In their Oct 27 note, CGS-CIMB analysts Ong Khang Chuen and Kenneth Tan point out that Sheng Siong managed to increase its gross profit margin by 0.9 percentage points y-o-y to 30.3%, which they believe will help ease concerns over potential margin pressure due to industry competition.
Analysts at PhillipCapital, DBS Group Research and CGS-CIMB Research have trimmed their respective target prices for Sheng Siong Group (SGX:OV8
) , even though they remain upbeat on the business resilience of the supermarket chain.
On Oct 26 Sheng Siong Group, which runs 69 supermarkets here, reported earnings of $35 million for its 3QFY2023 ended Sept, up 6% y-o-y. Revenue in the same period was up 4% y-o-y to $346 million, with growth coming from both higher same-store sales, plus contribution from new outlets.
