Sheng Siong - RHB Invest 2024-04-26: Expect Firm Demand Ahead; Maintain BUY

• We remain upbeat on Sheng Siong (SGX:OV8) on the back of steady consumption demand and store opening opportunities. We expect tailwinds from strong SSSG over the Lunar New Year (LNY) festive period and recently issued Community Development Council (CDC) vouchers to Singaporean households to drive growth.
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1Q24 earnings in line.

• Sheng Siong's 1Q24 revenue came in at S$376m (+6% y-o-y), while earnings rose 9% y-o-y to S$36m – within expectations. Revenue growth was largely led by SSSG, which surged 8% y-o-y, partly due to a longer run up to LNY this year on 10 Feb (as opposed to 22 Jan last year). Consequently, Sheng Siong was able to enjoy more days of heightened festive sales demand, which supported the higher SSSG.
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Expect outlet opening to be robust.

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Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2024-04-26 SGinvestors.io

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