Broker: CGS International
Date of Report: April 7, 2026
Excerpt from CGS International report.
Report Summary
- Stock: Sheng Siong Group (SSG SP)
- Action: ADD (equivalent to Buy)
- Target Price: S\$3.40 (raised from S\$2.97)
- Current Price: S\$2.97
- Upside: 14.5%
- Key Idea: Sheng Siong Group is expected to benefit from strong value-for-money positioning, enhanced government support to households, and resilient grocery demand amid inflation concerns. The company’s robust new store expansion and economies of scale are expected to drive both top-line growth and margin improvement through FY27F. EPS estimates for FY26F-28F are raised by 0.6-1.2% on stronger-than-expected sales per store.
- Valuation: The new target price is based on 28x FY27F P/E, reflecting Sheng Siong’s stronger structural position and ongoing market share gains. The market is likely to continue assigning a premium to SSG due to its defensive profile and resilient performance during macroeconomic uncertainty.
- Key Catalysts: Faster store openings and stronger margins could trigger further re-rating. Main downside risks are higher staff costs and increased price competition.
- Ticker: SSG SP
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
