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1401-1420 of 1600
wow.. +2.3%
Since Sheng Shiong has setup online sales
Would it be feasible to explore partnership with Alibaba
as similar to SingPost.
Sheng Shiong Online + Alibaba = Synergy ?
Probably both can win
each target different market segment
Cold Storage target upper income group
Sheng Shiong target mid to lower income group
Both have connections and strong financial backing.
lynn89 ( Date: 12-Jun-2014 15:49) Posted:
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Sheng Siong vs Cold Storage Group in the supermarket war. Just wondering who will win the war in the end?
Supermarket chain Sheng Siong to set up a new outlet at Tampines Central, to be opened in the first quarter of 2015.
SINGAPORE: Supermarket group Sheng Siong intends to purchase a three-storey Housing and Development Board (HDB) commercial property in Tampines Central for S$65 million, it said in a statement on Monday (June 9).
Sheng Siong said it has paid an option fee of S$650,000 for the 3,876 square metre leasehold property to the vendor, S-11 Wan Jin Investment. The property is near Tampines MRT station.
The proposed acquisition will allow the group to establish a presence in Tampines, one of Singapore' s largest residential districts.
Sheng Siong said it plans to open a new outlet of around 910 square metres at the Tampines property in the first quarter of 2015. The outlet will be incrementally enlarged in tandem with the scheduled expiry of various tenancies in 2016 and 2017.
Sheng Siong, which is one of Singapore' s largest supermarket operators, reported a 19.3 per cent year-on-year increase in net profit to S$12.5 million for the three months ended March, as higher turnover and improved gross margins offset higher costs.
- CNA/ly
SOURCE: http://www.channelnewsasia.com/news/singapore/sheng-siong-to-buy/1142756.html?cid=FBSG
Finally moving up?
+1.6%
Cash flow generated from operating activities before working capital changes for the 1Q2014 was S$17.7 million compared with S$14.8 million in 1Q2013, which was in line with the higher operating profits. The net cash used in funding working capital changes in 1Q2014 of S$4.9 million, was lower than the S$8.8 million in 1Q2013 as in the previous quarter, trade and other payables were affected by the change in the timing of bonus payment. There were no significant movements in investing cash flows during the quarter.
The Group&rsquo s balance sheet remained strong with net cash of S$111.8 million as at 30 March 2014.
Sheng Siong can merge with NTUC Fairprice, more economy of scale.
Giant take over of Sheng Siong would be interesting.
I prefer to shop in Giant, the goods are cheaper, more choices and fresh too.
If you like groundnut, go for Hand Brand (Malaysia) which has been in the market for more than 35 years.
Juzztrade ( Date: 03-May-2014 19:03) Posted:
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Just curious that they are selling for a while and it is no more display on the shelves.
hlfoo2010 ( Date: 03-May-2014 18:41) Posted:
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I maybe wrong, I tell my kids avoid eat Vietnam foods, Y, ask your grand pa to get the ans .
Anyone bought Hand Brand Ground Nut (product of Vietnam) At one time there was an offer, buy one & get one free.
Just curious, anyone bought and like to provide some feedback nuts qualtity as compared with others in the market.
Thanks
During Sheng Siong Group&rsquo s (SSG) 1Q14 results briefing, management shared updates on growth strategies and business operations. Measures to grow bottom line are: 1) renovation of three stores in FY14, and 2) actively increasing the proportion of goods sold from direct sourcing (currently 55%), which will translate into improved GP margins that are sustainable. In SSG&rsquo s usual fashion of prudence, management updated it is in talks for new stores, but would not hesitate to walk away if the price is deemed too high. Finally, the pilot phase in e-commerce has expanded to other areas with a larger base of customers. We think that if this is executed well it will make up for the challenges in opening new stores. Maintain BUY with fair value estimate of S$0.68.
Measures to grow bottom line
During Sheng Siong Group&rsquo s (SSG) 1Q14 results briefing, management shared that three stores are slated for renovations in FY14. We view this positively as it shows SSG is constantly reviewing its operations for opportunities to improve growth. Additionally, SSG is actively increasing the proportion of goods sold from direct sourcing, which will translate into improved GP margins that are sustainable. As cost of goods sold (COGS) makes up the bulk of operating cost (82.1% in 1Q14), GP margin improvement will impact profits significantly. Direct sourcing made up 55% of sales in 1Q14 (vs 50% 1Q13), which we think there is ample room for increment.
Maintains cost discipline with new store opening
Management guided that it is in talks for new stores, but would not hesitate to walk away if the price is deemed too high. We like the prudence and discipline displayed in running their business - despite the dearth of new stores in FY13, management has not succumbed to pressure to open new stores at the expense of profitability.
Strategies beyond physical stores in Singapore
The pilot phase in e-commerce has expanded to other areas with a larger base of customers, of which most are recurring. We think that if this is executed well it will make up for the challenges in opening new stores. However, we note that it will require a shift in local shopping habits. In addition, management mentioned they are still looking for a partner to operate in Malaysia.
Maintain BUY but investment risks lurk
We maintain BUY with S$0.68 fair value estimate on the stock. Nevertheless, we think there are two key risks to SSG&rsquo s operations. First, if price competition heats up, SSG will not be able to pass on food inflation. However, with a tight labour market that hinders hiring of new staff at current wages to handle higher volume, we think price competition is deterred. Second, structural changes in the retail property market might continue the drought of new stores opening, thus limiting future growth.
Source: iOCBC Securities
Sheng Siong (AD, TP:S$0.75) - Squeezing blood from stone
Target S$0.75 (Stock Rating: ADD)
Sheng Siong delivered an above-expectation 1Q14, even as 1Q is seasonally the strong quarter. 1Q14 net profit of S$12.5m (+19% yoy) was a positive surprise there was no store growth in 2013. The earnings growth came from: 1) eking out 5.7% yoy sales growth by refurbishing underperforming stalls, 2) turning the bulk of stores to a 24-hour schedule, and 3) lifting gross margins to a high of 23.8% via pushing out cost increases. 1Q14 made up 31% of our full-year forecast vs. 27% on average in the past. We hike our EPS by 11% and raise target price to S$0.75 (unchanged 22x CY15 P/E). While a catalyst is good execution this year, the harder task is to find growth in 2015. Maintain Add.
On the bright side
Since 2013, the Singapore supermarket scene has seen a lack in price competition as all players have been housekeeping to cope with rising rental and manpower costs. Competitors NTUC and Dairy Farm all had minimum store growth. Food cost inflation was also easily passed on as NTUC and Dairy Farm refrained from undercutting and passed out the costs to consumers.
Squeezing blood from stone
With no store growth over 2013, we were surprised that SSG managed 5.7% sales growth in 1Q. SSG attributed 1/3 of the sales growth to gestation gains from 2012' s new stores and 2/3 to 1) efforts to refurbish/refine processes of 5-6 underperforming stores, and 2) turning 29 out of 33 stores into 24-hour stores (vs. 1 in 2013). Excluding two stores hurt by temporary construction activities, same-store-sales growth was 3.9% yoy. Management has identified three more stores for improvements. 2014 is looking like a year to eke out maximum efficiency gains when prospects for store growth look dim. An all-time high 1Q gross margin (23.8%) was partly inflated by the timing of supplier rebates in 4Q13 spilling into 1Q but normalised 2014 GP margin guidance of 23.6% is still better than the past and reflects efficiency gains and the shift to 24-hour stores.
It' s still about store growth
The main catalyst for the stock remains when it can find cheap rents. SSG guided that a competitor may be shifting out of some locations in 2014. SSG has been approached by landlords to fill the space but asking rents are still 20-25% above what it can accept, so new stores might not come about quite yet.
Source: CIMB Daybreak
Sheng Siong - A defensive retail story Initiate with Overweight
- Initiate coverage on Sheng Siong Group with Overweight rating and Dec14 price target of S$0.76. Our PT is based on 20x 2015E P/E, in-line with Sheng Siong' s (SSG' s) historic trading average and supported by our DCF valuation.
- Organized grocery retail market in Singapore getting consolidated among top 3 players. Market for grocery retiling in Singapore is expected to grow at 4.9% earnings CAGR over 2013-18 to US$7.6B. The industry is dominated by top 3 players that have continued to increase market share. Combined market share of NTUC Fair Price, Cold Storage and Sheng Siong has risen from 49.6% in 2008 to 55.8% in 2013. We view the ongoing consolidation positively for SSG and expect this to drive an improvement in pricing power and better margins through sourcing efficiency from scale.
- Sheng Siong is a defensive business with a strong return profile Sheng Siong caters to the mass market segment and its stores are located in residential areas in the catchment of HDB complexes. We believe SSG' s mass market positioning lends defensiveness to its business. SSG has continued to deliver steady sales through the economic cycles in Singapore and has gained market share of grocery retailing over the past 5 years. SSG has a solid cash generation profile, with negative cash conversion cycle and generates ROE significantly ahead of most ASEAN peers.
- Product mix change bodes well for margins SSG currently generates 40% of its revenues from fresh food, which management is targeting to increase to 50% over the next few years. Fresh foods have gross margins of 36% v/s 17% for grocery - product mix shift should help drive gross margin expansion, which should cushion near-term wage pressures.
- Key risks Inability to execute on expansion plans driving delays in store openings and sustained tightness in the labor market impacting margins. (Read Report)
Sheng Siong: Plans ahead
- More renovations and direct sourcing
- Cost discipline in new store opening
- Strategies beyond local physical stores
Measures to grow bottom line
During Sheng Siong Group' s (SSG) 1Q14 results briefing, management shared that three stores are slated for renovations in FY14. We view this positively as it shows SSG is constantly reviewing its operations for opportunities to improve growth.
Additionally, SSG is actively increasing the proportion of goods sold from direct sourcing, which will translate into improved GP margins that are sustainable. As total cost of goods sold (COGS) makes up the bulk of operating cost (82.1% in 1Q14), GP margin improvement will impact profits significantly. Direct sourcing makes up 55% of sales made in 1Q14 (vs 50% 1Q13), which we think there is ample room for further increment.
Maintains cost discipline with new store opening
Management guided that it is in talks for new stores, but would not hesitate to walk away if the price is deemed too high. We like the prudence and discipline displayed in running their business - despite the dearth of new stores in FY13, management has not succumbed to pressure to open new stores at the expense of profitability.
Strategies beyond physical stores in Singapore
The pilot phase in e-commerce has expanded to other areas with a larger base of customers, of which most are recurring. We think that if this is executed well it will make up for the challenges in opening new stores. However, we note that it will require a shift in local shopping habits. In addition, management mentioned they are still looking for a partner to operate in Malaysia.
Maintain BUY but investment risks lurk
We maintain BUY with S$0.68 fair value estimate on the stock. Nevertheless, we think there are two key risks to SSG' s operations. First, if price competition heats up, SSG will not be able to pass on food inflation. However, with a tight labour market that hinders hiring of new staff at current wages to handle higher volume, we think price competition is deterred. Second, structural changes in the retail property market might continue the drought of new stores opening, thus limiting future growth.
Source: OCBC Research - 28 Apr 2014 ...last:$0.625...
Sheng Siong: Margin improvement drives 1Q14 results
- 1Q14 results in-line
- Better GP margin as results' key driver
- Downside in share price limited
1Q14 results within expectations
Sheng Siong Group' s 1Q14 revenue increased by 5.7% YoY to S$190m, forming 26.3% of our FY14 forecast. This is within expectations as 1Q results are typically stronger due to Chinese New Year. 2.7% of the revenue increase was contributed by eight new stores which opened in 2012, with the remaining 3.0% from comparable same store sales growth the latter due to longer operating hours for most stores and marketing initiatives. As a result of better gross profit (GP) margin, 1Q14 operating profit increased proportionally higher by 20.7% to S$12.5m (vs. 5.7% YoY increase in revenue), forming 29.0% of our FY14 forecast.
Margins as key driver this quarter
GP margin improved by from 22.5% in 1Q13 to 23.8% in 1Q14. Despite the seemingly small percentage increase, we identify this as the key driver for the significant YoY increase in operating profit as COGS made up 82.1% of operating costs in the quarter. The better GP margin is due to lower input costs derived from the distribution centre, higher selling prices and rebates received from suppliers in direct sourcing. On the other hand, administrative expenses were lower than expected, making up 15.8% of revenue in 1Q14 compared with an average of 16.2% for FY13. We had expected it to creep upwards as a percentage of revenue on the back of a tight labour market, but this is more than compensated for by tight cost control this quarter.
Share price' s downside limited maintain BUY
We see limited downside at the last closing price of S$0.60 for the following reasons: 1) FY14F dividend yield at 4.8% is expected to lend strong support, 2) bottom line will continue to be boosted by margin improvements through better sales mix, higher warehouse utilisation and direct sourcing, and 3) the group has a healthy balance sheet with net cash of S$109m, making up 13% of market capitalisation. Maintain BUY with fair value estimate of S$0.68.
Source: OCBC Research ...last:$0.615...