With growing interest, Sheng Siong shares have gained over 60% year to date, valuing the company at around 28 times historical earnings, nearly double the market’s average. This, from Yon’s perspective, suggests that valuations in Singapore remain “very cheap” compared to the US, even with the government’s market-boosting measures under the Equity Market Development Programme (EQDP).
While global investors often look to the US market for growth and capital gains, Singaporean investors shouldn’t be too quick to overlook opportunities at home. With attractive valuations and the advantage of on-the-ground knowledge, there are meaningful opportunities for those who know where to look.
For Lim & Tan Securities analyst Nicholas Yon, an example is Mainboard-listed Sheng Siong Group. Investors can assess the supermarket operator’s business simply by visiting its stores, observing footfall and tracking its expansion plans, insights that would give Singaporean investors an edge over investing in the NYSE-listed American supermarket chain, Walmart.
