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 a 5% YoY/12%YoY revenue/net profit growth for Q3 FY24. Operating margins expanded by 30 bps, leading to a higher profit.</li>
<li>The purchase of the Jelita Property for 50.2 mn SGD, while positive for the store count + rental income, is a net negative for the company's 24% ROCE.</li>
<li>Trading at 16.7x PE with a 4% dividend yield and 300 mn SGD net cash ( after the 50 mn SGD property transaction), the company is still attractive. </li>
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Sheng Siong (SSG SP) reported a 5% YoY/12%YoY revenue/net profit growth for Q3 FY24. Operating margins expanded by 30 bps, leading to a higher profit.
The purchase of the Jelita Property for 50.2 mn SGD, while positive for the store count + rental income, is a net negative for the company's 24% ROCE.
Trading at 16.7x PE with a 4% dividend yield and 300 mn SGD net cash ( after the 50 mn SGD property transaction), the company is still attractive. 


Sheng Siong Q3 2024: Great Quarter Again, But We Aren't Fans of the Property Transaction

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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>
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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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<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 another resilient quarter with revenue growth at 4.7% YoY and profit growth flat, with annualized ROCEs at 27%. </li>
<li>Net cash grew to 289 mn SGD (highest ever now at 12% of market capitalization). The company is expected to expand by 3-4 stores in FY23 for Singapore.</li>
<li>While the stock is not cheap at 19x/18x FY23e/FY24e and 3.8% dividend yield, we see prospects for margin expansion in further quarters as execution remains high quality.</li>
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Sheng Siong (SSG SP) reported another resilient quarter with revenue growth at 4.7% YoY and profit growth flat, with annualized ROCEs at 27%. 
Net cash grew to 289 mn SGD (highest ever now at 12% of market capitalization). The company is expected to expand by 3-4 stores in FY23 for Singapore.
While the stock is not cheap at 19x/18x FY23e/FY24e and 3.8% dividend yield, we see prospects for margin expansion in further quarters as execution remains high quality.


Sheng Siong (SSG SP): Another Resilient Quarter, Cash Pile Growth Continues

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)

Sheng Siong Q3 2024: Great Quarter Again, But We Aren't Fans of the Property Transaction

We summarize Sheng Siong (SSG SP) Q3 2024 and the recent property transaction, trading at 16.7x PE, with a 4% dividend yield and 300 mn SGD net...

Sameer Taneja

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