Sheng Siong Group

[CityFarmer]

I do agree that store expansion will be crucial over the next two years for Sheng Siong, to retain the same growth.

The dateline of end Dec is coming, but we don't hear the news of Tampine's HDB approval yet?

(vested)

I have almost given up. The confirmation comes at the very last min of the last day.

COMPLETION OF PURCHASE OF PROPERTY AT BLOCK 506 TAMPINES CENTRAL 1
#01-361 SINGAPORE 520506
(2) UPDATE ON USE OF PROCEEDS FROM PLACEMENT
(3) OPENING OF A NEW SUPERMARKET
http://infopub.sgx.com/FileOpen/Tampines...eID=330034

[Dividend Warrior]

I am optimistic that the new store will be ready in time to capture the Chinese New Year crowd.

[CityFarmer]

I am optimistic that the new store will be ready in time to capture the Chinese New Year crowd.

Base on the disclosure

"The Group intends to open a new supermarket with a gross floor area of approximately 9,800
square feet on the second floor of the Property, which is expected to commence operations
by the end of January 2015"

It should be ready in time for CNY, in Feb 2015

[CityFarmer]

The Group's end-year result will be released on or around 25 February 2015, Wednesday, after the close of trading on the Singapore Exchange. Let's see the performance, and most importantly the dividend payout.

(vested)

http://infopub.sgx.com/FileOpen/SSG_FY20...eID=331079

[Musicwhiz]

Base on the disclosure

"The Group intends to open a new supermarket with a gross floor area of approximately 9,800
square feet on the second floor of the Property, which is expected to commence operations
by the end of January 2015"

It should be ready in time for CNY, in Feb 2015

Just curious - is Sheng Siong relying more on the opening of new stores to drive growth in revenue and profits, or SSSG (i.e. organic growth); or a good mix of both? What is the net store openings/closures per year for the Company? For the store closures, were there specific reasons provided?

Thanks in advance!

[CityFarmer]

Base on the disclosure

"The Group intends to open a new supermarket with a gross floor area of approximately 9,800
square feet on the second floor of the Property, which is expected to commence operations
by the end of January 2015"

It should be ready in time for CNY, in Feb 2015

Just curious - is Sheng Siong relying more on the opening of new stores to drive growth in revenue and profits, or SSSG (i.e. organic growth); or a good mix of both? What is the net store openings/closures per year for the Company? For the store closures, were there specific reasons provided?

Thanks in advance!

I would say it depends on which period you are referring to.

After the listing of mid 2011, the immediate task was to use the proceed to expand, both for retail space, and refining the logistic infrastructures. The GFA increased from 348K sqft to 400K sqft, and the completion of Mandai Distribution Centre. In short, the retail space growth is the key driver in this period.

In 2012-2014, the key driver was on SSSG. The typical new store sale ramp up to maturity, is usually 2-3 years. Operating hour extension of retail stores to 24 hours in 2013, has also contributed to the SSSG. The company has muted in its online store performance, but it should also has contributed to the SSSG.

From the gross margin perspective, the company managed to improve it since listing. It has been improved from around 22% (2011) to more than 24% (latest). Net profit margin has been improved from less than 5% (2011) to more than 6% (latest).

So how about 2015 and beyond. The driver should be mixed. The SSSG will be continue to improve, but saturating. The company seems re-started the effort for new store opening lately. I am also watching on the online store performance.

(vested)

[CityFarmer]

Sheng Siong resumes its new store expansion, after stopped at 33 stores in 2012.

(vested)

Sheng Siong gaining market share as rivals relook strategy: DBS Vickers

SINGAPORE (Jan 13): Sheng Siong Group is gaining traction in the mass-market grocery business in Singapore as NTUC Fairprice shifts its focus to premium stores and Dairy Farm International opens fewer outlets amid rising competition, according to DBS Vickers.

“The number of NTUC supermarkets targeting the mass market has grown less aggressively than NTUC Finest, both in terms of floor area and store count,” DBS Vickers analysts Alfie Yeo and Andy Sim wrote in a report today.

“Dairy Farm International’s store count has shrunk in tandem with direct competition from NTUC Finest. This leaves Sheng Siong in a sweet spot to dominate the mass market segment,” they said.

The company now has 34 stores and plans to open two to three outlets a year.

The next to open is a 9,800-sq ft outlet at Tampines that will start operation this month.

Sheng Siong is also slated to open its first store in China in 2H2015.

It has a joint venture with LuChen Group, a condiments maker, to set up shop in Kunming.

“It will avoid competing directly with Walmart and Carrefour, but will be leveraging on location, price, service, quality of products and SKUs (stock keeping units) to differentiate itself from the competition,” said the analysts, who have a “buy” rating and 82-cent price target on the stock.

Sheng Siong shares rose 0.7% to 70.5 cents at 2:36pm (0636 GMT).
http://www.theedgemarkets.com/sg/article...bs-vickers

[vesfreq]

Dear VBs,

I have looking at Sheng Siong and its plans to have foothold in china. Its quite interesting because of the probability of greater growth. Yet, at the same time, I still find it quite hard to be convinced that they can succeed where Tesco has failed.

Correct me if I'm wrong. Tesco struggled to build presence in China for a long time to come. So, how would Sheng Siong be able to succeed where the Tesco (a corporate giant) has failed?

Just my thoughts. Look forward to hearing of the views here on Sheng Siong's china ambitions.

[CityFarmer]

Dear VBs,

I have looking at Sheng Siong and its plans to have foothold in china. Its quite interesting because of the probability of greater growth. Yet, at the same time, I still find it quite hard to be convinced that they can succeed where Tesco has failed.

Correct me if I'm wrong. Tesco struggled to build presence in China for a long time to come. So, how would Sheng Siong be able to succeed where the Tesco (a corporate giant) has failed?

Just my thoughts. Look forward to hearing of the views here on Sheng Siong's china ambitions.

I didn't pay too much attention on the China venture. It is still in a very early stage.

IMO, the key to success in oversea venture, is a right local partner. The JV seems a test platform for both sides, before further collaboration.

You are go to the partner, LuChen Group website, http://www.kmlcjt.com/list?cid=64 to understand more.

(vested)

[misscambodia]

Sheng Siong: Can Company Continue To Sustain Its Growth Path in 2015?


12 January 2015



Sheng Siong Group Ltd. (OV8) is one of Singapore's largest grocery retailers with 33 stores located all across the island. To date, they have over 400 products under 10 house brands. In the third quarter of 2014, the company reported revenue of $186.4 mil, an increase of 4.8% year on year. Profit for the period rose 15.4% year on year to $12.2 mil. On a year to date basis, revenue and profit are up 5.9% and 21.0% respectively year on year. In addition, over a 3 year period, revenue and profits have been growing at 5.9% and 12.5% each year on average.

With respect to its stock performance, the share price of Sheng Siong has doubled since 2011 and is currently trading at $0.70, which is 7% below its 52 week high of $0.85 and 21% higher than its 52 week low of $0.58. At its current price, this translates to a PE of 27.1 based on its latest full year earnings, and 22.0 based on its year to date earnings on an annualised basis. The current PE of 22 is considered relatively high and can only be justified if the company continues to deliver on its growth strategy. One other thing to note is also that the company has not have any debt.