Sheng Siong today up 1 cents and closed well at 96.5 cents + good volume . Likely to re-conquer 97 cents and scale higher towards $1.00 soon!
Sheng Siong - Local supermarket has been generally doing well as reflected on their Financial results with consistent rising in Net Income & cash flow for the past five years:
Company has a net cash position of about 4.9 cents per share.
I think zero debts and giving out a dividend payout ratio of 71% @ 3.3 cents for FY 2017. Yield is about 3.55%.
EPS is 4.64 cents. PE of 21.5 at 93 cents.
I think average PE is about 25x should be achievable at $1.16.
I think The fair value is about $1.10 - $1.20. At current price of 93 cents, upwards potential is about 25% to hit the TP of $1.16.
Sheng Siong opened its first overseas store in Kunming, Yunnan province in Q4 2017.
Can Sheng Siong repeat its success in China..
Sheng Siong holds a 60% of the total venture in China. I think if they are able to manage it well that may likely boost their total revenue as well as a good area to expand their business operations. This will likely be seeing an upgrade of their financial status . I view this as a positive move.
Pls do your own analysis.
For Sheng Siong, I have two possible fair values depending on how well it can continue to grow it's supermarket business both locally and in China it is now entering.
For the conservative fair value, if we assume Sheng Siong slows down it's business growth at CAGR of 6% on it's EPS, then fair share price is $0.95 which happens to be around the price it is currently traded at.
For the aggressive fair value, if we assume Sheng Siong can continue to grow it's EPS same as past 5 years CAGR of 9.06% without any slowing down in the growth of it's local and China supermarket businesses, it's fair share price is $1.24.
Thus, any price at $0.95 and below to me is ok to accumulate Sheng Siong.
Not a call to buy or sell.
dyodd
Sheng Siong Group Ltd., an investment holding company, operates supermarkets in Singapore. The company’s stores offer an assortment of live, fresh, and chilled produce, such as seafood, meat, and vegetables; and packaged, processed, frozen, and/or preserved food products, as well as general merchandise, including toiletries and essential household products. It is also involved in general trading, and wholesale import and export businesses. The company operates approximately 43 supermarkets/grocery stores under the Sheng Siong brand name. Sheng Siong Group Ltd. was founded in 1985 and is headquartered in Singapore.
Not a call to buy or sell.
dyodd
Sheng Siong Group Ltd., an investment holding company, operates supermarkets in Singapore. The company’s stores offer an assortment of live, fresh, and chilled produce, such as seafood, meat, and vegetables; and packaged, processed, frozen, and/or preserved food products, as well as general merchandise, including toiletries and essential household products. It is also involved in general trading, and wholesale import and export businesses. The company operates approximately 43 supermarkets/grocery stores under the Sheng Siong brand name. Sheng Siong Group Ltd. was founded in 1985 and is headquartered in Singapore.