SINGAPORE (June 28): OCBC is maintaining its “buy” call on Sheng Siong Group with an unchanged fair value estimate of $1.12, highlighting it as a defensive business in times of volatility given ongoing trade tensions between US and China as well as Europe.
In a Thursday report, lead analyst Eugene Chua says he continues to like Sheng Siong for its resilient business model, supported by strong cash flow generation and solid balance sheet.
While he admits that the group offers “unexciting growth”, the analyst believes the defensive nature of its business model translates to stable cash flow – which he deems crucial amid the uncertain global economic outlook.
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