- Sheng Siong (SGX:OV8) posted stabilizing FY22 revenue and earnings post COVID tailwinds, in line with expectations. Sheng Siong reported its FY22 results, with revenue down 2.2% and net profit up 0.4% y-o-y to S$1.34bn and S$133.6m, respectively.
- - Read this at SGinvestors.io -
- Management stated that it has renewed its electricity contract for a one year term at a price double that of its old contract, which was signed three years ago. We have priced that in our numbers which resulted in ~1-2% cut to our estimates and a ~1ppt drop in opex margins from FY23-24F.
- - Read this at SGinvestors.io -
- Build up its war chest with cash balance at a high of S$275.5m – Sheng Siong continues to be cash flow generative, adding S$28.9m in FY22 with higher net working capital spend of S$25.7m and reduced capex spend of $8.6m.
Our view on Sheng Siong
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Andy SIM CFA DBS Group Research | Singapore Research Team DBS Research | https://www.dbs.com/insightsdirect/ 2023-03-01
Read also DBS's most recent report:
2023-07-31 Sheng Siong - Rethinking Store Expansion Plans.
Previous report by DBS:
2023-06-19 Sheng Siong - Attractive Entry Point As Growth Resumes; Upgrade To BUY.
Price targets by 4 other brokers at Sheng Siong Target Prices.
Listing of research reports at Sheng Siong Analyst Reports.
Relevant links:
Sheng Siong Share Price History,
Sheng Siong Announcements,
Sheng Siong Dividends & Corporate Actions,
Sheng Siong News Articles
