Sheng Siong Group - CGS-CIMB Research 2022-04-27: Good Quarter But Tougher Times Ahead

Sheng Siong Group - Good Quarter But Tougher Times Ahead

  • Sheng Siong (SGX:OV8)'s 1Q22 net profit of S$35.1m (+7.9% q-o-q, +13.9% y-o-y) slightly above expectations. Key positive was stronger topline due to Omicron wave and higher inflation.
  • Comparable store sales in coming months could be hurt by elevated demand tapering off with economic reopening; partially cushioned by rising inflation.
  • Sheng Siong remains steadfast in its store opening plan, with a target of 3-5 new stores per year in the medium term.
  • Reiterate HOLD call on Sheng Siong, we see tough comps for the quarters ahead with Singaporeā€™s reopening, and forecast FY22F net profit to decline 16.8%. Our target price for Sheng Siong is kept at S$1.60, still based on 21x CY23F P/E (10-year historical mean).

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

ONG Khang Chuen CFA CGS-CIMB Research | Kenneth TAN CGS-CIMB Research | 2022-04-27

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

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