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Has Sheng Siong run out of growth?

Stanislaus Jude Chan
Stanislaus Jude Chan10/27/2017 12:02 PM GMT+08  • 2 min read
Has Sheng Siong run out of growth?
SINGAPORE (Oct 27): RHB Research believes supermarket chain Sheng Siong Group needs to turn to new store openings and same-store sales growth (SSSG) to make up for the end of its gross profit margin (GPM) expansion.
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SINGAPORE (Oct 27): RHB Research believes supermarket chain Sheng Siong Group needs to turn to new store openings and same-store sales growth (SSSG) to make up for the end of its gross profit margin (GPM) expansion.

“We believe the efficiencies derived from the distribution centre have peaked and GPM would remain fairly stable around the current level from here on,” says RHB analyst Juliana Cai in a report on Friday.

“As such, any future growth in earnings would be dependent on sales growth and potential operating leverage,” she says.

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