Sheng Siong (SGX:OV8) reported strong 4Q25 results with revenue of S$390mil (+11% y-o-y) and net profit of S$33mil (+17% y-o-y). Overall FY25 top-line growth stood at 10% y-o-y, driven primarily by new store openings (~+8% contribution), while same-store sales added a modest +1% y-o-y. China performance was broadly flat.
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Declared final dividend of 3.8 cents. Overall Sheng Siong's dividends for the year came in at 7 cents, representing 70.4% payout ratio, 9% higher y-o-y, in-line with earnings growth.
Briefing overview
Store expansion ambition remains intact with opportunities from stores given up by competitors and in private malls.
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Management has already secured one private-mall store (Rivervale Mall), scheduled to open in 3Q26. It is also awaiting outcomes for four ongoing bids, where we see a high likelihood of securing three outlets previously operated by Ang Mo Supermarket, given more subdued bidding intensity.
For the three HDB sites currently under tender, we think it is reasonable to assume Sheng Siong secures one store.
Moderate staff cost uplift with continuation of progressive wage model (PWM).
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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/.
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