Sheng Siong Group: Steady Growth with Promising Prospects

Sheng Siong Group (SSG) has reported another solid quarter, demonstrating its resilience and capacity for growth. With a stronger-than-expected revenue of S\$363 million in 3Q24, marking a 5% year-on-year increase, and earnings of S\$39 million, a 12% rise, the company is well-positioned for future success. This performance brings the nine-month revenue and earnings to 77% and 81% of the full-year forecasts respectively.

The company’s impressive gross margin of 31.3%—a record high—stems from a better sales mix and increased contributions from house brands. SSG’s strategic focus on new store openings and consistent market share gains, as evidenced by its 5% revenue growth outpacing Singapore’s supermarket growth, highlights its competitive edge. The company is poised to benefit from new store openings and continues to outperform peers in sales growth.

With a robust net cash position of S\$350 million, SSG remains committed to rewarding its shareholders, maintaining a 70% payout ratio. The group’s acquisition of properties in Siglap V and Toa Payoh further bolsters its expansion plans, with new store openings expected to contribute significantly to earnings growth. UOB Kay Hian maintains a “BUY” recommendation with a revised target price of S\$1.93, citing potential upside from new store openings and stable earnings growth.

Oversea-Chinese Banking Corp: Bullish Trend Continues

The Oversea-Chinese Banking Corp (OCBC) is currently experiencing a bullish trend, with its stock trading above the cloud, signaling an intact uptrend. The bank’s stock price has rebounded from its previous low support level, with conversion and base lines in a bullish crossover. The Moving Average Convergence Divergence (MACD) indicator also remains bullish, suggesting the potential for further price increases.

OCBC’s stock is recommended as a “Trading BUY” with a target price of S\$17.55, providing an approximate timeframe of 1-2 weeks to reach this target. A protective stop is advised at S\$15.89 to manage risk. The institutional research offers a fundamental “BUY” recommendation with a target price of S\$21.00, indicating confidence in the bank’s sustained growth trajectory.

First Resources: Maintaining a Bullish Outlook

First Resources (FR) is another company highlighted for its bullish chart outlook. The stock is trading above the cloud, and a bullish crossover of conversion and base lines is likely. The MACD indicator reinforces this positive sentiment, suggesting the potential for the stock price to climb higher.

The recommended trading range for First Resources is S\$1.49 to S\$1.50, with a target price of S\$1.60. A protective stop is set at S\$1.46, with an expected timeframe of 1-2 weeks to achieve the target price. Institutional research also supports a “BUY” recommendation, with a slightly higher target price of S\$1.65, reflecting confidence in the company’s growth prospects.