Analysts Ong Khang Chuen and Kenneth Tan believe that Sheng Siong had a slow start to the year, with net profit declining to $31.5 million (-5% q-o-q, -10% y-o-y) in 1QFY2023. “We also believe revenue growth was flattish (-1% y-o-y) during the quarter, with weaker same store sales (high base from 1QFY2022 prior to relaxation of Covid-19 measures) partially offset by an increased store count,” say the analysts.
CGS-CIMB Research is reiterating its “add” recommendation on supermarket operator Sheng Siong (SGX:OV8
) with an unchanged target price of $1.88, as it continues to like Sheng Sion as a defensive play amid the current backdrop of elevated inflation and economic slowdown.
This call is also released just ahead of the group announcing its 1QFY2023 ended March results on Apr 28.
