Sheng Siong

Market valuations may be inexpensive but stay defensive: RHB

SINGAPORE (Jan 2): RHB Research prefers to stay selective and defensive amid growth uncertainties in 2019.

The Straits Times Index (STI), down 12% in USD terms, could remain under pressure this year amid slowing GDP growth and an uncertain trade outlook due to China-US tensions.

In a Wednesday report, analyst Shekhar Jaiswal says, “While 12.6x forward P/E and 4.2% dividend yield make the STI’s valuations look compelling, we recommend investors stay selective and focus on buying stocks offering stable earnings, strong balance sheets, and sustainable dividends.”

3 defensive consumer stocks to ride out near-term headwinds

SINGAPORE (Dec 17): DBS Vickers Securities is “overweight” on the consumer goods sector, on the belief that F&B and retail services in Singapore are likely to outperform other cyclical industries amid trade-war related uncertainties in 2019.

In a Nov 26 report entitled 2019 Outlook and Strategy, analyst Alfie Yeo that the consumer sector’s valuation – based on stocks under DBS’s coverage – is currently about -0.7 times below its five-year historical average at 21.7 times P/E.

Japan Foods' proposed JV is good news, but industry headwinds persist: RHB

SINGAPORE (Dec 10): RHB Research is maintaining “neutral” on Japan Foods with a target price of 48 cents, post the announcement of the group’s 50:50 joint venture (JV) with Minor Singapore.

To recap, Japan Foods recently signed a memorandum of understanding with Minor which will enable the former to bring Minor’s Thai restaurants to Japan, while the latter expands Japan Foods’ Japanese restaurant brands in Thailand and China.

Sheng Siong retains crown as top consumer pick after new store wins

SINGAPORE (Aug 20): RHB Research is highlighting Sheng Siong Group (SSG) as its top consumer cyclical “buy” pick with a higher target price of $1.30 compared to $1.27 previously, upon raising 2019-2020F earnings by 2-3% on larger-than-expected retail space.

This comes after the group announced two new stores last Friday, bringing its total store count up to 52 from 44, in line with the research house’s full-year forecast and marking the “highest store win in history”, in RHB’s view.  

Steady start to FY18 keeps Sheng Siong firmly at 'buy'

SINGAPORE (Apr 30): RHB, OCBC and DBS are maintaining their “buy” calls on Sheng Siong Group with target prices of $1.18, $1.06 and $1.21, respectively, after the supermarket operator posted a set of 1Q18 results which came in line with all three research houses’ expectations.

See: Sheng Siong posts 6.6% rise in 1Q earnings to $18.3 mil

Surbana Jurong, F&N join Randstad's 2018 list of top companies to work for in Singapore

SINGAPORE (Apr 26): Recruitment and HR services agency Randstad has released its list of top 75 companies to work for in Singapore based on findings from its latest Randstad Employer Brand Research 2018.

See: 18 new companies join Singapore’s Top 75 employers for 2017

This consumer stock is set to thrive amid looming market uncertainties: RHB

SINGAPORE (Apr 11): RHB is upgrading its call on Sheng Siong Group to “buy” from “neutral” with a higher target price of $1.11 from 98 cents previously, which results from a 2-3% increase in FY18-20 estimates and target P/E from 19 to 21 times.

In a Wednesday report, analyst Juliana Cai says she thinks the market has underestimated the group’s near-term growth prospects given the recent improvement in consumer confidence and rising domestic consumption.

She also recommends investing in Sheng Siong for its defensive nature.

Will new store openings drive Sheng Siong's share price higher?

SINGAPORE (Feb 26): RHB is maintaining its “neutral” call on Sheng Siong with a lower target price of 98 cents from 99 cents previously after the supermarket operator’s 4Q17 results fell short of expectations.

See: Sheng Siong's 4Q earnings up 9.3% to $16.8 mil on higher revenue

Sheng Siong's 4Q earnings up 9.3% to $16.8 mil on higher revenue

SINGAPORE (Feb 22): Sheng Siong reported a 9.3% rise in 4Q17 earnings to $16.8 million compared to $15.4 million in 4Q16.

This brings FY17 earnings to $69.8 million, 11.4% higher than $62.7 million in FY16, mainly attributable to contributions from the group’s new stores, as well as higher contributions from comparable same store sales.

Revenue for the quarter was 1.7% higher at $200.3 million from $197.0 million a year ago.

As cost of sales remained flat at $145.2 million, gross profit for 4Q17 stood at $55.1 million, 6.3% higher than $51.8 million last year.

Investment strategy for a bumper budget: DBS

SINGAPORE (Feb 20): Singapore ended 2017 with a bumper budget surplus of $9.6 billion, the highest in the last 20 years.

The increase was mainly due to exceptional statutory board contribution -- from mainly the Monetary Authority of Singapore -- and boosted by stamp duties from a buoyant property market.

With this, the government will give out SG bonus of between $100-$300 each, costing $700 million. In addition, the much anticipated increase in GST from 7% to 9% has been deferred to 2021 and beyond.

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