Sheng Siong *Official* (SGX: OV8)

[Swiftyz]

So buy this counter liao can huat?

I'm interested to know as well!

 

[Sinkie]

when rate hike means cost of borrowing increase (i.e. interest expense incurred by a company on the loan will be higher) .. but because SS is debt free... this will not affect its valuation. Thus, there should be only a minor drop in share price.. i think the rate hike will only affect companies with high debt ratio gearing.

Buying SS now!!!!

 

[Wood41]

Managed to find an September ST article :
MBKE reversed gear now

Sheng Siong, in the meantime, may be a recession-proof stock as people buy more house brands when times are bad, Mr Wong said. But its valuation might have run too far ahead, he said.

"I don't know if something is happening, but no matter how defensive (Sheng Siong) is, does it deserve a valuation far richer than the market? I'd say not."

After Sheng Siong reported its second-quarter earnings, Maybank Kim Eng (MKE) issued a report which said even at 20 times earnings, Sheng Siong was not expensive given its yield of more than 4 per cent and superior returns, the broker said.

- See more at: http://business.asiaone.com/news/recession-proof-stocks-soar-doubts-persist#sthash.wdfNDRXD.dpuf

 

[SeVenn]

Jialat, boat like leaving liao

 

[C Justice]

SS faces 2 big formidable big bro enemies: FairPrice & Dairy Farm.
Many analists had recommended SELL 1-2 months
ago when it was $1.0x .

Don't anyhow mislead. Consensus target price of analysts now is still above $1.10.

 

[Wood41]

Perhaps I should say : 2-3 months ago & take profit rather than sell when it shot up earlier.
It is a drop of >14% now as compared with its peak.


SHARES of supermarket chain Sheng Siong Group fell on Thursday following profit taking, with the counter climbing in recent weeks after it posted record margins in its latest results.

The stock was down 2.5 Singapore cents or 2.3 per cent to S$1.055 at 10.46am.

"Investors can consider taking some profits at current share price levels," said an OCBC Investment Research report on Thursday, referring to Sheng Siong's share performance. Shares of Sheng Siong - a top pick for the brokerage - have risen [BUY, S$1.07]6 per cent over the past three trading days.

http://www.businesstimes.com.sg/stocks/hot-stock-sheng-siong-shares-fall-on-profit-taking

 

[ufoate]

just tell ufotae dont assume that the the dip after divvy will 100% rise up again can liao

just tell ufotae dont assume that the the dip after divvy will 100% rise up again can liao

I never said that divy will not drop.. i said that it is unlikey that the company will retract the 4% divy based on historical accounts of 5 FYs. That being said, in the most recent announcement, the board announced an increase in divy would suggest that discussion have taken place privately.

Taking it from another perspective, SS has always either increased or maintain the dividend payout.. think about it... the board could have easily announced a 1.75 cent/share instead of 1.9 cent per share.. so i think it would be logical to assume that the board have taken into consideration that the company should be able to sustain the 1.9 cent/share dividend policy payout. Coz if they were to retract.. their share price would fall like what happened to singpost.

anyway, lets see wat happens to the share price a few months down the road.. i highly doubt it will drop below 0.9

 

[Wood41]

 

[blu_black]

wah why maybank KE so contrarian?

 

[Sinkie]

I never said that divy will not drop.. i said that it is unlikey that the company will retract the 4% divy based on historical accounts of 5 FYs. That being said, in the most recent announcement, the board announced an increase in divy would suggest that discussion have taken place privately.

Taking it from another perspective, SS has always either increased or maintain the dividend payout.. think about it... the board could have easily announced a 1.75 cent/share instead of 1.9 cent per share.. so i think it would be logical to assume that the board have taken into consideration that the company should be able to sustain the 1.9 cent/share dividend policy payout. Coz if they were to retract.. their share price would fall like what happened to singpost.

anyway, lets see wat happens to the share price a few months down the road.. i highly doubt it will drop below 0.9

ss dividend policy is to contribute 90% of its EPS lah..

and this policy is at best effort basis la, they can just decide to announce not to declare so much dividend in view of tough sentiment ahead etc too..

so lower eps, means lower dividend too, not necessary must always declare a dividend that is 4% of your buy price etc

 

[Wood41]

And SS has been dropping despite so many buy
( not bye ) recommendations.

wah why maybank KE so contrarian?

 

[Pocoyoz]

THE VERGE SUPERMARKET – NON-EXTENSION OF LEASE

The Board of Directors of Sheng Siong Group Ltd. (the “Company” and together with its subsidiaries, the “Group”) refers to the Company’s unaudited consolidated financial results for the financial year 2015 that was announced on 23 February 2016. The Company had then announced that news from the local media indicated that there could be a change in the ownership of The Verge where one of our supermarkets (“The Verge Supermarket”) is presently situated.
The Company wishes to announce that it has just received written notice from the new owner of The Verge that the lease of The Verge Supermarket will not be renewed after 30 April 2017, as the new owner will be redeveloping the entire building.
The Verge Supermarket contributed approximately 3.3% to the Company’s unaudited consolidated revenue for the nine-month period ended 30 September 2016. The change in ownership of The Verge is not expected to affect the Group’s financial performance for the financial year ending 31 December 2016.
The Company will make further announcement(s) to keep shareholders updated on the matter.

 

[Dividends Warrior]

THE VERGE SUPERMARKET – NON-EXTENSION OF LEASE

The Board of Directors of Sheng Siong Group Ltd. (the “Company” and together with its subsidiaries, the “Group”) refers to the Company’s unaudited consolidated financial results for the financial year 2015 that was announced on 23 February 2016. The Company had then announced that news from the local media indicated that there could be a change in the ownership of The Verge where one of our supermarkets (“The Verge Supermarket”) is presently situated.
The Company wishes to announce that it has just received written notice from the new owner of The Verge that the lease of The Verge Supermarket will not be renewed after 30 April 2017, as the new owner will be redeveloping the entire building.
The Verge Supermarket contributed approximately 3.3% to the Company’s unaudited consolidated revenue for the nine-month period ended 30 September 2016. The change in ownership of The Verge is not expected to affect the Group’s financial performance for the financial year ending 31 December 2016.
The Company will make further announcement(s) to keep shareholders updated on the matter.

This non-extension plus the closure of the Woodlands outlet and the failure to secure new venues for stores will most definitely mean earnings weakness in 2017. Not to mention the potential competition from Amazon. The only hope is their China expansion could buffer the local challenges.

 

[Wood41]

Many of the analists except MBKE seem to brush the negative news away & called BUY.

 

[SeVenn]

Many of the analists except MBKE seem to brush the negative news away & called BUY.

Has any other analyst released a report yet after the recent news?

 

[strangerjun]

The store at The Verge contribute a sizable amount of revenue at 3.3% considering the company has a total of 43 stores locally. Assuming the revenue all come from the 43 stores, the average revenue contribution from each store is only 2.33%. If consider revenues from other sources, this 3.3% becomes more significant.

Sheng Siong got open new stores if not earnings will drop one.

 

[Slowdown]

Sheng Siong's Junction 9 supermarket is doing quite ok for a new location. Somemore the unit itself is owned by themselves.

 

[Layers]

This non-extension plus the closure of the Woodlands outlet and the failure to secure new venues for stores will most definitely mean earnings weakness in 2017. Not to mention the potential competition from Amazon. The only hope is their China expansion could buffer the local challenges.

Amazon may not be a threat. U ask your parent n grandparents n buy from Amazon?

Aging population note growing w age generation population

Ah bo fairprice also hill be impacted

Sent from Sony E6853 using GAGT

 

[Layers]

The store at The Verge contribute a sizable amount of revenue at 3.3% considering the company has a total of 43 stores locally. Assuming the revenue all come from the 43 stores, the average revenue contribution from each store is only 2.33%. If consider revenues from other sources, this 3.3% becomes more significant.

Sheng Siong got open new stores if not earnings will drop one.

I only know tampines store will be fully expanded n open in 2017

Sent from Sony E6853 using GAGT

 

[SeVenn]

Boat goneeeee ~