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Anyone went to the AGM for Sheng Siong? Anything interesting to share? E.g. What is the reason for the delay of their China venture? Expansion plans in SG? Etc.
I wasn't able to go as I had to attend another AGM.
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03-05-2017, 12:01 PM
(This post was last modified: 03-05-2017, 01:16 PM by Big Toe.)
here's my 2cents worth.
I have been digging extremely deep into this sector speaking to Sheng shiong's competitors and suppliers.
At the same time trying to decipher how each product category contribute to the bottom line. Supermarkets, the bigger it is, the better margins due to a larger product mix and ability to sell a larger potion of higher margin products. That explains why a 300sqm floor area costs well above 2 times the 150sqm.
What most people got wrong is not about Sheng Shiong but more about its competitors. Besides the usual suspects, NTUC and Giant, some of the other "smaller" players are not that small. While the 'smaller player' owned supermarket operations may not have the scale of the top 3, their cash position of the group is high and is a diversified group with strong cash flows from other existing businesses. Writing them off as small players would be a mistake.
Valuation aside, sheng shiong is a great company overall but others are also seizing the opportunities within the supermarket space. While the bidding frenzy have eased somewhat, it is unlikely that Sheng Shiong or anyone else will get a good deal on the bidding of HDB shops. Profits from new stores is marginal at best for the near future. Earnings growth will be muted locally.
The difference between full time analyst and the free lance toe is analyst spends no more than 50 hours on one report, the toe spend hundreds of hours at least.
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03-05-2017, 03:14 PM
(This post was last modified: 03-05-2017, 03:16 PM by corydorus.)
Margin around 26%. So we are saying new store opening will be marginally at best. Interesting.
So is it better not to win any new bid for space till Market gives us a good deal. And it will be Good News to the Business actually not winning the bid currently ?
Cory
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29-07-2017, 09:28 PM
(This post was last modified: 29-07-2017, 09:30 PM by Temperament.)
2nd half of the year is always holiday seasons (aka Christmas, end of DEC, welcoming a NY, workers's Bonus time, etc..).
Not vested.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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Expansion path. Probably need to conserve cash for it. A good thing.
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