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Sheng Siong Group Ltd. (SG:OV8)
SGX:OV8
Singapore Market
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Sheng Siong Group Ltd. (OV8) AI Stock Analysis

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SG:OV8

Sheng Siong Group Ltd.

(SGX:OV8)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
S$2.50
â–²(20.19% Upside)
Sheng Siong Group Ltd. has a strong financial foundation with consistent growth and robust cash flows, which is the most significant factor in its score. Technical indicators show positive momentum, supporting the stock's performance. The valuation is reasonable, with a fair P/E ratio and a moderate dividend yield.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a robust market position and effective business strategy, ensuring long-term sustainability and expansion potential.
Cash Flow Generation
Strong cash flow generation supports operational flexibility and investment capacity, enhancing the company's ability to fund growth initiatives and withstand economic fluctuations.
Balance Sheet Health
A solid balance sheet with low leverage enhances financial stability and reduces risk, providing a strong foundation for future growth and investment opportunities.
Negative Factors
Cost Management
Inefficient cost management can erode profit margins over time, potentially impacting the company's ability to maintain competitive pricing and invest in growth.
EBIT and EBITDA Margins
Declining EBIT and EBITDA margins suggest rising operational costs or pricing pressures, which could challenge profitability if not addressed.
Operating Cash Flow Efficiency
A decline in operating cash flow efficiency may indicate challenges in converting revenue into cash, potentially affecting liquidity and investment capacity.

Sheng Siong Group Ltd. (OV8) vs. iShares MSCI Singapore ETF (EWS)

Sheng Siong Group Ltd. Business Overview & Revenue Model

Company DescriptionSheng Siong Group Ltd. (OV8) is a leading supermarket chain in Singapore, known for offering a wide range of groceries, fresh produce, and daily necessities at competitive prices. The company operates a network of retail outlets strategically located across the region, serving diverse customer needs with a focus on quality and value. Sheng Siong's core products include fresh food, packaged food, household products, and personal care items, alongside a selection of house brand products.
How the Company Makes MoneySheng Siong Group Ltd. generates revenue primarily through its retail operations, selling a comprehensive range of grocery items and household necessities directly to consumers. The company's revenue model is based on sales from its network of physical supermarkets, complemented by its e-commerce platform, which extends its reach to online shoppers. Key revenue streams include the sale of fresh produce, packaged foods, and a variety of household and personal care items. Sheng Siong also benefits from its private label products, which offer higher margins. The company maintains partnerships with local and international suppliers to ensure a steady supply of quality products. Additionally, factors such as strategic store locations and efficient supply chain management contribute significantly to Sheng Siong's earnings.

Sheng Siong Group Ltd. Financial Statement Overview

Summary
Sheng Siong Group Ltd. demonstrates strong financial performance with consistent revenue growth and healthy profit margins. The balance sheet is solid with low leverage, and cash flow generation is robust. Minor areas for improvement include cost management and cash flow efficiency.
Income Statement
85
Very Positive
Sheng Siong Group Ltd. demonstrates strong financial performance with consistent revenue growth, evidenced by a 1.63% increase in TTM revenue. The company maintains healthy profit margins, with a gross profit margin of 30.83% and a net profit margin of 9.46% in the TTM period. EBIT and EBITDA margins are also robust, indicating efficient operations. However, the slight decline in EBIT and EBITDA margins compared to previous periods suggests potential cost pressures.
Balance Sheet
80
Positive
The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.21, indicating prudent leverage management. The return on equity remains strong at 25.75%, showcasing effective use of equity capital. The equity ratio of 60.45% highlights a stable capital structure. However, the slight increase in debt levels over the periods warrants monitoring.
Cash Flow
78
Positive
Cash flow analysis reveals positive trends, with a 23.1% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 0.75 and free cash flow to net income ratio of 0.91 indicate strong cash generation relative to earnings. While free cash flow growth is commendable, the slight decline in operating cash flow coverage ratio suggests potential areas for improvement in cash flow efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.48B1.43B1.37B1.34B1.37B1.39B
Gross Profit456.01M435.47M410.53M393.50M393.29M381.86M
EBITDA236.91M230.87M219.65M218.41M214.96M217.71M
Net Income139.96M137.52M133.65M133.30M132.83M138.65M
Balance Sheet
Total Assets924.26M935.14M830.19M785.12M739.02M692.06M
Cash, Cash Equivalents and Short-Term Investments367.20M353.36M324.40M275.50M246.64M253.90M
Total Debt114.88M125.62M101.33M95.65M81.69M75.50M
Total Liabilities362.10M396.80M333.21M329.94M322.69M316.96M
Stockholders Equity558.91M534.92M493.77M452.25M413.41M372.39M
Cash Flow
Free Cash Flow192.96M200.80M178.14M158.01M141.01M257.02M
Operating Cash Flow212.35M218.99M188.29M166.81M172.70M274.15M
Investing Cash Flow-56.54M-54.35M-10.05M-4.97M-30.32M-16.12M
Financing Cash Flow-139.09M-136.90M-129.46M-133.48M-149.88M-80.90M

Sheng Siong Group Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.08
Price Trends
50DMA
2.08
Positive
100DMA
1.97
Positive
200DMA
1.79
Positive
Market Momentum
MACD
0.02
Positive
RSI
49.18
Neutral
STOCH
23.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:OV8, the sentiment is Neutral. The current price of 2.08 is below the 20-day moving average (MA) of 2.08, above the 50-day MA of 2.08, and above the 200-day MA of 1.79, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 23.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:OV8.

Sheng Siong Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
S$1.35B36.0317.88%1.20%13.97%-49.60%
76
Outperform
S$3.13B22.3426.05%3.08%6.31%1.31%
71
Outperform
S$509.51M5.307.82%2.74%13.03%35.10%
71
Outperform
S$473.65M13.4512.83%3.68%-4.54%-35.71%
69
Neutral
S$511.99M19.606.95%5.62%-0.51%-25.57%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:OV8
Sheng Siong Group Ltd.
2.08
0.60
40.54%
PEFDF
Delfi
0.53
-0.12
-18.46%
SG:Q01
QAF Ltd.
0.89
0.11
14.10%
SG:Y03
Yeo Hiap Seng Ltd
0.60
0.06
11.11%
SG:5JS
Indofood Agri Resources Ltd.
0.36
0.06
20.00%
SG:F03
Food Empire Holdings Limited
2.49
1.56
167.74%

Sheng Siong Group Ltd. Corporate Events

Sheng Siong Group Ltd. Conducts Fourteenth Annual General Meeting
May 29, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2025