SHENG SIONG GROUP LTD
OV8.SI
Sheng Siong Group: A defensive stock
- In view of the near-term volatility and longer term potential repercussions from Brexit, we highlight Sheng Siong Group as our preferred pick in the consumer sector.
- We recommend the stock due to several reasons. It is relatively defensive as a consumer staples company, and with its current earnings solely exposed to Singapore, there should not be material immediate implications.
- While SSG’s first store in China is slated to open around 4Q16, we do not expect significant changes to its earnings profile in the near term.
- We believe the stock still retains stability in its market share and margins, and with a ~4% dividend yield, we reiterate our BUY rating, with fair value estimate of S$0.95 unchanged.
Jodie Foo
OCBC Securities
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http://www.ocbcresearch.com/
2016-06-28
OCBC Securities
SGX Stock
Analyst Report
0.95
Same
0.95
