Sheng Siong

[winston]

not vested

STOCKS NEWS SINGAPORE-DMG upgrades Sheng Siong to buy

DMG & Partners upgraded supermarket chain operator Sheng Siong Group Ltd to buy from neutral and raised its target price to S$0.51 from S$0.45, citing an expected strong dividend payout.

At 0133 GMT, shares of Sheng Siong were up 2.3 percent at S$0.44, and have remained unchanged so far this year, compared to the FT Small Cap Index's <.FTFSTS> 14.4 percent gain.

The brokerage said it expects Sheng Siong to keep dividend payout at 90 percent versus its previous estimate of 50 percent, given it has no large capital expenditure plans in the near term and a positive working capital cycle.

DMG also raised its 2012-2013 earnings estimates for Sheng Siong by about 0.8 percent to 1.5 percent, as two new stores are slated to open this month, increasing its gross floor area by 10 percent this year.


Source: Reuters

[winston]

not vested

Sheng Siong Q2 profit dips 2%, declares 1ct/shr dividend By Carine Lee

Supermarket chain Sheng Siong Group Ltd on Thursday reported a 2 per cent decrease in year on year net earnings to $7.04 million for the fiscal second quarter ended June 30, 2012.

Revenue rose 5.2 per cent to $146.94 million from a year ago, due mainly to the improvement in comparable same store sales and the addition of new stores.

Comparable same store sales rose by 3.7 per cent, with growth in the majority of its stores, except for the stores in older, matured areas.

Sheng Siong said the decline in sales at the Verge, which is still affected by ongoing MRT works, appears to have bottomed-out.


Source: Business Times

http://www.businesstimes.com.sg/breakin ... r-dividend

[winston]

Expansion on track

OUTPERFORM - Maintained
Share Price S$0.47
Tgt. S$0.49

--------------------------------------------------------------------------------

Sheng Siong continues to expand with the planned rollout of two new stores in 3Q12. Gross margins did not disappoint in 2Q12.

Read together with the higher SSS growth, we believe the aggressive pricing strategy last quarter helped the company to win market share.

We deem 2Q12 core net profit in line at 23% of our full-year forecast, but below consensus at 19%.

1H12 forms 40% of our FY12 number; we believe earnings will be back-end loaded with new stores maturing later in the year.

Maintain Outperform with no change in estimates or our P/E target price (18x CY13) based on a 20% discount to Dairy Farm.


Source: CIMB

[winston]

INTERIM DIVIDEND DECLARED

- 2Q12 results in-line with expectations
- Growth prospects remain unhindered
- SSG to benefit from weakening sentiment

There were no surprises in Sheng Siong Group’s (SSG) reported 2Q12 results.

Revenue grew 5.2% YoY to S$146.9m while net profit inched lower by 2% YoY to S$7m. In terms of SSG’s 1H performance, revenue grew 4.6% YoY to S$306.7m and net profit increased 41.5% YoY to S$23.9m to form 47.3% and 54.2% of our FY12 top and bottom-line projections respectively.

SSG also declared an interim dividend of 1 cent per share. Going forward, with the increased possibility of Singapore’s growth falling below 1% this year, consumer spending as a whole is poised to decline further as consumers tighten up.

This scenario should bode well with SSG as consumers transition from F&B spending to eating-in more. As such, we expect revenue growth to hold firm and offset the upward cost pressures from staff wages and rent.

Leaving our FY12/FY13 projections unchanged, we maintain our fair value estimate of S$0.49 and BUYrating.


Source: OCBC

[winston]

not vested

Interim dividend of 1 cent declared.

The group declared an interim dividend of 1 cent.

We continue to be positive on the group’s performance, and its attractive dividend yield of 6.0%.

Its e-commerce strategy is scheduled to commence in 1Q13 and expansion into Malaysia is under consideration.

Our target price remains unchanged at SGD0.52, implying 18.8x FY13F PER (a 25% discount to Dairy Farm International).

Maintain BUY.

Source: Kim Eng

http://www.remisiers.org/cms_images/res ... 007121.pdf

[winston]

not vested

Sheng Siong Group Ltd said it has signed two new lease agreements, for the supermarkets expected to commence operations in the fourth quarter of this year.

The first lease was signed with the Housing Development Board for the premises located at Bedok North Road.

The second lease was signed with an independent third party for the premises at Yishun Central 1.

When the two supermarkets commence operations, the group will have 31 stores with an aggregate retail area of approximately 391,000 square feet. (Closing S$0.48, +4.35%)


Source: Phillips

[winston]

not vested

Sheng Siong's Q3 net profit jumps 48.1% By Mindy Tan

Sheng Siong Group's third quarter net profit increased 48.1 per cent to S$9.8 million, from S$6.6 million a year ago.

Revenue for the three months ended Sept 30 grew 16.0 per cent to S$169.7 million.

This was on the back of new stores openings and higher comparable same store sales, which was partially offset by the closure of the Katong store.

In 2012, the group opened Toa Payoh, New World Centre, Geylang, Bukit Batok, Bedok North and Yishun Central supermarkets, boosting the total retail area to approximately 391,000 square feet (sq ft) by the end of Q3.

Comparable same store sales grew 4.3 per cent year-on-year for the nine months, due to marketing initiatives and improvement of population numbers and profiles in matured housing estates.


Source: Business Times

[winston]

not vested

STOCKS NEWS SINGAPORE-Sheng Siong rises as brokers up target price

Sheng Siong Group Ltd rose as much as 2 percent after it posted stronger-than-expected quarterly earnings, prompting several brokerages to raise their target prices for the supermarket chain operator.

By 0115 GMT, Sheng Siong shares were up 1 percent at S$0.48, with nearly 4 million shares traded, 3.5 times its average daily volume over the last five sessions.

Sheng Siong said its net profit for the third quarter rose 48.1 percent to S$9.8 million from a year earlier, helped by higher same-store sales and new store openings. [ID:nSNrky6Y] CIMB Research raised its target price for Sheng Siong to S$0.58 from S$0.49, and kept its 'outperform' rating, citing new store openings and strong execution by the management.

Sheng Siong is expected to open two new stores in the next quarter, CIMB said, noting that most of Sheng Siong's new stores should deliver strong earnings in 2013.

However, CIMB said gross margins are expected to fall in the fourth quarter due to likely discounting on goods during the festive period.

DMG & Partners also raised its target price for Sheng Siong to S$0.53 from S$0.51, and kept its 'buy' rating, citing the company's faster rate of expansion.


Source: Reuters

[winston]

not vested

STOCKS NEWS SINGAPORE-Maybank raises Sheng Siong target price

Maybank Kim Eng raised its target price for supermarket operator Sheng Siong Group Ltd to S$0.60 from S$0.52 and kept its 'buy' rating, citing its high growth potential and improving efficiency.

By 0152 GMT, Sheng Siong shares were unchanged at S$0.49, and have gained 11.4 percent since the start of the year, compared with the FTSE ST Small Cap Index's <.FTFSTS> 21.4 percent rise.

Sheng Siong is able to maximise its store space while designing each store to suit different customer demographics in the area, Maybank noted.

The supermarket operator also offers the lowest prices in Singapore, while investing in technology such as electronic price tagging to improve its efficiency and allow high inventory turnover.

Maybank is pegging Sheng Siong's valuations to competitor Dairy Farm International's 12-month forward price to earnings ratio of 27 times, with a 20 percent discount.

Source: Reuters

[winston]

not vested

Sheng Siong (Share price: S$0.65, TP: S$0.76).

1Q14 results were slightly above our expectations, led by accelerating sequential SSSG and higher margins.

We now expect a better FY14F performance with TP of S$0.76 after we raised our FY14F/15F earnings by +6%/+5% in late April.

We believe its margins have further room to grow from more efficient centralised purchasing and SSSG will continue to improve through continued store renovations.

Furthermore, food inflation in Singapore is ticking up, and this may benefit grocery retailers like Sheng Siong.

Source: DBS