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A. Stotz Investment Research

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SSG: Cash-Loaded Singaporean Supermarket Operator

SSG (SSG SP): Solid Fundamentals in Singaporean Supermarkets

SSG: New Shops Spur Singapore Supermarket Value Play

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

<ul><li>Strong cash levels, good growth in core profit, and good price momentum relative to its sector</li><li>Nine new stores opened as of November 2016 and planned overseas expansion with the opening of a store in Kunming, China planned for 2Q17 are the main growth catalysts</li><li>SSG will expand its warehouse space by almost 10% to support future projects and growth plans as the warehouse is almost at full capacity now</li><li>Trades above the ASEAN sector at 17CE* 5.9x PB, in line with much higher ROE, attractive dividend yield and a solid net-cash position</li><li>Risks: Delays in new store openings and wages weigh on margins</li></ul><p><em>* Consensus Estimates</em></p>

Strong cash levels, good growth in core profit, and good price momentum relative to its sectorNine new stores opened as of November 2016 and planned overseas expansion with the opening of a store in Kunming, China planned for 2Q17 are the main growth catalystsSSG will expand its warehouse space by almost 10% to support future projects and growth plans as the warehouse is almost at full capacity nowTrades above the ASEAN sector at 17CE* 5.9x PB, in line with much higher ROE, attractive dividend yield and a solid net-cash positionRisks: Delays in new store openings and wages weigh on margins* Consensus Estimates

SSG: New Shops Drive Cashed up Singapore Value Play

Sheng Siong

SSG: New Shops Drive Cashed up Singapore Value Play