We reiterate BUY on Sheng Siong (SGX:OV8) as one of the clearest defensive growth stories in Singapore consumer. Its staples-led model, value positioning and strong cost pass-through provide resilience in a volatile macro backdrop, while store expansion continues to drive above-trend growth.
1Q26: strong start, margins held up well
- Read this at SGinvestors.io -
Same-store sales were strong at 3.5% y-o-y, supported by festive demand, prior store openings in 1Q25 (which are now included as part of same store count but still seeing a ramp-up in growth) & volume growth.
- Read this at SGinvestors.io -
Store runway still underestimated
Sheng Siong has already secured four stores, with four HDB tenders still in process.
Beyond HDB, management is also seeing more private real-estate opportunities which could open incremental non-HDB expansion avenues.
Smaller competitors also appear under pressure: Hao Mart has shut multiple outlets and faces lawsuits, while Hao Mart and Ang Mo both deregistered from the plastic-bag charging scheme after turnover fell below S$100m. This could create more white-space opportunities for Sheng Siong, in our view. We factor in 5-6 new store opening pa over 2026-28.
Defensive growth with target price raised to S$3.22
Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
