Sheng Siong Group - OCBC Investment 2015-10-23: Earnings continue to grow

Sheng Siong Group - OCBC Investment 2015-10-23: Earnings continue to grow SHENG SIONG GROUP LTD OV8.SI 

Sheng Siong Group: Earnings continue to grow 

  • Sheng Siong Group's (SSG) 3Q15 results met our expectations, as revenue grew 7.3% YoY to ~S$200m, making up 25.9% of our FY15 forecast. 
  • Net profit also increased 18.7% to S$14.5m, constituting 26.8% of FY15F. 
  • The group's new stores contributed 6.2% to its revenue growth, while 1.1% came from old stores. 
  • SSG managed to keep its gross profit margin steady at 24.3% vs. 24.2% in 3Q14, while on a quarterly basis, this was lower than the 25.2% seen in 2Q15 due to seasonality effect, slightly lower selling prices and higher input prices. 
  • We like that another lease was signed with HDB for a new store of ~4.3k sq ft at Dawson Road, Singapore, which is expected to be operational in Nov-15. 
  • The group's balance sheet remained healthy with net cash of S$126m. 
  • Maintain BUY with fair value estimate of S$0.95.


Jodie Foo OCBC Securities | http://www.ocbcresearch.com/ 2015-10-23
OCBC Securities SGX Stock Analyst Report BUY Maintain BUY 0.95 Same 0.95


Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......