SGX:OV8

Stock Analysis Report

Executive Summary

Sheng Siong Group Ltd, an investment holding company, operates supermarkets in Singapore.

Snowflake

Fundamentals

Flawless balance sheet with acceptable 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


Market Performance


7 Day Return

3.6%

OV8

-1.9%

SG Consumer Retailing

0.2%

SG Market


1 Year Return

8.4%

OV8

-21.6%

SG Consumer Retailing

1.4%

SG Market

Return vs Industry: OV8 exceeded the SG Consumer Retailing industry which returned -21.6% over the past year.

Return vs Market: OV8 exceeded the SG Market which returned 1.4% over the past year.


Shareholder returns

OV8IndustryMarket
7 Day3.6%-1.9%0.2%
30 Day-2.5%-11.0%-2.6%
90 Day5.5%-14.8%-7.0%
1 Year11.9%8.4%-19.1%-21.6%5.5%1.4%
3 Year18.1%6.9%-7.3%-15.1%15.1%2.8%
5 Year117.9%82.7%-15.4%-27.2%10.9%-7.5%

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

Valuation

Is Sheng Siong Group undervalued compared to its fair value and its price relative to the market?

21.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: OV8 (SGD1.16) is trading below our estimate of fair value (SGD1.48)

Significantly Undervalued: OV8 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OV8 is poor value based on its PE Ratio (23.8x) compared to the Consumer Retailing industry average (21.3x).

PE vs Market: OV8 is poor value based on its PE Ratio (23.8x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: OV8 is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: OV8 is overvalued based on its PB Ratio (5.8x) 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 9 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OV8's forecast earnings growth (6.8% per year) is above the savings rate (2.3%).

Earnings vs Market: OV8's earnings (6.8% per year) are forecast to grow faster than the SG market (5.7% per year).

High Growth Earnings: OV8's earnings are forecast to grow, but not significantly.

Revenue vs Market: OV8's revenue (4.6% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: OV8's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: OV8's Return on Equity is forecast to be high in 3 years time (25.1%)


Next Steps

Past Performance

How has Sheng Siong Group performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OV8's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: OV8's earnings growth over the past year (1.7%) is below its 5-year average (9.9% per year).

Earnings vs Industry: OV8 earnings growth over the past year (1.7%) underperformed the Consumer Retailing industry 6.2%.


Return on Equity

High ROE: OV8's Return on Equity (24%) is considered high.


Return on Assets

ROA vs Industry: OV8 has a higher Return on Assets than the Consumer Retailing industry average last year.


Return on Capital Employed

ROCE Improving: OV8's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sheng Siong Group's financial position?


Financial Position Analysis

Short Term Liabilities: OV8's short term assets (SGD170.1M) exceeds its short term liabilities (SGD153.5M)

Long Term Liabilities: OV8's short term assets (170.1M) exceeds its long term liabilities (32.6M)


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?

3.02%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.5%markettop25%5.6%industryaverage1.9%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OV8's dividend (3.02%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: OV8's dividend (3.02%) is low compared to the top 25% of dividend payers in the SG market (5.58%).

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 (71.9%), 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 (70.8% 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?

5.8yrs

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 ($USD2.35M) is about average for companies of similar size in the SG market ($USD1.44M).

Compensation vs Earnings: Hock Chee's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.8yrs

Average Tenure

61.5yo

Average Age

Experienced Management: OV8's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

54yo

Average Age

Experienced Board: OV8's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

Insider Buying: OV8 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$562,98402 Oct 19
Hock Chee Lim
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares500,000
Max PriceS$1.13
BuyS$2,108,46721 May 19
Mondrian Investment Partners Limited
EntityCompany
Shares1,991,000
Max PriceS$1.06

Ownership Breakdown


Management Team

  • Soong Kit Wong (66yo)

    Finance Director

    • Tenure: 0yrs
  • Hock Chee Lim (57yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: S$3.22m
  • Hock Leng Lim (54yo)

    MD & Executive Director

    • Tenure: 8.9yrs
    • Compensation: S$3.17m
  • Hock Eng Lim (59yo)

    Executive Chairman

    • Tenure: 8.9yrs
    • Compensation: S$3.16m
  • Ling San Tan (80yo)

    Vice Chairman

    • Tenure: 3yrs
    • Compensation: S$3.14m
  • Ah Yi Law (73yo)

    Head of Business Development & Promotions

    • Tenure: 0yrs
  • Lay Chin Lee (64yo)

    Director and Head of Purchasing & Promotions

    • Tenure: 0yrs
  • Ruiwen Lin (35yo)

    Senior Manager of International Business Development & Executive Director

    • Tenure: 3.5yrs
    • Compensation: S$347.00k
  • Chee Kit Woo

    Acting Chief Information Officer

    • Tenure: 2.4yrs
  • Lim Kent

    Senior Manager of Human Resources

    • Tenure: 0yrs

Board Members

  • Robson Lee (51yo)

    Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: S$60.00k
  • Voon Hoo Jong (46yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: S$60.00k
  • Yeow Tin Goh (68yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: S$60.00k
  • Francis Lee (53yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: S$60.00k
  • Hock Chee Lim (57yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: S$3.22m
  • Hock Leng Lim (54yo)

    MD & Executive Director

    • Tenure: 8.9yrs
    • Compensation: S$3.17m
  • Hock Eng Lim (59yo)

    Executive Chairman

    • Tenure: 8.9yrs
    • Compensation: S$3.16m
  • Ling San Tan (80yo)

    Vice Chairman

    • Tenure: 3yrs
    • Compensation: S$3.14m
  • Ruiwen Lin (35yo)

    Senior Manager of International Business Development & Executive Director

    • Tenure: 3.5yrs
    • Compensation: S$347.00k
  • Poh Hong Tan

    Independent Director

    • Tenure: 1.8yrs
    • 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$1.744b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OV8SGX (Singapore Exchange)YesOrdinary SharesSGSGDAug 2011
QSSBST (Boerse-Stuttgart)YesOrdinary SharesDEEURAug 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:55
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.