Sheng Siong Group - DBS Research 2022-12-13: House Brand Best Brand

• We maintain our BUY recommendation on Sheng Siong (SGX:OV8) with a higher target price to S$1.92 for 3 key reasons:
  1. sustainable elevated sales level,
  2. margin expansion, and
  3. resilient earnings amidst challenging economic conditions.
• - Read this at SGinvestors.io -

A high watermark for Sheng Siong's revenue during Circuit Breaker period in 2Q2020.

• As per expectations, the high watermark Sheng Siong’s revenue came off from the high level achieved during Singapore’s Circuit Breaker period, which was driven by movement restrictions and panic buying. Post-full re-opening in Apr-22, Sheng Siong's revenue declined y-o-y in 2Q22 and 3Q22. Nonetheless, it remained substantially above pre-COVID levels helped by higher store count and resilient grocery demand.
• - Read this at SGinvestors.io -

Is current elevated revenue sustainable?

• Read more at SGinvestors.io.

Andy SIM CFA DBS Group Research | Singapore Research Team DBS Research | https://www.dbs.com/insightsdirect/ 2022-12-13 SGinvestors.io

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