Excerpt from Maybank Research report.
Report Summary
- Stock: Sheng Siong Group (SSG SP)
- Action: BUY
- Target Price: SGD 3.22 (raised from SGD 2.90)
- Key Idea: Maybank highlights Sheng Siong as one of Singapore’s clearest defensive growth stories. The company is expected to deliver a 7-8% CAGR revenue and earnings growth for FY25-28, supported by resilient macro conditions, ongoing store expansion, and market share gains as smaller competitors retreat.
- Highlights:
- 1Q26 revenue grew 12.4% YoY to SGD 452.8m and net profit rose 12.6% YoY to SGD 43.4m.
- Gross margin improved to 31.0% (+70bps YoY), helped by product mix and house brands.
- New store openings (5-6 p.a. over 2026-28) and possible non-HDB expansion offer further upside.
- Strong cost pass-through, rational competition, and additional support from government CDC vouchers.
- Balance sheet remains robust with net cash position.
- Implications/Analysis: The raised target price and reiterated BUY call reflect Sheng Siong’s resilience, ability to pass on costs, and opportunities for market share gains. The defensive nature and strong fundamentals make it attractive for investors seeking stable growth in Singapore’s consumer staples sector.
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
