SINGAPORE (May 29): RHB Group Research’s analyst Juliana Cai continues to rate Sheng Siong “buy” with a higher target price of $1.72 from $1.63 previously. Being a beneficiary of the current exceptional environment, Sheng Siong is also Cai’s preferred pick in the consumer sector.

In a Friday report, Cai says, “Moving into 2H20, we continue to favour safe haven stock Sheng Siong amid market concerns on weakening global economy, rising US and China trade tensions and Covid-19 resurgence. Earnings wise, we believe outlook still remains optimistic as grocery sales are likely to remain elevated even after the circuit breaker due to prevailing work from home measures.”

Although panic-buying has tapered off, the circuit breaker measures have shifted the bulk of on-premise food demand to grocery retail. Consumers have also been turning to supermarkets as a substitute following the closure of more non-essential shops.

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