Broker: Lim & Tan Securities
Date of Report: 7 April 2026

Excerpt from Lim & Tan Securities report.

Report Summary

• Sheng Siong Group (OV8)
  Action: HOLD
  Target Price: S\$2.79 (Consensus)
  Key Points:
  • Sheng Siong delivered resilient FY2025 results with revenue up 9.9% to S\$1.57bn, net profit up 8.5% to S\$149.2m, and gross profit up 12.9% to S\$491.6m.
  • Dividend of 7.0 cents per share declared, payout ratio of 70.4%.
  • Strong financial position with S\$435.5m cash reserves and S\$236.6m operating cash flow.
  • Expansion continues with a new distribution centre planned for 2029/2030 and a target of ~3 new stores per year over the next 10–15 years.
  • Currently trading at 27x forward PE and 7.5x PB, with a dividend yield of 2.4%. Valuations are considered rich; downside potential of 5% to consensus target price.
  • Recommendation: HOLD due to defensive attributes, but limited upside at current levels.
• Pan-United Corp
  Action: HOLD
  Target Price: S\$1.57 (Consensus)
  Key Points:
  • FY2025 revenue up 11% to S\$898.4m; EBITDA up 32% to S\$99.1m; net profit up 24% to S\$50.7m.
  • Final dividend of 3.5 cents per share, total FY2025 dividend 4.5 cents.
  • Riding on construction upcycle with investments in technology and innovation (notably low-carbon concrete).
  • Valuations at 20x forward PE, 4.1x PB, 2.6% dividend yield; consensus TP implies 8% downside.
  • Recommendation: HOLD as outlook is positive but valuations are stretched after recent price run-up.

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