• Two large store wins with cumulative retail space of 30.4k sq ft takes end-CY18F store count to 52 and 477.6 sq ft; an all-time high of 18.2% y-o-y retail space growth.
• Two more stores are pending HDB’s acceptance; this could be another kicker to its store count and retail space (54 stores, 495.2k sq ft).
• We upgrade our CY18-20F estimates by 0.6-6.4% due to new store growth. Further catalysts could come if it can add the other two stores by year-end.
• We maintain ADD with a higher Target Price of S$1.26 based on an unchanged 22.2x FY19F EPS (+1 s.d. above historical 3-year mean) given the revival in new store growth.
• Sheng Siong Group stays our favourite supermarket pick, with total upside of 18.3% (+15.2% share price upside and dividend yield of 3.1%).

Source: CGS-CIMB Research - 17 Aug 2018