Supermarket

Intensifying competition, economic slowdown may drag on Sheng Siong's growth: Maybank KE

SINGAPORE (Mar 19): Maybank Kim Eng is starting coverage on Sheng Siong Group (SSG) at “sell” with a  target price of 95 cents, which implies 19.5 times FY19F P/E – 1 S.D. below the stocks’ five-year mean.

The research house’s estimates for FY19-20E new-store sales and same-store sales (SSS) contributions are currently below that of the street. It is also forecasting for only four and two new store openings for FY19 and FY20E, respectively, compared to the 10 new stores SSG opened in 2018.

Analysts remain positive on Sheng Siong despite drop in 3Q earnings

SINGAPORE (Nov 1): Sheng Siong recently announced that its 3Q18 earnings have dropped by 9.4% to $17.8 million, compared to $19.7 million in 3Q17.

This was mainly due to the absence of $2.2 million worth of tax refund a year ago. Excluding this, the group’s net profit would have increased by 1.5% in 3Q18.

Revenue during the quarter came in at $227.9 million, 8.9% higher than $210.9 million last year.

See: Sheng Siong posts 9.4% fall in 3Q earnings to $17.8 mil

Sheng Siong posts 6.3% rise in 2Q earnings to $17.2 mil on higher sales

SINGAPORE (July 30): Sheng Siong reported 2Q18 earnings increased 6.3% to $17.2 million from $16.1 million in 2Q17.

This brings 1H18 earnings to $35.4 million, 6.5% higher than $33.3 million in 1H17.

Revenue during the quarter increased by 5.7% to $213.0 million from $201.5 million a year ago, mainly due to contributions from new stores, comparable same store sales and higher contribution from the group’s stores in China.

However, this was offset by the permanent closure of The Verge and Woodlands Block 6A stores.

Dairy Farm posts 6% growth in 1H earnings to $306.2 mil on higher sales

SINGAPORE (July 26): Dairy Farm International (DFI), a member of the Jardine Matheson Group, announced earnings of US$225 million ($306.2 million) for the half-year ended June, up 6% from its 1H17 restated earnings of US$212 million a year ago on higher consolidated sales.  

An unchanged interim dividend of 6.5 US cents per share has been declared for the period under review.

Sheng Siong downgraded by brokers after recent rally, but outlook remains positive

SINGAPORE (May 2): UOB and Phillip Capital are downgrading their calls on Sheng Siong Group from their previous “buy” calls to “hold” and “accumulate”, respectively, with target prices of $1.09 and $1.13 after the group’s recent stock price run-up  of around 10% over the last two months.

Meanwhile, OCBC and Maybank continues to rate Sheng Siong at “buy” with a fair value and price target of $1.12 and $1.20, respectively.

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

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

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.

Dairy Farm downgraded on time required for strategic review to bear fruit

SINGAPORE (Mar 9): CIMB is downgrading its call on Dairy Farm International to “hold” from “add” previously with a lower target price of US$8.40 from US$9.18 after the group’s FY17 core net profit came in below the research house’s expectations, but marginally within consensus.

See: Dairy Farm's FY17 earnings fall 14% to US$404 mil on business change costs

Sheng Siong on track for an even more bountiful FY18

SINGAPORE (Feb 23): DBS and OCBC are maintaining their “buy” calls on Sheng Siong following the supermarket operator’s release of its latest 4Q results, which brings FY17 earnings to a total of $69.8 million, up 11.4% from $62.7 million in FY16.

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

Amazon’s threat to Dairy Farm still limited for now: RHB

SINGAPORE (Aug 7): RHB Research continues to rate Dairy Farm International at “buy” with a target price of US$9.53 ($13), after the Jardine Group member last week announced a 7% in 1H earnings to US$213 million.

See: Dairy Farm posts 7% increase in 1H earnings to US$213 mil

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