Sheng Siong - Phillip Securities 2023-07-30: Back To Revenue Growth

• Sheng Siong (SGX:OV8)'s 2Q23 results were within expectations. 1H23 revenue and PATMI were 50%/48% of our FY23e forecast. Despite record gross margins, PATMI was down 0.4% y-o-y due to a jump in wages and utilities.
• - Read this at SGinvestors.io -
• New stores, recovery in same-store sales, interest income and higher gross margins will support earnings. But any improvement will be offset by a jump in operating expenses led by utilities and wages. Our FY23e expectations are a modest 1.5% earnings growth.
• No change to our FY23e earnings and target price of S$1.98 for Sheng Siong, pegged to 22x P/E, a 10-15% discount to the 5-year historical average of 25x P/E. We upgrade Sheng Siong to BUY from ACCUMULATE due to the recent performance of the share prices.

The Positives

Same-store sales back to growth.

• - Read this at SGinvestors.io -

Gross margins climb to record levels.

• Read more at SGinvestors.io.

Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

Read also Phillip's most recent report:
2025-11-03 Sheng Siong Group - More Stores, More Growth Ahead.

Previous report by Phillip:
2025-08-01 Sheng Siong Group - Operating Leverage Will Return.

Price targets by 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