Sheng Siong Group Ltd. (OV8) AI Stock Analysis

• Market Cap: S$3.05B
• Dividend Yield: 3.15%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.30
• Revenue Growth: 6.31%
• EPS Growth: 1.31%
• Country: SG
• Employees: 2,500
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Grocery Stores
• EPS (TTM): 0.02
• Shares Outstanding: 1,503,537,000
• 10 Day Avg. Volume: 1,571,710
• 30 Day Avg. Volume: 2,571,923
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$2.27
• Price Target Upside: 11.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: S$2.50 ▲(23.15% 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

Earnings Growth

Earnings growth supported by network expansion and SG60 voucher boost. With six new stores opening in FY24 and ten more in FY25F, this network expansion will drive both revenue and margins over the next 2–3 years.

Market Share

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

Operational Efficiency

Sheng Siong has maintained stable margins in 1Q25, reflecting good cost control and gross margin improvement through better economies of scale and procurement efficiencies.

Negative Factors

Cost Challenges

Operational costs continue to outpace gross profit growth.

Operating Margins

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

Wage Inflation

Wage inflation remains the most significant cost challenge due to the tight labour market, especially for locals.

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. 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.48B	1.43B	1.37B	1.34B	1.37B	1.39B
Gross Profit	456.01M	435.47M	410.53M	393.50M	393.29M	381.86M
EBITDA	236.91M	230.87M	219.65M	218.41M	214.96M	217.71M
Net Income	139.96M	137.52M	133.65M	133.30M	132.83M	138.65M
Balance Sheet
Total Assets	924.26M	935.14M	830.19M	785.12M	739.02M	692.06M
Cash, Cash Equivalents and Short-Term Investments	367.20M	353.36M	324.40M	275.50M	246.64M	253.90M
Total Debt	114.88M	125.62M	101.33M	95.65M	81.69M	75.50M
Total Liabilities	362.10M	396.80M	333.21M	329.94M	322.69M	316.96M
Stockholders Equity	558.91M	534.92M	493.77M	452.25M	413.41M	372.39M
Cash Flow
Free Cash Flow	192.96M	200.80M	178.14M	158.01M	141.01M	257.02M
Operating Cash Flow	212.35M	218.99M	188.29M	166.81M	172.70M	274.15M
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 Price: 2.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.03 is below the 20-day moving average (MA) of 2.05, below the 50-day MA of 2.04, and above the 200-day MA of 1.75, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
F03	77 Outperform	S$1.28B	34.30	9.42%	1.27%	13.97%	-49.60%
OV8	76 Outperform	S$3.05B	21.80	26.05%	3.15%	6.31%	1.31%
Sector *	63 Neutral	$20.52B	14.79	-2.72%	3.09%	1.95%	-4.74%
PEFDF	―	$361.41M	12.24	10.03%	3.75%	―	―
Q01	69 Neutral	S$517.74M	19.82	5.51%	5.52%	-0.51%	-25.57%
Y03	―	S$376.31M	71.43	0.94%	―	―	―
5JS	72 Outperform	S$495.55M	5.15	8.46%	2.78%	13.03%	35.10%

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.