SINGAPORE (Nov 24): OCBC Investment Research is keeping its “buy” call on Sheng Siong Group with a target price of 95 cents.

OCBC is positive on the growth outlook of the grocery and fresh food supermarket retailing chain on the back of opening of new stores and the possibility of upgrade of the old facilities.

Currently, the total number of stores run by the group stands at 39.

“While the new stores are of smaller sizes, they are mostly in untapped areas and can achieve healthy footfall,” OCBC says.

In addition, refurbishments of older stores can help improve sales as well, especially the ones which may be under-performing as OCBC notes that the Sheng Siong management has been able to gain better sales growth with such renovation initiatives.

The stock was trading down 0.6% at 83 cents while the benchmark index is trading up 0.8%.