul. |
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