- We view Sheng Siong Group (SGX:OV8) as a defensive play amid rising inflation and slower economic growth. We believe demand for groceries will continue to normalise in 2023, but could potentially be supported by a shift in consumption patterns with a focus on “value for money” due to inflationary pressures.
Operations in China continued to be profitable
- - Read this at SGinvestors.io -
- As of 1H23, Sheng Siong’s operations in China continued to be profitable, supported by all four of its older stores. Sheng Siong sees strong growth prospects in its Chinese operations, though the margin profile is lower compared to its Singapore stores given its current size and scale in China.
Housing Development Board (HDB) lease tender delays
- - Read this at SGinvestors.io -
- We now expect Sheng Siong to open only 2 new stores in Singapore this year (vs our previous forecast of 3 new stores) and 3 new stores in 2024.
Stable margin
- Read more at SGinvestors.io.
Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.
OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2023-10-04
Read also OCBC's most recent report:
2024-09-30 Sheng Siong Group - Robust New Store Supply Pipeline.
Previous report by OCBC:
2024-04-04 Sheng Siong - Store Opening Likely To Accelerate In FY24.
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 Dividends & Corporate Actions,
Sheng Siong News Articles
