Sheng Siong - A Resilient Singapore Stock To Buy and Hold
πππSheng Siong $Sheng Siong(OV8.SI)$
Sheng Siong's revenue increased by 5% year over year to SGD 363.2 million. This is due to an increase in total stores from 74 to 79. On top of that Sheng Siong said that comparable same store sales rose by 1.5% year over year.
Sheng Siong's Gross Profit for Q3 24 has risen by 8.4% year over year to SGD 113.8 million. Gross Profit margin saw an increase of 1 percentage point to 31.3%. This was due to an improvement in sales mix, which offset elevated business costs.
Sheng Siong has a competitive advantage due to its ability to source directly and diversely. It has purchasing power due to its numerous stores and is able to refresh and deliver inventory especially in the fresh food supply chain.
Sheng Siong is synonymous with offering value for money to Singaporeans as well as providing excellent service. I know because my mother and her friends love to shop at Sheng Siong. Sheng Siong's supermarkets are well located in Singapore's heartlands which make it very convenient for residents in the catchment areas to frequent Sheng Siong's supermarkets.
With the latest excellent earnings report, DBS analyst Zheng Feng Chee has a Buy rating on Sheng Siong, Target Price of SGD 1.80. That is an upside potential of 13%. This is due to its strong track record in supply chain management and store growth. Sheng Siong's ability to maintain gross margin expansion and secure new store tenders, has positioned the Group for sustained revenue growth.
Sheng Siong pays dividends twice a year. The current dividend yield is 4.03%.
Sheng Siong is a slow and steady kind of stock, if a little boring. However Sheng Siong is in a resilient Consumer Staples business where its dominant position as a value for money supermarket chain, would pivot it for future growth.
I like Sheng Siong's strong management under CEO and Founder Lim Hock Chee who has guided Sheng Siong from its humble beginnings as a small store selling pork in 1985 to a well regarded supermarket chain now.
Sheng Siong is without doubt a story of hardwork and a laser focus on giving value for money, making it a part of Singapore's success story.
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- twistyΒ·2024-10-30TOPSheng Siong is definitely a resilient stock to consider.1Report
- TC2333Β·2024-10-31TOPGood strategy as always1Report
- AqaΒ·2024-10-31TOPLiked and followed1Report
- YueShanΒ·2024-10-31Good βοΈβοΈβοΈ1Report
- hellodarz888Β·2024-10-30nice1Report
- sunflower19Β·2024-10-30nice1Report