Sheng Siong Group - UOB Kay Hian 2023-01-19: Staying Defensive Amid Inflation & GST Hike

• 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 an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-03-18 Sheng Siong - 2024 Impacted By Rising Costs; More Stores To Drive Growth In 2025..

Previous report by UOB:
2024-11-29 Sheng Siong Group - 3Q24 Another Solid Quarter; Steady Growth Ahead.

Price targets by 3 other brokers at Sheng Siong Target Prices.

Listing of research reports at Sheng Siong Analyst Reports.

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