- 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 the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ 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 4 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
