The supermarket reported earnings of $32.5 million, up 6.6% y-o-y, for the 4QFY2021 ended December, as Sheng Siong’s gross profit margin set another record high.
Analysts are mixed on Sheng Siong Group in lieu of shifts in consumption patterns to focus on “value for money”, following the economic toll caused by Covid-19.
DBS Group Research analyst Woon Bing Yong has maintained his ‘buy’ rating with an increased target price to $1.76 from $1.58, based on Sheng Siong’s pre-Covid P/E multiple of 21.0x, which represents the stock’s pre-Covid average forward P/E. “We expect supermarket sales to gradually normalise in FY2022 as Singapore transitions to “living with Covid-19,” Woon says.
