Sheng Siong

Re: Sheng Siong

Postby winston » Wed Dec 10, 2014 7:09 pm

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Sheng Siong Group: A safe house in uncertain times

Looking ahead, 4Q14 will see contribution from Sheng Siong Group’s new ~4.0k sq ft store in the Penjuru area that recently started operations.

The acquisition of Block 506 Tampines Central 1 will also likely follow through despite a delay, thus we have included the associated capex of S$65m into our assumptions.

Some upside could be seen if management succeeds in opening this store (~9.8k sq ft) before the next Chinese New Year to reap the benefits of higher sales during the festive season.

Store expansion within the next two years will play a significant role to ensure the closure of its ~42k sq ft Woodlands store in 2017 will not adversely affect financial performance.

At this juncture, we expect steady growth albeit at moderated levels and revise our assumptions for revenue growth in FY14F/FY15F to 5.5%/5.2% (previous: 6.5%/6.0%).

Due to a change in analyst coverage, we derive a new FV estimate of S$0.77 (previous: S$0.78) and maintain BUY.

Source: OCBC
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Re: Sheng Siong

Postby winston » Wed Dec 10, 2014 7:09 pm

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Sheng Siong Group: A safe house in uncertain times

Looking ahead, 4Q14 will see contribution from Sheng Siong Group’s new ~4.0k sq ft store in the Penjuru area that recently started operations.

The acquisition of Block 506 Tampines Central 1 will also likely follow through despite a delay, thus we have included the associated capex of S$65m into our assumptions.

Some upside could be seen if management succeeds in opening this store (~9.8k sq ft) before the next Chinese New Year to reap the benefits of higher sales during the festive season.

Store expansion within the next two years will play a significant role to ensure the closure of its ~42k sq ft Woodlands store in 2017 will not adversely affect financial performance.

At this juncture, we expect steady growth albeit at moderated levels and revise our assumptions for revenue growth in FY14F/FY15F to 5.5%/5.2% (previous: 6.5%/6.0%).

Due to a change in analyst coverage, we derive a new FV estimate of S$0.77 (previous: S$0.78) and maintain BUY.

Source: OCBC
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Re: Sheng Siong

Postby winston » Mon Dec 29, 2014 7:06 pm

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Sheng Siong (S$0.690): In deal to run China supermarkets

Sheng Siong Group has executed a conditional joint-venture agreement with Kunming LuChen Group Co to operate supermarkets in China.

Under the deal, the proposed joint venture company will be incorporated in China with a registered capital of US$10mil. Sheng Siong is to fork out US$6mil for 60% equity interest in the joint venture company, while the LuChen Group will provide cash of US$3mil for 30% of the equity interest.

Mr Tan, who had founded and has served as the executive chairman of PSC Corporation, will hold the remaining 10% stake for US$1mil.

Sheng Siong said that the conditional agreement remains subject to the approval of the Chinese authorities.

Source: The Business Times
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Re: Sheng Siong

Postby winston » Fri Jan 02, 2015 6:16 pm

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Sheng Siong Group: Off to a positive start

Sheng Siong Group (SSG) has completed the S$65m acquisition of a property at Block 506 Tampines Central 1 and a new supermarket (~9.8k sq ft) is expected to open on the second floor by the end of Jan 2015.

Some upside could be seen, as the store would likely enjoy higher sales during the Chinese New Year festive season.

The Tampines store may also be expanded following the expiry of existing tenancies in 2016 and 2017.

SSG has since utilized 85% of the ~S$80.4m raised from last year's placement while it still holds significant cash balance for further growth.

On a separate note, SSG recently announced a proposed conditional JV with the Kunming Luchen Group. There were no changes made to the conditions from the initial announcement in Aug 2014. We view this as a step towards establishing a stronger and supportive relationship, but the group's regional expansion plans are still at the early stages.

Maintain BUY with an unchanged fair value estimate of S$0.77.

Source: OCBC
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Re: Sheng Siong

Postby winston » Fri Jan 02, 2015 6:16 pm

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Sheng Siong Group: Off to a positive start

Sheng Siong Group (SSG) has completed the S$65m acquisition of a property at Block 506 Tampines Central 1 and a new supermarket (~9.8k sq ft) is expected to open on the second floor by the end of Jan 2015.

Some upside could be seen, as the store would likely enjoy higher sales during the Chinese New Year festive season.

The Tampines store may also be expanded following the expiry of existing tenancies in 2016 and 2017.

SSG has since utilized 85% of the ~S$80.4m raised from last year's placement while it still holds significant cash balance for further growth.

On a separate note, SSG recently announced a proposed conditional JV with the Kunming Luchen Group. There were no changes made to the conditions from the initial announcement in Aug 2014. We view this as a step towards establishing a stronger and supportive relationship, but the group's regional expansion plans are still at the early stages.

Maintain BUY with an unchanged fair value estimate of S$0.77.

Source: OCBC
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Re: Sheng Siong

Postby winston » Fri Feb 27, 2015 6:01 am

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Sheng Siong Group - A steady quarter

Sheng Siong’s 4Q14 earnings were in line with expectations.

FY14 earnings formed 100% of our forecast and 101% of consensus.

Without new stores, topline growth was limited by same-store-sales growth.

Margin expansion, which fueled earnings growth, also seems to have normalised. But the group has added two new stores in Dec 2014 and Jan 2015, which will hike the total retail space by ~3.5%.

We maintain our Add rating and target price of S$0.84 (22x CY16 P/E, average 12m forward P/E), and see store additions as a potential catalyst.


Source: CIMB
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Re: Sheng Siong

Postby winston » Tue Jul 07, 2015 10:39 am

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Sheng Siong Group: Decent upside potential at current price levels

While Sheng Siong Group (SSG) has been actively seeking opportunities to open more stores, the management had also reiterated their prudent stance whereby they would not succumb to place a bid beyond their comfort level and open stores at the expense of profitability.

We like their cost discipline, and believe that the five new stores that were previously announced, will aid in driving SSG’s growth for the next two to three years.

We keep in mind that opportunities for potential new store locations lie in the private sector as well.

In addition, 2Q and 4Q are usually the periods when SSG would refurbish selected stores, such as their McNair store in 2Q this year.

We view such renovations favourably despite some downtime as these stores typically achieve improved sales growth as a result.

Given a total upside of 15% at current price level, maintain BUY with an unchanged DCF-derived fair value estimate at S$0.92.

Source: OCBC
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Re: Sheng Siong

Postby winston » Fri Jul 24, 2015 10:49 am

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Sheng Siong Group: Another good quarter

Sheng Siong Group’s (SSG) 2Q15 results were in line with expectations, as revenue grew 4.3% YoY to S$179m, forming 23% of our FY15 forecast.

The group’s new stores contributed 4% to this growth, while 0.3% came from old stores.

SSG managed to improve its gross profit margin further by 0.5 ppt to 25.2%, due to reduction in input costs and efficiency gains from its Mandai distribution centre.

Net profit increased 23.1% YoY to S$13.6m.

With regards to the current environment, management cited tepid demand and intensified competition due to offers made in celebration of “SG50”.

The group’s balance sheet remained healthy with net cash of S$131.7m, and they have also declared a higher DPS of 1.75c (2Q14: 1.5c).

Maintain BUY, while we place our fair value estimate of S$0.92 under review pending more information at the analyst briefing later this morning.

Source: OCBC
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Re: Sheng Siong

Postby winston » Fri Oct 23, 2015 6:48 pm

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Sheng Siong Group (SSG SP): Another One on the List; BUY TP SGD1.07

3Q15 results in line. Sales driven by five new stores added in Dec 2014 and 2015.

New store in Queenstown to be opened in Nov 2015.

Defensive business, highest margins among peers.

Reiterate BUY with TP of SGD1.07, at 26x FY16E P/E. Expect catalysts from store openings.

Source: Kim Eng
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Re: Sheng Siong

Postby behappyalways » Wed Feb 24, 2016 9:57 am

Sheng Siong's earnings jump 23.9%, proposes dividend of 1.75 cents per share
http://sgx.i3investor.com/servlets/fdnews/58313.jsp
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