Sheng Siong - Phillip Securities 2024-03-01: Lack Of New Stores

Sheng Siong - Lack Of New Stores

Sheng Siong (SGX:OV8) | SGinvestors.ioSheng Siong (SGX:OV8)
  • Sheng Siong (SGX:OV8)'s FY23 revenue and PATMI were within expectations at 99%/99% of our forecast. Revenue growth was 2.1% y-o-y. Same-store sales contracted and new-store expansion was muted.
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  • Same-store sales growth is expected to improve as outbound travel normalises. Inflationary pressure will also support more dining at home. Sheng Siong has secured two stores so far this year in Singapore, with another ten likely to be tendered.
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The Positives

Rise and rise of margins.

  • Gross margins have been on an upward trajectory since listing. A decade ago, gross margins were 23% in FY13 and now stand at 30%. Scale, distribution centre, direct sourcing, and fresh food mix have been the major driver of margin expansion.
  • The new driver is house brands. Competitors have also been raising prices to pass on their cost of production.

The Negatives

No new stores.

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Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @

Paul Chew Phillip Securities Research | 2024-03-01

Previous report by Phillip:
2023-10-30 Sheng Siong - Same-store Sales Inching Up.

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


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