He adds that the sector’s valuation at 13 times to 16 times FY2024 P/E is “compelling”. Overall, the sector has a dividend yield of 4%, which Yeo deems as attractive.
RHB Bank Singapore’s analyst Alfie Yeo has maintained his “overweight” rating on Singapore grocery retailers as he anticipates a sustained growth in earnings and a continued upward trend in consumption in 2024.
“The sector remains resilient, in our view, as [its] core earnings performance continues to hold up,” Yeo writes in his sector report dated March 26.
