- Sheng Siong (SGX:OV8)’s 3Q24 revenue and earnings came in at S$363m (+5% y-o-y, +8% q-o-q) and S$39m (+12% y-o-y, +16% q-o-q) respectively, bringing 9M24 revenue of S$1.1b and earnings of S$109m to 77%/81% of our 2024 estimates respectively.
3Q24 results above expectations.
- - Read this at SGinvestors.io -
- Sheng Siong's gross margin reached another record high of 31.3% (+1ppt y-o-y), from higher fresh product sales mix, higher contributions from house brands and improved margins across both categories.
- Other income doubled to S$6m, largely from a S$3.2m increase in government grants received under the progressive wage credit scheme.
Continuing to outperform peers in sales growth.
- - Read this at SGinvestors.io -
- We are of the view that Sheng Siong has been steadily gaining market share, as we note Sheng Siong’s sales-growth outperformance vs its peers over the past three quarters.
- China sales rose 14% y-o-y in 3Q24, led by the official opening of its 6th store in Aug 24. Competition continues to remain stiff from unregulated street hawking and wet markets. While 3Q24 recorded a loss due to new store opening costs incurred, 9M24 remained profitable.
Jelita Property acquisition to increase store count and open up additional revenue stream.
- Read more at SGinvestors.io.
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/.
Heidi Mo UOB Kay Hian Research | John Cheong UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-11-29
Previous report by UOB:
2024-08-20 Sheng Siong - Record-High Gross Margin in 2Q24; More Stores Slated To Open.
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 Dividend Payout Dates & Corporate Actions,
Sheng Siong News
