Sheng Siong Group - Staying Defensive Amid Inflation & GST Hike
SHENG SIONG GROUP LTD (SGX:OV8)
- As the Singapore government increases the GST rate from 7% to 9% in two stages, we believe Sheng Siong (SGX:OV8) will continue to enjoy steady demand with changing consumer dining habits. This should offset the reduced demand from the easing of COVID-19 restrictions.
- Read this at SGinvestors.io -
Elevated inflationary environment and GST hike led to more at-home meals.
- Singapore has increased its good and services tax (GST) from 7% to 8% on 1 Jan 23. In a bid to cushion the blow of the newly-introduced rate hike, Sheng Siong has launched a “Counter-Inflation Discount” till 31 Mar 23, where shoppers can get most in-store products at 1% off.
- Read this at SGinvestors.io -
Steadily growing gross margin a strong testament to ability to pass on costs.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2023-01-19
Read also UOB's most recent report:
2023-03-01 Sheng Siong Group - 2022 Results In Line, Value-For-Money Appeals In 2023.
Price targets by 5 other brokers at Sheng Siong Target Prices.
Listing of research reports at Sheng Siong Analyst Reports.
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