Broker Name: DBS Group Research
Date of Report: 04 May 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock: Sheng Siong Group Ltd (Bloomberg Ticker: SSG SP)
- Action: Maintain HOLD
- Target Price: SGD2.80 (12-month Target Price)
- Current Price (as of 30/04/2026): SGD3.03
- Key Highlights:
- Sheng Siong plans to invest SGD520 million in a new state-of-the-art distribution centre, supporting long-term expansion to at least 120 stores and aiming for greater operational efficiency and better margins.
- FY26F/FY27F earnings lifted by 0.3%/3.9% to reflect stronger store expansion prospects and improved margin assumptions.
- DBS expects 6 new store openings in 2026, netting off closures, resulting in 4 net new stores. FY27 store count forecast raised to 5 (from 3 previously), with further expansion opportunities likely from struggling competitors’ store exits.
- Gross margin assumptions for FY27 increased to 32.3% (from 32.0%) due to a rational competitive environment.
- Earnings momentum expected to normalise after a strong 1Q26, with sequential growth moderating as base effects set in.
- Valuation premium justified by a favourable store expansion environment, rational competition, and defensive qualities amid geopolitical uncertainty.
- Risks: Upside from higher new store growth and lower staff costs; downside if scale benefits do not materialise.
above is an excerpt from a report by DBS Group Research. Clients of DBS can be the first to access the full report from the DBS website : https://www.dbs.com/
