Sheng Siong Group
Market Cap
S$1.9b
Last Updated
2020/01/18 12:53 UTC
Data Sources
Company Financials +
Executive Summary
Sheng Siong Group Ltd, an investment holding company, operates supermarkets in Singapore.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with proven track record.
Share Price & News
How has Sheng Siong Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: OV8 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0%
OV8
1.7%
SG Consumer Retailing
0.8%
SG Market
1 Year Return
15.5%
OV8
-25.0%
SG Consumer Retailing
2.2%
SG Market
Return vs Industry: OV8 exceeded the SG Consumer Retailing industry which returned -25.8% over the past year.
Return vs Market: OV8 exceeded the SG Market which returned 2.1% over the past year.
Shareholder returns
| OV8 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 1.7% | 0.8% |
| 30 Day | 3.3% | 2.4% | 2.5% |
| 90 Day | 11.4% | 1.5% | 5.3% |
| 1 Year | 19.2%15.5% | -22.6%-25.0% | 6.4%2.2% |
| 3 Year | 50.9%36.6% | -6.0%-13.9% | 17.4%4.8% |
| 5 Year | 116.4%81.4% | -10.8%-22.6% | 12.9%-6.1% |
Price Volatility Vs. Market
How volatile is Sheng Siong Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Is There An Opportunity With Sheng Siong Group Ltd's (SGX:OV8) 27% Undervaluation?3 weeks ago | Simply Wall St
Should You Like Sheng Siong Group Ltd’s (SGX:OV8) High Return On Capital Employed?1 month ago | Simply Wall St
Is Sheng Siong Group Ltd (SGX:OV8) A Smart Choice For Dividend Investors?Valuation
Is Sheng Siong Group undervalued compared to its fair value and its price relative to the market?
26.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OV8 (SGD1.27) is trading below our estimate of fair value (SGD1.73)
Significantly Below Fair Value: OV8 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OV8 is poor value based on its PE Ratio (25.2x) compared to the Consumer Retailing industry average (20.4x).
PE vs Market: OV8 is poor value based on its PE Ratio (25.2x) compared to the SG market (13.5x).
Price to Earnings Growth Ratio
PEG Ratio: OV8 is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: OV8 is overvalued based on its PB Ratio (6.5x) compared to the SG Consumer Retailing industry average (0.8x).
Next Steps
Future Growth
How is Sheng Siong Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
7.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OV8's forecast earnings growth (7.8% per year) is above the savings rate (1.8%).
Earnings vs Market: OV8's earnings (7.8% per year) are forecast to grow faster than the SG market (6.6% per year).
High Growth Earnings: OV8's earnings are forecast to grow, but not significantly.
Revenue vs Market: OV8's revenue (6% per year) is forecast to grow faster than the SG market (5.6% per year).
High Growth Revenue: OV8's revenue (6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OV8's Return on Equity is forecast to be high in 3 years time (25.7%)
Next Steps
Past Performance
How has Sheng Siong Group performed over the past 5 years?
9.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OV8 has high quality earnings.
Growing Profit Margin: OV8's current net profit margins (7.9%) are lower than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: OV8's earnings have grown by 9.2% per year over the past 5 years.
Accelerating Growth: OV8's earnings growth over the past year (8.3%) is below its 5-year average (9.2% per year).
Earnings vs Industry: OV8 earnings growth over the past year (8.3%) exceeded the Consumer Retailing industry 3.4%.
Return on Equity
High ROE: OV8's Return on Equity (25.4%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Sheng Siong Group's financial position?
Financial Position Analysis
Short Term Liabilities: OV8's short term assets (SGD164.4M) exceed its short term liabilities (SGD148.1M).
Long Term Liabilities: OV8's short term assets (SGD164.4M) exceed its long term liabilities (SGD33.7M).
Debt to Equity History and Analysis
Debt Level: OV8 is debt free.
Reducing Debt: OV8 has not had any debt for past 5 years.
Debt Coverage: OV8 has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: OV8 has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: OV8 has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if OV8's debt is covered by short term assets.
Next Steps
Dividend
What is Sheng Siong Group's current dividend yield, its reliability and sustainability?
2.76%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: OV8's dividend (2.76%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).
High Dividend: OV8's dividend (2.76%) is low compared to the top 25% of dividend payers in the SG market (5.41%).
Stability and Growth of Payments
Stable Dividend: OV8 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: OV8's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (69.4%), OV8's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: OV8's dividends in 3 years are forecast to be covered by earnings (69.2% payout ratio).
Next Steps
Management
What is the CEO of Sheng Siong Group's salary, the management and board of directors tenure and is there insider trading?
6.0yrs
Average management tenure
CEO
Hock Chee Lim (57yo)
0yrs
Tenure
S$3,223,000
Compensation
Mr. Hock Chee Lim, BBM, serves as the Chief Executive Officer of Sheng Siong Group Ltd. Mr. Lim is instrumental in CMM Marketing and SS Supermarket Group's growth and has been leading the expansion of its ...
CEO Compensation Analysis
Compensation vs Market: Hock Chee's total compensation ($USD2.39M) is above average for companies of similar size in the SG market ($USD1.50M).
Compensation vs Earnings: Hock Chee's compensation has been consistent with company performance over the past year.
Management Age and Tenure
6.0yrs
Average Tenure
61.5yo
Average Age
Experienced Management: OV8's management team is seasoned and experienced (6 years average tenure).
Board Age and Tenure
8.6yrs
Average Tenure
54yo
Average Age
Experienced Board: OV8's board of directors are considered experienced (8.6 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Executive Officer CEO & Executive Director |
| Shares | 500,000 |
| Max Price | S$1.13 |
| Entity | Company |
| Shares | 1,991,000 |
| Max Price | S$1.06 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Soong Kit Wong (66yo)
Finance Director
Hock Chee Lim (57yo)
CEO & Executive Director
- Compensation: S$3.22m
Hock Leng Lim (54yo)
MD & Executive Director
- Tenure: 9.2yrs
- Compensation: S$3.17m
Hock Eng Lim (59yo)
Executive Chairman
- Tenure: 9.2yrs
- Compensation: S$3.16m
Ling San Tan (80yo)
Vice Chairman
- Tenure: 3.3yrs
- Compensation: S$3.14m
Ah Yi Law (73yo)
Head of Business Development & Promotions
Lay Chin Lee (64yo)
Director and Head of Purchasing & Promotions
Ruiwen Lin (35yo)
Senior Manager of International Business Development & Executive Director
- Tenure: 3.8yrs
- Compensation: S$347.00k
Chee Kit Woo
Acting Chief Information Officer
- Tenure: 2.7yrs
Lim Kent
Senior Manager of Human Resources
Board Members
Robson Lee (51yo)
Non-Executive Director
- Tenure: 8.6yrs
- Compensation: S$60.00k
Voon Hoo Jong (46yo)
Independent Director
- Tenure: 8.6yrs
- Compensation: S$60.00k
Yeow Tin Goh (68yo)
Lead Independent Director
- Compensation: S$60.00k
Francis Lee (53yo)
Independent Director
- Tenure: 8.6yrs
- Compensation: S$60.00k
Hock Chee Lim (57yo)
CEO & Executive Director
- Compensation: S$3.22m
Hock Leng Lim (54yo)
MD & Executive Director
- Tenure: 9.2yrs
- Compensation: S$3.17m
Hock Eng Lim (59yo)
Executive Chairman
- Tenure: 9.2yrs
- Compensation: S$3.16m
Ling San Tan (80yo)
Vice Chairman
- Tenure: 3.3yrs
- Compensation: S$3.14m
Ruiwen Lin (35yo)
Senior Manager of International Business Development & Executive Director
- Tenure: 3.8yrs
- Compensation: S$347.00k
Poh Hong Tan
Independent Director
- Tenure: 2yrs
- Compensation: S$60.00k
Company Information
Sheng Siong Group Ltd's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Sheng Siong Group Ltd
- Ticker: OV8
- Exchange: SGX
- Founded: 1985
- Industry: Food Retail
- Sector: Consumer Retailing
- Market Cap: S$1.909b
- Shares outstanding: 1.50b
- Website: https://www.shengsiong.com.sg
Number of Employees
Location
- Sheng Siong Group Ltd
- 6 Mandai Link
- Singapore
- 728652
- Singapore
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| OV8 | SGX (Singapore Exchange) | Yes | Ordinary Shares | SG | SGD | Aug 2011 |
| QSS | BST (Boerse-Stuttgart) | Yes | Ordinary Shares | DE | EUR | Aug 2011 |
Biography
Sheng Siong Group Ltd, an investment holding company, operates supermarkets in Singapore. The company’s stores offer an assortment of live, fresh, and chilled produce, such as seafood, meat, and vegetables; and packaged, processed, frozen, and/or preserved food products, as well as general merchandise, including toiletries and essential household products. It is also involved in general trading, and wholesale import and export businesses. In addition, the company operates allforyou.sg, an online shopping platform for groceries. It operates 54 supermarket/grocery retail stores in Singapore; and 1 supermarket/grocery retail store in Kunming, China under the Sheng Siong brand name. Sheng Siong Group Ltd. was founded in 1985 and is headquartered in Singapore.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/18 12:53 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.