Sheng Siong Group

[spinfire]

I have updated my Sheng Siong write-up, based on the latest 1H2015 result.

The write-up has been upgraded with the new valuation methodology. All comments are welcomed.

Thanks

Thanks for the report, it was a very good read.

I look forward to see how it's China operations perform. If I'm not wrong, it's first Kunming store should be starting operations soon. The year-end results should give a glimpse of its performance.

Given Singapore's small domestic market, the China operations will be crucial in determining whether Sheng Siong net profits can continue to grow at 15-20% annually.

I also wonder why doesn't the management reduce dividend payout ratio to retain cash for expansion. This reduces the need for capital raising in the future.