Mainboard-listed supermarket chain Sheng Siong Group is on track to open its fourth store in China.
Its subsidiary, Sheng Siong (China) Supermarket entered into a lease agreement with Yunnan Tengda Yuntong Real Estate on July 15 for a retail space of approximately 30,772 sq ft in Kunming City, Yunnan Province.
The new store is expected to be operational before the end of 4Q2021. This will bring the group’s store count to 63 in Singapore and four in China.
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Just last month, Sheng Siong made a similar announcement for its third store in China, also located in Kunming City, Yunnan Province.
On June 1, Sheng Siong entered into a lease agreement with Yunnan Yingjun Commercial Operation Management for a retail space of approximately 37,800 sq ft. The new store is expected to be operational before the end of 3Q2021.
Spurred on by strong demand as Singapore hunkered down for last year’s circuit breaker, Sheng Siong shares traded at a 52-week high of $1.86 last August, following the release of its 1HFY2020 results.
Sheng Siong Group posted earnings of $30.8 million for the 1QFY2021 ended March, 7.5% higher than earnings of $28.7 million in the corresponding period the year before.
Despite the higher sales from the Chinese New Year in 2021, the group’s revenue inched up 2.7% y-o-y to $337.5 million, due to the high base in 1QFY2020.
Shares in Sheng Siong closed 1 cent higher, or 0.629% up, at $1.60 on July 21.
