Sheng Siong Group - Good Times Coming To An End
SHENG SIONG GROUP LTD (SGX:OV8)
- Singapore’s continued tight mobility restrictions boosted Sheng Siong Group (SGX:OV8)’s 3Q21 results. Key positive was a continued uptrend in gross profit margin to a record 29.0%.
- Ongoing mobility restrictions point to a strong 4Q, but we remain caution on elevated demand tapering off and threats from e-commerce in FY22F.
- Reiterate HOLD call on Sheng Siong with a lower target price of S$1.50 (22x FY22F P/E) as we believe the near-term elevated demand has been priced in and see limited positive earnings catalysts in the near term.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
ONG Khang Chuen CFA CGS-CIMB Research | Kenneth TAN CGS-CIMB Research | https://www.cgs-cimb.com 2021-10-29
Read also CGS-CIMB's most recent report:
2022-10-28 Sheng Siong Group - A Shelter In Times Of Uncertainty.
Previous report by CGS-CIMB:
2022-07-29 Sheng Siong - Another Quarter Of Record Gross Margin.
Price targets by 4 other brokers at Sheng Siong Target Prices.
Listing of research reports at Sheng Siong Analyst Reports.
Relevant links:
Sheng Siong Share Price History,
Sheng Siong Announcements,
Sheng Siong Dividends & Corporate Actions,
Sheng Siong News Articles
