Sheng Siong Group - DBS Research 2025-03-03: Key Beneficiary Of SG60 Voucher Bonanza

• Sheng Siong's 4Q24 results were mixed, with revenue of S$351mil (+6% y-o-y) in line with estimates, while earnings fell short at S$29mil (-15% y-o-y), on higher operational costs.
• - Read this at SGinvestors.io -
• Depreciation included a one-off S$3.5mil charge from right-of-use assets related to supermarket reinstatement costs.

Revenue growth largely driven by new store openings. Full-year revenue grew 4.5% y-o-y, with new stores contributing 2.6% growth and comparable same-store sales rising 1.8%.

Balance sheet remains strong, with no debt and cash of S$353mil.

• - Read this at SGinvestors.io -
• Sheng Siong proposed a final dividends of 3.2 cents, representing a 70% payout ratio. The dividend is 2% y-o-y higher, in line with earnings growth.

Briefing Takeaways

High depreciation expense in 4Q24 is one-off.

• Read more at SGinvestors.io.

Zheng Feng CHEE DBS Group Research | Andy SIM CFA DBS Group Research | https://www.dbs.com/insightsdirect/ 2025-03-03 SGinvestors.io

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