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

Equity Bottom-Up

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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>
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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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<li>Q1 FY24 revenues/profits were up 5.5%/9.3% YoY as inflationary pressure in Singapore force consumers to adopt cost-cutting measures like eating at home and shopping in supermarkets with value for money.</li>
<li>Cash continued to pile on the balance sheet with &gt;350 mn SGD ( now almost 15% of market capitalization). Capital allocation (besides a 70% pay out ratio) is key now. </li>
<li>Trading at 16.5x PE with ROEs consistently over 25% and a dividend yield of 4.3%, this is one of the rare quality companies in Singapore worth exploring </li>
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Q1 FY24 revenues/profits were up 5.5%/9.3% YoY as inflationary pressure in Singapore force consumers to adopt cost-cutting measures like eating at home and shopping in supermarkets with value for money.
Cash continued to pile on the balance sheet with &gt;350 mn SGD ( now almost 15% of market capitalization). Capital allocation (besides a 70% pay out ratio) is key now. 
Trading at 16.5x PE with ROEs consistently over 25% and a dividend yield of 4.3%, this is one of the rare quality companies in Singapore worth exploring 


Sheng Siong Group (SSG SP) Q1 2024: Making a Strong Case for Growth This Year

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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> continues to maintain steady, low, single-digit growth in revenue and flat profitability despite a challenging environment. </li>
<li>Inflation trends reversing due to lower power costs in 2024, and an improvement in its product mix could lead to increased low double-digit profitability (10-11% YoY). </li>
<li>Trading at 18.5x/17.6x FY23e/24e PE and 3.9% dividend yield, the stock remains on our watchlist if a correction leads to a favorable entry point.</li>
</ul>



Sheng Siong (SSG SP) continues to maintain steady, low, single-digit growth in revenue and flat profitability despite a challenging environment. 
Inflation trends reversing due to lower power costs in 2024, and an improvement in its product mix could lead to increased low double-digit profitability (10-11% YoY). 
Trading at 18.5x/17.6x FY23e/24e PE and 3.9% dividend yield, the stock remains on our watchlist if a correction leads to a favorable entry point.


Sheng Siong (SSG SP) - Great Execution So Far, Maintaining >20% ROCE

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<li>1Q FY2026 revenue of S$452.8m (+12.4% YoY) and NPAT of S$43.2m (+12.0% YoY) driven by full contribution of 12 stores opened in FY2025 and SSSG of +3.5%.</li>
<li>Total store network reached 93 (87 SG + 6 CN); net cash rose to S$461.1m (+S$25.6m QoQ), with S$520m DC investment commencing 2026-2030.</li>
<li>At S$3.04/share, SSG trades at 27.5x FY26e P/E and 20.7x EV/EBITDA; premium valuation reflects the defensive quality of the business but limits near-term upside.</li>
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1Q FY2026 revenue of S$452.8m (+12.4% YoY) and NPAT of S$43.2m (+12.0% YoY) driven by full contribution of 12 stores opened in FY2025 and SSSG of +3.5%.
Total store network reached 93 (87 SG + 6 CN); net cash rose to S$461.1m (+S$25.6m QoQ), with S$520m DC investment commencing 2026-2030.
At S$3.04/share, SSG trades at 27.5x FY26e P/E and 20.7x EV/EBITDA; premium valuation reflects the defensive quality of the business but limits near-term upside.


Sheng Siong (SSG SP): Record Q1FY26 Revenues Driven By Store Expansions

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<li>Sheng Siong Group delivered a strong beat in both Q4 FY2025/FY25, with revenue surging 10% YoY in FY25 to S$1507M and full-year NPAT attributable to owners reaching S$149.5M (+8.7% YoY).</li>
<li>The aggressive Singapore expansion of 12 new stores in FY2025 (total 93 stores) drove top-line growth. The management normally targets 3-5 stores per year. </li>
<li>The proposed final dividend of 3.80 cents per share (vs. 3.20 cents in FY24) represents an 18.75% step-up, signaling management confidence (though we are disappointed that the cash pile continues). </li>
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Sheng Siong Group delivered a strong beat in both Q4 FY2025/FY25, with revenue surging 10% YoY in FY25 to S$1507M and full-year NPAT attributable to owners reaching S$149.5M (+8.7% YoY).
The aggressive Singapore expansion of 12 new stores in FY2025 (total 93 stores) drove top-line growth. The management normally targets 3-5 stores per year. 
The proposed final dividend of 3.80 cents per share (vs. 3.20 cents in FY24) represents an 18.75% step-up, signaling management confidence (though we are disappointed that the cash pile continues). 


Sheng Siong (SSG SP): Annual Report Gleanings, Not Appealing Here Despite The Stellar Performance

Singapore

Sheng Siong Group Ltd. operates a chain of supermarket retail stores, offering a wide assortment of live, fresh, and chilled produce, pantry staples, packaged foods, and household merchandise. The company also engages in general trading, wholesale import and export, and operates an online grocery platform. Sheng Siong was founded in 1985 and is headquartered in Singapore.

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Sheng Siong (SSG SP)

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) Q1 2024: Making a Strong Case for Growth This Year

We summarize the Q1 earnings of Sheng Siong Group trading at 16.5x PE with ROEs consistently over 25% and a dividend yield of 4.3%

Sameer Taneja