Sheng Siong (SGX:OV8)'s 1Q26 revenue/PATMI were within expectations at 26%/25% respectively of our FY26e forecast. PATMI grew 12% y-o-y to S$43mil, supported by margin expansion of 0.7% points and revenue growth of 12.4%.
- Read this at SGinvestors.io -
The store footprint rose by 13% y-o-y to 760k sft but unchanged q-o-q. There are four new HDB stores or 39k sft (+5.2%) secured for FY26e so far. Another 25k pending, excluding potential private real estate transactions.
The Positive
Momentum in revenue.
Revenue growth of 12.4% was supported by both new stores (+9.3%) and same-store sales (+3.5%). The jump in same-store sales from 0.4% in 1Q25 was due to six stores opened in FY24 migrating to the same-store category.
- Read this at SGinvestors.io -
The Negative
Employee costs limit operating leverage.
Expansion in operating margins is limited by rising staff costs. The competitive, tight labour environment and the progressive wage model in the retail sector continue to place upward pressure on staff costs.
Outlook
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
