“Our earnings forecasts remain unchanged, supported by stable growth prospects and a resilient competitive position. We raised our target P/E to 20.9x FY2026 (from 19x) to reflect the premium deserved by Sheng Siong’s superior and sustainable margin profile,” says analyst Chee Zheng Feng.
DBS Group Research is reiterating is “buy” call and raising its target price on Sheng Siong to $2.30 from $2.00 on re-rating on margin superiority and growing investor preference for high quality, defensive names. This comes on the back of the supermarket operator announcing its 1HFY2025 ended June 30 results announcement.
The group reported earnings of $72.35 million, up 3.4% y-o-y. The group’s revenue for 1HFY2025 rose 7.1% y-o-y to $764.7 million, driven by the opening of eleven new stores in the first half of the year and in 2024.
