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1201-1220 of 1600
It may test 80 cents soon
Looking fwd to that
Ray12888 ( Date: 20-Nov-2015 21:49) Posted:
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Sheng Siong share price is slowly coming down.
I think because no more 1000x promotional program on Ch8.
People buy from sheng Siong because of this variety show only.
Sheng Siong layout is messy but apparently that their strategy according to one of my analyst friend.
But apparently with a messy layout, they are able to shine. But at this level, it looks expensive.
Source: http://www.straitstimes.com/business/companies-markets/investor-notes-sheng-siong
SINGAPORE - Walk into any Sheng Siong store during Chinese New Year and the word to describe the sight is probably messy.
Messy because the goods of all kinds are stacked up in piles while a teeming mass of people pick and choose their wares.
Messiness is also a good sign for retailers like Sheng Siong because it is a sign of good business.
The latest financial results also show that the supermarket chain is indeed doing well, with a strong balance sheet to boost.
| Q3 2015 | Q3 2014 | |
|---|---|---|
| Revenue | $199.9 million | $186.3 million |
| Net profit | $14.5 million | $12.2 million |
| Cash and equivalents | $126 million | $130.5 million |
| Borrowings/debt | zero | zero |
| Net asset value | 15.2 cents | 15.2 cents |
1) EARNINGS UP, REVENUES UP, MARGINS UP
Net profit was up nearly 19 per cent to $14.5 million in the three months to Sept 30, compared with the same period last year.
The higher profit came on the back of stronger revenues, which went up 7.3 per cent to nearly $200 million.The company said that this was largely the result of contributions from five new stores.
Net profit margins edged up to 7.2 per cent from 6.5 per cent the previous year.
2) STRONG BALANCE SHEET
The company has zero debt and $126 million in cash sitting pretty in its bank accounts.
The cash alone is worth about 10 per cent of the total market capitalisation of the company, or about 8 cents per share.
Not only that, free cash flow, according to Shareinvestor, was $20.6 million this quarter, a steady improvement over the past few quarters.
In the September to December period for instance, free cash flow then was estimated to be a negative $48 million, before turning positive over the year.
3) COST PRESSURES, UNCERTAIN ECONOMIC OUTLOOK
For companies in the retail business, probably the most important thing to worry about is the performance of the economy. If the economy is humming along, and people get their pay raises and bonuses, goods are likely to be bought.
No difference for Sheng Siong - although some of the impact is mitigated by the fact that it is a supermarket that sells essential goods for the regular household. Even if a recession hit, people will still need to buy food and soap, although they could switch to cheaper brands or buy on discounts.
With the economy likely to plod along - growth is expected to be just between 2 per cent and 2.5 per cent - Sheng Siong is rightly worried.
" Competition in the supermarket industry is expected to remain keen and with the uncertain economic conditions, consumers would continue to be even more cost conscious," said the company.
The second challenge is costs. The supermarket is as much it is about what they sell to consumers as it is a logistics and manpower intensive business.
For logistics, the company has done a lot to streamlining their massive supply chain, by having a central distribution centre at Mandai.
But they are still exposed to fluctuations in the foreign exchange which could hurt them as much of their products are imported from overseas.
The other challenge is manpower, or the lack of it. No surprise then, that the company flagged manpower as an on-going concern.
" The restriction on the hiring of foreign workers is unlikely to be eased and the Group expects pressure on manpower cost to continue," said Sheng Siong
On this front, managing costs will be as important as raising the to p-line if they are to continue producing solid financial reports.
4) EXPANSION PLANS
For a retail chain like Sheng Siong, the key to business is probably expansion. And the key to that is opening more stores.
Currently it has 38 stories and it just signed a lease for a new store at Dawson Road, where there are brand new flats.
Said its chief executive Lim Hock Chee: " Going forward, we will stay focused on expanding our retail network across Singapore, particularly in areas where we do not have a presence while being mindful of the prevailing uncertainties in the business environment. Nurturing the growth of the new stores remains one of our key priorities as well."
But every store that it opens will be a more difficult one, especially in a crowded market in Singapore, with NTUC and Dairy Farm also competing for spots.
The good news is that it will likely to continue paying dividends to its shareholders because its business is relatively stable.
Last year, it gave about 3 cents per share in dividends. This year, in August, it announced an interim dividend of 1.8 cents.
Conclusion: Defensive stock with a strong balance sheet. It explains the solid rise of the stock price, more than doubling in three years since it was listed on the stock exchange.
But the business is likely to reach a plateau if it can' t find new ways to open new stores or squeeze more sales out its current ones.
Thankfully, that point has been reach and there is still space to grow.
Me too. Will buy ard 50cts agn...cos dunno when market will turn up agn...but not soon
Buddha_E ( Date: 23-Aug-2015 22:45) Posted:
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hang on and cancel loan sharing to terminate the shorties. Without scrips to loan out, shorties will have to cover sooner or later.
Call your brokeraeg rep to ask if you have accidentally signed up to loan your shares out to people to short yourself.
Your return is as good as your entry price, and current SS stock price is too high.
Woods30 ( Date: 23-Aug-2015 17:34) Posted:
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I agreed. The bear is in. Even how good a stock is, it spare no quaters when it is a down turn.
I am a strong believer in SS. However, I had let it go at 91 and 90.
I will buy back only when it is around 55 to 65 to hold.
spore1 ( Date: 23-Aug-2015 20:28) Posted:
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I think if whole MKT down this counter may also drop fast to 60 cents then 50 cents
I think if whole MKT down this counter may also drop fast to 60 cents then 50 cents
people still need to eat..in hard times... consumption of basic goods - like food and cheap entertainment ( afforded by phones, tvs) RISE.... luxuries suffer.... so i think all these provision shops may be good
samudra ( Date: 20-Aug-2015 00:01) Posted:
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If market falls big, no one will be spared de
7th month now so naturally sales going up. I just spent $3800 on prayer goodie bags for company.
hapygolucke ( Date: 22-Aug-2015 11:42) Posted:
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Supported by Ah Kong.....even after dividend price goes up....strange
vesfreq ( Date: 22-Aug-2015 11:32) Posted:
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Interestingly, despite the heavy sell down, SSG price maintained at 85 cents though it hit intra day low of 83.5 ct on Friday. Correct me if I am wrong.
Seems like a lot of buyers came in to take up at 84 and 84.5 ct.
Dairy farm not quite similar, though seems like the only one close enough. Dairy farm operates a diverse range of grocery biz, including convenience stores to the more atas premium supermarkets. While Sheng Siong is still more toward your neighbour friendly supermarket. So, quite hard to compare apple to apple. In terms of size and growth potential, both are quite different.
For SSG, expected growth is at least 50 stores from today' s 38 stores and then the China expansion plans. However, Dairy Farm has a mix of different super market biz and locations are generally quite different from SSG' s heartland positioning. Forward PE for both biz will vary significantly, so will be quite hard to compare and still derive meaningful comparison.
Just my views. No doubt Dairy Farm PE is probably the only figure we can use to compare with ssg.
rahhin ( Date: 19-Aug-2015 23:51) Posted:
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Hi Jeremy,
I am also vested. I have been picking up more of the SSG stocks, as people started selling down. Some even sold at 84 cents. Its a great fundamental stock with clear quality future earnings, with no exposure to regulatory risks. Great pick. Congrats to the bros/ sis who entered at 84.5 cents. Market depth showed " bought from sellers" outnumbering " sold to buyers" in a ratio of 3 to 1. Its a heavy buy in, from whoever that is.
Property counters all kena hammered down cos of all the cooling measures and the price is at heavy discount from rnav.
Lets look forward to the 1 buck goal.
jeremylbt ( Date: 20-Aug-2015 09:29) Posted:
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i support SS, every wkend i go there buy veg, fruits, fish heads etc. prices much cheaper than ntuc not fair price. can choose individual tomatoes, potatoes unlike ntuc packed in a big plastic. SS more flexible
This is strong fundamental stock. Any price selldown now is your opportunity to buy. Price quite resistant to the current STI meltdown.
Vested. Long term.