While competition has risen in the HDB commercial renting market, with smaller supermarket and minimart chain operators bidding at higher prices of up to $20.65 psf, Cai believes it is unsustainable.
SINGAPORE (Feb 7): Sheng Siong’s share price may have underperformed following news about the stiff competition it faced in the Housing Development Board (HDB) commercial rental market and falling same store sales growth, but RHB Research believes it remains a viable investment among consumer stocks.
RHB’s analyst Juliana Cai notes that the closure of its Woodlands and The Verge outlets could be mitigated by the maturing of its nine outlets opened in 2015, the reopening of its Loyang Point outlet and the expansion of its Tampines Central outlet.
