Singapore Stock Market News

Sheng Siong Group - Sweet Spot

StockFanatic
Publish date: Mon, 27 Jul 2015, 12:07 PM
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Initiate with BUY & SGD1.07 TP, at 26x FY16 P/E. Secular growth & re-rating potential. Beneficiary of maturing population. Store & margin expansion to underpin 9-13% EPS in FY15-17.

■ Lowest-priced supermarket for the masses but widest margins. Defensive; earnings are resilient in downturn.

■ SGD132m in cash (10% of market cap), yet FY16E ROE is 25%.
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