Broker Name: Maybank Research Pte Ltd
Date of Report: November 3, 2025
Excerpt from Maybank Research Pte Ltd report.
- Sheng Siong Group (SSG) is expected to sustain strong growth, with revenue and earnings forecasted to increase at a CAGR of 8% and 9% respectively from 2024 to 2027, driven by resilient macro conditions, new store openings, and potential market share gains as a major competitor exits.
- The company’s expansion into malls and continued support from government vouchers, coupled with effective cost management and sustainability initiatives, underpin its superior growth and margin profile, making it an attractive BUY at a target price of SGD2.55 (+13%).
Report Summary
- SSG’s medium-term growth is supported by robust Singapore macro trends, new store additions (11 in 2025, 7 more in 2026), and market share gains as a competitor retreats.
- Strong 3Q25 performance: revenue up 14% YoY, earnings up 12% YoY; new stores, promotional activities, and government vouchers boost results.
- Expansion into malls presents further growth opportunities beyond its HDB heartland focus.
- Financials remain strong with high ROE, net cash position, and attractive dividend yield (3.3–4.0%).
- Sustainability is a focus: solar energy use, energy-efficient operations, and plans to report Scope 3 emissions by 2025/26.
- Risks include raw-food price volatility, changing consumer habits, and slower housing development.
- Valuation: DFC-based TP raised to SGD2.55; trading at 20x PE, in line with peers but offering superior growth and margin profile.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research website: https://www.maybank-keresearch.com
