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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)

Rating:80Outperform
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. (OV8) vs. iShares MSCI Singapore ETF (EWS)

Sheng Siong Group Ltd. Business Overview & Revenue Model

Company DescriptionSheng 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 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. 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
88
Very Positive
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
85
Very Positive
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
90
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.43B1.37B1.34B1.37B1.39B
Gross Profit435.47M410.53M393.50M393.29M381.86M
EBITDA230.87M219.65M218.41M214.96M217.71M
Net Income137.52M133.65M133.30M132.83M138.65M
Balance Sheet
Total Assets935.14M830.19M785.12M739.02M692.06M
Cash, Cash Equivalents and Short-Term Investments353.36M324.40M275.50M246.64M253.90M
Total Debt125.62M101.33M95.65M81.69M75.50M
Total Liabilities396.80M333.21M329.94M322.69M316.96M
Stockholders Equity534.92M493.77M452.25M413.41M372.39M
Cash Flow
Free Cash Flow200.80M178.14M158.01M141.01M257.02M
Operating Cash Flow218.99M188.29M166.81M172.70M274.15M
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 Price2.16
Price Trends
50DMA
1.92
Positive
100DMA
1.79
Positive
200DMA
1.70
Positive
Market Momentum
MACD
0.06
Negative
RSI
71.35
Negative
STOCH
57.22
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

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
S$3.25B22.2625.33%2.94%4.91%2.31%
77
Outperform
S$1.31B18.0717.74%2.49%11.26%-7.30%
53
Neutral
C$4.45B4.00-20.57%3.54%8.21%2.02%
$432.04M11.5312.79%5.15%
71
Outperform
S$517.74M14.937.04%5.56%1.20%26.15%
S$385.72M54.951.19%3.28%
72
Outperform
S$523.46M5.557.94%9.37%-4.59%74.87%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:OV8
Sheng Siong Group Ltd.
2.14
0.70
48.61%
PEFDF
Delfi
0.64
0.05
8.47%
SG:Q01
QAF Ltd.
0.90
0.13
16.88%
SG:Y03
Yeo Hiap Seng Ltd
0.62
0.10
19.23%
SG:5JS
Indofood Agri Resources Ltd.
0.35
0.07
25.00%
SG:F03
Food Empire Holdings Limited
2.45
1.49
155.21%

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: Jul 04, 2025