- Sheng Siong (SGX:OV8)'s 3Q25 results were within expectations. 9M25 revenue and adjusted PATMI were 75%/76%, respectively, of our FY25e forecast. Adjusted PATMI (excluding gain on lease) rose 6.3% y-o-y to S$41.5mil.
- - Read this at SGinvestors.io -
- Sheng Siong has grown its store footprint by 13% y-o-y (or 11 new stores) to 84. Two new stores will open in 4Q25. 2025 will record 10 new stores or an 11% rise in footprint to 736k sft. It will be the largest number of store openings since 2018 and support revenue growth for FY26e.
The Positive
Jump in same-store sales.
- Same store sales jumped 4.4% y-o-y in 3Q25 (1H25 +0.1% y-o-y). The spike was due to SG60 and CDC vouchers that encouraged grocery spending. Other contributors were positive responses to several festival promotions and a subtle shift towards more home dining.
The Negative
Multiple pressure points on net margins.
- - Read this at SGinvestors.io -
- Net finance income is also collapsing due to declining interest rates.
Outlook
- Read more at SGinvestors.io.
