While he admits that the group offers “unexciting growth”, the analyst believes the defensive nature of its business model translates to stable cash flow – which he deems crucial amid the uncertain global economic outlook.
SINGAPORE (June 28): OCBC is maintaining its “buy” call on Sheng Siong Group with an unchanged fair value estimate of $1.12, highlighting it as a defensive business in times of volatility given ongoing trade tensions between US and China as well as Europe.
In a Thursday report, lead analyst Eugene Chua says he continues to like Sheng Siong for its resilient business model, supported by strong cash flow generation and solid balance sheet.
