Sheng Siong Group Ltd. (OV8) AI Stock Analysis

• Market Cap: S$2.98B
• Dividend Yield: 6.46%
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.29
• Revenue Growth: 4.91%
• EPS Growth: 2.31%
• Country: SG
• Employees: 2,500
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Grocery Stores
• EPS (TTM): 0.03
• Shares Outstanding: 1,503,537,000
• 10 Day Avg. Volume: 2,455,380
• 30 Day Avg. Volume: 2,251,556
• PEG Ratio: 54.84
• Price to Book (P/B): 5.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$2.03
• Price Target Upside: 2.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: S$2.50 ▲(26.26%Upside)

The overall stock score of 80 is driven primarily by Sheng Siong Group Ltd.'s strong financial performance, which reflects stability and growth potential. The valuation is attractive due to a high dividend yield. Technical analysis suggests a currently positive trend but highlights overbought conditions, warranting cautious optimism.

Positive Factors

Expansion

Sheng Siong Group is set for significant growth with the largest expansion of stores since 2018, opening at least 8 new locations in FY25.

Market Position

Sheng Siong Group is capturing market share, gaining scale as competitors become less competitive.

Revenue Growth

Sheng Siong Group's revenues grew 7% year-on-year, outperforming the national supermarket industry's 0.4% decline.

Negative Factors

Earnings Growth

New store staffing and rental expenses could weigh on Sheng Siong Group's earnings growth in FY25F.

Labor Costs

Tight labor supply and limited access to foreign workers are increasing staff costs for Sheng Siong Group.

Operational Costs

Operational costs continue to outpace gross profit growth, posing a challenge for Sheng Siong Group.

Sheng Siong Group Ltd. Business Overview & Revenue Model

Company Description

Sheng Siong Group Ltd. (OV8) is a leading supermarket chain based in Singapore, providing a wide range of grocery products to its customers. The company operates a network of retail outlets offering fresh produce, chilled and frozen meats, seafood, processed and preserved food products, and general merchandise such as toiletries and household products. Sheng Siong is known for its focus on providing quality products at competitive prices, catering primarily to the heartland communities in Singapore.

How the Company Makes Money

Sheng Siong Group Ltd. generates revenue primarily through the sale of grocery products in its retail outlets. The company’s revenue streams include the direct sale of fresh produce, meats, seafood, and various grocery items. A significant portion of its income comes from its in-store promotions and loyalty programs designed to attract and retain customers. Additionally, Sheng Siong benefits from its diverse supplier base, which allows it to offer competitive pricing. The company also earns through its house brand products, which typically offer higher margins compared to third-party brands. While Sheng Siong's core operations are centered in Singapore, any strategic partnerships or expansions into new markets could also contribute to its revenue growth.

Sheng Siong Group Ltd. Financial Statement Overview

Summary

Sheng Siong Group Ltd. presents a strong financial profile across its income statement, balance sheet, and cash flow statement. Steady revenue growth, high profitability margins, low leverage, and strong cash generation capabilities position the company well within the grocery stores industry. While the company maintains a conservative financial strategy, the robust cash reserves and efficient capital management provide flexibility for future growth and stability against economic uncertainties.

Income Statement

Sheng Siong Group Ltd. demonstrates robust revenue growth and profitability. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 30.69% and a net profit margin of 9.60%, indicating efficient cost management and strong bottom-line performance. Revenue growth remains steady, increasing from 2023 to 2024. The EBIT margin at 10.98% and EBITDA margin at 16.18% reflect sound operational efficiency. Overall, the income statement highlights a stable and profitable financial structure.

Balance Sheet

The balance sheet for Sheng Siong Group Ltd. reveals a solid financial position. The debt-to-equity ratio is low at 0.20, underscoring a conservative leverage approach. The equity ratio is 61.02%, showcasing strong equity financing. The company exhibits a healthy return on equity (ROE) of 24.37%, indicating effective utilization of shareholder capital. The company's financial stability is further demonstrated by a substantial cash reserve, positioning it well to weather economic fluctuations.

Cash Flow

Sheng Siong Group Ltd. shows excellent cash flow management. The operating cash flow to net income ratio is 1.52, indicating strong cash generation from operations. The free cash flow to net income ratio is 1.38, reflecting efficient capital expenditure management. Free cash flow growth is robust, supporting the company's ability to finance operations and strategic initiatives without relying heavily on debt. Overall, the cash flow statement highlights the company's strong cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.43B	1.37B	1.34B	1.37B	1.39B
Gross Profit	446.77M	435.47M	410.53M	393.50M	393.29M	381.86M
EBITDA	235.54M	230.87M	219.65M	218.41M	214.96M	217.71M
Net Income	139.78M	137.52M	133.65M	133.30M	132.83M	138.65M
Balance Sheet
Total Assets	939.79M	935.14M	830.19M	785.12M	739.02M	692.06M
Cash, Cash Equivalents and Short-Term Investments	366.93M	353.36M	324.40M	275.50M	246.64M	253.90M
Total Debt	116.13M	125.62M	101.33M	95.65M	81.69M	75.50M
Total Liabilities	363.00M	396.80M	333.21M	329.94M	322.69M	316.96M
Stockholders Equity	573.45M	534.92M	493.77M	452.25M	413.41M	372.39M
Cash Flow
Free Cash Flow	192.51M	200.80M	178.14M	158.01M	141.01M	257.02M
Operating Cash Flow	212.16M	218.99M	188.29M	166.81M	172.70M	274.15M
Investing Cash Flow	-59.17M	-54.35M	-10.05M	-4.97M	-30.32M	-16.12M
Financing Cash Flow	-138.04M	-136.90M	-129.46M	-133.48M	-149.88M	-80.90M

Sheng Siong Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:OV8, the sentiment is Positive. The current price of 1.98 is above the 20-day moving average (MA) of 1.88, above the 50-day MA of 1.84, and above the 200-day MA of 1.65, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 72.88 is Negative, neither overbought nor oversold. The STOCH value of 84.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:OV8.

Sheng Siong Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OV8	80 Outperform	S$2.98B	21.29	25.33%	6.46%	4.91%	2.31%
F03	79 Outperform	S$991.08M	13.72	17.74%	3.28%	11.26%	-7.30%
5JS	73 Outperform	S$446.69M	4.73	7.94%	3.13%	-4.59%	74.87%
P34	73 Outperform	$458.37M	10.11	12.79%	4.19%	-7.55%	-26.87%
Q01	71 Outperform	S$526.37M	15.17	7.04%	5.46%	1.20%	26.15%
Sector *	68 Neutral	S$3.42B	16.93	-11.82%	6.43%	5.14%	-8.01%

Sheng Siong Group Ltd. Corporate Events

Sheng Siong Group Ltd. Conducts Fourteenth Annual General Meeting

Sheng Siong Group Ltd. held its Fourteenth Annual General Meeting on April 29, 2025, in Singapore, led by Mr. Chee Teck Kwong Patrick. During the meeting, the company confirmed the presence of a quorum and addressed shareholder questions submitted prior to the AGM, with responses published on the Singapore Exchange Network.

The most recent analyst rating on (SG:OV8) stock is a Buy with a S$1.90 price target. To see the full list of analyst forecasts on Sheng Siong Group Ltd. stock, see the SG:OV8 Stock Forecast page.