CGS International
July 4, 2025

Sheng Siong Group Eyes Expansion as Singapore’s HDB Unveils New Supermarket Tenders

Introduction: Strong Pipeline Fuels Sheng Siong’s Growth Ambitions

Sheng Siong Group (SSG), a leading supermarket chain in Singapore, continues to solidify its growth trajectory in 2025. Backed by a string of new store openings and a robust tender pipeline from the Housing Development Board (HDB), SSG is positioning itself for further market share gains. This detailed analysis explores SSG’s latest performance, competitive strategies, financial projections, peer comparisons, and ESG initiatives based on CGS International’s July 2025 research.

Store Network: Rapid Expansion with New HDB Sites

SSG opened 3 new stores in Q2 2025, bringing its year-to-date total to 5 outlets.
The newest stores at Tengah Garden, Sumang Walk, and KINEX Mall began operations in June 2025, with official openings for Tengah Garden and Sumang Walk scheduled in July 2025.
Evening ground checks indicate strong customer footfall and well-stocked shelves, signaling robust demand from the outset.
Three additional stores—Punggol Central, Punggol East, and Cathay Mall—are on track to open by July-August 2025, in line with management’s guidance for all six new outlets to be operational between May and September 2025.
SSG is awaiting results for four more tenders and is expected to bid for up to three new HDB supermarket sites in 2026, thanks to two fresh tenders announced by HDB, in addition to the previously revealed Jurong East site. Each unit ranges from approximately 5,400 to 9,700 square feet, aligning with SSG’s preferred store format.
Projections indicate 10 new store openings in FY25 and 5 in FY26, reinforcing SSG’s aggressive expansion stance.

Market Share and Promotional Strategies

The supermarket industry saw a 7% year-on-year sales growth in May 2025, significantly outpacing the 1% average in the preceding four months.
This surge was driven by the government’s S$500 Community Development Council (CDC) voucher disbursement, of which S$250 could be used at supermarkets including SSG, NTUC FairPrice, Cold Storage, Giant, and Prime.
SSG’s sales growth outperformed the industry by an average of 4 percentage points from Q1 2023 to Q1 2025.
Notably, SSG implemented a differentiated CDC voucher strategy:
Weekly discounts on selected products.
Lower minimum spend of S$30 (compared to S$60 at peers) to qualify for promotions.
This approach likely encouraged more frequent visits and lifted average basket sizes above SSG’s usual sub-S$30 level.
Peers such as NTUC FairPrice and Cold Storage offered S$6 return vouchers for each S$60 spent in a single transaction, but SSG’s approach focused on repeat traffic and greater accessibility for value-seeking consumers.
SSG has already begun rolling out similar promotions to capture upcoming SG60 voucher spending, which is expected to further boost footfall and sales.

Financial Performance and Upgraded Valuation

SSG’s financial projections remain robust, with upward revisions to target price and earnings multiples:
Target price raised to S$2.21 (from S$1.90), reflecting a higher 22x FY26F P/E multiple, which is one standard deviation above the 5-year mean.
The higher multiple is justified by stronger store opening momentum and a visible tender pipeline through 2026.
Key catalysts for further re-rating include:
Additional HDB new store tenders.
Potential government wage support to offset rising staff costs.
Risks to the outlook:
Tight supply of front-line service personnel, which may push up staff costs.
Heightened price competition in the supermarket sector.

Peer Comparison: Regional Grocery and Retail Competitors

A comprehensive regional peer comparison offers insights into SSG’s competitive standing across Asia’s grocery and retail landscape.

ESG: Sustainability, Social Practices, and Efficiency

Sheng Siong has made notable efforts to diversify its supply chain, supporting Singapore’s “30 by 30” vision (with the goal for 30% of nutritional needs to be met locally by 2030).
The company emphasizes employee wellbeing and customer satisfaction, as reflected in high market share gains and positive consumer experience.
Recent initiatives to address the rising cost of living include:
A 1% counter-inflation discount on all in-store purchases (Jan-Mar 2024).
A 4% special discount for senior citizens, extended through December 2025.
SSG’s energy intensity increased slightly to 0.276 megajoules per S$ revenue in FY24 (from 0.273 in FY23), and greenhouse gas emissions intensity rose to 0.065kg CO2e per S$ revenue (from 0.055kg).
All SSG stores are now fitted with LED lights, which can reduce lighting energy consumption by up to 80%.
The company holds an LSEG ESG combined grade of C- as of 2023.

Financials: By the Numbers

Conclusion: Add Rating Reaffirmed with Strong Growth Prospects

CGS International maintains an “Add” rating on Sheng Siong Group, supported by an upwardly revised target price and a positive outlook for continued earnings and market share growth. With a healthy pipeline of new store tenders, innovative promotional strategies, and a focus on operational efficiency and sustainability, SSG is well placed to capitalize on Singapore’s evolving grocery landscape. Investors should watch for further government tender announcements and potential policy support as key catalysts for future performance.