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 GROUP LTD (SGX:OV8) | SGinvestors.ioSHENG SIONG GROUP LTD (SGX:OV8)
  • 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 Singapore‚Äôs 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 @ https://www.itradecimb.com.sg/.



ONG Khang Chuen CFA CGS-CIMB Research | Kenneth TAN CGS-CIMB Research | https://www.cgs-cimb.com 2022-04-27
SGX Stock Analyst Report HOLD MAINTAIN HOLD 1.600 SAME 1.600




Previous report by CGS-CIMB:
2022-02-24 Sheng Siong Group - A Solid Year, But Tough Comps Ahead

Target prices by 4 other brokers at Sheng Siong Target Prices.
Listing of broker reports at Sheng Siong Analyst Report.

Relevant links:
Sheng Siong Share Price History,
Sheng Siong Announcements,
Sheng Siong Dividends & Corp Actions,
Sheng Siong News Articles





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