Sheng Siong Group - OCBC Investment 2017-09-13: Opportunities Exist For New Stores

Sheng Siong Group - OCBC Investment 2017-09-13: Opportunities Exist For New Stores SHENG SIONG GROUP LTD OV8.SI

Sheng Siong Group - Opportunities Exist For New Stores

  • According to the latest provisional results released for HDB commercial store biddings, Sheng Siong Group’s (SSG) bid was the highest for a 288sqm (~3.1k sq ft) store in Edgedale Plains, Punggol. Another ~3.1k sq ft store along Woodlands Drive 73 attracted a couple more bidders and SSG’s bid came in second in place.
  • We reiterate that there are existing opportunities to open new stores both in the public and private sectors, and as of Sep-17, there are another 11 HDB units up for bidding in the next six months, although a few units are close to each other and/or existing SSG stores. 
  • Looking ahead, the 41.5k sq ft Woodlands store is slated to close in Oct, while a new 4k sq ft store at Bukit Panjang as well as a new 12k sq ft store at Woodlands St 12 will open in Sep and Oct respectively. 
  • In addition, we believe management is capable of optimizing revenue per sq ft for their stores, while overall cost management efforts continue to be implemented. 
  • We have a BUY and S$1.04 fair value estimate on the stock.




Jodie Foo OCBC Investment | http://www.ocbcresearch.com/ 2017-09-13
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 1.040 Same 1.040



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