Sheng Siong Group - DBS Research 2023-03-01: Your Friendly Neighbourhood Supermarket

• 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

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Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-05-02 Sheng Siong - 2025 A Year Of Record Store Openings?.

Previous report by DBS:
2025-03-03 Sheng Siong Group - Key Beneficiary Of SG60 Voucher Bonanza.

Price targets by 3 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 Dividend Payout Dates & Corporate Actions,
Sheng Siong News