- Sheng Siong’s attractive financial metrics include an ROE of 27%, a dividend yield of 4.0%, and net cash of S$350mil. We raised our FY24e forecast by 5% to S$145.8mil. Our ACCUMULATE recommendation is maintained.
- - Read this at SGinvestors.io -
- In 3Q24, Sheng Siong opened two new stores in Singapore, bringing the total to 73 (or +1.4% expansion in space). Another new store opened in October, and Toa Payoh store acquisition is pending completion by the end of this year. Furthermore, five new stores are waiting for their tender results from HDB.
The Positive
Gross margins continue to expand.
- - Read this at SGinvestors.io -
- We also believe competition has been muted and confined to small retail fresh food shops that source from selected farms in Malaysia.
The Negative
Lacklustre same-store sales.
- Read more at SGinvestors.io.
