- We raise Sheng Siong's target price and FY26F-27F earnings by 10% and 12% on larger average new store size, better gross margin assumptions, and continued positive earnings growth outlook led by a larger store network.
- - Read this at SGinvestors.io -
- Valuation remains palatable at 18x FY26F earnings, below its long-term mean of 19x.
2Q25 net profit within estimate.
- Sheng Siong's revenue for 1H25 was S$765m (+7.1% y-o-y) while net profit rose 3.6% y-o-y to S$72m – within our expectations. Revenue growth was largely led by the contribution of 11 new stores opened since FY24, including five new outlets that were opened in 1H25. Revenue also benefitted from more robust Lunar New Year and AdilFitri festive sales during the period.
- - Read this at SGinvestors.io -
- Sheng Siong’s China operations reported losses for 1H25, affected by its newest sixth outlet, which has yet to breakeven.
- See Sheng Siong's dividends – an unchanged interim dividend of 3.2 cents per share (amounting to 67% payout ratio) has been declared – within expectations.
Raise FY26F and FY27F earnings by 10%, and 12%.
- Read more at SGinvestors.io.
