Broker: CGS International
Date of Report: July 30, 2026
Excerpt from CGS International report.

Report Summary

Stock Focus: Sheng Siong Group (SSG SP)

• Actionable Call: Add (Buy) — reiteration.
• Target Price: S\$3.60 (up from S\$3.40)
• Current Price: S\$3.26
• Upside: 10.4%
• Main Idea: Sheng Siong Group delivered robust 1H26 results with net profit rising 12% year-on-year to S\$81m, driven by both new store openings and strong same-store sales. The company achieved a significant 100bp gross margin expansion to 31.8%, attributed to a better sales mix and scale economies.
• Key Highlights:
  • Government support via additional S\$300 CDC vouchers is expected to further boost same-store sales momentum.
  • Store network expansion continues, with 9 new stores targeted for FY26.
  • Operating leverage is expected to drive further margin expansion, despite structural headwinds like rising staff costs and lease depreciation.
  • FY26F–28F net profit estimates were raised by 3–4% on stronger sales and gross margin forecasts.
  • SSG maintains a defensive, value-for-money positioning, justifying its premium valuation (28x FY27F P/E, +3 std dev above 10-year mean).
• Implications: Investors are encouraged to add Sheng Siong Group given its strong earnings momentum, margin improvements, and positive sales outlook supported by government initiatives. Downside risks include higher staff costs, intensified price competition, and cautious consumer spending.
• Ticker: SSG SP

Above is an excerpt from a report by CGS International. Clients of CGS International can access the full research report from the broker’s website.
CGS International research website