Broker Name: Maybank Research Pte Ltd
Date of Report: March 2, 2026
Excerpt from Maybank Research Pte Ltd report.
- Report Summary
- Sheng Siong Group is expected to achieve resilient revenue and earnings growth at a 6-7% CAGR from FY25-28, driven by ongoing store expansion, strong macro conditions, and market share gains as competitors retreat.
- The defensive nature of Sheng Siong’s staples-focused business, efficient cost pass-through, and expansion into both HDB and private malls position it well amid geopolitical volatility and Singapore’s steady population and construction growth.
- With eight gross store openings forecasted in 2026 and stable same-store sales, margins are expected to improve, supporting an 8% YoY earnings increase for FY26.
- Valuations are at a premium (24x 2026 PE) but justified by superior growth and margin profile, strong ROE, and high dividend payout, with a revised price target of SGD 2.90 (+14%).
- Sheng Siong is setting sustainability goals, focusing on energy savings, emission tracking, and recycling, alongside employee development and community support.
- The company maintains a robust balance sheet with net cash, strong free cash flow, and efficient capital management, ensuring continued stability and growth.
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 website: https://www.maybank.com/investment-banking
