In today’s briefing:
- Sheng Siong (SSG SP): Steady At Execution, Good Long-Term Play
- Singapore Code of Conduct for ESG Ratings Is Less Risk and More Reward
Sheng Siong (SSG SP): Steady At Execution, Good Long-Term Play
- It attracts investors when a company’s 15-year ROCE averages over 25% (and has never gone below 20%). Sheng Siong (SSG SP) is one of those companies.
- With 13% of the market capitalization in net cash (283 mn SGD) and a payout ratio averaging 70%, the stock trades at a yield of almost 4%.
- We believe the store expansion of 3-4 stores/year ( on a base of 67) in Singapore is possible, given the pipeline of HDB tenders.
Singapore Code of Conduct for ESG Ratings Is Less Risk and More Reward
- The Monetary Authority of Singapore (MAS) recently launched a public consultation regarding a Code of Conduct for ESG ratings providers and ESG data product providers in Singapore.
- It is the right approach for Singapore – a voluntary best-practices framework furthering one of the world’s most credible “green” economies, not a regulatory force-fix of something broken.
- No surprise ratings methodology changes. No en masse upgrades/downgrades. No acute shocks to the system. Just slow and steady progress for ESG investing and finance in Singapore.
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