- Sheng Siong's 2Q25 revenues rose 7% y-o-y but fell 10% q-o-q on seasonality. 1H25 trending at 49% of MIBG and street full-year estimates.
Record store openings weigh on earnings growth.
- - Read this at SGinvestors.io -
- Net profit edged up just 1% y-o-y and declined 12% y-o-y mainly owing to higher staff and D&A costs.
New outlets drive revenue growth
- Bulk of revenue growth came from new Sheng Siong store openings with same-store sales in Singapore and China inching up 0.1-0.6%. Company opened 3 new stores in 2Q25 taking 1H new store count to 5.
- - Read this at SGinvestors.io -
- As the new store sales ramp up in the next 12-18 months, we expect this cost to normalise and, as such, expect operating margins to improve in subsequent quarters.
Beyond soft earnings, focus on robust operating momentum. BUY.
- Read more at SGinvestors.io.
