Sheng Siong Group - UOB Kay Hian 2022-10-31: 3Q22 Stable Staples; Demand Likely To Remain Resilient

• Sheng Siong’s 3Q22 net profit of S$32.9m (-4.5% y-o-y) was in line with expectations, with 9M22 forming 75% of our full-year estimates.
• 3Q22 revenue fell 4.2% y-o-y given that demand normalised from an elevated level, while gross margin jumped 0.4ppt to 29.4% on an improved sales mix. We expect demand to remain resilient in the coming quarters, as inflationary pressures lead to more cautious spending outlook.
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Sheng Siong's 3Q22 results in line with expectations.

• Sheng Siong Group (SGX:OV8) reported 3Q22 earnings of S$32.9m (-4.5% y-o-y, 1.8% q-o-q). The 9M22 results account for 75.7% of our full-year estimates. Revenue fell by 4.2% y-o-y as it normalised from higher demand owing to COVID-19 measures, the temporary closures of Jurong Fishery Port and the Pasir Panjang Wholesale Centre back in 3Q21.
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Continued expansion in Singapore.

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John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2022-10-31 SGinvestors.io

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