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Supermarket giant Sheng Siong plans to have the largest single solar panel installation in Singapore on the rooftop of its distribution centre in Mandai.
The 11,000 square metre installation will supply up to 1.2 megawatts when running at peak, and will be built by major solar energy firm Phoenix Solar. The system is expected to start producing electricity by the end of this year, and supply at least 15 per cent of the centre's consumption.
"The commercial and environmental returns of this project make it a viable business decision, which will continue to yield benefits for a long time," said Sheng Siong chief executive Mr Lim Hock Chee.
An industrial solar photovoltaic system, which turns the sun's light into electricity, typically pays for itself in seven to 10 years, a return period that has grown shorter in recent years due to lower panel costs.
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May not move the needle in terms of financials but nonetheless a good CSR move.
The nature of the business likely requires 24-hr air conditioning and the intermittent nature of solar power will mean it will never be a reliable source of power (maybe energy storage technologies can catch up one day to complement renewables). In addition, due to urban density, solar power may find it hard to satisfy primary energy demand.
Maybe Sheng Siong is getting some govt incentives for green actions?
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was just talking to my mum and sister in law, SS things are no longer that cheap.
Pressure of being listed and requirement to deliver results, I guess.
Anyone else had this kind of feedback?
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Went back to look at SS half year result. The earning for half year is 1.37c. If whole year is double of that, their PE is at 24, and not 20 as mentioned earlier. Kind of high isn't it?
90% of earning is 2.466c, which gives a dividend yield of 3.73%. Pretty decent, but I am sure there are companies with better yield out there.
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looks like a change in strategy - expansion via renting is no longer feasible. While there's a decent cash hoard on the books, i do wonder how long they will keep to their dividend payout now that they will look to purchase land for store expansions.
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(25-10-2013, 07:17 PM)AlphaQuant Wrote: looks like a change in strategy - expansion via renting is no longer feasible. While there's a decent cash hoard on the books, i do wonder how long they will keep to their dividend payout now that they will look to purchase land for store expansions.
A brief of the deal below
The Board of Directors of Sheng Siong Group Ltd. (the “Company” and together with its subsidiaries, the “Group”) wishes to announce that Sheng Siong Supermarket Pte Ltd (the “Purchaser”), a wholly-owned subsidiary of the Company, has entered into various sale and purchase agreements dated 25 October 2013 (the “Agreements”) with CEL–Yishun (Commercial) Pte Ltd (the “Vendor”) of the first part, and CEL-Yishun (Residential) Pte Ltd of the second part ( pursuant to which the Purchaser has agreed to purchase a total of 6 units of properties (each a “Property” and collectively, the “Properties”) at 18 Yishun Avenue 9, Singapore (the “Proposed Acquisitions”) for an aggregate consideration of S$54.9 million (“Consideration”).
http://infopub.sgx.com/FileOpen/SSG-Purc...eID=261220
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