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A. Stotz Investment Research

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SSG: New Shops Drive Cashed up Singapore Value Play

SSG: Cash-Loaded Singaporean Supermarket Operator

SSG (SSG SP): Solid Fundamentals in Singaporean Supermarkets

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

<ul><li>Low correlation to the Singaporean market, good growth in core profit, and strong cash levels relative to its sector</li><li>Four new stores opened in 8M16 and planned overseas expansion with the opening of a store in Kunming, China planned for 4Q16 are the main growth catalysts</li><li>SSG’s 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 16CE* 6.2x 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>

Low correlation to the Singaporean market, good growth in core profit, and strong cash levels relative to its sectorFour new stores opened in 8M16 and planned overseas expansion with the opening of a store in Kunming, China planned for 4Q16 are the main growth catalystsSSG’s 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 16CE* 6.2x 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 Spur Singapore Supermarket Value Play

Sheng Siong

SSG: New Shops Spur Singapore Supermarket Value Play