Sheng Siong - DBS Research 2025-10-22: Becoming Singapore’s Clear No. 2 Grocer; Path To 120 Stores and Beyond

• Sheng Siong (SGX:OV8) has budgeted S$520mil for a new 1.6mil sqft distribution centre slated for completion by end- 2029. Designed to support at least 120 stores, the distribution centre expands Sheng Siong’s logistics capacity and network reach.
• - Read this at SGinvestors.io -
• what the investment implies for earnings, and
• how investors should assess Sheng Siong’s value in light of the distribution centre.

Why is the new distribution centre necessary?

Existing facility operating close to maximum capacity.

• - Read this at SGinvestors.io -
• With 85 stores projected by year-end, Sheng Siong is likely operating at near maximum capacity. Going forward, headroom for margin expansion could be more limited as the company will face capacity constraints regarding opportunistic buying.

Ambition to grow to 120 stores and beyond.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Previous report by DBS:
2025-08-01 Sheng Siong - Well-positioned To Benefit From SG60 Voucher Boost.

Price targets by 5 other brokers at Sheng Siong Target Prices.

Listing of research reports at Sheng Siong Analyst Reports.

Relevant links:
Sheng Siong Share Price History,
Sheng Siong Announcements,
Sheng Siong Dividend Payout Dates & Corporate Actions,
Sheng Siong News