SHENG SIONG GROUP LTD
OV8.SI
Sheng Siong Group: Signed a lease for first store in China
- Sheng Siong Group’s (SSG) 1Q16 results came in within our expectations.
- Revenue increased 5.1% YoY to S$208.5m and net profit grew 16.8% to S$16.4m, meeting 26% and 31% of our full year estimates.
- As the group recorded a relatively higher amount of government grants at S$2.3m this quarter, stripping out ‘other income’, results remain well within expectations.
- Revenue was driven by new store growth of 5.6%, but saw a slight 0.5% contraction in comparable same store sales growth due to slower Chinese New Year and other factors cited in the previous quarter.
- Separately, the subsidiary in Kunming China has signed a lease for their first supermarket at an approximate size of 54k sq ft, and is slated to open in 4Q16.
- Pending more information from the analyst briefing later, we maintain BUY with fair value estimate of S$0.95.
Jodie Foo
OCBC Securities
|
http://www.ocbcresearch.com/
2016-04-28
OCBC Securities
SGX Stock
Analyst Report
0.95
Same
0.95
