- Sheng Siong Group (SGX:OV8) reported 2Q25 revenue of S$362m (+7% y-o-y) and PATMI of S$34m (+0.5% y-o-y), bringing 1H25 revenue and PATMI to form 49% and 48% of our full-year forecasts respectively. This is in line with our expectations. An interim dividend of 3.2 cents/share was declared, unchanged from last year.
Top-line growth driven by new stores; record margin achieved.
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- 2Q25 PATMI was stable y-o-y due to higher selling and distribution expenses (+15% y-o-y), reflecting increased headcount from new stores.
Robust cash position supports expansion.
- Sheng Siong maintained a strong cash position of S$367m as of end-2Q25 (flat q-o-q), underpinned by healthy free cash flow generation of S$51m (+5% y-o-y). This provides ample financial flexibility to support its expansion plans, with five new stores opened in 1H25 and another three slated for 3Q25.
China sales improved y-o-y but remains loss-making.
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- Management remains focused on enhancing brand visibility in Kunming, though they continue to face competition from informal retail channels like street hawkers and wet markets.
On track to match near-record store openings.
- Read more at SGinvestors.io.
