Sheng Siong - RHB Research 2026-05-04: Expect More Market Penetration; Keep BUY

• We raise our Sheng Siong's target price from 25x FY26F P/E to 28x blended FY26-27F P/E, on strong earnings outlook, margins, ROE, and yield, including its long-term 120 outlet target supported by the new distribution centre.
• - Read this at SGinvestors.io -

1Q26 earnings in line.

• Sheng Siong reported 1Q26 revenue of S$452m (+12% y-o-y) and earnings of S$43m (+12% y-o-y), in line with our estimates.
• - Read this at SGinvestors.io -
• Gross margins improved 0.7ppts to 31% due to an improved sales mix and firm house brand sales. EBIT margin expanded by 0.4ppts to 11.6% on other income and government grants, within our expectations.
• As 1Q26 is tracking to our expectations, we make no changes to our earnings forecasts.

No major supply disruptions for now.

• Read more at SGinvestors.io.

Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

Previous report by RHB:
2026-03-03 Sheng Siong - Strong Store Openings To Drive Growth; Maintain BUY.

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