Sheng Siong - UOB Kay Hian 2024-08-20: Record-High Gross Margin in 2Q24; More Stores Slated To Open

• Sheng Siong Group (SGX:OV8)’s 2Q24 results are in line with consensus and our estimates, with 1H24 forming 51%/52% of consensus and our 2024 forecasts respectively.
• 2Q24 revenue was up 1.2% y-o-y from better comparable same-store contributions, while gross margin edged up to a record 30.9%, from a better sales mix of higher-margin fresh produce which offset the slightly lower contribution from house brands.

Sales outperformed the industry; new stores expected to contribute.

• - Read this at SGinvestors.io -
• On the other hand, new-store sales declined 3.2% y-o-y, attributable to two store openings in 2023 and two in 1H24.
• - Read this at SGinvestors.io -

Higher interim dividend declared.

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Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-03-18 Sheng Siong - 2024 Impacted By Rising Costs; More Stores To Drive Growth In 2025..

Previous report by UOB:
2024-11-29 Sheng Siong Group - 3Q24 Another Solid Quarter; Steady Growth Ahead.

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