Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Bottom-Up

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<li>The upcoming Johor Bahru-Singapore Rapid Transit System and the ease of cross-border movements could impact Singapore’s retail sector as more consumers may choose to spend across the border.</li>
<li>DFI Retail CEO cited this as rationale for exiting Singapore based grocery retail business under Cold Storage and Giant's brands. Sheng Siong group said it will carefully monitor this development.</li>
<li>Singapore retail prices for branded consumer discretionary and staples are between 30%-50% higher than in Malaysia. With greater ease of commute and shipping, this price differential may not be sustainable.</li>
</ul>


The upcoming Johor Bahru-Singapore Rapid Transit System and the ease of cross-border movements could impact Singapore’s retail sector as more consumers may choose to spend across the border.
DFI Retail CEO cited this as rationale for exiting Singapore based grocery retail business under Cold Storage and Giant's brands. Sheng Siong group said it will carefully monitor this development.
Singapore retail prices for branded consumer discretionary and staples are between 30%-50% higher than in Malaysia. With greater ease of commute and shipping, this price differential may not be sustainable.


Singapore Retail Sector: Will It Be Impacted by Improved Connectivity with Malaysia?

Director and Founding Member, Corporate Monitor Limited

Tan Yee Peng

Director and Founding Member

Strengthening Corporate Performance

Corporate Monitor Limited

Corporate Monitor was established to encourage better performance of companies, particularly companies listed on the SGX, and hold their management and boards to account, for the benefit of their shareholders and stakeholders.

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We analysed Sheng Siong’s success over the years to see what its secret sauce is and what made the retailer so successful.
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It has punched its weight above its competitors with a set of strong financial metrics. Its ability to generate free cash flow and achieve a high return on equity are truly impressive.
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However, Sheng Siong is at an inflection point now as its revenue and net profit have stagnated since the pandemic. 
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</ul>



We analysed Sheng Siong’s success over the years to see what its secret sauce is and what made the retailer so successful.


It has punched its weight above its competitors with a set of strong financial metrics. Its ability to generate free cash flow and achieve a high return on equity are truly impressive.


However, Sheng Siong is at an inflection point now as its revenue and net profit have stagnated since the pandemic. 



Sheng Siong Group Ltd: Inflection Point for a Great Performer

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>Singapore Mid-cap stocks have a combined market capitalisation of S$75 billion and attracted S$71 million net institutional inflows.</li><li>Yangzijiang Financial Holding's ADT increased to S$14.1 million, with a 61% share price gain and S$94.3 million net institutional inflow.</li><li>Sheng Siong Group maintains a 26.7% ROE, with consistent ADT and a 4.5% revenue increase in FY24.</li></ul>

Singapore Mid-cap stocks have a combined market capitalisation of S$75 billion and attracted S$71 million net institutional inflows.Yangzijiang Financial Holding's ADT increased to S$14.1 million, with a 61% share price gain and S$94.3 million net institutional inflow.Sheng Siong Group maintains a 26.7% ROE, with consistent ADT and a 4.5% revenue increase in FY24.

Trading Activity Rises for Singapore's Mid-Cap Stocks in 1Q25

Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

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<a href="https://www.smartkarma.com/entities/sheng-siong-group-ltd" target="_blank" data-smartkarma-citation="entities:6824:1" rel="noopener">Sheng Siong (SSG SP)</a> reported steady revenues/profits in Q2 2024, up 1.2%/4.7% YoY. In H1 2024, revenues/profits were up 3.4%/6.8% YoY due to same-store sales growth of 6.4%.</li>
<li>The company expanded its footprint by two stores to 71 in H1 FY24 in Singapore. Two additional stores will open in July 2024, <a href="https://links.sgx.com/FileOpen/SSG%20-%201HFY2024%20-%20Results%20Announcement.ashx?App=Announcement&amp;FileID=813322" target="_blank" rel="noopener">followed by ten tender results in H2</a>. </li>
<li>The stock trades at a 16.3x PE, has a 4.3% dividend yield, and holds 16% of the market cap in net cash. Opportunities for higher growth are on the horizon.  </li>
</ul>



Sheng Siong (SSG SP) reported steady revenues/profits in Q2 2024, up 1.2%/4.7% YoY. In H1 2024, revenues/profits were up 3.4%/6.8% YoY due to same-store sales growth of 6.4%.
The company expanded its footprint by two stores to 71 in H1 FY24 in Singapore. Two additional stores will open in July 2024, followed by ten tender results in H2. 
The stock trades at a 16.3x PE, has a 4.3% dividend yield, and holds 16% of the market cap in net cash. Opportunities for higher growth are on the horizon.  


Sheng Siong Group (SSG SP) Q2 2024: Steady - Opportunities To Grow in H2

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<a href="https://www.smartkarma.com/entities/sheng-siong-group-ltd" target="_blank" data-smartkarma-citation="entities:6824:1" rel="noopener">Sheng Siong (SSG SP)</a>  posted stable FY24 results, with revenue/profit increasing by 4.5%/ 3.1% YoY; however, Q4 2024 saw revenue/profit +6%/- 14% YoY due to higher SG&amp;A. </li>
<li>The company opened two stores in 2025 YTD to take the store count in Singapore to 77. There are eight more tenders for stores released by HDB. </li>
<li>The stock trades at 17.8x FY24 PE, with 15% of the market cap in cash and a 3.9% dividend yield. </li>
</ul>



Sheng Siong (SSG SP)  posted stable FY24 results, with revenue/profit increasing by 4.5%/ 3.1% YoY; however, Q4 2024 saw revenue/profit +6%/- 14% YoY due to higher SG&amp;A. 
The company opened two stores in 2025 YTD to take the store count in Singapore to 77. There are eight more tenders for stores released by HDB. 
The stock trades at 17.8x FY24 PE, with 15% of the market cap in cash and a 3.9% dividend yield. 


Sheng Siong Group (SSG SP): Miss on Q4 2024/But Strong Pipeline Addition

Singapore

Sheng Siong Group Ltd is a retailer in Singapore.  The Company operates a groceries chain across Singapore. Sheng Siong's stores provide fresh and chilled produce, seafood, meat and vegetables, processed, packaged and preserved food products as well as general merchandise such as toiletries and essential household items.

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Sheng Siong (SSG SP)

Singapore Retail Sector: Will It Be Impacted by Improved Connectivity with Malaysia?

Singapore's branded consumer retail margins and retail rental yield are at risk when easier border crossing access to Malaysia could prompt more...

Devi Subhakesan

Sheng Siong Group Ltd: Inflection Point for a Great Performer

We analysed Sheng Siong’s success over the years to see what its secret sauce is and what made the retailer so successful. It has punched its...

Corporate Monitor Limited

Trading Activity Rises for Singapore's Mid-Cap Stocks in 1Q25

Singapore Mid-cap stocks have a combined market capitalisation of S$75 billion and attracted S$71 million net institutional inflows. Yangzijiang...

Singapore Exchange Ltd (SGX)

Sheng Siong Group (SSG SP) Q2 2024: Steady - Opportunities To Grow in H2

We summarize Sheng Siong Group (SSG SP) H1 FY24 earnings. The stock trades at 16.3x FY24 PE with a 4.3% dividend yield and 16% of the market cap in...

Sameer Taneja

Sheng Siong Group (SSG SP): Miss on Q4 2024/But Strong Pipeline Addition

We summarize the FY24 results for the Sheng Siong Group (SSG SP). One of Singapore's most efficient operators with a 20% ROCE history trading at...

Sameer Taneja

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