Gross profit rose 9% y-o-y but declined 7% q-o-q with margins up 50 basis points (bps) y-o-y. Operating profits rose only 2% Y-o-y and declined 12% q-o-q, partially offsetting gross profit improvement. This mainly stemmed from higher staff and depreciation costs which to an extent was linked to new store openings. Net profit edged up just 1% y-o-y and declined 12% y-o-y mainly owing to higher staff and depreciation and amortisation costs.
Maybank Research is reiterating its “buy” call and $2.30 target price on Sheng Siong, while it awaits more information from the group’s analyst briefing. This comes on the back of the group announcing its 1HFY2025 ended June 30 results.
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.
