Sheng Siong Group - OCBC Investment 2016-06-28: A defensive stock

Sheng Siong Group - OCBC Investment 2016-06-28: A defensive stock 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 | http://www.ocbcresearch.com/ 2016-06-28
OCBC Securities SGX Stock Analyst Report BUY Maintain BUY 0.95 Same 0.95


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