Sheng Siong Group Ltd. (OV8) AI Stock Analysis

• Market Cap: S$3.25B
• Dividend Yield: 2.94%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.30
• Revenue Growth: 4.91%
• EPS Growth: 2.31%
• Country: SG
• Employees: 2,500
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Grocery Stores
• EPS (TTM): N/A
• Shares Outstanding: 1,503,537,000
• 10 Day Avg. Volume: 3,461,330
• 30 Day Avg. Volume: 2,987,206
• PEG Ratio: 13.49
• Price to Book (P/B): 5.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.09
• 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$2.13
• Price Target Upside: -1.39% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: S$2.50 ▲(15.74%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

Market Expansion

Sheng Siong Group has the opportunity to bid for up to 3 new supermarket units to open, which could expand its market presence.

Sales Growth

Supermarket industry sales grew 7%, and Sheng Siong outperformed the industry with its sales growth, potentially gaining market share.

Negative Factors

Labor Costs

Higher wages from the progressive wage model will weigh down operating margins.

Operational Costs

Operational costs continue to outpace gross profit growth.

Sheng Siong Group Ltd. Business Overview & Revenue Model

Company Description

Sheng Siong Group Ltd, an investment holding company, operates a chain of supermarket retail stores in Singapore. The company's stores offer an assortment of live, fresh, and chilled produce, such as seafood, meat, fruits, and vegetables; pantry staples, including rice, noodles, oils, spices, and seasonings; packaged, processed, frozen, and/or preserved food products; baby and personal care products; and beverages, wines, beers, and spirits, as well as general merchandise, including toiletries and essential household products. It is also involved in general trading, and wholesale import and export businesses. In addition, the company operates allforyou.sg, an online shopping platform for groceries. It operates 64 stores in Singapore; and four stores in Kunming, China under the Sheng Siong brand name. Sheng Siong Group Ltd. was founded in 1985 and is headquartered in Singapore.

How the Company Makes Money

Sheng 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. presents a strong financial profile with robust revenue growth, high profitability margins, low leverage, and strong cash generation capabilities. The company's healthy financials position it well for stability and growth.

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

Sheng Siong Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 2.16 is above the 20-day moving average (MA) of 2.03, above the 50-day MA of 1.92, and above the 200-day MA of 1.70, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 71.35 is Negative, neither overbought nor oversold. The STOCH value of 57.22 is Neutral, 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$3.25B	22.26	25.33%	2.94%	4.91%	2.31%
F03	77 Outperform	S$1.31B	18.07	17.74%	2.49%	11.26%	-7.30%
Sector *	53 Neutral	C$4.45B	4.00	-20.57%	3.54%	8.21%	2.02%
PEFDF	―	$432.04M	11.53	12.79%	5.15%	―	―
Q01	71 Outperform	S$517.74M	14.93	7.04%	5.56%	1.20%	26.15%
Y03	―	S$385.72M	54.95	1.19%	3.28%	―	―
5JS	72 Outperform	S$523.46M	5.55	7.94%	9.37%	-4.59%	74.87%

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.