Consumer sector - OCBC Investment 2016-08-25: No sign of pick up from key data

SHENG SIONG GROUP LTD OV8.SI

Consumer sector - No sign of pick up from key data

According to key data released this month that were relevant to Singapore's consumer sector, this included Singapore's Jun retail sales data.
Excluding motor vehicles, Jun retail sales were down 3% YoY. Department stores, supermarkets, F&B were among the sub-sectors that recorded a lower sales performance YoY.

In addition, Nielsen data showed that Singapore's consumer confidence level for 2Q16 remained at 88 points, same as 1Q16, whereby a number below 100 indicates pessimism. Their findings further reveal that consumers have also reduced certain discretionary expenditures, and some may switch to cheaper grocery brands.
Such sentiment is largely reflected by recent findings from another survey, MasterCard Index of Consumer Confidence.
Given the subdued outlook for the local macro environment, we maintain NEUTRAL on the consumer sector.
On our top pick Sheng Siong Group [BUY, S$1.07], we note that the share price rose 6% in the past three trading days, even touching an intraday high of S$1.155 yesterday. Investors can consider taking some profits at current share price levels.

Jodie Foo OCBC Investment | http://www.ocbcresearch.com/ 2016-08-25

OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 1.07 Same 1.07