Sheng Siong Group

[Ferns]

Recently started following Sheng Siong. I paid a visit to a few Sheng Siongs and I have to say it's pretty crowded and popular among the older crowd. While they have potential for growth locally, I don't think they can expand overseas.

So what's going to happen after establishing their presence in most of the HDB areas? Anyone has any thoughts on this?

Vested.

[thor666]

I suppose they could leverage their economies of scale for new businesses. (Think small)
I think SS have very prudent management and can grow further next few years.

I do not like retail/consumer stocks in my portfolio though. And I personally do not like to go sheng shiong.. Some of their business styles is not to my shopping liking as a consumer.

(Not vested)


Sent from my iPad using Tapatalk

[CityFarmer]

Recently started following Sheng Siong. I paid a visit to a few Sheng Siongs and I have to say it's pretty crowded and popular among the older crowd. While they have potential for growth locally, I don't think they can expand overseas.

So what's going to happen after establishing their presence in most of the HDB areas? Anyone has any thoughts on this?

Vested.

It will take a while before the company exhausted its growth in Singapore, IMO.

The company has 33 stores now, comparing with NTUC supermarket stores of slightly less than 100.

Malaysia expansion has been planned, but so far no further execution. I reckon it should be the first country for oversea venture.

[muns]

Just wondering, how much more growth will there be in SG? From the basis of store counts Sheng Siong is close to 1/3 of NTUC, but it doesn't make sense for Sheng Siong to open an outlet where NTUC or Cold Storage is already in play.

Is there anywhere that compiles the outlets of all the supermarkets in SG, to check if there's much more areas for growth in SG.

From my knowledge 29/33 of Sheng Siong's outlets are already operating on a 24Hr basis from their FY13. So it seems that revenue may be tough to squeeze from converting stores to a 24Hr basis.

The question would be where's the growth going to come from their Singapore operations?

___________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

[GPD]

If Sheng Siong strategy is to avoid NTUC(Fairprice?), I wouldn't invest in them. It implies SS market share is vulnerable to Fairprice and there is nothing to stop Fairprice from opening a new store to compete with SS even if SS set foot first.

SS has been around long enough and to be able to deliver profit, it must have some good strategies but what are they? Are they targeting a different market segment or simply drawing customers away from Fairprice based on price?

Fairprice also has the strongest retail membership in SG and I believe this membership helps Fairprice to draw customers towards them.

[CityFarmer]

Just wondering, how much more growth will there be in SG? From the basis of store counts Sheng Siong is close to 1/3 of NTUC, but it doesn't make sense for Sheng Siong to open an outlet where NTUC or Cold Storage is already in play.

Is there anywhere that compiles the outlets of all the supermarkets in SG, to check if there's much more areas for growth in SG.

From my knowledge 29/33 of Sheng Siong's outlets are already operating on a 24Hr basis from their FY13. So it seems that revenue may be tough to squeeze from converting stores to a 24Hr basis.

The question would be where's the growth going to come from their Singapore operations?

___________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

I refer to my previous post, post #213, to answer the first doubt on growth in Singapore, beside a simple store number benchmarking with NTUC supermarkets.

You can also refer to Singapore Yearbook 2013, which states 398 supermarket stores in Singapore for year end 2012.

You are right that most stores are operated 24 hours starting 2013, but you might miss the point that it take time to realize its revenue growth. IMO, it takes approx 2 years to realize a new store to its full potential. I reckon the newly 24 hours operation will bring in full revenue by 2015, before the new stores kick-in.

Online store is another engine for growth.

(vested)

[investor101]

Just wondering, how much more growth will there be in SG? From the basis of store counts Sheng Siong is close to 1/3 of NTUC, but it doesn't make sense for Sheng Siong to open an outlet where NTUC or Cold Storage is already in play.

Is there anywhere that compiles the outlets of all the supermarkets in SG, to check if there's much more areas for growth in SG.

From my knowledge 29/33 of Sheng Siong's outlets are already operating on a 24Hr basis from their FY13. So it seems that revenue may be tough to squeeze from converting stores to a 24Hr basis.

The question would be where's the growth going to come from their Singapore operations?

___________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

I refer to my previous post, post #213, to answer the first doubt on growth in Singapore, beside a simple store number benchmarking with NTUC supermarkets.

You can also refer to Singapore Yearbook 2013, which states 398 supermarket stores in Singapore for year end 2012.

You are right that most stores are operated 24 hours starting 2013, but you might miss the point that it take time to realize its revenue growth. IMO, it takes approx 2 years to realize a new store to its full potential. I reckon the newly 24 hours operation will bring in full revenue by 2015, before the new stores kick-in.

Online store is another engine for growth.

(vested)

The growth of Sheng Siong as a matured supermarket chain will probably mirror that of Singapore's population growth. It stands to reason, since most of their products are groceries and daily necessities. A growth in national population will lead to a corresponding growth in supermarkets to meet market demand.

Whether Sheng Siong can grow in tandem or outpace population growth will depend on its marketing strategy.

[CityFarmer]

The growth of Sheng Siong as a matured supermarket chain will probably mirror that of Singapore's population growth. It stands to reason, since most of their products are groceries and daily necessities. A growth in national population will lead to a corresponding growth in supermarkets to meet market demand.

Whether Sheng Siong can grow in tandem or outpace population growth will depend on its marketing strategy.

I agree that the supermarket growth will mirror the Singapore population growth, the same for the growth of a matured supermarket chain.

I am not so sure Sheng Siong is a matured supermarket chain, base on various indicators.

(vested, thus may be biased)

[muns]

Just wondering, how much more growth will there be in SG? From the basis of store counts Sheng Siong is close to 1/3 of NTUC, but it doesn't make sense for Sheng Siong to open an outlet where NTUC or Cold Storage is already in play.

Is there anywhere that compiles the outlets of all the supermarkets in SG, to check if there's much more areas for growth in SG.

From my knowledge 29/33 of Sheng Siong's outlets are already operating on a 24Hr basis from their FY13. So it seems that revenue may be tough to squeeze from converting stores to a 24Hr basis.

The question would be where's the growth going to come from their Singapore operations?

___________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

I refer to my previous post, post #213, to answer the first doubt on growth in Singapore, beside a simple store number benchmarking with NTUC supermarkets.

You can also refer to Singapore Yearbook 2013, which states 398 supermarket stores in Singapore for year end 2012.

You are right that most stores are operated 24 hours starting 2013, but you might miss the point that it take time to realize its revenue growth. IMO, it takes approx 2 years to realize a new store to its full potential. I reckon the newly 24 hours operation will bring in full revenue by 2015, before the new stores kick-in.

Online store is another engine for growth.

(vested)

Hi CityFarmer,

Thanks for the details Really appreciate it! Just trying to find out more where the growth's coming from, since many reports just say growth but they don't supply the details!

Additionally, for the SG Yearbook do they plot at which areas the 398 supermarkets are and who owns them?
___________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

[CityFarmer]

Just wondering, how much more growth will there be in SG? From the basis of store counts Sheng Siong is close to 1/3 of NTUC, but it doesn't make sense for Sheng Siong to open an outlet where NTUC or Cold Storage is already in play.

Is there anywhere that compiles the outlets of all the supermarkets in SG, to check if there's much more areas for growth in SG.

From my knowledge 29/33 of Sheng Siong's outlets are already operating on a 24Hr basis from their FY13. So it seems that revenue may be tough to squeeze from converting stores to a 24Hr basis.

The question would be where's the growth going to come from their Singapore operations?

___________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

I refer to my previous post, post #213, to answer the first doubt on growth in Singapore, beside a simple store number benchmarking with NTUC supermarkets.

You can also refer to Singapore Yearbook 2013, which states 398 supermarket stores in Singapore for year end 2012.

You are right that most stores are operated 24 hours starting 2013, but you might miss the point that it take time to realize its revenue growth. IMO, it takes approx 2 years to realize a new store to its full potential. I reckon the newly 24 hours operation will bring in full revenue by 2015, before the new stores kick-in.

Online store is another engine for growth.

(vested)

Hi CityFarmer,

Thanks for the details Really appreciate it! Just trying to find out more where the growth's coming from, since many reports just say growth but they don't supply the details!

Additionally, for the SG Yearbook do they plot at which areas the 398 supermarkets are and who owns them?
___________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

Welcome. Please refer to the Yearbook page 300. I doubt further detail is shown. Yearbook data are top level statistic.

http://www.singstat.gov.sg/publications/...os2013.pdf