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

<ul>
<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>
</ul>


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

<ul>
<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>
</ul>


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

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.

<ul>
<li>Sheng Siong released a strong set of results for 2025.</li>
<li>Growth picked up, as revenue rose 9.9% year on year to S$1.57 billion and net profit improved by 8.7% year on year to S$149.5 million.</li>
<li>Gross margin continued its upward ascent, hitting a new record high of 31.3% in 2025, up from 30.5% a year ago. </li>
</ul>


Sheng Siong released a strong set of results for 2025.
Growth picked up, as revenue rose 9.9% year on year to S$1.57 billion and net profit improved by 8.7% year on year to S$149.5 million.
Gross margin continued its upward ascent, hitting a new record high of 31.3% in 2025, up from 30.5% a year ago. 


Sheng Siong Group Ltd Cash: Too Much of It Can Be Bad

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.

<ul>
<li>DFI Retail’s strategic shift from portfolio investor to focused operator has unlocked over US$900 million, with US$600 million returned to shareholders via a US¢44.3 per share special dividend announced yesterday.</li>
<li>Underlying profit rose 39% in 1HFY2025, driven by lower financing costs and strong performance in the Health &amp; Beauty segment.</li>
<li>On its investor call, <a href="https://www.smartkarma.com/entities/dfi-retail-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:7427:1" rel="noopener">DFI Retail Group Holdings (DFI SP)</a> acknowledged sector headwinds and outlined plans for cost control, margin focus, and digital monetisation to offset weak revenue growth.</li>
</ul>


DFI Retail’s strategic shift from portfolio investor to focused operator has unlocked over US$900 million, with US$600 million returned to shareholders via a US¢44.3 per share special dividend announced yesterday.
Underlying profit rose 39% in 1HFY2025, driven by lower financing costs and strong performance in the Health &amp; Beauty segment.
On its investor call, DFI Retail Group Holdings (DFI SP) acknowledged sector headwinds and outlined plans for cost control, margin focus, and digital monetisation to offset weak revenue growth.


DFI Retail (DFI SP): Up 90% in a Year + Special Dividend. Cash Out or Hold Tight?

<ul>
<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?

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)